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Panama
"Panama provided the offshore structure we needed with substance and banking access in the Americas. The territorial tax system works perfectly for our international operations."
Company Formation
- Sociedad Anónima (SA) most common structure for offshore/international use
- Territorial tax: 0% tax on foreign-sourced income (must prove income earned outside Panama)
- Local income taxed at 25% corporate rate
- Bearer shares abolished 2015 (nominee structures still available)
- Minimal substance required for offshore companies (registered agent, registered office sufficient)
- Popular for holding companies, IP licensing, international trading, shipping
- Banking challenging post-FATF scrutiny; substance increasingly important
Residency Programs
- Friendly Nations Visa: Fast-track permanent residency for citizens of 50 "friendly nations" (includes US, Canada, EU, Australia, etc.). Requires economic ties (employment, company formation, or investment). Processing 6-12 months. Popular and accessible.
- Qualified Investor Visa: $300,000 investment in Panama real estate grants immediate permanent residency. Includes family members.
- Reforestation Investor Visa: $80,000 investment in government-approved reforestation project grants permanent residency (economically questionable but legally valid).
- Permanent residency does not require physical presence to maintain; citizenship possible after 5 years.
Tax & Privacy
- Territorial tax system: foreign income 0% tax if properly documented
- No capital gains tax on foreign assets
- No wealth tax, estate tax or gift tax on foreign assets
- Banking secrecy traditions but OECD/CRS compliance eroding privacy
- Must demonstrate offshore nature of income (contracts, invoicing, operations outside Panama)
- Transfer pricing rules apply; substance matters for credibility
- Treaty network limited (19 DTAs); not ideal for treaty planning
Banking & Financial Services
- Historical offshore banking hub but international pressure increased compliance
- Major international banks present (Citibank, HSBC, Scotiabank, etc.) alongside local banks
- Strict KYC/AML; substance and economic rationale required
- Multi-currency accounts, USD primary currency (no local currency risk)
- Fintech and EMI sector emerging
- Banking reputation damaged by Panama Papers; legitimate structures require strong documentation
Work With Us
Take Control of Your Global Wealth and Legacy
We connect you with professionals who build structures that work, across borders, under scrutiny, and built to last.
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Important Notice: Aventarys Group connects clients with licensed third-party professionals. We do not provide legal, tax, accounting, or financial advice. All services are delivered by independent licensed providers. Clients should consult their own legal and tax advisors before making any decisions.
