Panama
Key entity, tax, banking, visa, and compliance guidance for foreign founders incorporating in Panama.
Foreign Ownership Eligibility
Panama welcomes 100% foreign-owned companies
Fully remote formation — you never need to set foot in the country.
- Panama entities can often be incorporated in about 3-5 business days
- Territorial tax system exempts foreign-source income
- Panama uses USD as legal tender in the banking and business system
- Law 32 is a core corporate framework for Panama corporations
Ownership
100% Foreign OK
Formation
100% Remote
Note
Registered local agent and nominee services are common recurring requirements.
Tax at a glance
Panama Tax Overview
Territorial
Tax system
Panama fact sheet
25%
Corporate tax on Panama-source income
Panama fact sheet
0%
Tax on foreign-source income
Panama fact sheet
Pros & cons
Advantages & Considerations
Key Advantages
Strong territorial tax system with no tax on foreign-source income
USD operating environment
Well-developed banking and financial services infrastructure
Law 32 corporate framework supports clear legal structure
Foundation law supports asset protection planning
Considerations
Historical FATF grey list concerns affect perception
Panama Papers legacy can trigger heightened compliance review
CRS and AEOI compliance requirements are now strict
Requires local registered agent and often nominee service support
Incorporation Process
The process is strictly digital. Each stage builds on the previous one.
Choose legal vehicle
Draft constitutional documents
File and register
Banking and compliance setup
What you'll pay
Cost Architecture
Government Fees
Annual Ongoing
Professional Services
Reputational screening remains strict due to historical legacy and global compliance focus.
Still unsure about costs?
These are estimates — your actual cost depends on your structure
Every Panama setup is different. A 15-minute call with one of our specialists will give you a personalised cost breakdown — completely free.
Fintech & Banking
Can non-residents open accounts without visiting? YES.
Banking options for non-resident founders in Panama. Remote account opening availability varies by institution.
| Institution | Type | Ease for Non-Residents | Notes |
|---|---|---|---|
| Banco Nacional | Traditional bank | Low (Visit Required) | Typically 2-8 weeks depending on profile and KYC depth • Institution and package dependent • Bank and account class dependent • Incorporation records, UBO and source of wealth evidence, and business activity details • SWIFT, ACH-style transfers, online banking, and card rails |
| Banistmo | Traditional bank | Low (Visit Required) | Typically 2-8 weeks depending on profile and KYC depth • Institution and package dependent • Bank and account class dependent • Incorporation records, UBO and source of wealth evidence, and business activity details • SWIFT, ACH-style transfers, online banking, and card rails |
| Multibank | Traditional bank | Low (Visit Required) | Typically 2-8 weeks depending on profile and KYC depth • Institution and package dependent • Bank and account class dependent • Incorporation records, UBO and source of wealth evidence, and business activity details • SWIFT, ACH-style transfers, online banking, and card rails |
| Global Bank | Traditional bank | Low (Visit Required) | Typically 2-8 weeks depending on profile and KYC depth • Institution and package dependent • Bank and account class dependent • Incorporation records, UBO and source of wealth evidence, and business activity details • SWIFT, ACH-style transfers, online banking, and card rails |
| Fintech offerings exist but traditional bank onboarding remains dominant | Fintech | High (Remote) | Typically 2-8 weeks depending on profile and KYC depth • Institution and package dependent • Bank and account class dependent • Incorporation records, UBO and source of wealth evidence, and business activity details • SWIFT, ACH-style transfers, online banking, and card rails |
Regulatory requirements
Annual Compliance Matrix
| Requirement | Deadline | Details |
|---|---|---|
Registered agent | Ongoing | Maintain a local registered agent and required legal representation. |
Annual maintenance | Ongoing | Complete annual franchise and corporate maintenance obligations on schedule. |
CRS and AEOI readiness | Ongoing | Comply with modern information exchange and tax transparency requirements. |
Frequently Asked
Speak with a Panama specialist
Get personalised guidance on entity types, costs, timelines and banking — free, no commitment needed.