How to open a company in Panama as an Italian 2025

Panama has built a solid reputation as an international business hub, and this makes it a natural destination for Italian entrepreneurs who seek to combine quality of life, legal and tax benefits, and access to new markets. But what really makes Panama such a strategic place to open a company in 2025?

Strategic location and global connectivity

Located between North and South America, Panama serves as a logistics and commercial bridge. The Panama Canal, one of the country's economic engines, facilitates the global movement of goods. In addition, Tocumen Airport is one of the main air connection centers in the continent.

Facility for foreigners

Panama allows foreign investors —including Italians— Open a company without needing to be a resident. You can create a Panamanian company and appoint yourself as a director or shareholder without complications. In addition, many procedures can be done remotely during the early stages.

Relevant tax and banking benefits

This is one of the main attractions. Panama follows a territorial system of taxation: it only pays taxes on income generated within the country. Thus, a company that invoices internationally but is legally structured in Panama can optimize its tax burden. This aligns with the goals of many Italian entrepreneurs who seek efficient tax residence without legal risks.

It is also easy to open corporate bank accounts (although greater controls are required since 2021) and alliances with international banks.

Bilateral agreements between Panama and Italy

Thanks to the historic presence of Italian citizens and existing cooperation treaties, Italian nationals have access to preferential migration options. For example, under the friendship, commerce and navigation agreement, you can choose certain visas on favorable terms that we will explain later.

Dynamic and pro-business business environment

Panama is known for having a flexible legal framework for companies. The government promotes the foreign investment with specific laws, legal stability and special economic zones such as the City of Knowledge and Panama Pacifico. All of this reduces bureaucratic barriers to getting started quickly and without unnecessary obstacles.

• Dollarized economy
• Tax simplification for international companies
• High demand in sectors such as logistics, tourism, technology, real estate

In short, Panama is not only strategically beneficial, but also legally welcoming. It combines the stability of a small country with the experience of an international financial center.

The Panamanian legal framework offers a variety of legal structures so that foreign entrepreneurs, including Italians, can establish their commercial presence quickly and securely. Understanding what type of entity is right for you is essential to comply with the Laws of Panama and optimize both your operation and your immigration status.

The Panamanian Public Limited Company: the favorite for foreign investment

La Public Limited Company in Panama is the legal form most used by foreign citizens. It is versatile, easy to train and allows discretion as to who owns shares. Since there is no obligation to publicly disclose to shareholders, it maintains the investor's privacy. This, in line with current ethical and fiscal regulations, is attractive to many Italian entrepreneurs.

Key Features of the Limited Company:

• It can have only one shareholder and one director (natural or legal persons)
• Minimum capital not required by law (although it is suggested to set at least USD 10,000 for banking image)
• It can be constituted in a few days
• It is not necessary to reside in Panama

Limited Liability Company (SRL)

The SRL is another viable option, preferred by small businesses or businesses with few partners. It limits the responsibilities of each member according to their contribution, and offers greater simplicity in internal management.

However, it has restrictions on the transfer of social shares and is usually less oriented to international operations, which can be an inconvenience if you want to expand outside of Panama.

Individual entrepreneur or natural person

In this case, you operate under your own name without creating a separate entity. Although it allows for agility, you are also 100% legally exposed, which is risky for those looking for serious structures or who want permanent residence in Panama by investment.

Colon Free Zone and Panama Pacific

If your business is focused on international trade, you can set up a company under these special regimes. They offer tax exemptions, customs and immigration benefits, especially useful for foreign startups or Italian importers.

Which option is right for you?

The choice will depend on several factors: type of business, location of customers, growth plan and whether you want to link your company to your migration process. Many Italians choose the Public Limited Company because of its flexibility and the possibility of using it as a basis for applying for a investor visa for Italians in Panama.

In the next section, we will see how to combine your venture with a legal residence plan in Panama, combining business strategy and personal stability.

One of the key aspects of Open a company in Panama To be Italian is to know the basic legal requirements, including minimum capital, necessary documentation and specific steps to set up a company.

In Panama, the minimum capital required to create a company will depend on the type of legal entity you choose. For the most common option —the Public Limited Company in Panama— there is no minimum capital required by law. However, an authorized reference capital is usually established, for example, USD $10,000, divided into 100 shares of USD $100 each. It is not necessary to pay this capital immediately, unless you want it for banking or business image reasons.

Steps to open a company in Panama as a foreigner:

Below, we clearly explain the general steps that every Italian entrepreneur must follow:

1. Define the corporate type: more common companies such as S.A. and S.R.L. allow foreign shareholders without restrictions.
2. Choosing a Resident Agent: Every company in Panama must have a local lawyer (such as Limitless Legal) who acts as a contact before the Public Registry.
3. Drafting the social pact: legal document that indicates the purpose of the business, shareholders, capital and basic statutes.
4. Register the company: The pact is submitted to the Public Registry of Panama and, once approved, legal personality is obtained.
5. Get the RUC and operating notice: fundamental steps for the company to be able to formally operate within the country and to bill.

