Corporations in Panama

A lot of the investors that invest in Panama Real Estate normally prefer to get the name of their property registered under a corporation in Panama. They do not get it registered under their own name. This practice is quite common and it is followed so that the investor can remain anonymous. There is nothing illegal in following this practice.       
                                                                                                                                                                                          Whenever documents are added to the public registry, anybody can find information about the  owner. But if it is done under the name of a corporation, it becomes difficult to find the name of the owner of the corporation. To make it more anonymous, the investor can also make a corporation under the name of a third party so that his name is completely hidden. It is easy to keep the name of seller more anonymous this way if he wants to keep himself hidden from the authorities.
    
If the buyer has a bought a property to gain residency in the country, then he will have to show his ownership of the property which will be difficult if he has bought it under the name of a corporation. But, if you do not want to pay any income tax or less capital gains tax, then again, you should buy the property under a corporation’s name only.

Other reasons why it is a good idea to buy the property under a corporation name is that if you are a property investor and you would like to sell the property then in this case you will only have to transfer the shares of the corporation without having to pay the extra 2% transfer tax. As a seller you also probably not like to show your earnings on paper, this way you will be able to keep yourself away from paying the capital gains tax. This law of paying a 10% capital gains tax on any kind of sale of the shares of the corporate had come into practice in the year 2006. Any suitable lawyer can help you find a solution to this problem. They will charge you something and find you some way to escape from payment of part or all of this tax.          
           
Another reason for this practice is the protection of one’s assets. When the property is not directly under your name, or if it does not have any direct connection with you, it cannot be declared as your asset. This is very helpful during unfavorable circumstances such as going through a divorce or getting sued.
     
The process of setting up an corporation is quite simple and almost all the law firms in this place can do it within 3 days and by charging somewhere around $1000. The charges after the creation are around $300 every year and they depend on the kind of firm you have chosen to work for you.

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