Panamanian Corporations & Private Foundations
The ultimate legal vehicle for asset protection, international property ownership, and legitimate tax mitigation under Panama's renowned territorial regime.
Decades of Proven Stability and International Preeminence
A Panamanian Corporation (Sociedad Anónima) is perhaps the most reliable safeguard you can institute to protect your real estate, liquid wealth, and commercial ventures.
Governed by the Corporation Act of 1927, this structure creates a distinct juridical persona that separates your personal identity from your investments, shielding your private estate from liability while facilitating smooth cross-border succession.
Supported by the US Dollar as official legal tender and Latin America's foremost international financial and banking district.
Why Form a Panama Corporate Entity?
A proven, battle-tested framework for global business and asset protection.
Territorial Tax Regime (0% Foreign Income Tax)
Complete income tax exemption on all profits, dividends, and royalties originating outside Panamanian territory. Interest yields on Panama bank deposits are also 100% tax-free.
Strict Financial & Corporate Confidentiality
Shareholders are never recorded in public records. In addition, Panamanian statutory provisions impose severe penal sanctions for unauthorized disclosure of client information.
No Required Paid-In Capital Outlay
Standard authorized capital is typically US$10,000, yet there is no legal requirement to actually deposit or tie up this capital in a bank account to commence operations.
Low Ongoing Maintenance Costs
The annual state corporate franchise tax (tasa única) is only USD $300. Our law firm serves as your official Resident Agent, maintaining compliance and annual records.
Complementary Corporate Services
Beyond entity formation, we manage corporate bank introductions, commercial licenses (Aviso de Operación), trademark and patent registrations, and customized general or special powers of attorney.
Panama Corporate & Offshore FAQs
Clear answers on formation, compliance, and asset segregation.
01.What is the Principle of Territoriality in Panama and how does it save me taxes?
Under Panamanian tax law (Article 694 of the Tax Code), taxes are levied only on income derived from economic activities carried out strictly within the geographical territory of Panama. Therefore, income generated from international trade, foreign consulting services, offshore stock investments, or property holdings abroad is 100% tax-free under Panama law.
02.What are the key differences between a Corporation and a Private Interest Foundation?
A Panamanian Corporation (Law 32 of 1927) is a commercial for-profit vehicle with shareholders, ideal for operating businesses and holding active real estate. A Private Interest Foundation (Law 25 of 1995) has no shareholders; it is governed by a Foundation Council for the benefit of named beneficiaries, operating like a civil law trust that is legally immune to foreign judgments, attachment, or contentious probate procedures.
03.Who appears on the Public Registry when forming a Panama Corporation?
Panamanian law requires recording only the names of the Board of Directors (minimum 3 members) and the subscribers. The actual owners and shareholders are NOT registered in the Public Registry, ensuring utmost privacy for foreign investors.
Form Your Corporation or Foundation
Reach out to initiate your confidential corporate structuring in Panama.
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