{"id":18105,"date":"2016-11-01T14:35:50","date_gmt":"2016-11-01T19:35:50","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=18105"},"modified":"2016-11-01T14:35:50","modified_gmt":"2016-11-01T19:35:50","slug":"how-one-american-couple-built-a-successful-business-in-panama","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/how-one-american-couple-built-a-successful-business-in-panama\/","title":{"rendered":"How One American Couple Built A Successful Business In Panama"},"content":{"rendered":"<p><a href=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/11\/PANAMA75.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-18106\" src=\"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/11\/PANAMA75.jpg\" alt=\"panama75\" width=\"704\" height=\"440\" srcset=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/11\/PANAMA75.jpg 960w, https:\/\/panamaadvisoryinternationalgroup.com\/blog\/wp-content\/uploads\/2016\/11\/PANAMA75-300x188.jpg 300w\" sizes=\"auto, (max-width: 704px) 100vw, 704px\" \/><\/a><\/p>\n<p>Here is a nice article by <span class=\"author-card__details-container\"><span class=\"author-card__details__name\">Kathleen Peddicord<\/span> <\/span><span class=\"author-card__microbio\"> Publisher, Live and Invest Overseas on starting a business in Panama.<br \/>\n<\/span><\/p>\n<div class=\"content-list-component mt-paragraph text\">\n<p><strong>Panama\u2019s Trump Card<\/strong><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>In 2008, I took my leave from the publishing company where I\u2019d been working for 23 years. I was 45-years-old and living in Paris. I spent the next three months exploring that city on foot, early to late each day, and got to know Paris well.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>I also learned that three months is my limit for doing nothing, even in Paris, and returned home from a long walk one afternoon to announce to my husband that I wanted to start a business of my own.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>\u201cWe\u2019ll need to leave <a href=\"http:\/\/www.liveandinvestoverseas.com\/country-hub\/france\/paris.html\" target=\"_hplink\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:2,&quot;plid&quot;:&quot;http:\/\/www.liveandinvestoverseas.com\/country-hub\/france\/paris.html&quot;}}\">Paris<\/a>,\u201d he replied.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>He didn\u2019t need to spell it out.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>We knew from experience that <a href=\"http:\/\/www.liveandinvestoverseas.com\/country-hub\/france.html\" target=\"_hplink\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:3,&quot;plid&quot;:&quot;http:\/\/www.liveandinvestoverseas.com\/country-hub\/france.html&quot;}}\">France<\/a> is no place to try to be an entrepreneur. This country does not value entrepreneurs, and running a business here is expensive and hassled. Labor law and the French perspective make every employer the enemy, and French taxes can take half of every dollar your business earns.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><a href=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091414-381316-PlazadelaCatedralCascoAntiguoPanama.jpg\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:4,&quot;plid&quot;:&quot;http:\/\/images.huffingtonpost.com\/2016-10-21-1477091414-381316-PlazadelaCatedralCascoAntiguoPanama.jpg&quot;}}\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091414-381316-PlazadelaCatedralCascoAntiguoPanama-thumb.jpg\" alt=\"2016-10-21-1477091414-381316-PlazadelaCatedralCascoAntiguoPanama.jpg\" width=\"570\" height=\"275\" \/><\/a><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>We were in the fortunate position at the time of being able to move anywhere, so, as much as we loved living in Paris, the question became:<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>If France is among the worst places in the world to invest in a business, where would be among the best?<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>By this time, my husband and I had managed businesses in eight countries. Based on that experience, I made a list of things important to the expat entrepreneur, as follows:<\/p>\n<\/div>\n<ul>\n<li>Quality and cost of infrastructure, especially Internet and banking&#8230;<\/li>\n<li>Quality, availability, and cost of English-speaking labor&#8230;<\/li>\n<li>The country\u2019s approach to taxation&#8230;<\/li>\n<li>The current administration\u2019s perspective on foreign business and foreign investment&#8230;<\/li>\n<li>Residency and work permit options&#8230;<\/li>\n<li>Cost of doing business, especially office rent&#8230;<\/li>\n<li>Ease of setting up a company&#8230;<\/li>\n<li>Stability of the local currency (if other than the U.S. dollar)&#8230;<\/li>\n<li>Time zone relative to the business\u2019 intended marketplace&#8230;<\/li>\n<li>Local labor law&#8230;<\/li>\n<li>Local standard of living.<\/li>\n<\/ul>\n<div class=\"content-list-component mt-paragraph text\">\n<p>I considered the countries I knew from experience and others, too, in the context of these 11 questions, and one stood out\u2014Panama.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><a href=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091566-5106878-PanamaCityPanamabankingdistrictpanoramic.jpg\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:6,&quot;plid&quot;:&quot;http:\/\/images.huffingtonpost.com\/2016-10-21-1477091566-5106878-PanamaCityPanamabankingdistrictpanoramic.jpg&quot;}}\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091566-5106878-PanamaCityPanamabankingdistrictpanoramic-thumb.jpg\" alt=\"2016-10-21-1477091566-5106878-PanamaCityPanamabankingdistrictpanoramic.jpg\" width=\"570\" height=\"275\" \/><\/a><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\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 while 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<\/div>\n<div class=\"content-list-component mt-paragraph text\">\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<\/div>\n<div class=\"content-list-component mt-paragraph text\">\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.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><strong>Set yourself up properly, and you\u2019ll be liable for no corporate tax<\/strong>. Not in Panama and not anywhere else either (including, you may be wondering if you\u2019re an American, in the United States).<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Again, this is a big part of the reason Panama got my attention when I was shopping the world map for a place to start my online business.