Why Choose Panama for Company Formation?
Panama suits founders who want a low-cost, fast-to-incorporate corporate vehicle with territorial taxation and full foreign ownership, rather than EU market access. The Sociedad Anónima (SA), governed by Law 32 of 1927, is the standard structure, supported by a flat US$300 annual franchise tax and resident-agent incorporation in days.[1][6]
Panama’s value is structural, not promotional. It taxes only Panama-source income, so a non-resident-owned company that earns abroad pays no Panamanian income tax on that income, only the annual franchise tax and a non-operational declaration.[6] Foreign owners hold 100% of shares, directors and officers may be non-resident, and the founder never needs to travel to Panama.
The trade-off is honest and worth stating early. Panama is a recognised corporate jurisdiction, but it is not an EU or EEA entity, it grants no passporting, and crypto activity is currently unlicensed rather than licensed. The editorial reality is that Panama is strongest as a holding and operating vehicle and as a base for online gaming, and weakest where a counterparty expects an EU footprint.
Territorial Taxation, Not a Zero-Tax Label
Panama does not exempt all income; it taxes Panama-source income at 25% and exempts foreign-source income.[6] For a company invoicing clients outside Panama, the effective Panamanian income tax is nil, but the moment it earns Panama-source revenue it becomes taxable and must register for VAT (ITBMS). Unlike Costa Rica, which applies the same territorial principle but at a 30% headline rate on local income, Panama’s local rate is 25%.[6]
Speed and Full Foreign Ownership
Incorporation runs through a resident agent and completes in 2 to 10 business days once know-your-client checks clear.[4] There is no minimum paid-up capital and no nationality or residency restriction on shareholders, directors, or officers.[2] In practice, the binding constraint on timeline is not the registry but the agent’s due-diligence pack, which must be complete before filing.
A Genuinely Low Cost Floor
The headline government cost is a single US$300 annual franchise tax (tasa única) for corporations and SRLs.[6] Unlike the British Virgin Islands, where the equivalent annual government fee is US$550 for a standard company, Panama’s franchise tax is lower. The all-in figure is set by resident-agent and compliance costs, detailed in the Costs section.[6]
Entity Types Under Panama Law
Panama law defines several vehicles, but two matter for international owners: the Sociedad Anónima (SA), the classic corporation under Law 32 of 1927, and the Sociedad de Responsabilidad Limitada (SRL) under Law 4 of 2009.[1][2] The SA is the standard structure and the only vehicle accepted for an online-gaming licence.
The SA is share-based and the default for almost all international structuring. It requires three directors and three officers (President, Secretary, Treasurer), who may be the same people, of any nationality, resident anywhere.[2] The SRL is member-based and increasingly used by United States owners who want pass-through treatment under US check-the-box rules; its members are filed, so it is less anonymous than an SA.[2]
Definition: Sociedad Anónima (SA)
Panama’s standard corporation, governed by Law 32 of 1927. No minimum paid-up capital (US$10,000 customary authorised). Minimum three directors and three officers, who may be non-resident and may be the same individuals. Corporate directors are permitted. It is the required vehicle for a Junta de Control de Juegos online-gaming licence and the standard vehicle for holding and operating structures.[1][2]
| Entity | Min. Capital | Directors / Members | Online Registration | Used For |
|---|---|---|---|---|
| Sociedad Anónima (SA) | None (US$10,000 customary authorised) | 3 directors + 3 officers; non-resident permitted; corporate directors permitted | Via resident agent | Standard vehicle; required for online gaming; holding and operating structures |
| Sociedad de Responsabilidad Limitada (SRL) | None | 2+ members; managers | Via resident agent | US-facing owners seeking pass-through treatment; members are filed |
| Private Interest Foundation (Fundación de Interés Privado) | US$10,000 patrimony | Council of 3 (or 1 corporate) | Via resident agent | Asset-holding and estate planning, not trading |
| Branch of a foreign company | Declared parent capital | n/a | Via resident agent | Local presence of an existing foreign entity; taxed on Panama-source income |
