In a noteworthy shift for international investors, Panama is climbing the ranks as one of Latin America’s most attractive destinations for regional operations. According to the 2025 Global Business Complexity Index (GBCI) by TMF Group, the country now ranks 42nd out of 79 jurisdictions analyzed – marking a steady rise of three positions from 2024 and 15 from 2023.
This progress places Panama among the region’s top performers in terms of business environment simplification, bolstered by ongoing reforms that enhance transparency, tax compliance, and corporate governance. These changes are positioning the country as a gateway for regional investment in sectors like logistics, real estate, international commerce, and renewable energy.
Regulatory Improvements Strengthen Investor Confidence
Panama’s rise in the GBCI reflects strategic shifts aimed at aligning the country with international standards. Key reforms include stricter rules for identifying corporate beneficiaries, enhanced financial reporting, and tighter anti-money laundering controls.
While these measures have introduced additional compliance demands, they’ve also boosted the country’s global credibility. “This is a conscious effort to strengthen trust in Panama’s corporate framework and align with global expectations,” said Adrián Owen, Head of Central America at TMF Group.
Importantly, the upgrades signal to real estate investors and business operators that Panama is committed to long-term regulatory stability. For property buyers—especially expats seeking a secure and well-governed market—this creates a stronger foundation for making mid- to long-term investments with confidence.
Real Estate Implications: Stability Meets Opportunity
These shifts in Panama’s regulatory and investment climate are especially relevant for buyers looking at properties in high-demand areas like Boquete and Costa del Este. As more multinational corporations establish regional headquarters in Panama under the SEM (Multinational Company Headquarters) regime, demand for upscale housing and rental properties near corporate zones is likely to rise.
The capital influx is already visible: in just the first part of 2025, five new companies joined the SEM program, committing over $6.8 million in investments. In 2024, 12 firms under this regime generated over 8,300 direct jobs and injected more than $24 million into the Panamanian economy.
For real estate buyers, this means increased activity in residential, commercial, and mixed-use developments—especially in zones with strong infrastructure and proximity to business hubs. Investors exploring Panama City neighborhoods like Costa del Este or mountain communities with a growing digital nomad presence like Boquete can benefit from improved long-term value retention and a more transparent market environment.
Panama’s Competitive Edge in the Region
Compared to regional peers, Panama now holds a middle position in business complexity. It ranks well ahead of Mexico (3rd), Colombia (5th), and Brazil (6th), all considered among the world’s most challenging business environments. Panama also outperforms Central American neighbors like Nicaragua (50th), Costa Rica (58th), and El Salvador (46th).
While not the least complex, Panama’s deliberate efforts to enhance its corporate climate without undermining investor appeal mark a significant advantage. The GBCI notes that the country’s infrastructure—especially in digital services, energy transition, and real estate development—is creating new investment corridors that are ripe for responsible, forward-looking capital.
Outlook for Buyers and Developers
With the push for higher corporate accountability, developers and investors may face increased due diligence, but the upside includes a more sustainable business climate, better tenant profiles, and broader access to international financing.
Whether you’re looking to develop a boutique hotel, invest in a mixed-use building, or purchase a vacation rental with long-term appreciation potential, Panama’s evolving landscape offers compelling prospects.
Let Us Help You Navigate Opportunities in Panama
At Casa Solution Real Estate, we offer local expertise backed by decades of experience helping investors, expats, and retirees find the right property in Panama. Whether you’re exploring business-ready areas like Costa del Este or lifestyle-friendly destinations such as Boquete, our team is here to support you from search to closing.
Contact us today to discover how we can help you find your place in Panama’s emerging investment landscape.
Date: May 30, 2025
