Considering moving to Panama or doing business in Panama? Where and how you bank is something you need to think about, and with priority. If you are relocating to Panama, either as an expat, retiree, or investor, chances are you have a bank account from your home country, or the country where you do your business in. Many of these banks are international, and thanks to the nature of digital banking in the 21st-Century, business can be done from anywhere without actually changing your bank account or moving it to another financial jurisdiction. There are, however, a few catches.
You may not NEED a Panama bank account, but having one will make things exponentially easier
Due to many factors, using your local (foreign) bank account to do day-to-day withdrawals, debit card purchases, and online payments for services shouldn’t be a problem. The problems, however, arise when you need your account for more than that. If you are planning to live full-time in Panama, or invest into the business infrastructure here, then having a local bank account will save you both time and money. Things like payroll, home financing, car financing, small business loans, and cheques all require a local bank.
Another big advantage allotted to you when you open a Panama bank account is the immigration and visa process. One of the fastest ways to get a residency visa, whether still working or a retiree in Panama, is to open a Panama bank account and make deposits there. Having a Panama bank account is part of the qualification process for all of Panama’s visa programs, especially ones involving businesses.
Start a Panama corporation with a Panama bank account
Even if you don’t plan on physically spending any time in Panama, you can use a Panama bank to open a Panama offshore corporation. Panama offshore corporations allow you run a business in or through Panama as an anonymous entity to institutions outside of Panamanian jurisdiction. This means that you can open an account, make business deposits via multiple entities in multiple countries, and protect them under Panama’s corporate and tax laws.
How to open a Panama bank account
The quickest way to start the process to open a Panama bank account, like most things in Panama, is to contract an experienced, reputed Panama law firm. You’ll need to prove solvency from your current bank, apply for your intended purpose for doing business or living in Panama, and will be required to make a minimum deposit as well. There are over 100 banks operating in Panama which gives you a lot of options to choose from before you decide.
Opening a Panama bank account can be a simple, painless process that will net you many benefits for the duration of the time you choose to work, live, or invest in Panama. To get started, contact us today, and we’d be happy to answer any questions, as well as assist in the process going forward. You will not regret it!