How to Transfer Your International Company to Panama in 2025

Panama has become an increasingly attractive destination for businessmen seeking competitive advantages at an international level. Its strategic location between North and South America positions it as an ideal logistics center, especially for companies with operations or interests in several countries.

Tax advantages for foreign companies in Panama

One of the most powerful reasons for transfer your business to Panama is their territorial tax regime: profits generated outside the country do not pay local taxes. This represents significant savings for international companies that bill from several jurisdictions.

In addition:

• There are special regimes for multinationals (such as SEM and EMMA) with additional tax benefits.
• There is no exchange control, allowing for the free movement of capital.
• The local income tax rate is competitive (25%).

Legal security and pro-business legal framework

Panama maintains a solid legal framework that protects foreign investment. Laws make it possible to establish companies and foundations with high privacy and international recognition. This translates into trust for those looking to expand operations with secure logistics.

Modern infrastructure and connectivity

Air connectivity (with the hub of the Americas), digital infrastructure and logistics parks drive sectors such as commerce, exports, technology and financial services. These conditions facilitate both the transfer and the sustained growth of operations.

Migratory flexibility

Panama also offers several business and investment migration programs, allowing entrepreneurs to obtain legal residency while managing their companies. This provides personal and family stability for those who decide to settle in the country.

In short, moving a company to Panama in 2025 it is a strategic decision that allows:

• Reduce tax costs
• Improve logistics operations
• Protect assets and financial structure
• Access a jurisdiction with political and economic stability

For this reason, more and more international managers, advisors and entrepreneurs are seriously evaluating this option as part of their global strategy.

One of the most important steps to moving your company to Panama is to decide which legal structure best suits your needs. Panamanian legislation offers several flexible and reliable modalities for operating with legitimacy and efficiency, whether you are starting from scratch or if you want to establish a subsidiary or regional office.

Main legal structures available

The forms most used by foreign businessmen in Panama include:

• Public Limited Company (S.A.): It is the most common figure. It allows the legal identity of the owners to be separated, offers anonymity and can be used for commercial activities, holding companies or investments.
• Limited Liability Company (S.R.L.): Most used by SMEs. It offers asset protection and fewer director requirements than the S.A.
• Private Interest Foundation: Ideal for estate planning and asset protection. It is not designed for direct commercial activities.
• Permanent establishment or branch of a foreign company: Requires registration of the parent company with the Public Registry. Suitable if you want to maintain a consolidated international structure.

How to choose the right one?

The choice depends on the type of transaction, your business plan and the tax management you are looking for. For example, if your goal is to create a commercial vehicle with international billing, the most recommended thing is a Panamanian Public Limited Company. This option also makes it easier opening bank accounts in Panama, access licenses, and comply with formal legal requirements such as obtaining the RUC (Single Taxpayer Registry).

Tax and administrative considerations

One of the most attractive factors of the Panamanian S.A. is that it can have foreign directors and shareholders, and the company is not required to carry out local operations to maintain its legal status. It also allows for international accounting while maintaining advantages such as tax benefits for foreign companies.

In addition, incorporation procedures are usually quick: on average, registering an S.A. can take between 3 and 10 business days, provided that the documentation is complete and you have adequate legal advice.

Required basic documentation

To properly form a legal structure you will need:

• Copy of the passport of the shareholders or final beneficiaries
• Name of the company and economic activity
• Local home address or resident agent
• Social Pact (constituent document before a notary)

Choosing correctly from the start makes everything that comes later easier: legal registration, account opening, tax compliance and obtaining permissions. Therefore, having good legal advice in Panama is key in this step.

Key Requirements for Legal Registration

Registering an international company in Panama is a simpler process than many imagine, especially with the right guidance. The first step is to choose the type of legal entity (as we have already addressed), being the limited company the most common for foreign investors. Once this has been defined, it is time to proceed with the formal registration.

To transfer or establish operations of a foreign company in Panama, you'll need to gather some basic documentation and meet some formal requirements, including:

• Proposed company name (with availability check).
• Data and passport copy of the directors and shareholders (minimum 3 directors).
• Definition of the corporate purpose: the activity that the company will carry out.
• Authorized capital (there is no minimum required, but it is usually declared starting at USD $10,000).
• Designation of resident agent (lawyer or registered Panamanian law firm).

Once this information has been collected, the social pact is drafted and submitted to the Public Registry of Panama.

Step-by-step procedure

This is the typical process for Registering a company in Panama:

1. Drafting of the social pact: Constituent document that defines the structure of the company.
2. Submission to the Public Registry: Official registration gives legal existence to the company.
3. Obtaining the RUC (Single Taxpayer Registry): This number is issued by the General Directorate of Revenue (DGI) and is necessary for tax activities.
4. Registration in the corresponding Municipality: It allows you to operate legally within the jurisdiction where it will be located.
5. Business License (Notice of Operation): Simple online declaration, but mandatory to carry out economic activities.

This process can be completed in a week or two if all the documentation is in order. Count on legal advice in Panama speeds up time considerably and avoids costly errors.

