Panama Corporate Services,
Launch, Operate, and Thrive,
All Under One Roof
Panama's territorial tax system and strong privacy laws attract businesses worldwide. We handle your incorporation, resident agent requirements, and accounting needs under one roof.
International Recognition & Compliance
Panama was removed from the FATF grey list in October 2023, demonstrating significant progress in anti-money laundering frameworks while working toward full international compliance.
OECD Standards & Progress
Panama is actively working with the OECD to address remaining recommendations, having made significant progress in tax transparency.
Why Choose a Panama Company
Panama's territorial tax system and strategic position as the crossroads of the Americas have made it Latin America's leading financial and logistics hub.
Territorial Tax System
Panama only taxes income earned within its borders. Foreign-sourced income is completely exempt from Panamanian taxation.
Strategic Location
Positioned at the crossroads of North and South America, Panama provides ideal access to markets throughout the Western Hemisphere.
Panama Canal Benefits
Home to one of the world's most important trade routes. Businesses benefit from world-class logistics infrastructure and free trade zones.
Strong Banking Sector
Panama's banking center hosts over 70 banks with $120+ billion in assets. USD is legal tender, eliminating currency risk.
Dollar Economy
The US Dollar circulates alongside the Balboa. Conduct business in stable currency without exchange rate concerns.
Foundation Structure
Panama's Private Interest Foundation offers unique asset protection and estate planning capabilities under civil law tradition.
Privacy Score
Strong privacy traditions with evolving transparency
Panama has historically offered strong privacy protections. While beneficial ownership registration requirements have been enhanced following international pressure, information remains protected from general public access. Bearer shares were immobilized in 2015. The territorial tax system and banking secrecy traditions reflect privacy-oriented values, though transparency is increasing to meet international standards.
Director Anonymity
Directors not on public register
Director information is maintained by the resident agent but is not filed on a publicly searchable register. The Public Registry contains basic company information but not director or shareholder details. Nominee director services are available and commonly used. This provides meaningful director privacy compared to jurisdictions with public registers.
Beneficial Ownership
Private register, authority access on request
Panama implemented beneficial ownership registration requirements, with information maintained in a private register accessible to authorities upon legitimate request. Following reforms that led to FATF grey list removal in 2023, BO transparency has improved significantly. Information is not publicly accessible but is available to competent authorities.
Information Exchange
FATCA/CRS participant, developing infrastructure
Panama has a FATCA Model 1 IGA with the United States and participates in CRS automatic exchange. Information exchange infrastructure has been enhanced following FATF grey list removal. Exchange is functional but Panama's historic reputation for banking privacy means some perception issues remain despite substantial improvements.
Banking Acceptance
Strong domestic banking, some international caution
Panama has Latin America's largest banking center with over 70 banks and $120+ billion in assets. Domestic banking is excellent. However, Panama companies may face enhanced due diligence at some international banks due to EU Annex I listing and historical reputation. FATF grey list removal in October 2023 has improved acceptance.
Financial Reputation
Major banking center, recovering from Panama Papers
Panama operates one of Latin America's most significant banking centers. However, the 2016 Panama Papers leak created substantial reputational challenges. The jurisdiction has since implemented reforms leading to FATF grey list removal in 2023. EU Annex I listing remains a perception issue. The reputation is recovering but not fully restored.
Currency Freedom
USD as legal tender, no exchange controls
Panama uses the US Dollar as legal tender alongside the Balboa (pegged 1:1 to USD). There are no exchange controls, capital restrictions, or currency regulations. This dollarization provides maximum currency stability and eliminates exchange risk. Multi-currency accounts are available at Panama's extensive banking sector.
Banking Partnerships
Extensive domestic banking, strong correspondent network
Panama's banking center includes over 70 licensed banks with $120+ billion in assets. Major global and regional banks maintain significant operations. Correspondent banking relationships are extensive. The Superintendency of Banks provides robust oversight. This is Latin America's premier banking hub with genuine domestic banking infrastructure.
