Panama

Panama is a small Central American country and a large business empire. It is more than just the Panama Canal; it is also the great economic/taxation/legislation climate in the country. Panama is a desirable destination for both business and residence.

Here are Panama’s key advantages for business:

• There are zero tax rates for income received outside of Panama (with the exception of the annual franchise fee) and no foreign exchange control
• It offers one of the highest confidentiality levels in the world: 12 out of 13 signed international agreements are aimed at avoiding double taxation, and it is very hard to track the owners and the beneficiaries of Panama corporations even for the Panama government itself
  
• Offshore companies incorporation does not require considerable expenses and is only complicated by the need to do it in Spanish
  
• Most types of Panama companies belonging to non-residents have the right to do any business (with the exception of retail trade) even in Panama, however in this case those companies will have to submit reports and pay taxes
  

Those who choose Panama as their second home are attracted by the following:

• Low cost and high quality of life
• Low crime levels: Pinkerton’s Detective Agency regularly marks Panama as one of the safest countries in the world
  
• Good infrastructure in general and medical services in particular (medical insurance cost is also quite acceptable)
  

However, there are facts that call for caution when taking advantage of Panama’s opportunities to achieve certain goals:

• Local banks (unlike Panama branches of foreign banking entities) are found to be slow, speak only Spanish, and rest a lot, just like those in most of the other small countries of the region
• Local lawyers, government officials, and notaries work in the same manner, so you should not expect quick completion of any procedure for any purpose
  

Today, Panama is very popular with our clients and we often recommend the advantages of this jurisdiction.