While a Panamanian currency – the Balboa – exists, it is only available as a coin, and is on par with the US dollar. For its day-to-day currency, Panama employs the familiar US greenback. As a result, you never need worry about the exchange controls, devaluations, or currency fluctuations that plague many other offshore jurisdictions.
No Local Taxes. Panamanian offshore law does not assess local corporate or personal taxes on income derived from abroad. Returns on your investments are tax-free in Panama, whether you invest as a corporation or as a private individual. In addition, another law allows you to repatriate your profits to any country, anywhere in the world. (Note: your country of residence or citizenship may require you to declare these returns, and your local tax authority may levy a tax on them. Consult a tax professional or lawyer for details.
Dozens of Full-Service Banks. Nearly every major world bank has a full-service branch office in Panama, including institutions from the US, Japan, the UK, France, Germany, Brazil and Israel. As they do on Wall Street or in the City in London, the high rises in Panama City’s business district bear the logos of HSBC, Lloyds, Dai-Ichi Kangyo, Republic National, Credit Lyonnais, BNP, Dresdner and Bank Leumi.
The more than 80 banks that operate in Panama are fully staffed and functional. Compare that with the Cayman Islands, where out of the hundreds of banks, fewer than ten are full-service retail operations! Banking and investment regulations are very strict, enforcing privacy and professionalism.
Brass-plate banks (those only represented by a legal firm) are not permitted in Panama.
Political Stability. Panama is a solid presidential democracy. It has no army of its own, but relies instead on the U.S. for protection should problems occur. And, of course, the presence of the canal guarantees the world community’s continued interest in Panama’s stability and peace.
