Panama

Panama is a small tax haven located on the border of South and Central America. Panama controls the strategic Panama Canal. Panama is one of the oldest tax havens in the world.

The capital of Panama: Ciudad de Panamá

Official language of Panama: Spanish and 7 Amerindian languages, English is also widespread

Official currency in Panama: balboa and US dollar

Description and advantages of a Panamanian offshore company

• The legal form of an offshore Panamanian company is Non-Resident Company
• the minimum number of directors of an offshore company is 3
• the minimum number of shareholders of an offshore company is 1
• all persons participating in the company can be non-residents of Panama
• there is no requirement to file a tax return, financial statements or an annual report
• zero tax on income not derived from sources within Panama
• registered and registered shares are allowed
• registered shares may not leave the territory of Panama and must be deposited with a
• notary or authorised depositary
• the commercial register of offshore companies is public – it is advisable to use nominee
• services to increase anonymity and discretion

International treaties

International conventions against money laundering and terrorist financing

Panama has signed these treaties. The practical significance of these agreements for the owners of offshore companies from Panama is especially in the case when money laundering or terrorist financing is suspected on the part of an offshore company registered in Panama, so its registration agent can pass on the personal data of the persons involved in the company – i.e. in the case of nominee services of the real owners of the offshore company – and a basic description of its activities to their superior authorities, who will pass them on within the framework of international assistance, e.g. also to the Czech Republic.

Double taxation treaty with the Czech Republic

This treaty is in place. Withholding taxes are only applied on direct payments from the Czech Republic to Panama unless otherwise provided for in this international treaty. Therefore, a Panamanian offshore company is suitable for direct sales of goods or services to the Czech Republic in the cases provided for by the international treaty.
On the basis of this treaty, tax relevant information is also exchanged between the two countries.

Tax Information Exchange Treaty with the Czech Republic

Not concluded.

Council of Europe Multilateral Convention on Mutual Administrative Assistance in Tax Matters

Not concluded.

Multilateral Convention of the Council of Europe on Mutual Administrative Assistance in Tax Matters

• Ship registration – Panama’s ship registry is the largest in the world
• private foundation (under the 1995 Act) – an instrument mainly used for asset protection
• holding company, parent company, other companies for anonymity of ownership
  direct sale of goods or services

Benefits

Incorporation in Panama provides a company with a wide range of competitive advantages, including:

• business can be conducted internationally
• exemption from all local taxes and stamp duty
• no disclosure of company personnel is required
• no reporting requirements
• no accounting requirements
• maximum security of assets
• maximum confidentiality and anonymity
• meetings can take place outside Panama
• bearer shares are allowed
• companies domiciled in Panama are exempt from local taxes, are allowed to conduct all types of business, and can have clients, suppliers and employees from any country

Panama was a Spanish colony until 1821. In 1903, Panama broke its treaty with Colombia and became an independent republic.

More than 500,000 companies and Panama foundations are registered in Panama, making it the second most popular offshore jurisdiction.

Taxes

Panama offers the most favorable and flexible offshore incorporation laws in the world .A Panama company can be used by individuals from all over the world who are interested in global asset protection, privacy, investment diversification, tax minimization, affordability and convenience. Panama Offshore company provides legal protection for your assets and your identity through the confidentiality of business and banking transactions conducted through the company in Panama.

Panama does not impose reporting requirements or offshore income taxes.

Panama companies (corporations) do not require the repayment of capital, there is no time limit in which the share capital must be repaid.

Bearer shares

Panama is one of the few offshore jurisdictions in the world that still offers “bearer shares for corporations”.Bearer shares must be fully paid up on issue.

Strict rules apply to bearer shares. The director must hold the bearer shares in certified custody and must notify the Secretary of State.

Confidentiality

Panama is one of the most respected offshore jurisdictions around the world, mainly due to its high level of confidentiality and highly efficient registry.Panama’s corporate books are kept 100% private and confidential by law.

Types of companies

• Corporation, CORP
• Incorporated, INC
• Sociedad Anomina, S.A.

Panama Bank Account

We can also assist you with opening a Panama bank account for your company.