PA · N 8°59′ · W 79°31′
Panama
A Panama S.A. is widely used for international trading, holding and cross-border asset ownership, and can support regional logistics linked to the Canal and Colón Free Zone. Its territorial tax system is notable, but banking compliance, economic substance and beneficial-ownership disclosures require careful planning.
Key points on one page.
- Tax
- Panama-source income 25%; foreign passive income of MNEs without substance may face 15%
- Shareholders and directors
- Min. 1 shareholder and 3 directors; no nationality or residency rule for directors
- Share capital
- No statutory minimum or paid-in capital; USD 10,000 authorised capital is common
- Local requirements
- Panamanian lawyer or law firm required as resident agent; local operations need permits
- Annual maintenance
- No general annual return; USD 300 annual franchise tax and activity-based tax filing
- Incorporation timeline
- Approx. 1–2 weeks, subject to due diligence and registry processing
- Public disclosure
- Directors, officers and agent are public; shareholder and UBO data are non-public
Facts last checked · 2026-10-23
This page summarises publicly available regulations for general reference only and does not constitute legal or tax advice. Rules in each jurisdiction may change at any time; please confirm the latest position with an Offshore Isle advisor.
References (6)›
- 01Panama DGI — Tasa Única FAQs
- 02Panama DGI — Resident Agent FAQs
- 03PwC Worldwide Tax Summaries — Panama Corporate Taxes on Corporate Income
- 04PwC Worldwide Tax Summaries — Panama Tax Administration
- 05EY Tax News — Panama publishes Law 129 on beneficial-owner registry
- 06U.S. Department of State — 2026 Investment Climate Statements: Panama
02 · Advantages
Why Panama
- 01US-dollar economy with access to Americas, Canal and Colón Free Zone logistics
- 02Foreigners generally may hold all shares and do not need local residence
- 03Territorial taxation is notable for qualifying foreign-source income; assess substance and home-country tax
- 04The shareholder register is not public and the UBO registry is not public-facing
- 05Established corporate law permits flexible share, director and shareholder arrangements
03 · Requirements
Formation requirements
- Shareholders: Min. 1; individuals or corporate entities
- Directors: Min. 3; any nationality or residence
- Officers: Appoint a president, secretary and treasurer; file appointments as required
- Resident agent: Panama licensed lawyer or law firm; KYC and UBO due diligence required
- Local operations: Obtain RUC and Aviso de Operación; sector permit where applicable
04 · Compliance
Annual compliance
- Pay USD 300 franchise tax by 15 January or 15 July, according to registration half-year
- Maintain books, shareholder register, minutes and support; supply accounting data to resident agent
- Non-Panama-operating or pure-holding entities: deliver annual accounting records or affidavit to resident agent
- Update the Public Registry for director, officer or resident-agent changes
- Update UBO or control data; file tax returns on time for locally taxable business
After incorporation, Offshore Isle sets a compliance calendar. We remind you in advance of annual returns, renewals and filings, and handle them on your behalf.
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