People put money in Panama for its tax advantages, banking privacy, and investment opportunities.
These factors have made it a preferred hub for asset protection, wealth management, and international banking.
In this article, we’ll explore:
- Is it safe to put money in Panama?
- Is Panama tax free for foreigners?
- What are the advantages of banking in Panama?
- Is it safe to invest in Panama?
- Is Panama financially stable?
Mis datos de contacto son hello@adamfayed.com y WhatsApp +44-7393-450-837 si tiene alguna pregunta.
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 different ways people put money in Panama?
People place money in Panama through various channels depending on their financial goals:
- Bank Accounts – Opening personal or corporate accounts in Panama’s well-regarded banking system offers privacy, asset protection, and access to multi-currency services. Many investors use these accounts to manage international income or diversify holdings outside their home country.
- Real Estate Investments – Purchasing residential, commercial, or mixed-use properties is a popular choice, driven by Panama’s economic stability and the Panama Canal’s continued impact on trade and development. Property ownership also supports residency applications under certain visa programs.
- Corporate Structures – Establishing Panamanian corporations or private interest foundations provides legal frameworks for protección de activos, estate planning, and international business operations. These entities often benefit from Panama’s territorial tax system, where only locally sourced income is taxed.
- Investment Funds and Securities – Panama offers access to a regulated securities market and various investment platforms, allowing for portfolio diversification in a low-tax environment.
Does It Cost Money to Deposit Money in Panama?
Depositing or investing funds in Panama is generally affordable, but exact costs depend on the account type, institution, and transaction involved.
- Bank Accounts
- Minimum Deposits: Personal accounts usually require an initial balance of USD 100–1,000, depending on the bank and residency status. Corporate accounts often start at USD 1,000 or more.
- Maintenance and Service Fees: Monthly account maintenance ranges from USD 5–20, debit card issuance may cost USD 10–25, and international wire transfers typically cost USD 15–50 per transaction.
- Investment Accounts
- Investors may face brokerage commissions, currency conversion fees, and periodic account management charges. Fees vary by provider and investment type, but these add to the overall cost of managing funds in Panama.
- Real Estate Purchases
- Beyond the property price, closing costs typically total 3–5% of the sale price, including:
- Transfer tax: 2%
- Legal fees: 0.5–1%
- Notary and registration fees: 0.1–0.5%
- Optional costs: title insurance, appraisals, surveys, and translations
- Beyond the property price, closing costs typically total 3–5% of the sale price, including:
Do foreigners pay tax in Panama?
Yes, foreigners pay tax in Panama only on income sourced within the country.
Panama applies a territorial tax system, meaning only income earned locally is taxed.
Foreign-sourced income such as dividends, capital gains, or business profits earned outside Panama is generally exempt.
Foreigners may pay taxes if they generate income locally, including rental income from Panamanian properties or profits from businesses operating within the country.
Is it safe to have money in Panama?
Yes, Panama is widely considered a secure jurisdiction for holding assets, attracting both individuals and corporations.
The country’s banking system is highly regulated by the Superintendency of Banks, ensuring compliance with strict financial standards and risk management protocols.
Confidentiality laws safeguard account holders’ privacy while still meeting international reporting obligations like FATCA and CRS.
Panama’s economy is also remarkably stable, driven by the Panama Canal, logistics, trade, and a robust financial services sector, providing an additional layer of confidence for investors and depositors.
While Panama is considered safe, investors should also consider potential risks:
- Currency fluctuations and economic risks – Although Panama uses the US dollar alongside the Balboa, global economic shifts can impact investment returns, particularly in real estate and securities.
- Regulatory changes or increased compliance oversight – International pressure on tax transparency may lead to tighter banking regulations, more detailed reporting, and stricter due diligence requirements for foreign investors.
What are the benefits of banking in Panama?
Panama’s banking sector is one of the most advanced in Latin America, attracting investors, expatriates, and corporations worldwide. Key benefits include:
- Multi-Currency Accounts – Ability to hold and transact in different currencies, useful for international business and global lifestyle needs.
- Strong Privacy Protections – Banking laws safeguard account holder information while adhering to global compliance standards.
- Wide Network of Banks – Both local and international banks offer tailored products, from savings accounts to sophisticated investment portfolios.
- High Regulatory Standards – Supervised by the Superintendency of Banks, ensuring capital adequacy, liquidity, and overall financial stability.
- Global Financial Access – Seamless international wire transfers and access to offshore investment opportunities.
What are the tax advantages of Panama?
Key points include:
- Territorial Taxation – Foreign income is exempt from Panamanian tax.
- Low Corporate Tax Rates – Corporate tax rates range from 25% for local income, with numerous exemptions for offshore activities.
- No Taxes on Offshore Earnings – Income earned outside Panama is not taxed locally, making it ideal for international business owners.
What is the capital gains tax in Panama?
Capital gains in Panama are generally taxed at a flat rate of 10% for individuals and corporations on local assets.
For real estate sales, an additional 2% advance tax may apply, which is deducted from the final liability.
Foreign capital gains on assets located outside Panama are exempt from taxation under the territorial system.
Panama vs Other Financial Hubs
Panama stands out among offshore financial centers for its combination of tax efficiency, strong banking privacy, and accessible residency programs, often making it more practical and cost-effective than other jurisdictions.
| Jurisdiction | Tax System | Banking Privacy | Residency Options |
| Panama | Territorial; foreign income untaxed | Strong, with compliance to global standards | Multiple investor-friendly visas |
| Cayman Islands | No direct taxes | High privacy, but higher living costs | Limited and costly residency options |
| Belize | Low taxes, offshore-friendly | Less developed banking structure | Residency possible but stricter than Panama |
| Bahamas | No income, capital gains, or inheritance taxes | Good privacy, but extremely high real estate and living costs | Residency possible, but requires significant investment |
Is Panama a good place to invest?
Yes, Panama is a favorable place to invest due to its low taxes, stable economy, and investor-friendly regulations.
Investing in Panama allows individuals to grow, protect, and diversify their wealth in a low-tax, stable environment.
Key insights include:
- Diversification & Multi-Currency Accounts – Hold and transact in multiple currencies to hedge risk and manage international income.
- Real Estate Opportunities – Residential and commercial properties offer potential appreciation and support residency programs.
- Corporate & Foundation Structures – Provide asset protection, estate planning benefits, and tax optimization under Panama’s territorial system.
- Investment Funds & Securities – Access Panama’s regulated market for diversified portfolios and offshore investment opportunities.
- Tax-Efficient Wealth Management – Foreign-sourced income and capital gains on offshore assets are generally exempt from local tax.
- Residency & Long-Term Planning – Investments can support visa programs, integrating wealth growth with legal residency or citizenship pathways.
Conclusión
Panama remains a top destination for investors and expats seeking tax efficiency, banking privacy, and diverse investment opportunities.
Its territorial tax system, stable economy, and investor-friendly regulations make it a secure and practical option for wealth growth, asset protection, and long-term financial planning.
Preguntas frecuentes
Can foreigners open bank accounts easily in Panama?
Yes, but due diligence requirements include proof of income, source of funds, and reference letters.
Are Panama banks FATCA-compliant for US citizens?
Yes. Panama banks comply with FATCA, meaning they report US account holders’ balances and interest to the IRS.
US citizens must also file FBARs if their total foreign accounts exceed USD 10,000.
Does Panama tax offshore companies?
No, income earned outside Panama through offshore structures is exempt from local taxation.
¿Le duele la indecisión financiera?
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.