Regulatory Framework
Civil law system, modern corporate legislation
Panama operates under a civil law system with corporate law based on the Law 32 of 1927 (Sociedades Anónimas) as amended. The Superintendency of Banks oversees the banking sector. The Panama Maritime Authority regulates shipping. The framework is well-established though different from common law jurisdictions. Legal infrastructure is developed.
OECD Compliance
Working toward full compliance
Panama has been working with the OECD to improve its compliance rating. The jurisdiction has made significant progress on transparency and information exchange, though it has not achieved the 'Largely Compliant' rating of top-tier IFCs. BEPS implementation is in progress. Aspirations to join OECD as a member country drive continued improvement.
EU Recognition
Listed on EU Annex I (blacklist)
Panama remains on the EU Annex I list of non-cooperative jurisdictions for tax purposes, primarily due to territorial tax system considerations. This is the most impactful EU listing, potentially affecting transactions with EU entities and triggering withholding provisions under EU defensive measures. Score reflects significant impact on EU-facing business.
FATCA/CRS Compliance
Compliant, removed from FATF grey list
Panama has a Model 1 FATCA IGA and participates in CRS. The jurisdiction was removed from the FATF grey list in October 2023 after successfully addressing strategic AML/CFT deficiencies. This was a significant milestone demonstrating improved compliance. The grey list exit restored confidence among financial institutions.
Incorporation Speed
3-5 business days standard
Panama corporation (S.A.) incorporation typically takes 3-5 business days with standard processing. Express services can reduce timeframes. The process requires registration with the Public Registry. Foundation (Fundación) registration may take slightly longer. The process is reliable but not as fast as some Caribbean IFCs.
Tax Efficiency
Territorial tax system, foreign income exempt
Panama operates a pure territorial tax system: only Panama-source income is taxed. Foreign-source income is completely exempt from Panama taxation regardless of where the company is managed or controlled. This is one of the world's most favorable tax systems for international business. No capital gains tax on foreign investments applies.
Political Stability
Stable democracy, strategic canal location
Panama has been a stable democracy since 1989 with peaceful transitions of power. The economy is diversified across the Canal, banking, logistics, and services. GDP per capita is among Latin America's highest. The strategic importance of the Panama Canal creates international interest in stability. Political risk is moderate-low.
Legal System
Civil law, well-developed commercial framework
Panama operates under a civil law system derived from Colombian and Spanish traditions. Commercial and corporate law is well-developed through decades of international business. The Supreme Court oversees the judicial system. While different from common law, the framework is familiar to Latin American practitioners and increasingly to international business.
Global Reputation
#1 ship registry, major logistics hub
Panama is globally recognized for the Panama Canal and the world's largest ship registry. For maritime and logistics, Panama has unparalleled reputation. However, the Panama Papers (2016) created significant reputational challenges for non-maritime corporate structures. The reputation is mixed: excellent for shipping, recovering for general offshore.
Treaty Network
Growing DTA network, 20+ treaties
Panama has been building its Double Taxation Agreement network with 20+ treaties in force, including agreements with major European economies, Mexico, and Asian countries. This is a competitive advantage over traditional offshore jurisdictions lacking DTAs. However, the network is smaller than Cyprus or Mauritius.
Trade Relations
Panama Canal hub, multiple FTAs
Panama's strategic location at the crossroads of the Americas and control of the Canal provides natural trade advantages. The country has free trade agreements with the US, EU, and various countries. The Colon Free Zone is the Western Hemisphere's largest. For active trading and logistics businesses, Panama offers meaningful advantages.
Diplomatic Status
Independent nation, strategic importance
Panama is an independent nation with full diplomatic capacity and UN membership. The strategic importance of the Panama Canal ensures strong relationships with major powers. The country actively participates in international organizations. Independent treaty-making capacity enables the growing DTA network.
Panama Corporate Services
Complete Panama corporate services from S.A. formation to ongoing compliance. We manage every aspect of your Panama Sociedad Anónima.
Company Formation
Establish your Panama corporation (Sociedad Anónima) through the Public Registry. Panama offers territorial taxation and strategic positioning at the crossroads of the Americas.
Complete Panama S.A. incorporation with the Public Registry. We prepare all documentation, handle notarization and registration, and provide your corporate kit.
