+7 (495) 221 31 46Discuss a matterLegal and tax navigator
A practical Panama navigator covering companies, territorial taxation, private interest foundations, bank accounts, international trade and compliance.
Legal and business review
Incorporating a company or foundation does not replace source, management, beneficial ownership, licensing and banking analysis. Before formation, we connect assets, functions, countries, tax, succession planning and cash flows into one verifiable model.
Panama follows the civil-law tradition and operates as an international financial and logistics centre. Corporate instruments are registered with the Public Registry, tax is administered by the DGI, and the banking sector is supervised by the Superintendency of Banks of Panama.
A sociedad anónima is often used for international business; limited-liability companies, foreign branches and special forms are also available. Formation is handled through Panamanian counsel and a notary and then registered. Actual operations may require an RUC, Aviso de Operación, municipal and sector permits, accounting and a resident agent.
Income tax applies to income produced in Panama; the place where money is received or the company is incorporated does not by itself determine source. The general corporate rate is 25%. The return is generally filed within three months after year-end; for a calendar year the DGI states 31 March. ITBMS, withholding, dividends, complementary tax, capital gains, transfer pricing and special regimes require separate review.
The standard ITBMS rate is 7%, with different rates and exemptions for specified categories. The outcome depends on the supply, place, supplier registration and input recovery. Trading and services require an invoice, import, customs, payroll, municipal payment and DGI calendar.
A private interest foundation under Law 25 of 12 June 1995 has separate legal personality and is mainly used for holding and succession of family assets. Its charter is registered publicly, while regulations, a protector and distributions may be governed separately. It is not an ordinary trading company and requires a real founder, council, beneficiaries, purpose, asset-source and cross-border tax analysis.
Open detailed section →As of July 2026, the SBP lists 40 general-licence banks. Selection depends on client profile, currencies, countries, product and transaction size rather than prestige. Each bank applies its own risk policy and reviews identity, ownership, source of wealth and funds, business purpose, contracts, tax residence and expected payments.
Nominee directors or shares do not remove the requirement to identify the ultimate beneficial owner. Resident agents and financial institutions conduct due diligence, retain documents and apply enhanced measures where risk is elevated. The SBP updated banking AML/CFT rules in 2026; the current text and transition dates should be checked before onboarding.
The Canal, ports, Colón Free Zone and special regimes create logistics opportunities, but benefits do not automatically attach to every company. Place of operations, customs status, origin, transfer pricing, substance, licences, end use and sanctions must be checked for each supply chain.
Companies, foundations, trusts, wills and personal ownership create different control rights, privacy, distribution mechanics and tax effects. They should be compared against the assets, family rules, heirs’ jurisdictions, bankability and incapacity or death scenarios.
International contracts should select governing law, court or arbitration, language, interim measures and the location of assets. A Panama vehicle does not automatically make a dispute Panamanian; forum and enforcement must fit the counterparty, transaction and actual performance.
Solutions for international business
The legal system and corporate law determine which vehicle can be formed, how assets are controlled, which licences are required and whether the structure is bankable.
We select an LLC, corporation, partnership, branch, holding or special vehicle and prepare constitutional documents, governance, UBO and approvals.
We compare control, asset ownership, beneficiaries, succession, tax, substance and bankability.
We select an institution for the relevant countries and flows, prepare ownership, business model and source-of-wealth/funds files, and support onboarding.
We classify banking, payment, investment, fund, insurance and other regulated functions and design the licensing and compliance route.
Formation, licensing and account opening remain subject to the decision of the relevant authority, regulator or financial institution.
Discuss an international structureInternational tax expertise
A headline rate is only the beginning. Test the full life cycle before choosing a company, fund, bank or place of management.
New rules, effective dates and transition provisions.
Rates, base, special regimes, minimum tax and sector rules.
Management, agents, premises, people, construction and services.
VAT/GST, sales tax, customs, excise, property and registration charges.
Recognition, depreciation, interest, provisions and loss relief.
Consolidation, intra-group transfers, M&A, financing and exit.
Eligibility, real activity, people, expenditure and preservation of relief.
Dividends, interest, royalties, services, capital gains and branch remittance.
Related parties, arm’s length, documentation, DEMPE and treaty entitlement.
Registration, returns, deadlines, audits, penalties, objections and litigation.
Presence days, domicile, permanent home, centre of interests and treaty tie-breakers.
Employment, director fees, business, investments and property.
Allowances, reliefs, pension and insurance contributions.
Capital gains, wealth, property, inheritance and gift taxes.
Foreign tax credit, exemption, treaties and residence certificates.
Returns, instalments, notifications, foreign assets and sample computation.
The outcome depends on the facts, source, residence, applicable treaty and law in force on the transaction date.
Primary sources
Open the regulator and tax-authority documents supporting the country overview. Applicability is tested separately for each transaction.
Banking support
We compare company, foundation and personal-account routes, select a licensed bank and prepare ownership, source-of-wealth/funds and payment mapping. The bank makes the final decision.
Discuss opening an accountThe information is general in nature, does not constitute legal or tax advice and should be verified as of the date of the specific transaction.