🇵🇦 Panama
Panama adopts territorial taxation, generally not taxing foreign-sourced income; Sociedad Anónima (S.A.) is a common international structure. An annual fixed license tax (tasa única) must be paid. In recent years, UBO private registration and accounting record requirements have been strengthened according to FATF/OECD standards. Rules are continuously evolving; please refer to the latest announcements from the Panama authorities (Public Registry/DGI).
Panama Key conditions at a glance
| Common Company Types | S.A. (Public Limited Company) / SRL |
|---|---|
| Corporate income tax | Territorial taxation; foreign-sourced income generally taxed at 0%; domestic income taxed at 25%. |
| Estimated establishment costs | Approximately US$1,000–US$3,000 (first year) |
| Annual maintenance | Annual franchise tax (tasa única) is approximately US$300; registered agent (lawyer) required. |
| Substance/Reporting Requirements | UBO private registration, retention of accounting records, KYC; CRS |
| Suitable for purpose | Holding, asset protection, trade, real estate holding |
| Bank account opening | Account opening reviews are stringent, requiring comprehensive KYC and source of funds explanation. |
| Recent Changes | In recent years, private registration of UBOs has been introduced, along with strengthened accounting records and compliance rules. |
Panama Key considerations
- Territorial tax exemption applies only to foreign-sourced income; domestic income is still taxable, and source determination must be conducted with caution.
- In recent years, requirements for UBO registration and accounting records have tightened, reducing the level of 'confidentiality' compared to the past.
- Home country CFC/substance taxation rules may still apply; should not be considered as overall tax exemption.
Panama Application process
- Establish an S.A. and appoint directors through a Panama lawyer (registered agent).
- Register UBO and set up accounting record mechanisms.
- Open a bank account and prepare source of funds documentation.
- Pay the tasa única annually and maintain the registered agent.
Panama Frequently Asked Questions
Does a Panama company have to pay taxes on money earned abroad?
Panama adopts territorial taxation, generally not taxing foreign-sourced income; however, attention must be paid to source determination and home country tax rules; professional consultation is advised.
Can a Panama company still hold assets anonymously?
There are existing UBO private registration and KYC requirements, allowing authorities and agents to access beneficial ownership information; confidentiality should be understood according to current regulations.
How can I verify whether the company incorporation, tax, and compliance regulations for this jurisdiction are up to date?
Tax systems, annual fees, economic substance, and UBO (Ultimate Beneficial Owner) rules in each jurisdiction are frequently amended. Recommendations: ① Check official company registry or tax authority announcements of the jurisdiction (official source links are provided at the bottom of this page); ② Verify the data date indicated on this page; ③ Understand post-incorporation annual filing, accounting, audit, and economic substance obligations—do not focus solely on incorporation fees; ④ Stay alert to agent claims that exaggerate tax savings or suggest no filing or compliance obligations after incorporation, and consult qualified tax/legal professionals for major decisions. This site provides a neutral compilation of public information; always refer to the latest official announcements.
PanamaWhere to search for the official company registration of , and is it public?
| Official registry | Registro Público de Panamá (Panama Public Registry) |
|---|---|
| Can the public search the register? | ⚠️ Limited online search (name/status only) |
| Notes | Basic company registration can be searched, but beneficial ownership (ultimate beneficial owner) is not publicly disclosed. |
| Official search | Go to official registry search ↗ |
The above is a compilation of public information from official company registration authorities; public search rules and beneficial ownership disclosures are subject to change, so please refer to the latest official regulations. See the comparison table of registration transparency across jurisdictions →
Official sources：Dirección General de Ingresos (DGI) — Panama · Data date：2026-06。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.