Internet business benefits in Panama
First a comment: Just get ‘real’ with this type of advertising articles like below. ALL is true, but they very conveniently forgot to mention: do not ever hire a local employee. Unless you are so generous paying 13th month salary, give him a month vacation, then give him 15 sick days and at the top of that give him 16 national holidays. Of course you pay him way less than in Western countries, but do not feel bad about it: the local employees perform on the level adequate to what you pay them anyway. But if you add 2 months off and 13th month salary, sometimes it just does not make much sense. Plus keep in mind that Panama is not an exception about not taxing businesses which do not have domestic customers. Many countries around the world do it too. I still believe Panama is a great place to live and run online business. I did 3-year study before relocating my business there. But always keep in mind that reading only about pluses is only ‘half-true’. When you structure your business properly you will succeed. And Panama is one of these places on earth where you can enjoy your business success with higher lifestyle.
Internet business benefits in Panama. Most companies operating a business in Panama need a business (commercial) license for tax filing purposes. However, Panama exempts companies only selling products or services outside of Panama’s territory with no in-country sales. A commercial license is not required in this case, nor do they have to pay any corporate or income taxes, because all income earned outside of Panama is tax-free.
Internet businesses like online consulting, web development, graphic design and all other internet-based professions or e-commerce can operate from Panama totally tax free. Just don’t sell to any person or entity residing inside Panama.
Here are some benefits Panama offers to establish an internet business:
- First, owning or renting real property in Panama is lower priced than most parts of the U.S. and Canada and much cheaper than Europe. Even office space is cheaper if you don’t want to run your internet-based business out of your home.
- Second, Panama’s location is convenient for U.S. and Canadian clients as many direct flights are four hours or less in duration. In addition, the time of day in Panama is either in U.S. Eastern or Central Time Zone depending upon U.S. Daylight Savings Adjustments.
- Third, the U.S. Dollar based economy in Panama makes it easier to do business in that currency. A Panama internet based business can use Panamanian bank accounts accepting U.S. Dollars with no currency conversions.
- Fourth, while internet based businesses generally hire people remotely from various parts of the world, if local hires are needed, there is a pool of English speaking Panamanians to work for your company.
- Fifth, Panama’s unique 50 Friendly Nations Visa program allows your company to offer Panama based jobs to citizens of those countries, including work permits and permanent residency.
If you want to hire a foreigner from a “non-friendly” country, Panama’s Professional Visa allows your company to hire qualified professionals from any country.
Panama is fast becoming the best business-friendly country in the region. No or low taxes, low rents, easy immigration residency programs, U.S. Dollar economy, and convenient location make Panama a very attractive place to do business.
By: Staff at POLS – Attorneys at Law
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