Mandatory Panama resident agent with professional Panama City address. All government correspondence and statutory communications managed on your behalf.
Access Panama's extensive banking center with over 70 licensed banks. We prepare applications, compile KYC documentation, and facilitate account opening.
Compliance & Filing
Maintain full compliance with Panama Public Registry and regulatory requirements. We manage annual fees, registered agent declarations, and corporate obligations.
Comprehensive annual compliance management including deadline tracking, government fee payments, and good standing maintenance with Panama authorities.
Payment of the annual Tasa Única (franchise tax) to maintain company in good standing. We handle timely payment to avoid penalties and suspension.
Annual filing confirming beneficial ownership information as required by Panama regulations. We ensure proper maintenance and reporting.
Professional bookkeeping services including transaction recording, bank reconciliation, and financial record maintenance meeting international standards.
Document Retrieval
Obtain official corporate documents from Panama authorities. Fast processing with apostille services available for international recognition.
Official document confirming current directors, officers, and shareholders. Essential for banking and commercial verification. Apostille available.
Confirms your Panama S.A. is active with no outstanding fees. Essential for banking relationships and international transactions. Apostille available.
Certified copy of your company's articles of incorporation from the Public Registry. Required for banking and commercial purposes. Apostille available.
Official extract from Panama Public Registry with full company details and registration history. Apostille available.
Corporate Administration
Professional Panama company administration and nominee services. Maintain proper governance with qualified professionals handling your S.A. requirements.
Professional nominee director services for Panama corporations. Includes appropriate documentation and indemnity arrangements.
Nominee shareholder services with declaration of trust arrangements. Handles all shareholder responsibilities while protecting beneficial owner information.
Complete corporate secretarial support including board minutes, shareholder resolutions, statutory register maintenance, and document management.
Frequently Asked Questions
Essential information about Panama as a jurisdiction for international business
Panama operates under a civil law system derived from Colombian and Spanish legal traditions. Corporate law has developed over nearly a century since the original 1927 corporation law, with familiar concepts for Latin American practitioners. The Supreme Court oversees the judicial system. While different from common law jurisdictions, the framework is well-established for international business.
Panama operates a pure territorial tax system—only income derived from Panamanian sources is taxed. Foreign-source income is completely exempt regardless of where the company is managed or controlled. There is no capital gains tax on foreign investments, no withholding tax on dividends from foreign-source profits, and no inheritance tax on offshore assets. This is one of the world's most favorable tax regimes for international business.
Panama is currently on the EU Annex I (blacklist) primarily due to territorial tax system considerations. However, Panama was removed from the FATF grey list in October 2023 after addressing strategic AML/CFT deficiencies. This FATF exit was a significant milestone for the jurisdiction's compliance standing. Panama continues to work toward addressing EU criteria.
The Sociedad Anónima (S.A.) is Panama's standard corporation, governed by Law 32 of 1927 as amended. Panama also offers Private Interest Foundations (similar to trusts but with legal personality), limited liability companies, and branches of foreign companies. The S.A. structure is flexible, with no minimum capital and bearer shares (though now immobilized with custodians).
Panama's banking center is the largest in Latin America, with major international banks maintaining significant operations. The dollarized economy (US Dollar as legal tender) eliminates currency risk. The Superintendency of Banks provides regulatory oversight. Panama corporations can open accounts locally with direct access to this banking infrastructure—a significant advantage over pure offshore jurisdictions.
Panama's Private Interest Foundation is a unique vehicle combining features of trusts and corporations. It has separate legal personality, can hold assets in its own name, and provides succession planning and asset protection benefits. Unlike trusts, foundations are registered entities with a council rather than trustees. They are commonly used for estate planning and holding personal assets.
The Panama Canal handles approximately 5% of global trade, and the Colon Free Zone is the Western Hemisphere's largest free trade zone. Panama has free trade agreements with the US, EU, and numerous countries. For businesses involved in trading, logistics, or maritime industries, Panama offers genuine operational advantages beyond corporate structuring.
Navigate Panama Opportunities
Whether it's a Sociedad Anónima, private foundation, or local banking, explore Latin America's leading financial hub with expert guidance.
