OFFSHORE COMPANIES
Any company incorporated in Panama with operations that are completed or take effect outside the Republic of Panama, is considered an "offshore" company. Therefore, it will benefit from the territorial tax regime, which stipulates that its income from activities or transactions carried out outside the Republic of Panama will be exempt from income tax. Consequently, it will enjoy the following tax benefits:
- Exemption from income tax: They do not have to pay income tax or capital gains tax on income from foreign sources.
- Exemption from capital gains tax: They do not have to pay capital gains tax on capital gains derived from the purchase and sale of securities outside of Panama.
- Exemption from interest tax: Interest income received from savings accounts or certificates of deposit, both within and outside of Panama, is exempt from tax.
- Exemption from sales tax: Income from the sale of goods or services outside of Panama is not subject to sales tax.
- Sales tax exemption: They do not have to pay taxes on income generated from the sale of products or services carried out outside of Panama.
- Tax exemption on dividends paid to shareholders: Shareholders of corporations do not have to pay taxes on dividends they receive from sources outside of Panama.
- Exemption from preparing, publishing, or filing financial statements and complete independence over how and where to keep their accounting records: Offshore companies that only have income from foreign sources are not required to prepare or publish financial statements, nor do they have to file income tax returns or any other declarations. Furthermore, they can keep their accounting records wherever and however they choose.
Beneficial`s owners’ information has never been public in Panama, today as in any other compliant country registration of beneficial owners, known as the Single Registry of Beneficial Owners (RUBF), is mandatory for all legal entities in the country. It must be managed by the resident agent (LAGLEX) through an online platform overseen by the Superintendency of Non-Financial Entities (SSNF). This private and confidential system aims to prevent illicit activities as part of the know your client (KYC) and compliance process.
Nominee directors, officers, share holders and beneficial owners duly registered before SSNF are legal and availables upon request.
Nominee directors, officers, share holders and beneficial owners duly registered before SSNF are legal and availables upon request.
BANKING AND FINANCIAL CENTER
With 64 international banks Panama remains as a strong banking and financial center in the LATAM region for many reasons. Its strategic location as a gateway between North and South America, coupled with the Panama Canal, continues to facilitate international trade and financial transactions. Moreover, Panama's dollarized economy, stable political climate, and strong trade ties further bolster its appeal as a business destination for companies looking to expand into Latin America.
Panama's strategic location and geographical advantage as a crossroads between North and South America, bolstered by the Panama Canal, streamlines international trade and financial interactions, stands out for its advanced infrastructure, encompassing cutting-edge communication technologies and a refined banking system. This infrastructure facilitates seamless movement of both capital and information. Favorable Business Climate offers a business-friendly environment with competitive tax structures and efficient company registration processes also fosters a welcoming business climate, characterized by competitive tax frameworks and efficient company registration procedures, attracting entrepreneurs and investor alike.
Panama is rapidly emerging as a hub for financial innovation in Latin America. This presents a wealth of opportunities for companies offering Business Technology Solutions (BTS) specifically tailored to the needs of financial institutions (FIs) in the region. Panama boasts a burgeoning fintech industry fueled by high internet and mobile phone penetration. This creates a strong demand for innovative tech solutions that can streamline financial services and reach the underbanked population.
Panama's strategic location and geographical advantage as a crossroads between North and South America, bolstered by the Panama Canal, streamlines international trade and financial interactions, stands out for its advanced infrastructure, encompassing cutting-edge communication technologies and a refined banking system. This infrastructure facilitates seamless movement of both capital and information. Favorable Business Climate offers a business-friendly environment with competitive tax structures and efficient company registration processes also fosters a welcoming business climate, characterized by competitive tax frameworks and efficient company registration procedures, attracting entrepreneurs and investor alike.
Panama is rapidly emerging as a hub for financial innovation in Latin America. This presents a wealth of opportunities for companies offering Business Technology Solutions (BTS) specifically tailored to the needs of financial institutions (FIs) in the region. Panama boasts a burgeoning fintech industry fueled by high internet and mobile phone penetration. This creates a strong demand for innovative tech solutions that can streamline financial services and reach the underbanked population.
PANAMA AS A HUB OF AMERICA
Panama is known as the "Hub of the Americas" due to its strategic location connecting North and South America, the presence of the Panama Canal, and its role as a multimodal logistics center. Its integrated network includes major ports, the Tocumen International Airport, and free trade zones that create a highly connected and efficient environment for international trade, shipping, and business.
Strategic location
Strategic location
- Geographic advantage: Panama's location serves as a natural bridge between the Atlantic and Pacific Oceans, and between North and South America.
- Connectivity: It offers a logistical advantage for businesses to reach the vast Latin American market and other global markets from a central base.
- Multimodal transportation and logistics
- Panama Canal: The canal is a critical waterway that connects the two oceans, shortening voyages for thousands of container ships annually and impacting global trade.
- Ports: Panama has major shipping ports on both the Atlantic and Pacific coasts.
- Airports: Tocumen International Airport is a major air cargo and passenger hub, with numerous direct flights to destinations across the Americas, Europe, and Asia.
- Integrated system: The country's status is cemented by its integrated multimodal system, including its ports, airport, and the Colon Free Zone.
Business and economic hub
- Business-friendly environment: Panama is a stable economic hub with a business-friendly environment and significant investment opportunities.
- Regional headquarters: Its strategic location and infrastructure attract multinational corporations to establish their regional headquarters in Panama.
- Special Economic Zones: Zones like the Colon Free Zone and Panama Pacifico offer tax and customs benefits, allowing for efficient import, storage, assembly, and re-export of goods.
- Digital infrastructure: Panama is also positioning itself as a hub for data centers, thanks to its connectivity, stability, and regulatory environment.
