United States dollars are in practice the currency of the country. Officially Panama´s currency is the Balboa which exists in coinage form only, similar size to U.S. coinage. Another asset is the geographical position, where world trade routes converge.

Panama has many advantages for businesses of all types:

• Panama’s strategic location
• The Panama Canal: That venerable waterway since 1524 was ordered a survey of the canal by Spain´s king Carlos V. In 1880, the French started the canal but financial problems forced to give up the project. The U.S.A. purchased the French Canal Company properties and began to dig. On August 15th, 1914 the U.S. cargo ship “Ancon” made the first transit.
• Colon Free Zone: Investment opportunity on international trade and services.
• Financial International Center: The banking scene make Panama an ideal place to conduct business. The government of Panama offers many incentives for foreign businesses to come to Panama. Law 8 for example allows a twenty-year tax break for tourism related business.
• Health Tourism: Panama has a solid reputation abroad for quality of medical services. Treatments and procedures cost much less in Panama. Technologies and medications used are the same as in the U.S.A. or Europe.

Panamanian Law No. 25 of 1992 established a system for the creation and operation of Export Processing Zones and offers manufacturers who locate in such zones fiscal advantages including no direct or indirect income taxes, no import tariffs on purchase of equipment or raw materials and no taxes on the repatriation of profits. Law No. 25 also makes provision for non-Panamanian individuals hired as experts, managers, operators, technicians and promoters by a company operating in Cocoli Free Processing Zone to apply for and receive temporary Panamanian residency Visas. The Visas will also be available for the spouses and children of such persons. For more information visit - http://visitpanama.com/engl/index.asp

Other Export Processing Zones are located at: Fort Corozal, Fort Davis and Ojo de Agua.