The common mistake is choosing the SRL for its US tax treatment without accounting for the member-disclosure trade-off; owners who prioritise confidentiality default to the SA and use nominee officers, which is a long-standing Panamanian practice because the three directors appear on the public register.[2]
Formation Process
Forming a Panama company is a resident-agent process: a Panamanian lawyer or law firm drafts and notarises the charter (escritura pública) and registers it at the Registro Público de Panamá. End to end, incorporation completes in 2 to 10 business days once due diligence clears; apostille and banking add further time.[4]
What You Need to Prepare
| Document / Item | Details | Notes |
|---|---|---|
| Passport (certified copy) | For each director, officer, and beneficial owner | Notarised; apostilled where used abroad |
| Proof of residential address | Utility bill or bank statement, within 3 months | One per individual |
| Professional or bank reference | Standard resident-agent KYC | One per beneficial owner |
| Source-of-funds summary | Origin of capital and business rationale | Increasingly requested at onboarding |
| Company name (pre-checked) | Must carry an SA / Corp / Inc designator | Reservable 30 days, renewable |
| Registered office | The resident agent’s address by default | Mandatory |
| Beneficial-ownership data | For the resident agent’s UBO filing | Filed within 30 days of incorporation |
| Power of attorney | If the agent signs on the founder’s behalf | Notarised and apostilled |
Panama is a party to the Hague Apostille Convention (effective ), so documents from other member states are apostilled rather than consularised.[18] Certified copies are commonly accepted within 3 months of issue.
Engage the Resident Agent
A Panamanian lawyer or law firm is mandatory and performs KYC on owners, directors, and signatories before anything is filed.[4][7]
Name Check and Charter Drafting
The agent reserves the name and drafts the charter (pacto social). The name must include a corporate designator.[2]
Notarisation
The charter is protocolised as an escritura pública before a Panamanian notary.[4]
Registration at the Registro Público
The entity acquires legal personality on registration. The founder need not be present.[4]
Post-Registration
RUC tax identification, an Operation Notice (Aviso de Operación) if operating in Panama, beneficial-owner filing, and bank or payment-account onboarding. This is where the formation connects to the banking challenge in the Banking section.[4]
Requirements
Panama’s formation requirements are light on capital and ownership but firm on the resident-agent gateway and beneficial-owner reporting. There is no minimum paid-up capital and 100% foreign ownership is permitted, but every company must appoint a Panamanian lawyer or law firm as resident agent, and beneficial-owner data must be filed.[2][8]
| Requirement | Standard SA | For an Online-Gaming Licence |
|---|---|---|
| Min. Directors | 3 | 3 |
| Corporate Directors | Permitted | Permitted |
| Foreign Ownership | 100% | 100% |
| Min. Share Capital | None | None for the SA; gaming-licence financials apply separately |
| Registered Office | Required (resident agent) | Required |
| Resident Agent | Mandatory (Panamanian lawyer or firm) | Mandatory |
| UBO Disclosure | To the private register via the agent | Plus regulator fit-and-proper |
| Nominee Directors / Officers | Permitted (common) | Subject to regulator scrutiny |
| Annual Franchise Tax | US$300 (tasa única) | US$300 plus gaming-licence fees |
Registered Office and Resident Agent
Every Panamanian entity must appoint a resident agent who is a Panamanian lawyer or law firm; this is the mandatory gateway through which incorporation, the beneficial-owner filing, and the annual provision of accounting records all flow.[2][7][8] Losing the agent without appointing a replacement leads to suspension of the company. The agent’s fee, typically US$150 to US$500 per year, is a recurring cost, not a one-off.
Beneficial-Ownership Disclosure and Nominees
Under Law 129 of 2020, the resident agent files beneficial-owner data to a private, restricted-access register at the Superintendence of Non-Financial Subjects within 30 days of incorporation, and updates within 30 days of any change.[8] The register is not public, which is why the older claim that a Panama company is fully anonymous is outdated: ownership is recorded and accessible to competent authorities, even though it is not publicly searchable.
