| GLOBAL MOBILITY
PANAMA, VENEZUELA
KEY TAKEAWAYS
A strategic crossing-point for entrepreneurs
Panama’s strategic advantages: Panama’s geographic location, the Panama Canal, and exceptional connectivity make it a vital hub for global trade and mobility. Its infrastructure supports maritime, air, and logistics operations, complemented by tax incentives and special economic zones like the Col Ón Free Zone and Panama Pacifico. Business-friendly environment: With stable governance, the use of the US dollar, and favourable legal frameworks, Panama attracts multinational companies. Its SEM system offers tax benefits, while free trade agreements with major global markets enhance its appeal as a business destination.
dollar is legal tender in Panama. • Legal framework: Panama has signed free trade agreements with the United States, the European Union, Israel, Canada, Mexico, Chile, Peru, and Singapore. • Structure optimisation: Designing structures to minimise tax burdens by leveraging double taxation treaties and Panama’s tax benefits. • Tax compliance: Ensuring businesses meet all local and international tax obligations. • Transfer pricing: Advising on pricing for transactions between related entities. Professional services offered: 1. International tax planning 2. Financial services • Accounting: In compliance with IFRS and US GAAP standards. • Financial structuring: Designing financial structures to optimise cash flow and minimise financial costs. • Risk management: Identifying and mitigating financial risks, including currency risks. 3. Corporate legal services • Company formation: Guiding the process of setting up companies in Panama and obtaining necessary licenses. • Contracts: Drafting and reviewing commercial and investment contracts. • Compliance: Ensuring companies adhere to local laws, including
anti-corruption and anti-money laundering regulations.
4. Consulting • Due diligence: Conducting thorough analyses of companies before acquisitions or investments. • Business strategy: Developing long- term strategies to help businesses achieve their objectives. • Project management: Advising on the implementation of complex projects and change management.
Enrique Egan Partner Trejos, Egan & Asociados
Q1 What are the key considerations for businesses and individuals navigating cross-border mobility in your jurisdiction? Panama, thanks to its canal and strategic position, has historically been a crossing point for entrepreneurs and goods. Factors that make Panama the leading international business hub in Latin America: • Economic development: Over the past 20 years, Panama has experienced significant economic growth, attracting major multinational companies from the United States, Europe, and Asia seeking business opportunities. • Connectivity: Exceptional road, port, and air infrastructure facilitates the movement of goods, people, and cargo. • Foreign investments: Panamanian laws grant international investors the same rights and obligations as national investors. preferred international business hub in Latin America has enriched its society with a diverse flow of migrants from countries like the United States, Spain, Italy, Colombia, Venezuela, Israel, China, India, and Argentina, among others. Panama’s strategic geographic location, legal security, tax incentives, Societal impact Panama’s transformation into the democratic stability, and growing economy have made it an attractive destination for entrepreneurs worldwide.
Q2 How can service providers help clients
Q3 Is globalisation on the wane? How do recent political events create new opportunities in global mobility?
Global trends and opportunities: Geopolitical shifts and nearshoring trends, accelerated
by the pandemic, position Panama as an ideal location for companies seeking proximity to North America. Professional services in tax planning, legal compliance, and financial structuring support businesses navigating cross-border operations.
structure global mobility strategies (e.g. regulatory, tax, financial efficiency)? • Panama Canal and connectivity: With its connection to major world ports and direct air links throughout Latin America, as well as daily direct flights to 19 cities in North America, Panama has transformed into a world-class maritime, air, and logistics center attractive to companies with global operations. • Favourable tax regime: For companies operating across jurisdictions and seeking to do business in Latin America, Panama offers the SEM (Multinational Headquarters) system, which provides unique tax and financial benefits in the region. • Special free zones: Panama hosts several special economic zones with unique fiscal and logistical advantages in Latin America: a. Colón free zone: The largest free trade zone in the Western Hemisphere. b . Panama Pacifico: Focused on innovation, technology, and services, home to many multinational corporations. c. City of knowledge: Dedicated to research, education, and innovation. • Legal security: Over 25 years of stable Western democratic governance. • Use of the US dollar: The American
This is a subject of great debate. While globalisation has been a dominant trend, various factors have raised doubts about its continuity: • Pandemics: The COVID-19 crisis exposed the fragility of supply chains and the risks of over-reliance on China as the world’s largest hub for goods. • Geopolitical Tensions: Conflicts between major powers (United States, Russia, and China) have created trade barriers. • Nationalism: The rise of nationalist movements has led to policies favoring local industries over global integration. • Inequality: Globalisation has increased economic disparities, leading to social discontent. The concentration of inventory in China during the pandemic has catalysed significant changes in global supply chains. This shift has created new opportunities, such as nearshoring for countries like Panama, due to its proximity to the North American market and its exceptional maritime and air logistics capabilities. Through nearshoring, multinational companies relocate part of their inventory to countries closer to their primary consumer markets, reducing dependence
“Panama has transformed into a world-class maritime, air, and logistics center attractive to companies with global operations.”
Enrique Egan graduated from the Andres Bello Catholic University in Business Administration and is a Certified Public Accountant, with specialisations in Tax Planning and Strategic Financial Planning. With 40 years of experience in companies such as Bristol Laboratories, Mead Johnson and Carvajal Holding, 18 years ago he founded, together with his colleague Edwin Trejos (an excellent professional with a long and successful business career) the firm Trejos Egan & Associates, which provides Accounting, Financial and Forensic Auditing, Tax and Legal Planning services to international companies with global businesses in different jurisdictions that allow their clients to achieve their successes without borders.
ABOUT US... trejosegan.net
Trejos Egan & Associates is a CPA firm with 19 years of experience, founded in Panama by Edwin Trejos and Enrique Egan. We are located in the International Banking Area of Panama City. We provide comprehensive services to international companies seeking to leverage Panama’s logistical and tax advantages. Our ‘one-stop office’ concept allows us to create tailored financial structures across multiple
jurisdictions, optimising tax efficiency. By consolidating accounting (IFRS or USGAAP), financial audit, forensic, tax, and Legal services under one roof, we reduce costs and provide timely solutions The main sectors we serve are: Trading and Commercial companies, Logistics, Stock and Securities firms. The jurisdictions we operate in are Panama, Canada, Miami – Delaware, Bvi, Nevis, Bahamas, and The Marshall Islands.
+58 212 2654253 enrique@trejos.net irglobal.com/advisor/lic-enrique-egan
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