Panama – Building a global workforce

Panama has a population of 3.6 mio and 44.7% of them are age of 24 and younger. (USA 33.1)

 

PM_popgraph 2014

This makes for a perfect population pyramid, as shown. Life expectancy is 78 years. (USA 79.5)

Despite the USA’s unemployment rate of 7.3%, Panama has 4.6% what in reality means a lack of qualified workforce. Therefore the immigration rules have become much easier through the last years and is now kind of inviting for 44 so-called friendly connected nations. (Source)

Bringing these relaxed immigration rules into a mix with Panama’s tropical lifestyle, excellent business environment and investment opportunities,  it is easy to attract talent from everywhere to staff hightech businesses with global reach. And this way to offer many opportunities for young Panamanians too.

 

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canal_entrance_bridge

 

This picture shows the Pacific entrance of the Panama Canal with the Bridge of the Americas, kind of connecting North and South America, crossing the Panama Canal, which connects Atlantic and Pacific.

There is a marina on the left, where ferries and yachts are leaving to and arriving from the numerous islands in the Gulf of Panama, a general aviation airport is 10 minutes away by car. Along the coast there are many surf spots and year-round, nobody wears a neopren suit. Here’s why not:

 

Playa-Venao

 

Conclusion: There’s no better place to attract, motivate and keep talent.

 

 

Panama – The business environment

Before even thinking about extending the Valley to Panama, there have to be criteria defined and considered. Panama today is already a first class logistics and financial hub:

The famous Panama Canal, extended by another set of locks, doubling capacity in early 2016. (www.pancanal.com)

The Port of Balboa on the Pacific entrance of the canal and Port of Colon on the Atlantic side, and the Pacific Canal Railway, connecting both.

The Colon Free Zone, second largest in the world. (www.colonfreeezone.com)

City of Knowledge, Special Economic Zone, a technology hub, connected to four major communication cables. (www.ciudaddelsaber.org)

Panama Pacifico, Special Economic Zone and quarters for up to population of 60,000. Center of manufacturing and logistics. (www.panamapacifico.com) All these zones offer favourable tax rules for their companies.

Tocumen International Airport, a hub connecting the Americas and the Caribbean, and direct flights to Amsterdam, Frankfurt, Madrid and Paris.

Panama has more than 50 airports and airstrips, a paradise for private pilots.

Financial industry: Panama’s currency is named Balboa, but there are no Balboa bills, only coins. Balboa means US Dollar. The country has more than 50 banks and none of them crashed during the US financial crisies. Panama is a safe heaven for many foreigners when their countries and currencies go South. Venezuela is a recent example.

Investment opportunities. Taking a look at the capitol, the beaches and islands, there is no question about investment opportunities. Real estate prices are still a bargain compared with the U.S. or Europe. How about oceanfront appartments at $2,000 per m²?

Establishing a corporation. Panama is famous for having the majority of vessels under their flag. And there are numerous foundations and holding companies. Easy to set up and maintain. Same for operational businesses.

Taxes. Foreign income is generally excempted from tax. So imagine the average Google employee, not a U.S. citizen, living in Panama, paid by the mother company – legally no income tax. And VAT is 7% only.

Conclusion: Panama has an outstanding and inviting business environment.