Panama Better for Retirees than Entrepreneurs?

Panama dropped ten points on a World Bank and International Finance Corporation ease of doing business report, while International Living’s Retirement Index declared that the country has the best retiree program on the planet.

According to the Doing Business 2011: Making a Difference for Entrepreneurs survey of 183 countries, some of the reasons for Panama’s drop from last year’s 62nd place “Ease of Doing Business” rank to this year’s 72nd place ranking included points lost in the registering of property, protecting investors, getting credit and paying taxes categories.

Although Panama eased business start-up by increasing efficiency at the registrar and reduced the corporate income tax rate, modified various taxes and created a new tax court of appeals; it made it more expensive to transfer property by requiring that an amount equal to three percent of the property value be paid upon registration. A fundamental premise of Doing Business is that economic activity requires good rules.

Meanwhile, International Living describes Panama City as a “throbbing, vital, First-World city with Third-World prices” with a “second-to-none pensionado (retiree residency) program.”

Summary Doing Business 2011 data for Panama