Costs and Pricing
A Panama company costs US$300 per year in government franchise tax (tasa única), but the real all-in figure is higher once resident-agent, registered-office, beneficial-owner, and accounting-records compliance are added.[6] The all-in cost is roughly US$2,600 in Year 1, with ongoing annual costs of roughly US$1,200.
Government Fees
| Fee Item | Amount (USD) | Notes |
|---|---|---|
| Annual franchise tax (tasa única), SA or SRL | 300 / year | Due 15 July (Jan–Jun incorporations) or 15 January (Jul–Dec). As of .[6] |
| Late franchise-tax surcharge | 50+ | Escalates with continued non-payment.[6] |
| Reactivation after suspension | up to ~1,000 | Plus provision of accounting records.[9] |
| Operation Notice tax (if operating in Panama) | 2% of equity (min 100 / max 60,000) | Only for Panama-based activity.[6] |
Total Cost Summary
| Line Item | All-in cost (USD) |
|---|---|
| Government franchise tax (tasa única) | 300 |
| Resident agent | 350 |
| Registered office | 250 |
| Formation and notarisation | 1,000 |
| UBO and accounting-records compliance | 500 |
| Nominee officers (optional) | 200 |
| Total Year 1 | ~2,600 |
| Annual Ongoing (Year 2+) | ~1,200 |
Taxation
Panama operates a territorial tax system: only Panama-source income is taxed, at a 25% corporate rate, while foreign-source income is exempt.[6] A non-resident-owned company earning abroad pays no Panamanian income tax on that income.
Panama has not enacted domestic Pillar Two legislation; the OECD Global Minimum Tax (GloBE) applies to multinational groups with consolidated revenue exceeding 750 million euros, a threshold unlikely to affect standalone Panama-domiciled companies.
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate income tax | 25% (territorial) | Panama-source income only; 0% on foreign-source income. As of .[6] |
| VAT (ITBMS) | 7% | Registration threshold ~US$36,000 turnover; foreign-facing services generally outside scope.[6] |
| VAT on crypto services | Out of scope where foreign-source | No bespoke crypto VAT rule; Panama-source supplies follow the 7% standard.[6] |
| WHT on dividends | 10% (local-source); 5% free zone | Foreign-source distributions not taxed.[6] |
| WHT on interest | 12.5% effective (25% on 50%) | On payments to non-residents.[6] |
| WHT on royalties | 12.5% effective | On payments to non-residents.[6] |
| Social security (CSS) employer | On Panama payroll only | No Panama payroll means no CSS.[6] |
| Capital gains | 10% (general) | Specific mechanisms for real estate.[6] |
CRS and CARF Reporting
Panama is a CRS participant and reports automatically to partner jurisdictions.[6] On , Panama signed the OECD Crypto-Asset Reporting Framework multilateral agreement (CARF-MCAA), bringing crypto-asset reporting into scope on the OECD timeline.[13] In practice, this means owners remain reportable in their country of tax residence: Panama’s territorial system reduces Panamanian tax, not home-country reporting.
Substance and Why Panama Has No Economic-Substance Regime
Panama does not operate a British Virgin Islands or Cayman-style economic-substance regime. There is no annual substance return and no core-income-generating-activity test on an ordinary non-resident SA or SRL. The reason is structural: Panama relies on territorial taxation rather than a zero-tax-plus-substance model, so it was never required to bolt on a generic substance regime. The only Panamanian regime with a genuine substance test is the opt-in Multinational Headquarters regime (Sede de Empresa Multinacional, SEM, under Law 41 of 2007), which grants a 5% service-income rate but requires qualified full-time staff and real operating expenditure in Panama, and is therefore not relevant to a plain holding or operating shell.[6] Unlike BVI and Belize, both of which impose economic-substance obligations, Panama imposes none on a standard company.
