Why invest in Panama

If you are planning to invest on offshore financial accounts, you need to consider a lot of things before selecting the final destination. Here is the list that you need to consider before making the final decision:

 

- The offshore jurisdiction must not ask for any capital gains tax, interest income tax and inheritance tax.

 

- The offshore jurisdiction must have favorable incorporation laws. For instance, corporate laws should allow the investors to hold Bearer Shares.

 

- The country should have a stable currency with no restrictions. If the country has restrictions on currency movement, you will face problems in future. Make sure that the offshore jurisdiction allows you to transfer the capital gain into your home country without any restrictions.

 

- Make sure that the offshore jurisdiction has the ability to protect all your banking data. If the offshore jurisdiction does not have a strict privacy law, do not invest there.

 

- Check whether the government of that country is stable on not. If the government is not stable, your investment can be in jeopardy incase the opposition party grabs power.

 

- The offshore jurisdiction should use the reverse legal scheme of your home country. For instance, if common law is followed in your country, the offshore jurisdiction should have Roman law.

 

- The offshore country should be secure enough to visit any time of the year.

- The country should have a stable economy. Moreover, it should have an excellent banking system.

 

- Make sure that the communication systems are good. Without an efficient communication system, it will be hard for you to operate the banking transactions.

 

- Technology is another important factor to consider. Make sure that the country is technologically advanced.

- Language is very important. It must be appropriate for your understanding.

 

- Consider the time zone. It should be in a way that when you contact the provider, it has to respond as quickly as possible. You should be able to contact the provider during your usual business hours.

 

Now that you know the factors to consider before investing, let me introduce you to a great offshore location - Panama.

 

If you do a watchful research, you will realize that Panama is the best place for offshore investment. For a start, the Panama corporation law was disseminated some 72 years ago and now works as the pioneer in the field. Many other tax haven countries including St. Vincent, Hong Kong, Bermuda, Belize, Isle of Man and Bahamas followed Panama’s corporation law when they started offshore business.

 

Recent records show that over 350,000 registered businesses are incorporating their investments in Panama. This high figure proves that the foreign investors are quite comfortable in doing business in Panama. Additionally, Panama has a Private Interest Foundation working in favor of the offshore investments. This corporation is considered as one of the most functional asset shield institute in the world.

 

Moreover Panama has the subsequent benefits to its name:

 

1. The country is a 100% Tax Haven.

In Panama, Non-resident Panamanian International Business Corporations and Private Interest Foundations are not entitled to pay tax at all; nor do they have to report of their wealth to the government. In Panama, there is NO -

Û    Income tax.

Û    Capital gains tax.

Û    Interest income tax.

Û    Sales tax.

Û    Tax on the issuance of corporate shares.

Û    Tax to the shareholders.

Û    Stock sale

Û    Capital stock tax

Û    Transfer tax

Û    Property tax

Û    Estate tax.

Û    Gift tax

Û    Inventory tax

Û    Stamp tax

Û    Succession tax

 

 

2. Panama offers a very favorable and flexible incorporation laws.

Business gurus stated that Panama’s incorporation laws are the most flexible laws in the world today. Additionally, Private Interest Foundations are available to the investors which go through a well appreciated estate planning structure. Here are some facts about the flexible incorporation laws of Panama:

 

1.      Panama is the 2nd most popular offshore jurisdiction in the world; right after Hong Kong. More than 400,000 corporations & foundations are registered into its system.

 

2.      The authority does not ask for reporting requirements from the non-resident Panamanian companies.

 

3.      The authorities do not allow any unlawful competition. This ensures that the investments are quite safe here.

 

4.      The share certificates are issued in Bearer or Nominative with / without the par value of the document.

 

5.      Panama’s offshore jurisdictions do not ask for any Paid-In Capital from the investors.

 

6.      Panama’s offshore jurisdictions do not impose any time limit on the authorized capital.

 

7.      Panama does not have any restrictions on the nationality of the corporations’ directors, officers or shareholders. They can be from any nationality and be inhabitant of any country from across the world.

 

8.      The directors and the officers of the offshore jurisdictions need not to be shareholders.

 

9.      If the shareholders, directors and officers plan to hold meeting outside Panama, they can. There is no restriction on it. 

 

10.  Interested parties or investors may not be in attendance in Panama for setting up a corporation. There representatives can do it.

 

11.  Corporations doing business outside Panama can do trading in Panama with their existing commercial license.

 

 

3. Panama uses US Dollar as its circulating currency.

As Panama uses US Dollar, there is no currency swap controls or currency limitations. Any one is allowed to flow in and out funds freely. Here are the benefits of having the US Dollar as a circulating currency:

 

1.      Panama maintained a low inflation rate throughout its history. In the last forty years, Panama managed to keep it under two percent.

 

2.      Panama is shielded from international economic shocks. For instance, during the 1997 Asian monetary crisis, Panama managed to be a healthy economy just because it uses the US Dollar as a circulating currency.

 

3.      Panama does not impose any margins on fiscal remittances abroad. It means, it has no limitations on the amount of branch profits, dividends, royalties and interests.

 

 

4. Panama has a concrete banking and corporate book secrecy laws.

Panama actually is the most secure offshore financial center in the world. Privacy and discretion is respected here and also energetically protected by the country’s constitutional law. The banking law considers revealing information to any third parties as a crime.

 

Additionally, Panama does not have any mutual legal assistance treaties with any countries. It means that Panama does not identify court rulings of any other countries. Here are other benefits, you will find due to Panama’s excellent and solid banking system:

 

1.      Panama’s jurisdictions offer shareholders to preserve 100% secrecy and privacy over their investments.

 

2.      The Private Protectorate Documents and beneficiaries of Private Interest Foundations remain 100% unspecified and private.

 

 

5. Panama has a stable government.

Panama has one of the most steady and consistent government in the world. The government is headed by an executive branch of the ruling party. There is a president and two vice presidents. All three are democratically elected through a direct vote.

 

In 1994, Panamanian military was eliminated through constitutional amendments. Since then, the government maintains a unique and strong security arrangement with the U.S. to protect its land and the Panama Canal. Panama politically has the following advantages: 

 

1.      Stable government

 

2.      Outstanding government infrastructure

 

3.      Government’s Pro-business approach and policy

 

4.      Government’s use of Roman law system

 

5.      Unlike its neighboring countries, Panama is a peaceful place where personal security apprehensions are quite limited.

 

6.      The country has lowest crime rate in all of Central and South America.

 

7.      According to Moody, Panama has a Ba1 ‘sovereign debt ceiling’. Standard & Poors on the other hand allocated a default-risk rating of BB+ to Panama.

 

 

6. The economy of Panama is very strong, prosperous and stable.

Panama possesses a stable economy. Throughout its history, Panama maintained a stable growth and equal wealth distribution. The business houses of Panama are wealthy and the real estate sector is very much prosperous. Currently Panama hit the US$11 billion mark of its exports and re-exports.

 

Panama is actually the home of 2nd largest global distribution and trade center of the world. At present, more than 1500 international businesses are operating in Panama’s Colon Free Zone.

 

Panama is an attractive tourist destination as well. The records show that over 250,000 visitors come to relax here each year.

 

Have no doubt in mind that Panama is THE PLACE to invest. Your investment will be secured, it will be kept a secret and the rate of return will be higher than anywhere in the world.