Panama

The Panama Advantage

Panama has established itself as a premier jurisdiction for international business and financial services. With a robust economy anchored by the Panama Canal, a strong financial services sector, and business-friendly legislation, Panama offers significant advantages for international structures.

Panama's territorial tax system means that companies incorporated in Panama are only taxed on income derived from within Panama. Income generated from sources outside Panama is exempt from Panamanian taxation. This, combined with Panama's strategic geographic location connecting North and South America, makes it an ideal hub for international business operations.

Key Benefits

• Territorial Taxation: Companies only pay taxes on Panama-sourced income
• Banking System: Sophisticated banking sector with strong privacy laws
• Privacy: Strong corporate privacy protections and confidentiality
• Strategic Location: Hub between North and South America with the Panama Canal
• Stable Currency: Uses the US Dollar as its official currency, providing monetary stability

Company Types Available

Regulatory Framework

Panama has modernized its regulatory framework in recent years to maintain its position as a reputable international financial center. The country has implemented measures to comply with international standards on anti-money laundering and countering the financing of terrorism (AML/CFT), while still preserving the advantages that make it attractive for legitimate business structures.

Panama's legal system is based on civil law, with a strong focus on protecting property rights and contractual relationships. The jurisdiction has specific legislation for various corporate structures, providing legal certainty for international business operations.