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><a href=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091527-8823151-causewayinpanamacity.jpg\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:9,&quot;plid&quot;:&quot;http:\/\/images.huffingtonpost.com\/2016-10-21-1477091527-8823151-causewayinpanamacity.jpg&quot;}}\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477091527-8823151-causewayinpanamacity-thumb.jpg\" alt=\"2016-10-21-1477091527-8823151-causewayinpanamacity.jpg\" width=\"570\" height=\"275\" \/><\/a><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Panama is also one of the best places to base yourself if you want to make a living from consulting, travel writing, copywriting, or any other laptop-based profession you can think of.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>The key is that your customers are outside Panama. In other words, as long as the revenues of your business aren\u2019t sourced in this country, you don\u2019t pay tax on them in this country. And, again, as long as you structure your corporation properly, you won\u2019t be liable for taxes from the revenues that flow through it anywhere else, either.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>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. Probably, really, you need two tax experts, as finding one who understands both sides of this tax picture will be near impossible.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><strong>The second reason I focused early on Panama<\/strong> and, in the end, chose it as the place to base my Internet publishing business is Panama City\u2019s labor pool.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><a href=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477092024-186688-DoingBusinessOffhsore.jpg\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:10,&quot;plid&quot;:&quot;http:\/\/images.huffingtonpost.com\/2016-10-21-1477092024-186688-DoingBusinessOffhsore.jpg&quot;}}\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477092024-186688-DoingBusinessOffhsore-thumb.jpg\" alt=\"2016-10-21-1477092024-186688-DoingBusinessOffhsore.jpg\" width=\"570\" height=\"275\" \/><\/a><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Over the past dozen years, Panama City has evolved into a global melting pot. In addition to Panamanians and Americans, who\u2019ve been a part of this landscape for more than 100 years, today\u2019s Panama City is home to a fast-growing expat population that includes Germans, French, British, Irish, Dutch, Australians, Kiwis, Venezuelans, Colombians, Hondurans, Costa Ricans, Guatemalans, and Nicaraguans, all of whom have migrated to Central America\u2019s most developed city in search of employment.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Regional migrants and investors have targeted Panama for many years. For the Nicaraguan or Venezuelan, for example, Panama is both a land of abundant opportunity and an obvious safe haven.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>That localized 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.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>In 2012, Panama\u2019s former President Ricardo Martinelli issued an Executive Order creating what\u2019s become known as this country\u2019s Friendly Nations visa program.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Overnight, Panama was targeted not only by opportunity-seekers from neighboring countries but as well by eager, educated, and English-speaking 20- and 30-somethings from North America and Europe.<\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p><a href=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477092073-5186595-Happycoupleinforntofhouse.jpg\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:11,&quot;plid&quot;:&quot;http:\/\/images.huffingtonpost.com\/2016-10-21-1477092073-5186595-Happycoupleinforntofhouse.jpg&quot;}}\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/images.huffingtonpost.com\/2016-10-21-1477092073-5186595-Happycoupleinforntofhouse-thumb.jpg\" alt=\"2016-10-21-1477092073-5186595-Happycoupleinforntofhouse.jpg\" width=\"570\" height=\"276\" \/><\/a><\/p>\n<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Thanks to the Friendly Nations program, these enthusiastic youngsters, then and today, can <a href=\"http:\/\/www.liveandinvestoverseas.com\/country-hub\/panama\/panama-visa-and-residency-information.html\" target=\"_hplink\" data-beacon=\"{&quot;p&quot;:{&quot;mnid&quot;:&quot;entry_text&quot;,&quot;lnid&quot;:&quot;citation&quot;,&quot;mpid&quot;:12,&quot;plid&quot;:&quot;http:\/\/www.liveandinvestoverseas.com\/country-hub\/panama\/panama-visa-and-residency-information.html&quot;}}\">obtain <\/a>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. 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<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Over the past four years since this visa option became available, we\u2019ve hired staff from the United States, 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<\/div>\n<div class=\"content-list-component mt-paragraph text\">\n<p>Eight years on in Panama, we\u2019ve built a successful business to the point where my husband and I are preparing to back away from full-time operations. Starting next year, we\u2019ll begin splitting our time between Paris and Panama. We\u2019ll continue contributing to the business as we\u2019ve always contributed, but sometimes now from a distance, counting on our nationally eclectic management team to keep the lights on in Panama City day-to-day.<\/p>\n<p>Source: The Huffington Post<\/p>\n<div class=\"byline\">\n<div class=\"byline__authors\">\n<div class=\"author-card\">\n<div class=\"author-card__details\"><span class=\"author-card__details-container\"><a class=\"author-card__details__link\" href=\"http:\/\/www.huffingtonpost.com\/author\/kathleen-peddicord\" data-beacon=\"{&quot;p&quot;:{&quot;lnid&quot;:&quot;author&quot;}}\" data-plid=\"kathleen-peddicord\"><span class=\"author-card__details__name\">Kathleen Peddicord<\/span> <\/a><\/span><span class=\"author-card__microbio\"> Publisher, Live and Invest Overseas <\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Here is a nice article by Kathleen Peddicord Publisher, Live and Invest Overseas on starting a business in<\/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":[242,10,12,241,39,34,33,62,219,245,243,7,246,244,44],"class_list":["post-18105","post","type-post","status-publish","format-standard","hentry","category-news-articles-panama-perpsective","tag-boca-chica-real-estate","tag-bocas-del-toro","tag-boquete","tag-boquete-real-estate","tag-buenaventura","tag-casco-antiguo","tag-casco-viejo","tag-coffee-in-panama","tag-move-to-panama","tag-offshore-real-estate-panama","tag-panama-papers","tag-panama-real-estate","tag-relocate-to-panama","tag-rum-in-panama","tag-travel-to-panama"],"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>How One American Couple Built A Successful Business In Panama - Blog and 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