In terms of key industries, the strategic importance of the Panama Canal, an influential spot for maritime trade, has made Panama a leader in exports to the northern tip of South America whilst also providing crucial access to the Pacific and Atlantic Oceans.
The country is tiny, with a population of just over 4 million people, however, in 2016 it exported an impressive US$8.8 billion, with major beneficiaries, of course, being the United States (24%), as well as Venezuela and Ecuador (6.8%), neighbours Guatemala (6.2%) and Japan (4.4%).
Major exports include chemical products such as oxygen compounds and sulfonamides (accounting for over 18% of exports), passenger and cargo ships (9.8%) and packaged medication (8.2%). Other exciting business prospects include a growing tourism industry in a country that boasts natural beauty in abundance and retail, with the largest commercial centre in Latin America, Albrook Mall.
Companies and individuals in Panama are required to pay the following taxes:
Panamanian income tax is levied based on the territoriality principle.
Panamanian-source income is subject to taxation whether it is received by a resident or non-resident entity. Residency is only relevant to determine if the entity is subject to withholding tax (WHT) or not.
Corporations are subject to income tax at a fixed rate of 25%.
The tax base (i.e. amount to which the tax rate will apply) for companies whose taxable income is greater than 1.5 million United States dollars (USD) is the greater.
Minimum 2 shareholders, one Panama resident
No local director requirement implied
legal address with correspondence service for a year (renewal 890 EUR/year + VAT)
registration in all necessary authorities and obtaining tax and identification numbers
submission of mandatory tax returns and applications to the register of beneficiaries
consultation on the chosen direction of activity
all registration fees
Company registration - 2290 Euro
If you need to register a company in Panama with additional services (open a corporate
account, get a VAT number, business license), check the total price individually with our