The Zona Libre Panama is the largest and most important tax free zone in Latin America and the Caribbean.
What is a Zona Libre or Tax Free zone?
It is a geographical zone where businesses can buy and sell without paying any taxes. This allows final price of the products to stay competitive.
Information about the Republic of Panama
The Republic of Panama is located in Central America. The border countries are Colombia and Costa Rica. The population is approximately four million people. Although it is a small country, it is one of strongest economies in Latin America as it is strategically located as the doors to the region. The language that is spoken is Spanish but there is a large English speaking community. The Republic of Panama also enjoys economic stability thanks to the use of the US dollar as its legal tender which fluctuates less than other currencies in the region. A large banking center, a strong insurance industry and high tech ports also contribute to the success of this zone. It is also the home of the famous Panama Canal which allows ship to cross from the Pacific to the Atlantic and vice versa in less than one day. This saves a valuable amount of time and money.
Advantages of buying from the Zona Libre Panama
It is ideally located in Central America and greatly benefits from the logistical infrastructure of the Panama Canal which is often referred to as the crossroads of the world.
Quick facts:
* Second largest Tax Free Zone in the world after Hong Kong
*Second largest tax free zone after Hong Kong
* 450 hectares
*Thousands of wholesale companies
*Over 200 000 buyers visiting the zone every year
*More than 20 000 employees
*Over 12 billion in imports and exports on a yearly basis
With the expansion of the Canal under way and expected to be completed by 2014, the Zona Libre Panama will be impacted positively thanks to the possibility of Post Panamax ships being able to cross the gateway.
David Bess specializes in assisting businesses to successfully trade with Latin America. To browse to his valuable resources, tips and links, click here por mayor. This article, What is the Zona Libre Panama? has free reprint rights.