11 Reasons Why Panama is the Best Place for Offshore Business
Source: Poly Attorneys
Panama offers all of the above mentioned reasons for either relocating completely or starting a business in Panama and commuting between both countries. Let’s explore the 11 essential reasons in relation to Panama.
1. Avoiding Income Taxes: Panama is considered a “Tax Haven” because it does not tax income generated outside of Panama. For income generated inside Panama, all of the normal business deductions are available (rent, utilities, wages, equipment & supplies, business entertainment, etc.) while income tax rates are low.
2. Beneficial Incorporation Laws: Panama has one of the best anonymous corporate laws in the world. While one can be totally transparent by being named as a member of the Board of Directors and an Officer, the option exists
to become totally anonymous to protect your privacy. Anonymity can be accomplished by using “Nominee Directors & Officers” by having the law firm’s staff be appointed to those positions. Another way is to issue “Bearer Shares” instead of named stock certificates. Just like Bearer Bonds, the Bearer Shares simply state “Bearer” on the stock certificates. In addition, it’s very cost effective to set up a Panama corporation and to maintain it every year.
3. Currency Stability: Ever since Panama became a nation in 1903, the United States allowed Panama to be the first country to adopt the U.S. Dollar with its currency called the “Balboa”.
4. Privacy: As explained in #2, Panama offers the utmost in corporate privacy. Panama’s banking laws are amongst the strictest in the world in regards to making it a crime for any bank employee to acknowledge or reveal depositor’s names or banking information.
5. Government Stability: Panama has maintained democratically elected
governments since 1989 with no political instability.
6. Economic Stability: The current world economic crisis has not affected Panama in the least as its GDP has grown annually since 2005 with low
7. Strong Banks: Panama’s banks are strong with no bank failures for many years. That’s because the banking laws limit how much banks can invest in high risk securities and must maintain higher reserves than U.S. banks. Panama banks have always been conservative with their mortgages and loans requiring documentation of proof to repay with a careful loan to income ratio.
8. Good Communication & Infrastructures: Panama has high speed internet connections throughout the country along with modern telephone equipment for international calling. Panama City International Airport handles direct flights from over 30 international cities including the U.S., Canada, Europe, and the rest of Latin America. Panama has good roads with 4 lane highways connecting its capitol with all major provincial capitals into Costa Rica. The highway between the Pacific and Atlantic oceans makes road travel in less than 90 minutes. Every province has domestic airports allowing fast domestic air travel. The Panama Canal allows large ships to travel between both oceans since 1914.
9. Free of Natural Disasters: While Panama occasionally experiences minor earthquakes; it never has hurricanes, tornadoes, or tidal waves.
10. Compatible Language: While Spanish is the main language in Panama, English is very popular due to the large English speaking expat community and the fact that the U.S. had been heavily involved in the construction and maintenance of the Panama Canal from 1904 to the end of 1999 when the U.S. turned over the Canal to the Panama government and closed all of its numerous military bases.
11. Proximity to Your Home Country: Citizens of Canada, the U.S., Latin America, and Europe will find that Panama’s international airports have direct flights to these regions.