{"id":13533,"date":"2015-06-02T11:56:18","date_gmt":"2015-06-02T16:56:18","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=13533"},"modified":"2015-06-02T11:56:18","modified_gmt":"2015-06-02T16:56:18","slug":"whats-the-best-country-for-expat-entrepreneurs-hint-its-muy-bueno","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/whats-the-best-country-for-expat-entrepreneurs-hint-its-muy-bueno\/","title":{"rendered":"What\u2019s the Best Country for Expat Entrepreneurs? Hint: It\u2019s Muy Bueno"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2015\/06\/cit-pic.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-13534\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2015\/06\/cit-pic.jpg\" alt=\"cit pic\" width=\"553\" height=\"369\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2015\/06\/cit-pic.jpg 553w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2015\/06\/cit-pic-300x200.jpg 300w\" sizes=\"auto, (max-width: 553px) 100vw, 553px\" \/><\/a><\/p>\n<p><a>Kathleen Peddicord<\/a> writes for the Wall Street Journal about the attraction of Panama as a place for Expats to do business.<\/p>\n<p>PANAMA CITY\u2013In 2008 I left the publishing company where I\u2019d been working for 23 years. I was 45-years-old and living in Paris. One afternoon, I announced to my husband that I wanted to start a business of my own.<\/p>\n<p>\u201cWe\u2019ll need to leave Paris,\u201d he replied. He didn\u2019t need to spell it out: running a business in France is expensive, a reflection of the country\u2019s labor and tax regimes.<\/p>\n<p>We were in the fortunate position of being able to move anywhere, so, as much as we loved living in Paris, the question became:\u00a0<em>If France is among the worst places in the world to invest in a business, where would be among the best?<\/em><\/p>\n<p>My husband and I had managed businesses in eight countries. Based on that experience, I made a list things important to the expat entrepreneur, as follows:<\/p>\n<ul>\n<li><strong>Quality and cost of infrastructure, especially Internet and banking<\/strong><\/li>\n<li><strong>Quality, availability, and cost of English-speaking labor<\/strong><\/li>\n<li><strong>The country\u2019s approach to taxation<\/strong><\/li>\n<li><strong>The current administration\u2019s perspective on foreign business and foreign investment<\/strong><\/li>\n<li><strong>Residency and work permit options<\/strong><\/li>\n<li><strong>Cost of doing business, especially office rent<\/strong><\/li>\n<li><strong>Ease of setting up a company<\/strong><\/li>\n<li><strong>Stability of the local currency (if other than the U.S. dollar)<\/strong><\/li>\n<li><strong>Time zone relative to the business\u2019 intended marketplace<\/strong><\/li>\n<li><strong>Local labor law<\/strong><\/li>\n<li><strong>Local standard of living<\/strong><\/li>\n<\/ul>\n<p>I considered the countries I knew from experience and others, too, in the context of these 11 questions, and one stood out: Panama.<\/p>\n<p>The infrastructure in Panama City is the best in the region, in part thanks to the decades-long U.S. military presence here when the Americans ran the Panama Canal. Panama as a whole is a safe, stable, affordable country that uses the U.S. dollar as its currency, meaning no exchange-rate risk. The standard of living is comfortable, even international standard if your budget stretches to allow for it.<\/p>\n<p>Those things, though, are true for many other places that could also make sense for the would-be entrepreneur, including in Latin America but also in Europe and Asia.<\/p>\n<p>Panama\u2019s trump card is the approach it takes to taxation, both personal and corporate. It\u2019s possible to live and run a business you own in Panama paying little in taxes, even if you\u2019re an American. The list of places around the world where that is true is short. I\u2019m speaking of legal and compliant strategies. It\u2019s not difficult to organize, but you need competent advice from a tax expert who understands both Panama\u2019s approach to taxing corporate income and the obligations to Uncle Sam of an American living and earning money in another country. You may really need two tax experts, as finding one who understands both sides of this tax picture will be nearly impossible.<\/p>\n<p>Because I understood Panama\u2019s tax advantages, the country rose quickly to the top of my where-should-I-locate-the-business list. The second reason I focused early on Panama and, in the end, chose to base my new Internet publishing business there is Panama City\u2019s labor pool.<\/p>\n<p>Over the past dozen years, Panama City has evolved into a global melting pot. In addition to Panamanians and Americans, who have been part of this landscape for more than 100 years, today\u2019s Panama City is home to Venezuelans, Colombians, El Salvadorans, Hondurans, Costa Ricans, Guatemalans, and Nicaraguans who have migrated to Central America\u2019s most developed city in search of safe haven. Included in this population of regional migrants are investors who have bought real estate and started businesses; unskilled laborers employed as maids and restaurant staff; and, relevant for us, the cream of the regional labor crop: people who recognize they can get better jobs and make more money in Panama City than anywhere else in Central America.<\/p>\n<p>That labor pool was enough to get our attention back in 2008. However, something important happened four years after we moved to Panama that made Panama City an even more interesting place to be an employer: In 2012, Panama\u2019s former President Ricardo Martinelli issued an Executive Order creating what\u2019s become known as this country\u2019s \u201cFriendly Nations\u201d visa program.<\/p>\n<p>Overnight, Panama was targeted by eager, educated and English-speaking 20- and 30-somethings from North America and Europe in search of employment opportunities. Thanks to the Friendly Nations program, these enthusiastic youngsters, then and today, can obtain both easy residency and work permits. It\u2019s a uniquely turnkey program that makes it possible for anyone holding a passport from one of the 48 countries on the \u201cfriendly nations\u201d list to be able to live and work legally in Panama almost immediately. President Martinelli issued his decree in a creative attempt to provide more qualified labor for the dozens of foreign businesses setting up shop in his country.<\/p>\n<p>Over the past three years since this visa option became available, we have hired staff from the U.S., Canada, Ireland, the U.K., Germany, Australia, New Zealand, and Belgium, none of whom we would have been able to employ (legally) otherwise.<\/p>\n<p>Seven years on in Panama, we have built a successful, fast-growing business to the point where my husband and I feel comfortable backing away from full-time operations. Later this year, we\u2019ll begin <a href=\"http:\/\/blogs.wsj.com\/expat\/2015\/03\/23\/europe-at-a-discount-an-expat-returns-to-paris-because-its-cheap-irresistible\/\">splitting our time between Paris and Panam<\/a>a. We\u2019ll continue contributing to the business as we have always done, but now sometimes from a distance, counting on our management team to keep the lights on in Panama City day-to-day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kathleen Peddicord writes for the Wall Street Journal about the attraction of Panama as a place for Expats<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-13533","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What\u2019s the Best Country for Expat Entrepreneurs? 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