Panama Offshore Company Formation & Private Foundations

Strategic Jurisdiction for Asset Protection, Privacy & Tax Efficiency

Panama is a leading offshore financial jurisdiction located at the crossroads of the Americas. With a long-standing reputation for privacy, asset protection, and investor-friendly laws, Panama offers a wide range of flexible structures including offshore corporations (Panama S.A.), private interest foundations, and trusts.

As a politically stable, business-oriented country with a robust banking sector and the globally significant Panama Canal, the jurisdiction provides international clients with sophisticated tools for global business and estate planning.

Why Choose Panama for Offshore Incorporation?

Panama offers a unique blend of confidentiality, tax neutrality, and global accessibility that makes it one of the most attractive destinations for offshore structuring:

• No corporate income tax on foreign-sourced income
• No personal income tax for non-residents
• No capital gains, estate, gift, or inheritance taxes on offshore assets
• No exchange controls or currency restrictions
• Strong privacy protections and bank secrecy laws

With its modern infrastructure, professional financial sector, and strategic location, Panama remains a go-to jurisdiction for international investors, digital entrepreneurs, and high-net-worth individuals.

Panama Offshore Corporations (Sociedad Anónima)

Panama’s Sociedad Anónima (S.A.) — the equivalent of a limited liability company — is one of the most popular and versatile offshore company structures worldwide. These entities are ideal for holding companies, international trading, IP management, and investment vehicles.

Key Features of a Panama S.A.:

• Fast and cost-effective incorporation (typically within 2–3 business days)
• No reporting or auditing requirements for offshore activities
• No requirement to disclose shareholders or directors publicly
• Legal bearer or registered shares permitted
• 100% foreign ownership allowed
• Legal stability with English-language corporate documents available

Panama corporations are frequently used in tandem with foundations or trusts for estate planning and wealth preservation.

Panama Private Interest Foundations

Panama Foundations are globally respected as a hybrid between a trust and a corporation — ideal for asset protection, estate planning, and philanthropic purposes.

Benefits of Panama Foundations:

• Separate legal entity (unlike trusts)
• No ownership or shareholders — ideal for privacy
• Assets protected from creditors and legal claims
• Can be used to hold shares, real estate, bank accounts, IP, and investments
• Lifetime or perpetual duration
• No taxes on offshore income or assets

Panama foundations are commonly used by international families to protect and manage wealth across generations.

Panama Trusts & Asset Protection Structures

While Panama is more widely known for its corporations and foundations, it also offers flexible trust legislation. Panama trusts are private, secure, and exempt from taxation on foreign income and assets.

Advantages of Panama Trusts:

• Recognized legal framework for discretionary and fixed trusts
• Strong protection against foreign judgments
• Assets can be held globally and administered locally or abroad
• Settlor retains broad discretion over the structure

Trusts can be layered with corporations or foundations for additional security and estate planning control.

Key Advantages of Panama as an Offshore Jurisdiction

• No tax on foreign income, dividends, or capital gains
• English Common Law influences with Spanish civil law foundation
• No exchange controls; USD is legal tender
• Strong legal protections for privacy and asset security
• Fast, affordable company and foundation formation
• Stable, internationally respected financial center
• World-class legal, banking, and fiduciary professionals

Panama stands out as a powerful jurisdiction for offshore company formation, private foundations, and asset protection. Its flexible laws, strategic location, and commitment to privacy make it ideal for international clients seeking global control, confidentiality, and tax-efficient structures.

Contact SCGIBC today to form your Panama offshore corporation, establish a Panama foundation, or create a custom international structure tailored to your estate planning and business goals.