Panama is perhaps best known for its famous canal, but it is also a favorable jurisdiction in which to set up offshore accounts and is second only to Switzerland in the amount of offshore banking handled there. This is probably due to the many benefits associated with offshore banking in Panama.
First and foremost, Panama's financial climate is considered stable, secure, and private, all of which are important to individuals and businesses looking to create offshore companies and accounts. Panama's laws surrounding stability, security, and privacy concerns in offshore banking are based on the Basel Committee on Banking Supervision, so clients can be sure of confidentiality and high standards.
Panama is said to feature the most stringent privacy laws where finance is concerned, and there are harsh penalties for breach of privacy laws. Both identity of account holders and assets held in financial institutions are protected.
It's also very easy to set up an International Business Corporation (IBC) and attendant bank accounts in Panama - the process is fairly straightforward and you could receive your company in as little as 10-12 days. You are required to retain a resident agent in Panama, and this person must be a registered Panamanian lawyer (or law firm). We provide this as part of the offshore company formation service.
There are also financial benefits to be gained by creating your IBC and offshore accounts in Panama. The initial cost to set up your IBC is $2,100, with annual fees of $1,375.
However, business interests and account holders are exempt from paying taxes on income in their accounts in Panama so long as their operations take place outside the country.