Banking
Panama company formation does not come with easy banking. Opening a local account for a non-resident-owned crypto, fintech, or high-risk entity is difficult, and has become harder since the Panama Papers and the 2019 to 2023 FATF grey-listing period drove correspondent-bank de-risking. Plan for a documented, pre-qualified onboarding, not a same-week local account.
Local appetite is low: many banks prefer the company or its beneficial owner to be tax-resident in Panama, and crypto, gaming, and remittance activity attracts extensive enhanced due diligence.[12] Where a local account is impractical, the practical stack uses non-resident-friendly institution types elsewhere: European-licensed electronic money institutions offering multi-currency IBANs with 2 to 4 week onboarding for well-documented offshore corporates, and specialist commercial or private banks in non-resident-friendly jurisdictions accustomed to Latin-America-linked structures.
Documentation typically required is apostilled corporate documents, a certificate of good standing, source-of-funds evidence, a business plan, and beneficial-owner KYC. The real constraint is not incorporation; it is securing banking that survives a compliance review, which is why onboarding should begin in parallel with formation, not after it.
Two further frictions are worth stating plainly. First, Panama remains on the EU list of non-cooperative tax jurisdictions (Annex I) as of , even though it cleared the FATF grey list in October 2023 and the EU anti-money-laundering high-risk list in August 2025; the tax-list status keeps enhanced due diligence and EU defensive measures in play at some counterparties.[11][12] Second, banking timelines of 2 to 8 weeks are normal and should be budgeted into any launch plan.
Jagelski & Partners’ banking partner network spans institutions across Europe and other non-resident-friendly jurisdictions, and businesses placed more than fourteen billion euros in client turnover across banking and electronic-money relationships in 2025. Jagelski & Partners is paid by the institution, not by the client, and does not charge an onboarding fee. Banking is the critical next step after a Panama incorporation: see the banking service for how onboarding is pre-qualified across the network.
Annual Compliance
Every Panama company has ongoing obligations regardless of activity: the US$300 annual franchise tax, accounting-records maintenance and annual provision to the resident agent, and beneficial-owner reporting. Non-payment and non-compliance carry penalties, suspension of corporate rights, and eventual strike-off. Dormant companies are not exempt from the franchise tax.[6][9]
Annual Franchise Tax (Tasa Única)
The franchise tax is US$300 per year for every SA and SRL, due 15 July for January-to-June incorporations and 15 January for July-to-December incorporations.[6] Late payment triggers a US$50 surcharge and escalating penalties; this applies to dormant companies too, since the tax is a flat franchise charge, not an income tax.[6][9]
Accounting Records (Law 254 of 2021)
Companies must keep accounting records and supporting documents for 5 years and, under the 2021 reform of Law 52 of 2016, must provide those records to the resident agent annually by 30 April for the prior fiscal year.[7] Penalties for non-compliance range from US$5,000 to US$1,000,000 and can include suspension of corporate rights.
Beneficial-Ownership Updates (Law 129 of 2020)
The resident agent maintains beneficial-owner data on the private register and must update it within 30 days of any change.[8] Agent-level penalties run from US$1,000 to US$5,000 per entity, with daily accruals for continued default, and the company itself may be suspended.
Tax Filing
Companies with Panama-source income file an annual return by 31 March; companies with only foreign-source income file a non-operational declaration, typically around US$150.[6] There is no Panamanian income tax on foreign-source income, but the declaration and the franchise tax are still due.
Penalties and Strike-Off
Three consecutive years of unpaid franchise tax leads to suspension of corporate rights: the company cannot litigate, transact, dispose of assets, or obtain a certificate of good standing.[9] Reactivation requires a request, a restoration fee of up to roughly US$1,000, and provision of accounting records.[9]
Licensing Pathways from a Panama Company
A Panama company should be formed with its intended activity in mind, because licensing pathways differ sharply. Panama has no comprehensive crypto or VASP framework: crypto activity is currently unlicensed rather than licensed. Its one notable licensed pathway is online gaming, regulated by the Junta de Control de Juegos (JCJ), for which an SA is required.