What if you already have a company abroad?

If your company is already incorporated in another country, you can transfer it to Panama through the form of redomiciliation or by creating a local subsidiary. This allows you to preserve your original legal personality while operating within the Panamanian system.

In short, the legal registration of an international company in Panama is a modern, digitized and accessible process, ideal for those looking to expand safely and efficiently in the region.

Importance of a local bank account

So That You International company in Panama Can operate normally, it is essential to have a Business Bank Account in the country. This account will allow you to issue local invoices, receive payments in different currencies and comply with tax obligations such as the ITBMS (Panamanian VAT). It also provides international transfers and financial support to local and international suppliers or partners.

What is the process for opening a business account as a foreigner?

Although the Panamanian banking system is characterized by its strength and discretion, the requirements for opening accounts have become stricter in recent years. Therefore, it is essential to prepare properly. Here are the typical steps:

1. Choose the right bank: Panama has local banks and international banks with a presence in the country. Each entity may have variations in its requirements.
2. Prepare the documentation: It usually includes company documents (social agreement, RUC, business license), copies of passports of authorized signatories, personal and/or business bank references, and evidence of the origin of funds.
3. Bank interview: Usually in person. Some banks allow virtual pre-approval.
4. Compliance analysis and approval: The bank reviews documentation to comply with international regulations (such as KYC and AML).

The entire process can take between 2 and 4 weeks depending on the bank and your profile as a customer.

Tips to keep in mind

• Work with a local lawyer or advisor who has experience with Panamanian banks; it will make it easy to open your account.
• Not all accounts allow multiple currencies. If you plan to trade in USD, EUR or other currencies, check that the bank allows it.
• The Panamanian banking system values transparency. Have documentation ready to support the legal origin of the initial capital and the expected income.

Open a Business Bank Account in Panama it's not immediate, but with proper preparation it's completely feasible — even for completely new companies.

Once you have your registered company and your operating account, you are ready to meet your local obligations and take advantage of the benefits of establishing Operations in Panama. Here's how it works Tax compliance in Panama and what regulations you should take into account in 2025.

Once your company is legally registered in Panama and has a functioning bank account, it is essential to know and comply with local tax and legal obligations. This aspect not only guarantees the smooth operation of your business, but it also avoids sanctions that could affect your operations.

Territorial Tax Regime: You Only Pay for What You Generate in Panama

One of Panama's biggest attractions for international companies is its territorial tax system. This means that taxes are only paid on income generated within Panamanian territory. If your company bills from abroad or provides services to clients outside the country, those revenues will usually not be subject to local taxes. This feature provides specific tax advantages for the financial planning of global operations.

Even so, it is mandatory to register with the Directorate General of Revenue (DGI) and obtain the RUC of Panama (Single Taxpayer Registry), no matter where your income comes from.

Initial Procedures before the Directorate General of Revenue (DGI)

Here are the first steps to tax compliance:

• Obtaining the RUC: Your company must officially register with the DGI with the help of a lawyer or authorized accountant.
• Notification of Business Activities: Specifies the economic activities that the company will carry out and its physical or virtual location.
• Accounting Record: Even if your income comes from abroad, you must keep accounting books in order and up to date in accordance with Panamanian regulations.

The estimated time to complete these steps is 5 to 10 business days, depending on the complexity of the company and the structure chosen.

Quarterly and Annual Obligations

Once the RUC is active, your company will assume certain periodic responsibilities:

Tax Statements

Even if you don't generate local income, it's important to submit a annual income statement. This includes accounting documentation that proves that your income originates outside the country, and is therefore exempt.

In addition, if your company generates operations within Panama, you must comply with the following taxes:

• Income Tax (ISR): 25% of local net profit.
• ITBMS (Tax on the sale of goods/services): General rate of 7%, applicable if services are offered within Panama.
• Notice of Operation: An annual tax calculated on the company's capital, generally 2% up to an established ceiling (limited to $60,000).

Updating Information and Reports

Panama requires entities to keep their information up to date, including partners, “beneficial owners” and physical address. In addition, compliance reports may be applied to international mechanisms if your company has a global presence (e.g. CRS or FATCA).

Employee Hiring and Labor Regulations

If you plan to hire staff in Panama, you must additionally register with the Ministry of Labor and the Social Security Fund (CSS). You must also comply with aspects such as:

• Preparation of written employment contracts
• Minimum wage compliance by area and sector
• Payment of social security contributions and social security contributions

Panama allows up to 10% of the payroll to be foreigners, which can be extended in certain cases with special permits.

Specialized Legal and Accounting Advice

Because tax regulations may vary depending on the activity, size and origin of the company, have legal advice in Panama and a certified accountant is key. They will help you:

• Evaluate if your income applies to the territorial exemption
• Avoid errors in declarations or late submission of documents
• Implement efficient structures such as limited company in Panama or an optimized foreign branch

Tax compliance in Panama doesn't have to be complex if it's structured from the start with the right support. In addition, Panamanian authorities tend to offer agile and digital processes, making it easier to monitor from abroad.