Offshore Banking in Panama: 3 Things You Need to Know

Sep 3, 2013 | Banking in Panama

The word “offshore” refers to doing something outside of your country. Whether it is starting a new business, creating a new corporation or other legal entity, or opening a bank or brokerage account; if done outside your country are all considered “offshore”. An offshore bank account in Panama can be accomplished as individual or using legal entities like a Panama offshore corporation or a Panama Private Interest Foundation. Panama is considered one of the world’s best tax haven countries and has a strong economy with a superior offshore banking sector.

Here are 3 things you need to know about offshore banking in Panama:

1. The Best Banking Secrecy Laws in the World.

Panama has laws protecting the privacy of all bank account holders. The banking secrecy laws make it a criminal act for anyone working for a Panama bank to reveal any information about a customer’s account to anyone not authorized to receive such information. This includes governments, local and global government and judicial agencies, private investigators, individuals, and companies. Only by a Panama court order can someone get information about another’s Panama bank account and such orders are rarely issued, mainly in cases involving terrorists or international criminals.

2. Panama has a Strong Banking Sector.

Panama’s banks are very solvent because they issue safe loans, invest conservatively, and keep larger reserves than U.S. banks. Because of these reasons, Panama banks did not suffer from the 2008 global financial crisis which still negatively affects many countries economies. According to Panama’s largest daily newspaper, La Prensa, Panama’s Superintendant of Banking reported a 10.5% growth in 2011 and 11.6% growth in 2012. In fact, the CIA World Fact Book listed Panama in 2012 as the richest Central American country with an annual per capita income more than 40% higher than the average for the entire Central America region.

3. The U.S. Dollar has been the Currency Standard since 1903.

Those looking for a stable currency like the U.S. dollar can feel confident knowing that ever since Panama became an independent country in 1903, the United States allowed Panama to be the first country to have their currency based on par with the U.S. dollar. So, offshore banking in Panama is conducted using the U.S. dollar.

In addition to the three things above, many Panama banks offer a platform for making worldwide investments which may not be available in your country. A brokerage account can be established by your Panama bank to invest in foreign currencies (known as Forex), commodities, foreign government bonds, global corporate stocks, and other worldwide securities.

Also, all of the earned interest from the Panama bank account and worldwide investments profits from the Panama brokerage account are income tax free.

In conclusion, Panama offshore banking is tax free, in a country with a strong economy and solvent banking sector, in U.S. dollars, and provides complete privacy.

Contact Us for all of your Panama Offshore Banking needs or to learn more about offshore company registration.

Manoj Chatlani

Manoj Chatlani

Manoj Chatlani is a Senior Partner at POLS Attorneys, a full-service law firm in Panama City, Panama. Specializing in Panama immigration law, relocation services as well as real estate law and corporate law. POLS Attorneys offers clients a streamlined solution to all their Panama legal needs. Manoj is a licensed Panamanian lawyer and holds a law degree from USMA, a Masters degree in Communication Law and Panama Tax law.

The Asset Protection Newsletter

Sign up free and receive the latest news on Asset Protection