Once considered an uncooperative tax haven, Panama has evolved into one of the premier places to bank or protect your personal assets. It is important to have a working knowledge of Panama’s banking practices and to protect yourself by investigating any financial institution in which you choose to place your money. That said there are many reasons why people bank in Panama.
In recent years Panama revised its laws against money laundering and has developed a banking system that is both extremely private and highly competitive. The system is carefully monitored by the international offshore banking community making it a relatively safe place to do business. Banks in Panama are generally easy to do business with and you can feel comfortable knowing that your assets are being taken care of by a reputable and safe jurisdiction. The banks in Panama are held to strict banking and privacy regulations, but at the same time they ensure illegal practices are not taking place.
Panama has many tax laws that make it a favorable place for foreigners to do their banking. If you incorporate a Panama company for example, and get a bank account for it. If that company makes all of it’s money outside Panama you can safely send all of this money to your Panama bank account and you will not be subject to tax on this money in Panama.
Banks in Panama have comparable features to their North American counterparts including; online banking and ATM cards. Bank accounts in Panama come in 3 distinct flavors including; personal bank accounts, company bank accounts or merchant accounts for businesses that process credit cards.
Accessing your funds internationally can be done in two ways typically. You can access your account online using your bank’s website. From here you can transfer money internationally to and from the bank account (not available at all banks). The ATM card you will receive will allow you to access your funds virtually anywhere in the world.
When you bank in Panama you are able to choose many options when setting up your account. Panama banks allow you to open a basic personal account and they also can help you take the necessary steps to incorporate an entity or an offshore company. You will be required to show your personal information and you will also have to verify your identity by showing a notarized copy of your passport, references and a drivers license or another form of photo id.
Since Panama has been removed from the non cooperative tax haven blacklist an influx of capital has happened. Combine this with a booming real estate market and growing tourism industry and Panama is really taking large steps to becoming a world class center.
Tags: Personal-Finance