BACK TO EXPLORER
πŸ‡΅πŸ‡¦

Panama

Americas Β· PA Β· PAN Β· Republic of Panama
25.00%
CORP TAX
5.9/10
TRUST
3/5
BANKING
3–10 days
SETUP
$2,160
AVG COST

TAXATION

Corporate Tax25.00%
Personal Income Tax25.00%
Capital Gains Tax10.00%
VAT / GST7.00%
Withholding Tax5.00%
Territorial TaxationYes
CFC RulesNo
Tax Treaties17
Transfer PricingYes
Tax-Free ZonesYes
Crypto TaxUnclear

FORMATION

Govt Registration Fee$300
Annual Renewal Fee$400
CSP Fee (Low)$1, 500
CSP Fee (High)$4, 000
Annual Maint (Low)$1, 000
Annual Maint (High)$2, 500
Timeline3–10 Days
Online RegistrationNo
Min Directors3
Min Shareholders1
Local DirectorNo
Local SecretaryYes

BANKING & COMPLIANCE

Banking Ease3/5
Privacy Index4
Audit RequiredYes
Annual FilingYes
BO RegisterYes
UBO DisclosureYes
FATCA CompliantYes
AEOI ParticipantYes
Correspondent BankingGood
Crypto RegulationUnclear
Digital BankingMost Major Banks Offer Online And Mobile Banking Services.

SUITABILITY SCORES

Overall Trust5.9/10
Holding Company4/5
Trading Company4/5
IP Holding3/5
Startup4/5
Crypto5/5
Asset Protection4/5
Top IndustriesShipping, Banking, Commerce, Tourism, Logistics
Digital Nomad VisaYes
Residency by IncorpYes
Citizenship by InvestNo

incorporator AI Assessment

AUTOMATED ANALYSIS Β· PANAMA
GOOD

Panama is a Americas jurisdiction offering moderate corporate tax at 25% with strong reputation (trust score: 6.5/10). Company registration typically takes 3–10 days with formation costs ranging from $1500.00 to $4000.00. Banking ease is rated 3/10. The jurisdiction operates a territorial tax system.

ADVANTAGES
  • +Territorial taxation system β€” foreign income not taxed
  • +Strong asset protection frameworks
  • +High privacy standards for beneficial owners
  • +Fast company registration process
DISADVANTAGES
  • βˆ’Relatively high corporate tax rate
  • βˆ’Challenging banking environment for foreign companies
BEST FOR
Holding companiesAsset protectionPrivacy-focused structures
RISK FACTORS
Difficulty opening and maintaining bank accountsRegulatory changes may affect tax and compliance obligations

AI-GENERATED ASSESSMENT Β· NOT LEGAL OR FINANCIAL ADVICE Β· VERIFY WITH QUALIFIED PROFESSIONALS

ENTITY TYPES

Corporation
S.A.
limited

Flexible entity with pass-through taxation and liability protection.

Timeline: 4–25d
Compliance: low
Min shareholders: 1
Min directors: 1
HoldingTradingIPCrypto
LAST UPDATED FEB 22, 2026
Limited Liability Company
S.R.L.
limited

Standard corporation structure for venture-backed companies.

Timeline: 3–23d
Compliance: high
Min shareholders: 1
Min directors: 1
HoldingTradingIP
LAST UPDATED FEB 22, 2026
Private Interest Foundation
PIF
unlimited

Simplest business structure for individual entrepreneurs.

Timeline: 3–19d
Compliance: low
Min shareholders: 1
Min directors: 1
Trading
LAST UPDATED FEB 22, 2026

INCORPORATION PACKAGES IN PANAMA

S.A. Basic Package

$2,000
FORMATION
$600/yrTotal 1st yr: $2,732 9d
Reg. Address Name Check

S.A. Basic Package

$1,410
FORMATION
$423/yrTotal 1st yr: $2,045 14d
Reg. Address Name Check

S.A. Basic Package

$1,058
FORMATION
$317/yrTotal 1st yr: $1,680 12d
Reg. Address Name Check

S.A. Basic Package

$4,689
FORMATION
$1,407/yrTotal 1st yr: $6,496 7d
Reg. Address Name Check

S.A. Basic Package

$663
FORMATION
$199/yrTotal 1st yr: $1,036 4d
Reg. Address Name Check

S.A. Basic Package

$4,851
FORMATION
$1,455/yrTotal 1st yr: $6,492 6d
Reg. Address Name Check

S.A. Basic Package

$1,323
FORMATION
$397/yrTotal 1st yr: $2,160 9d
Reg. Address Name Check

WRONG INFORMATION?

Help us keep our jurisdiction data accurate. Submit corrections or suggestions and we'll review them promptly.

SHARE THIS PAGE