In Panama I have found personal freedom, wealth protection, and privacy.  These things are not separate pieces but are all part of the fabric of the Panamanian way of life.  Any one of these without the other two is useless.  If I were to try to talk to you about one of these without talking about the other two, I couldn’t do it. So, trying to break each element out and write a paragraph on it simply wouldn’t work.  I will just write from the heart, and if it wanders a little, I apologize.

The Republic of Panama is a great place to do business, and with a little planning your business can operate on a tax free basis.  It is a great place to live and I enjoy living here.  The national capital, Panama City, is inexpensive when compared to other cities of the same caliber.  A building boom over the past few years has kept prices down by increasing the supply of new real estate.  Don’t be fooled – inexpensive doesn’t mean that you sacrifice your quality of life.  This is a city, and a nation, that does business on an international scale and accommodates the wants and needs of international businessmen.  For example, Copa Airlines flies modern Boeing 737’s to 40 major cities daily and was named Best Airline in Central America in 4 of the last 5 years.

Despite this international bent, Panama manages to keep its charm.  You can find both a trendy sushi dinner for $100 per head with quality that would please Gordon Ramsey, and a simple Mom and Pop restaurant offering scrumptious tapas and a good local beer for $5.  You have an amazing range of choices and the freedom of choice; freedom that extends far beyond dining.

Panama stands out as a tax haven and financial hub. Because of the Canal trade, Panama has well developed international trade and banking systems.  These two sectors depend on technology.  So, Panama has invested in creating one of the finest telecom and internet systems outside of Europe or the U.S.  Internet banking, credit/debit card services, and credit facilities are as readily available as they are in the U.S and Europe.  You can link your corporate credit card directly to your Panamanian bank. Panama does not have its own currency – it trades in the U.S. dollar – and there are no currency controls or restrictions.
When Noriega’s ‘friends’ operated the banks, they had a poor record of customer service.  They didn’t have to care.  When the markets opened to competition, banking services got much better. Domestic banks such as Multibank compete with international banks like HSBC in the local market, and both are trying to take market share from expatriate-oriented banks like Credicorp.

Panama banking privacy is good, and the law still allows offshore corporations with bearer shares.  The ability of non-residents to own bank accounts, Panama Corporations (IBCs), Private Interest Foundations and other similar tools make for a business-friendly environment.

The government has no reason to keep the residents under surveillance.  As an international banking center, if it tried to do that, there would be capital flight.  That would wreck the economy.  The new President, Ricardo Martinelli, who is in office until June 2014, promised to root out corruption.  Domestic spying is not on his agenda. Lord Acton said “Power corrupts; Absolute power corrupts absolutely.” The Panamanian government has power, but not absolute power.  The fact is it doesn’t have the ‘need,’ the financial resources, or the political capital necessary to spy on residents.  Not even dictator Noriega spied on the citizenry.

The success of Panama as a place to do business is no accident. A temperate climate, great beaches, convenient travel, and tax free status make it an absolutely alluring place to live.