Using a Panama company for international business can still be worth it in 2025, especially for entrepreneurs and expats seeking tax efficiency, corporate privacy, and access to a dollarized economy.
However, increased global transparency and compliance measures mean that Panama is no longer a no-questions-asked tax haven.
This article explores the updated advantages and how Panama fits into today’s offshore strategies.
We’ll explore key topics including:
- What are Panama offshore company benefits?
- Why do people open companies in Panama?
- Is Panama a tax haven?
- How difficult is it to open a bank account in Panama?
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La información contenida en este artículo es meramente orientativa. No constituye asesoramiento financiero, jurídico o fiscal, ni una recomendación o solicitud de inversión. Algunos hechos pueden haber cambiado desde el momento de su redacción.
What Are the Benefits of Panama Offshore Company?
- Territorial tax system: Only Panama-sourced income is taxed. Offshore income (earned outside Panama) is not subject to local corporate tax.
- No currency restrictions: Panama uses the US dollar as legal tender, making international transactions smooth and stable.
- Strong privacy laws: Shareholders’ and directors’ details are not publicly accessible (though Ultimate Beneficial Owner rules now apply).
- No minimum capital requirements: Making it cost-effective for startups and SMEs.
- Ease of maintenance: No annual reporting or accounting requirements for companies with only foreign-sourced income.
- Asset protection: Panama corporations are often used in estate planning, investment holding, and risk isolation strategies.
Why Do Companies Incorporate in Panama?
Many global business owners choose Panama due to its pro-business legal framework, fast setup, and international recognition.
Here’s why incorporation in Panama remains popular:
- Simple and fast incorporation: A company can typically be registered within 5–10 business days with a local lawyer or service provider.
- Favorable legal structure: The most common entity type is the Sociedad Anónima (SA), which offers flexibility and limited liability.
- Foreign ownership is allowed: 100% foreign ownership is permitted, with no requirement for local shareholders.
- No local office required: You only need a registered agent and a local registered address.
- Cost-effective setup: Annual maintenance fees are relatively low compared to other jurisdictions.
Key Steps to Incorporate in Panama:
- Choose a company name and type.
- Engage a Panamanian law firm or registered agent.
- Submit identification documents for all shareholders/directors.
- Draft and file Articles of Incorporation.
- Pay government fees and obtain a Public Registry entry.
Is Panama Still a Tax Haven?
Panama is no longer a classic tax haven in the traditional sense, but it still offers tax-friendly benefits that make it attractive to international businesses.
While it still offers tax advantages, increased international pressure has led to major regulatory changes:
- CRS compliance: Panama now participates in the Common Reporting Standard, meaning financial institutions report account details to tax authorities.
- Economic substance rules: Although not as strict as in other jurisdictions, substance requirements are emerging, especially for certain activities.
- Beneficial ownership reporting: Panama mandates the disclosure of ultimate beneficial owners to a private government registry (not public).
- Reputational risks: While the Panama Papers scandal placed the jurisdiction under scrutiny, Panama has worked to improve transparency.
So while Panama still offers tax efficiency, it’s now best viewed as a midshore jurisdiction, a blend of offshore flexibility and onshore compliance.
Is a Panama Company Still Worth It in 2025?
If your business earns revenue outside Panama, serves global clients, and requires a stable, dollarized, tax-neutral jurisdiction, then yes—a Panama company is still worth it.
However, it’s important to weigh the benefits against:
- Increased compliance (e.g., KYC, beneficial ownership rules)
- Banking challenges, especially for US citizens or high-risk industries
- Reputation considerations depending on your line of work
The structure is particularly valuable for:
- Freelancers and consultants
- E-commerce businesses
- International holding companies
- Asset protection and estate planning
How Easy Is It to Open a Bank Account for Your Panama Company?
Banking is often the trickiest part.
While Panama has a robust financial sector, most banks require in-person interviews, and due diligence is strict.
Documents typically needed include:
- Proof of company structure
- ID and utility bills of directors/owners
- Business plan or activity description
Some international entrepreneurs use introducers or law firms to improve approval chances, especially when opening accounts with banks like Banco General or Multibank.
Conclusión
Using a Panama company for international business in 2025 can still be a smart move especially for those seeking tax efficiency, corporate privacy, and access to a stable, dollarized environment.
But it’s no longer a set-and-forget offshore solution.
Today’s global standards mean higher compliance, transparency, and scrutiny.
For the right type of business with proper planning, however, Panama remains a competitive and viable option in the offshore landscape.
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Adam es un autor reconocido internacionalmente en temas financieros, con más de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.