Documentation requirements for Italian citizens:

Although Panama facilitates the foreign investment, Italian entrepreneurs must submit certain key documents, such as:

• Copy of the current passport of the member (s).
• Bank or business references (optional but recommended if a business bank account will be opened).
• Proof of address or residence in Italy or any other country.

Panama does not require an investor to live in the country to open a company. This makes it possible to operate from Italy or anywhere else in the world, taking advantage of the legal systematization that favors remote management and business confidentiality.

In addition, although it is not mandatory to have local bank accounts, having a bank opening in a Panamanian bank will facilitate the company's financial structure and provide regional credibility.

In short, the Minimum capital to create a company in Panama in 2025 does not represent a barrier to entry, which makes the country an excellent option for foreign startups and small expanding operations. The key is choosing the right corporate type, complying with basic documentary requirements, and relying on local legal advice to avoid common errors in the initial phase.

Muchos Italian entrepreneurs They don't just want Open a company in Panama, but also to settle in the country legally and for a long time. This is where the permanent residence in Panama by investment, an extremely attractive and accessible route.

Investor Visa for Italian citizens

Panama has multiple economic migration programs aimed at foreign investors. For Italians, two options stand out especially:

• Friendly Countries Visa: thanks to a bilateral treaty between Panama and Italy, Italian citizens can apply for this visa if they demonstrate economic ties with the country, such as being owners or partners of a Panamanian company.
• Qualified Investment Residency: This option requires a minimum investment of USD $300,000 in real estate or through a fixed term deposit with an authorized bank. It is a way of Panama residence faster and more direct, ideal if you are looking to accompany your venture with a robust migratory structure.

Key requirements for obtaining investor residency:

Requests must be managed through a Panamanian lawyer and submit documents such as:

1. Valid passport (valid for at least 6 months).
2. Criminal record certificate issued in Italy or current country of residence.
3. Proof of investment or business participation (social agreement, registration with the DGI, etc.).
4. Documentation that proves economic solvency (bank statements, purchase agreement, etc.).

An important advantage is that the Panamanian residence obtained through these channels can lead to obtaining the E card and eventually to naturalization, without the need to renounce your Italian citizenship. In addition, you can enter and leave the country without migratory restrictions and access banking, tax and commercial benefits reserved for residents.

In many cases, the synergy between company and visa for Italians in Panama allows us to structure international fiscal and life strategies. For example, if you have a startup or digital business model, you can operate globally from Panama while benefiting from a competitive tax regime.

Finally, obtaining residency can be a fundamental step if you are thinking of expanding your company in Latin America, since it will allow you to travel or establish subsidiaries in neighboring markets much more easily from a Panamanian base.

As we will see in the next section, these legal and migratory channels not only offer legal stability, but also multiple tax advantages in Panama for Italians determined to expand their operations with a vision of the future.

When opening a Company in Panama being an Italian citizen, you not only have access to a solid legal system and ease of doing business. One of the main attractions for Italian entrepreneurs Is the strategic combination between tax benefits and migratory privileges designed to promote Foreign investment. These conditions make Panama an ideal destination for those who want to optimize their business structure and, at the same time, establish a Tax Residence stable in Latin America.

Territorial tax regime: pays taxes only on income generated in Panama

Panama operates under a system of Land Rent. This means that only income generated within the country is subject to tax. If your Panamanian company invoices from abroad — for example, customers in Europe or Latin America — those revenues are exempt from income tax.

This legal structure makes Panama a fiscally efficient jurisdiction if your market is outside the country, allowing you to reduce your tax burden in a legitimate and transparent manner.

Tax exemptions and incentives for strategic sectors

The Panamanian government promotes the Foreign investment through sectoral laws that grant tax exemptions to companies in areas such as technology, logistics, tourism, financial services and light manufacturing. These tax benefits may include:

• Income tax exemption for a specified number of years
• Exemption from duties on importation of equipment or materials
• Preferential tax treatment for economic zones or logistics parks

If you plan to establish a Startup or importing capital from Europe, Panama offers you an ideal framework to protect your profitability from the start.

Migratory benefits complementary to business investment

When forming a YOU KNOW or similar, you can benefit from forms of migration associated with Foreign investment. One of the most used by Italians is the Friendly Countries Visa, which makes it possible to obtain residence in Panama if the existence of an active local company or contract as a freelance professional is demonstrated.

In addition, there is the option of Qualified Investor Visa, which requires a minimum investment (for example, in real estate or term deposits) and even provides the Direct Permanent Residence. These options are especially attractive because Panamanian legislation seeks to streamline and simplify migratory processes for citizens of countries with special relations such as Italy.

Synergy between tax residence and business structure

Establishing a legally registered business in Panama allows you to also choose to declare Panamanian tax residence, as long as you meet local requirements such as permanence or center of economic interest. This translates into benefits such as:

• Avoid double taxation if your country of origin has a current treaty (such as Italy with the Convention to Avoid Double Taxation of 2013)
• Access to stable banking networks with strong legal support
• Easier to expand to neighboring countries using Panama as a “hub”

In short, starting a business in Panama in 2025 doesn't just mean opening a company: it's also strategically designing your life structure, taxes and migration with positive legal support.