Jurisdictions
Panama
Panama has been at the centre of international corporate structuring since the 1920s, when its first company law established one of the earliest offshore incorporation regimes. A century later, it remains one of the world’s most-used corporate domiciles — home to over 500,000 registered companies and a financial services sector that accounts for nearly 10% of GDP.
The jurisdiction has weathered more scrutiny than most. The Panama Papers in 2016 put it under a global spotlight. A return to the FATF grey list from 2019 to 2023 forced a modernization of its AML framework. Panama came through both with its core corporate regime intact — territorial taxation, statutory privacy protections, and a filing-light structure that hasn’t been diluted under pressure.
Since the mid-1990s, we’ve learned exactly when Panama is the answer. When a client needs a straightforward holding vehicle in a jurisdiction that won’t create compliance overhead or unwanted visibility, Panama is usually where we start — and the one we keep coming back to.
Why businesses choose Panama
Zero Compliance Overhead
No financial statements, no annual returns, no mandatory audits. Panama is one of the only jurisdictions that imposes no reporting obligations on offshore entities. Books and records are kept as best practice and are protected by local law. While Cayman requires filings to the Registrar and BVI mandates records available to authorities on request, Panama asks for neither.
Genuine Privacy Protections
Beneficial ownership stays with the registered agent — not on a public register, not disclosed to government authorities. While BVI has added economic substance layers and Malta now maintains a public ownership register under EU directives, Panama’s statutory privacy protections came through the grey list period largely unchanged, backed by a modernized AML framework that meets international standards.
Dollar-Pegged Stability
Panama’s currency is pegged 1:1 to the US dollar, and USD circulates as legal tender — eliminating currency risk for international businesses. The economy, anchored by the Canal and a banking sector that employs 24,000 people, has delivered consistent growth with low inflation. Double taxation treaties with the UK, Canada, Belgium, and Japan provide additional structuring flexibility.
What You Can Do Here
Company Formation
Offshore companies, holding structures, and international trading vehicles. Seven-day incorporation, zero tax on offshore income, and no financial filing requirements.
View formation detailsPrivate Interest Foundation
Panama's answer to the trust — a flexible structure for asset protection, estate planning, and wealth management with strong confidentiality protections.
View foundation detailsNot for everyone
We’d recommend Panama for holding companies, international trading structures, and asset protection — especially when privacy and minimal compliance overhead are the priorities. At €2,200 for formation and €2,000 annually, it sits in the middle of our corporate portfolio, but the zero-filing requirement means the true cost of ownership is lower than it looks on paper.
It’s not the right fit if you need to operate within Panama itself — offshore companies cannot conduct local business. Banking, insurance, and fund management are also restricted sectors. If EU treaty access matters, look at Cyprus or Malta. If the lowest possible cost is the priority, Belize undercuts everything. If institutional name recognition matters more than privacy, BVI carries more weight. Many clients use Panama as the private holding layer alongside a client-facing entity elsewhere.