The Republic of Panama lies between Costa Rica and Colombia, connecting North and South America. The Panama Canal, located at its core, links the Atlantic and Pacific Oceans and gives the country unique strategic importance.
The Republic of Panama lies between Costa Rica and Colombia, connecting North and South America. The Panama Canal, located at its core, links the Atlantic and Pacific Oceans and gives the country unique strategic importance.
With more than 400,000 companies registered, Panama is one of the world’s largest offshore centres. Although often considered a tax-friendly jurisdiction, its regime applies equally to residents and non-residents. Around 70% of Panama’s GDP comes from financial and legal services.
Key advantages that entrepreneurs benefit from include:
• No taxation on income earned outside Panama
• Strong financial and legal infrastructure
• Conservative banking practices with high reserve ratios
• Excellent value relative to cost
A Panama corporation is a practical solution for those seeking a simple tax structure for activities such as e-commerce, import/export, or temporary work assignments abroad. Key characteristics include:
• Company formation within 48 hours
• Strategic location next to one of the busiest waterways in the world
• Territorial tax regime, with foreign income fully exempt
• Banking confidentiality protected by law
More Information
More details about Panama structures can be found in our Panama Foundation article, available in our free monthly newsletter.