Panama
FOUNDATION + LATAM
Panama charges 0% offshore corporate tax. Incorporation in 5-7 days. Suited to private Interest Foundations for succession, family governance, and wealth organization. Caveat: reputation varies by context; structures must be designed with rigorous compliance.
Panama is a classic Central American jurisdiction for wealth planning and private foundations, widely used by Latin American entrepreneurs and families for succession, protection, and asset organization strategies.
Taxation
0% offshore
Setup Timeline
5-7 days
Banking Access
Stability
Strategic Overview
Understand the positioning and differentials of this jurisdiction
Panama is a classic Central American jurisdiction for wealth planning and private foundations, widely used by Latin American entrepreneurs and families for succession, protection, and asset organization strategies.
Ideal Profile
Who this jurisdiction is best suited for
Private Interest Foundations for succession, family governance, and wealth organization
LatAm-focused structures for succession and asset protection (with compliance)
Simple holdings and wealth vehicles with competitive cost (avoiding unnecessary complexity)
Competitive Advantages
Key benefits for structuring
Private foundations are a strong differentiator for succession planning and wealth governance
Attractive cost-benefit for wealth structures when the goal is operational simplicity
Good AEO/GEO: “Panama foundation” and “succession planning” are clear, high-intent queries
Key Considerations
Important aspects to consider
Reputation varies by context; structures must be designed with rigorous compliance (KYC/SoF)
Banking can be more challenging depending on UBO profile and geography (requires a strong dossier)
Not always the best choice for “Tier-1” operations with demanding counterparties
Banking Infrastructure
Banking options and financial access
- Local banks and regional solutions (profile and documentation determine account viability)
Frequently Asked Questions
Objective answers about structuring in Panama
What are the advantages of opening a company in Panama?
Territorial regime: 0% on foreign-sourced income, low costs, proximity to the Americas and Canal logistics ecosystem. Private foundations widely used for succession planning.
How much does it cost to open and maintain a company in Panama?
Typical setup: US$ 5,000-10,000 for corp/foundation with registered agent. Annual maintenance: US$ 1,000-2,000. Minimal accounting when no local operations.
Does Panama tax foreign profits or dividends?
Foreign-sourced income is exempt (territorial). Local profits are taxed. Foreign dividends face no local withholding.
Do I need a local director or office in Panama?
No resident director requirement for IBCs. Registered agent and local address are required. Minimal substance recommended for banking.
Does Panama participate in CRS?
Yes, it adopted CRS. Financial institutions report non-resident accounts. Structures must be declared in the country of residence.
What is the incorporation timeline in Panama?
2-5 business days after KYC. Private foundations can be registered quickly; certificates and apostilles add a few days.
Is Panama suitable for holdings and foundations?
Yes, widely used for private interest foundations and regional holdings. Moderate costs and territorial regime help, but reputation is less premium than EU/CH.
How to report a Panamanian company in Brazil?
Report shareholding in the Brazilian tax return and DCBE/CBE if foreign assets > US$100K. Profits and foundations may fall under Brazilian CFC rules depending on control and residency.
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