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.

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30/09/2006
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01/09/2008
The IMF has reported that Panama was one of the fastest growing economies in the world last year.
22/08/2008
Cable & Wireless has announced that its principal operations in the Channel Islands, the Caribbean, Panama, Macau, and Monaco are expected to invest more than USD 400 million in Caribbean telecommunications development.
05/07/2008
The IMF concluded the 7th Annual Regional Conference on Central America, Panama and Dominican Republic and examined how globalization and economic integration is impacting Central America's tax structures.
14/03/2008
The President of Mexico Felipe Calderon has initiated talks with Panama regarding a free trade agreement that has been awaited for a long time.
29/02/2008
Panama's long-term sovereign credit rating has been raised by Standard and Poor's to BB+ from BB. This new rating is based on strong economic growth of Panama and continued improvement in fiscal health of its government.
19/11/2007
Recently, a new law was passed by Panama's National Assembly to give multinational companies that perform certain tasks a significant tax break. As a result, according to a company specialising in investment property in Panama, the country's real estate sector is expected to experience an unprecedented boost.
19/09/2007
The WTO has announced completing a Trade Policy Review of Panama and published the results of the review. The report suggested that the rationalization of assistance programmes and the simplification of the trade regime would help Panama to sustain the economic growth.
22/08/2007
Economic growth in Panama is expected to exceed last year's 8.1% because of a strong investment climate, a dynamic services sector and the Panama Canal expansion programme.
03/07/2007
The Trade Promotion Agreement has been signed by Panama and the United States to eliminate tariffs and other barriers to the trade in goods and services between Panama and the US.
21/03/2007
The Panama Canal Authority (ACP) held a public hearing in Balboa, Panama, with the participation of fourteen representatives from shipping and government.
11/01/2007
Panama banks Banco General and Banco Continental have come to the agreement to merge. This merger will create one of the largest financial services companies in the region. The merger is expected to close during 2007.
07/11/2006
Panama hopes to become Argentina's replacement on the UN Security Council after Latin American and Caribbean Group (GRULAC) of the UN Security Council delayed as far as some English-speaking Caribbean members were reportedly upset about not being adequately involved in this process.
08/09/2006
At a meeting of Panama's President and Executive President of the Central American Bank for Economic Integration (CABEI) agreed that by the end of 2006 Panama will become an 'extra-regional' partner of CABEI. This status will provide Panama with the access of funding of about USD 60 million.
28/06/2006
Chile and Panama signed the free trade agreement that opens up 92.5% of the Chilean economy to Panamanian producers. Now most Panamanian products will enjoy a zero tariff when entering Chile's market.