Why Do People Put Money in Panama: Benefits, Safety, and Investment Insights

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?

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Le informazioni contenute in questo articolo hanno un valore puramente indicativo. Non costituiscono consulenza finanziaria, legale o fiscale e non rappresentano una raccomandazione o una sollecitazione a investire. Alcuni fatti potrebbero essere cambiati dal momento della stesura.

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 protezione dei beni, 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 diversificazione 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.
• Conti di investimento
  • 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

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?

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
Isole Cayman	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 Gestione patrimoniale – 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.

Conclusione

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 pianificazione finanziaria.

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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.