The Panamanian jurisdiction is one of the most proven offshore company formation jurisdictions on the planet. The Panama Offshore Corporations regime was established in 1927. Since then, it has remained one of the main sources of offshore business formation and has registered more than 400,000 corporations.
The structure called the Offshore Corporation in Panama, in other latitudes it is known as the International Commercial Corporation, or IBC in other jurisdictions is a non-resident corporate structure that can be used for tax purposes. Apart from that, it can be used for other fines.
• An Offshore Company can be used to open an investment account or a bank account in another jurisdiction, which allows greater financial flexibility and even better interest rates on the money in the account.
• It can be used as a Holding, and in this way reduce your tax burdens, by using Panama as the destination for dividends from companies in jurisdictions outside of Panama.
• You can use it to protect title to real estate or non-physical products. Even maintain a degree of anonymity, if necessary.
These are some ways in which a Corporation, from the Panamanian jurisdiction can help you, but they are not the only ones.
Since its establishment, the Panamanian Offshore model has become the world standard. This is mainly because it is a flexible structure that guarantees client privacy and a supportive legal framework.
The Panamanian economy has achieved rapid growth in the last two decades due to free zones, low tariffs, and an open business environment, which encourages commercial companies and investors to invest in the country. This has made the political environment in Panama stable.
Compelling reasons to invest in a Panamanian offshore company.
There are several reasons why investors choose to go abroad. If you want to get the most out of your investment and ensure a great return on investment, you must establish a well-designed corporate strategy and with a Panama Offshore Corporation, this is possible.
These are some of the compelling reasons to do so.
• Tax planning
Tax planning is an integral part of your company's financial strategy. If you are looking for a friendly jurisdiction, Panama is the place to go, because it is one of the jurisdictions with minimal tax burdens, for offshore businesses and with policies to attract these types of profiles to the country.
These are the tax benefits offered by Panama corporations and foundations:
• No capital gains tax
• No interest income tax
• No income tax on income earned abroad
• No inheritance taxes
• Without tax on shareholders
• There is no tax on the issuance of corporate shares.
• No gift taxes
• No tax on capital stock
• No stamp duty
• No inventory taxes
• Confidentiality and privacy
Many investors choose to relocate their assets to other countries because their home countries offer to be intrusive and do not respect financial privacy. But in Panama, it is a completely different story. Panama offers maximum privacy; confidentiality and we have special laws that seek to protect the investor and provide a favorable environment for investment.
Reasons to choose a Panama Offshore Corporation, you get these benefits.
• Of the best business secrecy laws
• There is no such thing as "piercing the corporate veil"
• Panama Corporations offer "Bearer Shares", which means that shareholders can maintain complete anonymity if they wish.
• The patrimony belonging to Panamanian Corporations or Private Interest Foundations, are corresponded independently to the personal patrimony of its shareholders in the case of corporations and independent of its founder or beneficiaries in the case of foundations, therefore they are not subject to actions judicial of any kind in Panama or in another jurisdiction, for obligations not acquired by them and are protected.
• Diversification of investments
One of the most popular reasons people move their investments abroad is that they want to diversify their investments internationally. Other countries restrict their citizens from investing in investments abroad. In Panama, corporations and foundations do not have any restrictions on any type of investment in the world. Through the Panama brokerage houses, for example, you can invest in mutual funds, options, commodities, futures, stocks, bonds, and money markets anywhere in the world.
• International trade
The country is home to the second largest international distribution center, which is a duty-free zone, in the world on par with Hong Kong. This makes Panamanian Offshore Corporations extremely useful for international trade. This is why many of the largest companies in the world established distribution centers in Panama. It is the perfect place for the distribution of goods to other countries since it is strategically located in the center of the Western Hemisphere. In addition, Panama has special laws that allow companies to import and export products completely tax-free.
Is Investing with An Offshore Corporation in Panama Right for You?
Now that you are fully aware of the main benefits of investing using an Offshore Corporation in Panama, can you say for yourself that it is the right option for you?
First, you must ask yourself these questions to make the best financial decision.
1. Do you have liquid assets to protect?
2. Are you single, divorced, or considering marriage and want to protect your personal assets?
3. Do you currently generate income that is highly taxed?
4. Are you serving as a partner in a domestic partnership or limited partnership?
5. Are you anticipating or expecting to receive a large amount of money from dividends or an inheritance?
6. Do you need a jurisdiction with a banking platform that allows you to do international business, with low tax rates?
If you have answered "Yes" to any of the questions mentioned above, then you are highly eligible to opt for a Panamanian Corporation.
Until next time!