Panama
Trust and stability
With over four hundred-thousand companies on register, Panama is one of the larger offshore centres worldwide. Strictly speaking, it should not properly be called a tax haven, however, as its tax regime applies equally to foreigners and locals. Panama has 2,8 million inhabitants and generates 70% of its GDP of $10 billion from financial and legal services. The Panama Canal gave rise to the world's second largest free trading zone (after Hong Kong). The Canal between the Pacific and Atlantic oceans turned Panama into the most globalised economy in Latin-America, more globalised in fact than South Korea and Taiwan. Panama has a stable currency (pegged to the US dollar), and has proved to be a stable democracy as well, with the notable exception of the 1968 – 1989 interlude. Ever since its independence in 1903, Panama has been an attractive location to do business. Its company law is drafted upon Delaware's model as early as the 1920s, it allows for private foundations comparable to the Trust, and best of all, its tax system is based on territoriality, not residency. This means that only income generated from within Panama is taxed, whereas most states try to govern beyond their boundaries. The Netherlands is no exception, taxing its residents on their worldwide income. In Panama, only an annual franchise tax of US$ 350 per entity is due, which is included in our prices. Corporations and foundations established under the laws of Panama are only subject to tax on their local source income. Foreign-sourced income (like dividends from England or Cyprus) are tax free and in addition no accounts need to be made or published if all sources of income are foreign. There is no minimal share capital. As a rule, a local office of an international law firm (like Mossack Fonseca) serves as registered agent. This agent and others with access to personal information are bound by statutory privacy rules. Naturally, when a company is suspected of being involved in crime (e.g., narcotics, terrorism), Panama will not hesitate to share information with other governments.
The flow of money is comfortably confined to Europe
Opting for a Panamanian company need not entail opting for a Panamanian bank. In fact, it is not just easier to open a bank account in Luxembourg or Switzerland, it makes more fiscal sense as well as the income from investments and interest accrued on the bank account of the holding company would remain untaxed.
In Panama one finds all the characteristics of a trustworthy and efficient offshore centre. Other advisable jurisdictions are the British Virgin Islands, the Bahamas, the Seychelles, and Hong Kong. Jersey, Guernsey, Gibraltar, the Isle of Man, and Liechtenstein are exemplary options nearer to home. However, company-formation and management services there tend to be three to five times more costly, offering lower standard of privacy and confidentiality. In short, Panama offers the best price-performance ratio.
We can provide companies from any number of jurisdictions - it's your choice.