WHY USE A CORPORATION TO BUY PROPERTY IN PANAMA

A corporation to buy property in Panama? Why would anyone want to jump through those sorts of hoops? After all, anyone – foreigner or Panamanian can buy property in Panama (except for some restricted areas) and there is nothing to prevent you from buying in your own name.

However, depending on your particular situation, it may be wiser to use a Panamanian corporation. After careful research, you will find Panama to be the ideal jurisdiction for your offshore needs. The Panama Corporation Law was promulgated over 70 years ago and has since been copied by many of the other tax haven nations such as Bahamas, St. Vincent, Bermuda, Belize, Isle of Man, etc. Panama is one of the most popular places in the world to incorporate, with currently over 350,000 registered entities. Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today.

Panama offers the following benefits and advantages:
Panama is a 100% Tax Haven: Non-resident Panamanian International Business Corporations (IBC’s) and Private Interest Foundations do not pay tax on any of their income (as indicated below), nor do they have any reporting requirements to the Panamanian Government.

• No tax reporting requirements.
• No income tax.
• No capital gains tax.
• No interest income tax.
• No sales tax.
• No tax on issuance of corporate shares.
• No tax to shareholders.
• No stock sale or transfer tax.
• No capital stock tax.
• No property tax.
• No estate tax.
• No gift tax.
• No stamp tax.
• No succession tax.
• No inventory tax.

Panama offers the most favorable and most flexible incorporation laws available in the world. Private Interest Foundations are also available and are one of the most widely used estate planning structures in the world today. Panama is the registered domicile for over 400,000 corporations and foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong. Panama does not impose any reporting requirements for non-resident Panamanian corporations and does not allow “piercing the corporate veil”. Panama corporation share certificates can be issued in Nominative or Bearer form (anonymous form of ownership), with or without par value.

Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid. Corporation directors, officers and shareholders may be of any nationality and resident of any country. Neither the directors nor the officers of Panama corporations need to be shareholders. Meetings of directors, officers, and shareholders may be held in any country and accounting books may be kept in any country. It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation. Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.

Panama’s circulating currency is the U.S. dollar and therefore, Panama has no currency exchange controls or currency restrictions so funds can flow in and out of the country freely. The use of the U.S. dollar as legal tender (currency) instills tremendous fiscal and monetary discipline while keeping inflation very low – under two percent (2%) for the last forty years. A dollar economy insulates Panama from global economic shocks as was seen during the Asian monetary crisis of 1998, when Panama became one of the healthiest economies in Latin America. There are no currency exchange controls, no restrictions on monetary remittances abroad, including dividends, interests, branch profits and royalties and no restrictions on funds flowing in or out of the country.

Panama continues to maintain what we consider to be the most solid banking and corporate book secrecy laws in the world which are engraved in its constitution. With Britain’s proposed regulation for removal of bank and corporate book secrecy in the UK offshore territories, it is clear that Panama remains the most secure offshore financial centre where privacy and confidentiality is not only respected but vigorously protected by constitutional law. Without question, Panama offers the best bank secrecy laws and the best corporate book secrecy laws in the world. There is no such thing as “piercing the corporate veil” and revealing banking information to third parties is a crime, punishable by prison.

Panama has no mutual legal assistance treaties (MLAT’s) for sharing of banking information with any other nation and does not recognize court rulings from other countries. (Under new laws they make exceptions in cases of drug money laundering or drug smuggling).

Panama Corporations offer “Bearer Shares”, allowing shareholders to maintain 100% anonymity and privacy. Panama Private Interest Foundations allow for Private Protectorate Documents and Private Letters of Wishes, enabling controllers (Protectors) and beneficiaries of Private Interest Foundations to remain 100% anonymous and private.



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