Political Factors

Why Panama
On 1st January 2000, the last American soldier left Panama and the Canal now belongs to Panama. After invasion in 1989, followed by the capture of President Noriega, Panama went through a further period of political instability under Guillermo Endara. However in 1994 Ernesto Perez Balladares took over and began the process of economic reform and growth.

Panama is non-military (without an army) and over the past ten years, the country’s political situation has been very stable.

Political Risk Services (PRS) placed Panama in the top three countries of its hemisphere with the best risk-investment qualifications. Moody's and Standard & Poor’s have both granted high ranking to Panamanian bonds.

Today Panama’s politics runs along a framework of representative democracy, with three branches of government: The executive branch includes a president and two vice presidents. The legislative branch consists of a 72-member unicameral Legislative Assembly. The judicial branch is organized under a nine-member Supreme Court and includes all tribunals and municipal courts.

The Panamanian government has introduced a great number of fiscal reforms under the current Ricardo Alberto Martinelli Berrocal administration, making Panama even more attractive for private and corporate foreign investors seeking a highly tax efficient environment in which to operate.