Offshore Incorporation in Panama

Panama has become one of the most important tax havens of the Western Hemisphere, due to its structure, geographical position, political stability and economical characteristics. The country has taken very important steps for economy modernization and promotion of foreign investments.

Panama is considered to be an ideal foreign base country for worldwide operations and transactions in the field of international investing, financing and business. Panama taxes according to the territoriality principle – that means, income received from foreign sources is not taxed, but only the income produced locally, disregarding the citizenship of the taxpayer. Dividends are not included as income subject to income tax.

Most Panamanian and foreign investors choose to form Corporations. The country does not impose any limits on incoming and outcoming monetary transfers, no exchange controls, currency restrictions and reporting requirements.

Panama is completely sovereign from any other country in the world. There are no any Mutual Legal Assistance Treaties between Panama and any other country. Panama is a genuine international trade and banking center that is well known and respected throughout the world.

Panama also offers one of the most effective asset protection and estate planning vehicles available today - Panama Private Interest Foundation. It is generally used by people who wish to control and maintain ownership of foreign corporations, but they cannot do that directly due to the Controlled Foreign Corporation rules in their home countries. Their objective usually is to remove ownership from their personal name to the name of a foreign entity whose ownership is anonymous. For this, they establish a Private Interest Foundation in Panama that holds and owns the shares of their foreign corporation, instead of holding them themselves in their personal name or in bearer form.