The 2022 crypto bill was declared unconstitutional by Panama’s Supreme Court, and as of no bespoke crypto-asset licensing regime is in force.[14][16] Securities activity is regulated by the Superintendencia del Mercado de Valores (SMV) and banking by the Superintendencia de Bancos de Panamá (SBP), but these are full financial licences, not formation by-products.[14] A Panama SA or SRL is a corporate vehicle; it does not by itself authorise regulated activity.
Crypto Licensing Pathways
Panama has no bespoke VASP regime; crypto activity is unlicensed. Where a licensed base is needed, compare licensing jurisdictions and pathways.
Online Gaming Licence
Panama’s JCJ runs an established online-gaming regime. The licensee must be a Law 32 SA. See the gambling licensing guide for fees and process.
A Panama entity confers no EU passporting rights, and MiCA contains no third-country equivalence regime. MiCA Article 61 permits third-country firms to serve EU clients only when the client initiates contact entirely on their own initiative. ESMA’s guidelines (ESMA35-1872330276-2030, dated , applicable from ) interpret this restrictively: any EU-targeted marketing, EU-language content, geo-targeted advertising, or use of EU-based influencers constitutes solicitation that voids the exemption. For full detail on what constitutes solicitation and the documentation requirements, see Reverse Solicitation Under MiCA →
Advantages and Limitations
Panama trades EU access and a licensed crypto framework for low cost, speed, territorial taxation, and the absence of an economic-substance regime. It is a strong corporate and holding vehicle and a credible online-gaming base, but banking is difficult and its EU tax-list status keeps enhanced due diligence in play.
- Territorial taxation. Foreign-source income is exempt; only Panama-source income is taxed, at 25%.
- Low, flat government cost. A single US$300 annual franchise tax, among the lowest headline government fees in the offshore field.
- Fast, fully remote formation. Incorporation in 2 to 10 business days with 100% foreign ownership and no founder presence required.
- No economic-substance regime. Unlike BVI and Belize, a standard Panama company files no substance return and faces no local-activity test.
- FATF-clear. Removed from the FATF grey list in October 2023, improving correspondent-banking conditions over the grey-listing period.
- No EU passporting. A Panama entity is not an EU or EEA company and cannot serve EU clients on a passport. Mitigation: operators targeting EU clients can obtain a separate CASP authorisation in an EU member state for full passporting, or, for isolated genuinely unsolicited contacts only, may fall within the narrow reverse-solicitation exemption under MiCA Article 61.
- Difficult banking. Local accounts for non-resident crypto and high-risk owners are hard to open. Mitigation: route fiat through European EMIs and specialist non-resident-friendly institutions, and begin onboarding in parallel with formation.
- On the EU tax list (Annex I). As of Panama remains on the EU list of non-cooperative tax jurisdictions, triggering EU defensive measures at some counterparties. Mitigation: document tax residency and substance carefully, and confirm counterparty exposure to EU defensive measures before structuring.
- No licensed crypto framework. Crypto activity is unregulated rather than licensed; the 2022 crypto bill was struck down. Mitigation: use Panama as a corporate or holding layer and pair it with a licensed entity in a regulated jurisdiction where market access is required.
- Ongoing compliance is real. Accounting records must be kept and delivered to the agent, and beneficial owners reported. Mitigation: bundle accounting-records provision and UBO filing into the annual resident-agent engagement so deadlines are not missed.
