The Republic of Panama is located in Central America and forms the narrow isthmus that links North and South America. Panama is famous for its canal, which joins the Atlantic and Pacific Oceans. Because of the international nature of the Panama Canal, the country's population of 2.8 million has excellent telecommunications, airline links and a sophisticated banking and financial system as well as a major free port.

 

One of the most favorable and most flexible incorporation laws available in the world can be found in Panama. Non Resident Panamanian International Business Corporations  and Private Interest Foundations do not pay tax on any of their income, nor do they have any reporting requirements to the Panamanian government. A Panama corporation can be used by individuals from all over the world who are interested in global asset protection, tax minimization, privacy, investment diversification, affordability and convenience. Panama corporations can be used for international trade, to settle trusts or foundations, to establish and own Panama bank or  brokerage accounts, or hold ownership of real estate or any other type of assets.

 

The most common structure in Panama is the Non Resident International Business Corporation (IBC). The key characteristics are outlined below.