ADVANTAGES OF PANAMA - TERRENOS BOCAS DEL TORO

In our previous post we talked about the characteristics or key points that we must take into account when choosing an offshore jurisdiction. In that sense, Panama offers the following benefits and advantages:

► Panama has the best fiscal platform for offshore businesses: Offshore or Non-Resident Panamanian Companies and Private Interest Foundations do not pay taxes on any of their offshore entries (from a foreign source):

• There are no taxes on income (offshore).
• There are no taxes on capital gains.
• There are no taxes on bank interest.
• There are no sales taxes (offshore).
• There is no tax on issues of corporate shares.
• There are no taxes on shareholders.
• There is no tax for sale or transfer of shares.
• There is no tax for shares of capital.
• There is no tax on offshore property.
• There is no state tax.
• There is no tax for gifts.
• There is no stamp duty.
• There is no inheritance tax.
• There is no inventory tax.
• There is no municipal tax.
• There is no state tax.
• There is no federal tax.

► Panama offers the most flexible and favorable company laws available in the world . Private Interest Foundations are also available, and they are one of the most used heritage planning structures in the world today.

• Panama is the registered address with more than 500,000 partnerships & amp; foundations, making it the second most popular jurisdiction to establish offshore companies in the world, after Hong Kong.
• Panama does not require that the shareholders of the offshore Panamanian companies be registered in the public registry (however, the resident agent keeps a private registry).
• Panama does not allow the “lifting of the corporate veil”.
• The certificates of shares of the Panamanian companies can be issued in a Nominative or bearer form (anonymous form of ownership), with or without a nominal value.
• Panamanian companies do not require Subscribed Capital, nor is there a time limit in which the authorized capital must be paid in full.
• Directors of Panamanian companies, officers and shareholders, can be of any nationality and residents of any country.
• Neither directors nor officers in Panamanian companies need to be shareholders.
• Meetings of directors, officers and shareholders can be held in any country and the accounting books can be kept in any country.
• It is not necessary for interested parties to be present in Panama for the purpose of establishing a company.
• Companies that conduct business outside Panama do not require a commercial license for offshore business activities.

► The circulation currency in Panama is the American Dollar and Panama has no control of currency exchange or exchange restrictions, so funds can enter and leave the country freely.

• Panama uses the US Dollar as a legal trend (currency), installing tremendous monetary and fiscal disciplines, keeping inflation very low – below two percent in the last 40 years.
• The dollar economy isolates Panama from global economic crises. During the Asian currency crisis in 1998, Panama became one of the healthiest economies in Latin America.
• There are no currency exchange controls. Panama has no restrictions on monetary remittances abroad, including dividends, interest, branch profits and royalties.
• There is no restriction on funds entering or leaving the country in any currency.

► Panama continues to maintain what we consider to be the strongest banking confidentiality and corporate book laws in the world , which are enshrined in its ‘Political Constitution’. It is clear that Panama remains the safest offshore financial center, where privacy and confidentiality is not only respected, but vigorously protected by Constitutional Law. Panama has undertaken to sign only the double tax treaties, which are beneficial for foreign investment in Panama. However, the secrecy laws banking in Panama are still in force.

• Panama offers the best banking secrecy laws in the world.
• Panama offers the best laws in the world regarding corporate book confidentiality.
• There is no ‘corporate veil lift’ in Panama.
• Revealing banking information to third parties is a crime, punishable by imprisonment.
• Panamanian companies offer ” Bearer Shares “, allowing shareholders to remain 100% anonymous and private.
• The Private Interest Foundation allows Private Documents of Protectorate and Wills, allowing the controllers (protectors) and beneficiaries of the Foundation Private interest, remain 100% anonymous and private.

► Panama has what is considered by government analysts, the most stable government in Central and South America.

• Democratic government since 1990. The Panamanian government is running gone by the Executive Body, which is composed of the President and two Vice-Presidents, democratically elected for a period of five years by direct vote.
• Mireya Moscoso was the first woman President of Panama and led the country at a time of great historical importance, when the Panama Canal began a new era under the Panamanian administration. At the time of this writing (June 2010), our current president is businessman Ricardo Martinelli (whose term ends in 2014) is a rightist, pro-business lawyer, with the commitment to make Panama “the best place to do business in the world. “
• Panamanian militarism was abolished by constitutional amendment in 1994, and the government continues to have a unique security arrangement with the US, due to the Treaty of Neutrality of the Panama Canal. As a result, the risks of returning to the beginnings of a military regime are virtually non-existent (Source: Euromoney Report / Lehman Brothers, Feb. 26, 1999).
• Stable government with excellent governance infrastructure.
• Attitude and government policy in favor of trade.
• Roman Law System.
• Moody has issued Panama a sovereign risk rating of Ba1 and Standard & amp; amp; ; Poors has assigned a default rating of BB +.
• Panama is a quiet country, with no military. Unlike many neighboring countries, the concern for personal safety is limited. Panama has the lowest level of crime in Central and South America.

► The Panamanian economy is one of the most stable, prosperous and most advanced in all Central and South America.

• Panama is home to the second largest distribution center and exchange center (free zone), in the world, followed by Hong Kong. In the Colon Free Zone of Panama there are more than 1,500 international import / export businesses, more than 250,000 visitors are received each year, and more than US $ 11 billion are generated annually in exports and re-exports.