 General
Panama’s history is fairly chaotic, as numerous countries (Spain, France, United States, Columbia) have disputed its "patronage" over the centuries.
Panama's reputation as a tax haven is largely merited. This country of 2.7 million inhabitants, with unyielding natural resources, has known how to seize upon the exceptional opportunity which the geographical location of the canal has presented it over the last eighty years.
It was constructed around this key point in worldwide communications, with highly efficient economic activities which benefit from a fiscal system which is unique in its style.
It is worth noting that a large number of Swiss establishments have recently set up branches in Panama. This is something which inspires confidence and the opinions of numerous bankers are highly favourable.
Business Card
- Anonymous accounts
- Offshore Companies
- Exceptional fiscality
- Trusts and holdings
- Population 2004 : 3,000,463 inhabitants
- Annual growth rate : 1.306 %
- Surface area: 77082 km²
- Official language: Spanish
- Currency: Balboa, US Dollar
- Main cities: Panama
Banks
It is fairly easy to open a deposit account. It is worth noting that transfers for amounts higher than 10,000 $ (or equivalent currency) are archived.
Tax
According to Panamanian law, only revenue which is derived from activities which are undertaken in the territory for the benefit of resident clients is subject to taxation.
There is no wealth tax or death duties.
Panama was even excluded from the FATF black list in June 2001 thanks to its efforts and cooperation in the campaign against money laundering.
At the same time Panama does not recognise the principle of tax evasion and does not cooperate with foreign countries looking into this area.
Companies
Forming a company : It is easy to form a company in Panama, even more so if it is only undertaking offshore operations. All of the usual forms are possible, as well as companies for individuals (Civil Partnerships or Limited Partnerships). The status of non-resident company is not very restrictive as revenues sourced from abroad are always net of all tax.
Due to the principle of territoriality, resident or non-resident, a company will not be taxed on profits from abroad, whatever the legal form.
The public limited company or corporation : The public limited company is the most often used in Panama and it is the most common choice for offshore activity. No minimum capital, and at least 3 directors must figure on the statutes and be known by the authorities. A resident lawyer must also be included in the statutes. Only one shareholder is required and the company's shares may be transferred without any restrictions.
A foreign company is able to transfer its incorporation to Panama without any problem; it will be classified as a Foreign Corporation as a result. In Panama this type of company is taxed in the same way as a traditional public limited company. However, the company will be operated in the same way as in its home country.
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