A jurisdiction that ticks all the boxes: why choose Panama for business in 2024

Are you wondering why choose Panama? Such a question is perfectly understandable, especially with the global financial situation we find in our days.

When going abroad, choosing the right country is the most challenging yet interesting part. There are plenty of jurisdictions that await entrepreneurs with arms wide open providing opportunities that, in many cases, they can’t find in their home countries.

Places like Nevis, Turkey, Grenada, and Vanuatu have become our specialty, being constantly featured on our platform, Mundo Expert. Asset protection in Panama is, however, among all these options, one of our favorite ones. Since we've discussed how to protect your money in Panama from different angles, today the Mundo editorial team decided to show an overview of Panama’s aspects. Asset protection in Panama covers all the fronts as any advanced business center is supposed to do.

Residency is part of your Panama financial plan

One of the country's best features is its wide array of residency options. We cover all these in depth in our articles, so now we give you a general overview of how you can get your Panama residency:

• Open a company in Panama and hire yourself to get a two-year permit. This can be renewed into a permanent residency. Note it’s only available for the friendly nation countries.
• Invest in real estate, fixed deposits or vehicles listed in the Panama stock market and get immediate permanent residency through the Qualified Investor Visa.
• Prove that you have a life pension of at least $1000 a month. This can come from private or government sources. Such a visa is called the Pensionado program and includes a real estate option which lowers the monthly pension amount required.
• Invest in teak land with two options: approximately $100,000 for a two-year permit and approximately $350,000 for a permanent visa.
• Prove that you are a professional whose activity brings value to the country, and you'll be able to access a visa. However, this option has its downsides because some professions are banned for foreigners. Some of these are veterinarians, medical doctors, retail services, and lawyers. The foreigner will be able to work in these professions once he/she gets citizenship. 

Tax

Asset protection in Panama is quite interesting because the country has a territorial system. Does this mean that you're 100% exempt from taxes? That's far from the truth. What a territorial system means is that Panama's residents are not obliged to pay taxes for their foreign income or assets. However, they must pay for the assets they receive in Panama (like bank transfers) or for the money they generate in the country (through work or investments). All in all, Panama’s territorial tax system is attractive if one organizes his/her affairs accordingly.

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Foundation

No plan can call itself an asset protection structure if it's not under a trust or a foundation. Based on the principles of separating property from the owner, a foundation is a great way to protect your money in Panama. Our favorite thing about Panama foundation is that it has the same protection level as Liechtenstein’s but at much lower prices.

Banking

If you're wondering why choose Panama for business, you have to consider its banking sector. This is a reputable network of banking institutions that provide high-end services. They are used to working with foreigners both living in Panama and outside of Panama providing excellent ways to manage their funds remotely. When putting together your Panama financial plan, keep in mind that the country is subscribed to the CRS, which means it reports to whatever country, or countries, where the account holder has tax residency. These countries must be stipulated at the time of opening an account.

Open a company in Panama

Here you'll find a friendly corporate environment and a variety of incentives including free zones and the possibility to establish branches. Panama’s dollarized economy, stable political environment, friendly taxation, and trading relationships with the United States make it an excellent corporate jurisdiction.

Disclaimer: this article shows a general picture of Panama's advantages, nonetheless, each case must be reviewed individually. Therefore, this article does not constitute legal advice and should not replace a professional consultation. Also, note that the minimum investment stipulated for the investment visas is approximate. 

Mundo helps you put together your Panama financial plan

There's a reason why the reader finds so many articles about this country in Mundo Expert. We have close connections to Panama because key members of our team lived or have lived here for a long time. Moreover, we have in-site offices and a local team of lawyers and partners that can help you achieve your goals.

According to the forever free package, which is one of Mundo's high-end services, we can help you combine Panama and Panama's tools with services in other jurisdictions like real estate in Turkey, bank accounts in the US, a trust in Nevis, and citizenship by investment in Vanuatu and the Caribbean. Do you want to reach your financial goals? We are one click away!

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