A positive attitude toward free enterprise, together with the fact that the US dollar is legal tender in Panama, has led to an increase in foreign investments.
Moreover, the development of institutions and instruments to regulate business activities in Panama has been consistent with its trade and service oriented economy, which is closely connected to the international market and geared to using Panama’s geographic position.
There are very few limitations on foreign investments as well, especially for international business operations based in Panama. To attract foreign investment into Panama, the government has developed the necessary institutional and infrastructure facilities, efficient public administrative machinery, extremely favorable and flexible policy guidelines, and attractive fiscal and non-fiscal incentives.
Historically, the policies of the Panamanian government toward foreign investment have been so open that there has never been any need for a formal statement of policy in this subject. Legislation hardly establishes any differences in treatment between nationals and foreigners. Similarly, all foreign investors regardless of their country origin are treated equally.