• This article outlines the benefits that Panama offers to investors and companies in the economic–financial sphere, according to the III Annual Report of the Asset Securitization Sector 2025–2026.
• The content is aimed at asset managers seeking to explore countries beyond the United States to structure investment vehicles.
• FlexFunds offers an asset securitization program designed to enhance the distribution of different investments. For more information, feel free to contact our experts.

Panama may be largely unfamiliar to many international investors, but this small country offers significant advantages and opportunities.

Its open economy makes it easier to establish companies thanks to a stable environment—something uncommon in the region. The strength provided by the Panama Canal, together with a solid and diversified financial sector, helps shield the country from inflationary and economic shocks.

Panama, a model in economic performance

A clear example of this stability is the moderate inflation Panama has maintained since the pandemic, with annual rates not exceeding 3%, compared to the U.S. and Europe, which saw peaks of 8%.

Additionally, since Panama does not have a central bank—given that the U.S. dollar is its legal tender—financial stability is ensured through strict banking regulations focused on solvency and prudence.

According to Jorge Tablate, Investment Director at K&B Family Office, not only is inflation in Panama mild, but growth also remains strong.

“During the first quarter of 2025, Panama’s Gross Domestic Product (GDP) grew by 5.2%, driven primarily by key sectors such as transportation, trade, construction, and financial intermediation,” he noted in the III Annual Report of the Asset Securitization Sector 2025–2026.

Furthermore, on July 10, 2025, Panama was officially removed from the European Union’s grey list—a recognition of the country’s sustained efforts to strengthen its systems to combat money laundering and terrorist financing. This progress substantially improves international perception and reinforces confidence in its financial ecosystem.

A country focused on finance

Panama’s financial sector is dynamic and diverse, composed of banks and broker-dealers that provide custody services—including local firms and investment units from regional and international banks—all supervised by the Superintendency of Banks.

Through these institutions, investors access the local market for corporate bonds and treasury bills.

“Meanwhile, investment advisors—regulated by the Superintendency of the Securities Market—focus on advisory and discretionary portfolio management without asset custody, operating across both local and international markets,” Tablate mentioned.

This diversity, along with the quality of advisory services, has contributed to the increasing sophistication of local and regional investors.

The link with institutional investors

Due to the increasing complexity of wealth management needs, the Family Office model is gaining presence in the market.

This “one-stop shop” business model provides comprehensive services in wealth management, legal advisory, fiduciary services, and accounting and tax support, ensuring that wealth strategies are coordinated and coherent by being centralized in a single place—allowing families to achieve their long-term objectives.

In a global context where interest rates are higher than they were five years ago, demand is rising for assets that generate recurring dividends. In Latin America, private debt and active fixed-income strategies are favored by those seeking stability and consistent cash flows.

More and more wealthy families are diversifying their assets beyond traditional fixed-term deposits. The potential market is significant—between USD 20 billion and USD 40 billion—considering local deposits from individuals, companies, and external funds.

This volume represents a broad base of liquid and conservative capital with potential for diversification and specialized advisory services. 

To meet this demand, many advisors structure their own investment vehicles, which are becoming increasingly cost-efficient and allow managers to offer strategies that add value compared to traditional savings products while reaching a broad investor base. 

“Overall, Panama stands out as an attractive market, with economic stability, robust financial regulation, and a broad ecosystem that includes banks, brokerage firms, investment advisors, and family offices. It also has an investment-friendly system, supported by its geostrategic position and its commitment to international standards,” Tablate summarized.

To explore the global asset management industry in greater depth, you may download the III Annual Report of the Asset Securitization Sector 2025–2026, prepared by FlexFunds in collaboration with Funds Society.