PanamaPanama is an attractive country in many ways and its capital is experiencing enviable economic growth. That is why more and more investors and business people fix their eyes on that territory. Its advantages as jurisdiction ‘offshore’ make it a highly attractive destination. Why Panama? When establishing an offshore structure or a financial account, the jurisdiction you choose must have at least the following 10 characteristics:
Fiscal Benefits – In Panama there are no taxes on capital gains in offshore investments, there is no tax on interests generated in offshore bank accounts, there is no income tax (for offshore companies), etc.
Favorable Laws of Establishment of Companies – The laws of establishment of companies in the country, should allow you to maintain “Bearer Shares”, have directors of any country, without so many expenses, and be able to establish Private Interest Foundations as Panama does it.
Stable currency, without regulatory restrictions – the country’s currency must be stable and there must be no restrictions on the movement of funds within or outside the country and your offshore bank must be able to keep your money in any of the main currencies.
Strict Privacy Laws – there must be strict privacy laws that protect your banking information and information in corporate books.
Stable Government – The country’s government must be stable. The country must also be safe to visit.
Stable Economy – The country’s economy must be stable with steady growth and low inflation.
Excellent Banking System – The country’s Banking System must be advanced in areas of international banking regulation, infrastructure, government auditing and technology.
Excellent Communication System and without Natural Disasters – The Communication Systems of the country must be technologically advanced compared to the countries of the first world and the country must be located in a region that is free of environmental disasters / natural (hurricanes, tornadoes, earthquakes, tidal waves, etc.), so that communications are never cut or are problematic.
Language Compatibility – The language of the country should be convenient for understanding.
Time Zone and Nearby Location Compatibility – The country’s time zone must be the one that allows you to contact your offshore provider or financial institution during your normal working hours and travel to the country quickly ( the same day) if you need to urgently handle a business or financial need.
After careful research, you will find that Panama is the ideal jurisdiction for your ‘offshore’ needs, since Panama complies with ALL of the criteria mentioned above. The Law of Panamanian Companies, was enacted more than 80 years ago, and since then it has been copied by many of the other nations considered tax havens. Panama has been one of the places of establishment of most popular societies in the world, with more than 500,000 registered entities. Panama also offers the Private Interest Foundations, which are part of the most used vehicles for asset protection and asset planning available today.
You can continue reading more about the advantages that Panama offers in our next post
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