How Panama Compares
Within its cluster, Panama sits alongside Costa Rica, the British Virgin Islands, and Belize. Costa Rica is the closest peer: a LatAm territorial-tax neighbour. The BVI is the premium Caribbean offshore with stronger institutional recognition. Belize is the budget offshore. The decisive differences are economic substance, government cost, and FATF status.
| Factor | Panama | Costa Rica | BVI | Belize |
|---|---|---|---|---|
| Entity Type | Sociedad Anónima (SA) | SA / SRL | Business Company (BC) | IBC / LLC |
| Timeline | 2 to 10 business days | 1 to 2 weeks | 1 to 2 business days | 1 to 2 business days |
| State Fee | US$300 / yr (tasa única) | ~US$120–US$500 / yr | US$550 / yr | ~US$200 / yr |
| Min. Capital | None | None | None | None |
| Corporate Tax | 0% foreign / 25% local (territorial) | 0% foreign / 30% local (territorial) | 0% | 0% foreign / 1.75%–19% local |
| EU Passporting | No | No | No | No |
| FATF Status | Clear (Oct 2023) | Clear | Grey-listed (Jun 2025) | Clear |
| Remote Management | Yes (resident agent) | Yes (resident agent) | Yes (registered agent) | Yes (registered agent) |
| Crypto Banking | Difficult | Difficult | Difficult | Difficult |
| Economic-Substance Regime | No | No | Yes (ES Act 2018) | Yes (ES Act 2019) |
| Best For | Holding, gaming, LatAm-facing corporates | LatAm territorial holding and operating | Recognised offshore holding structures | Lowest-cost holding and asset protection |
Compare every formation jurisdiction side by side →
The key difference is: Panama and Costa Rica are territorial-tax jurisdictions with no economic-substance regime, while the BVI and Belize are zero-tax jurisdictions that adopted substance regimes to satisfy the EU and OECD.[6] For an owner who wants minimal ongoing substance obligations, Panama and Costa Rica are structurally simpler.
On reputation, the picture inverts. The BVI carries stronger institutional recognition in banking conversations but is currently FATF grey-listed (since June 2025) and sits on the EU tax grey list (Annex II), while Panama is FATF-clear yet remains on the EU tax blacklist (Annex I). As of , none of the four grants EU market access.
When Panama Is the Right Choice
Choose Panama if you need a low-cost corporate or holding vehicle taxed only on local income, fast and fully remote incorporation with full foreign ownership, an online-gaming operation that requires a Law 32 SA, or to avoid an economic-substance regime. Consider an alternative where the deciding factor points elsewhere: an EU member state for market access, the BVI for the strongest offshore banking recognition, or Belize where cost alone decides.
Not sure which column is you? Ask Emma. She compares these jurisdictions in seconds, in your language.
Frequently Asked Questions
Incorporation completes in 2 to 10 business days once the resident agent’s due-diligence checks are clear. The realistic timeline to a fully operating company is longer, usually several weeks, because apostilling documents and opening a bank or payment account add time. The binding constraint is rarely the Registro Público itself; it is assembling a complete know-your-client pack for the resident agent before filing. The founder does not need to travel to Panama, and the agent can act under a notarised power of attorney.
Yes. Panama places no nationality or residency restriction on shareholders, directors, or officers, and a single non-resident may own 100% of a Sociedad Anónima or SRL. The three directors and three officers a Sociedad Anónima requires may all be non-resident and may be the same individuals. A resident agent, who must be a Panamanian lawyer or law firm, is mandatory, but that is a service relationship, not an ownership requirement. The founder need not visit Panama to incorporate or to maintain the company.
No. Panama uses a territorial tax system, so only Panama-source income is taxed, at a 25% corporate rate, and foreign-source income is exempt. A non-resident-owned company invoicing clients outside Panama pays no Panamanian income tax on that income; it pays the US$300 annual franchise tax and files a non-operational declaration. This is not a zero-tax regime: the moment the company earns Panama-source revenue, that income becomes taxable and the company must register for VAT (ITBMS). Owners also remain reportable in their own country of tax residence under CRS.
The government cost is a single US$300 annual franchise tax (tasa única). The real all-in annual cost is higher, around US$1,200, once the resident agent, registered office, beneficial-owner filing, and accounting-records compliance are included. An all-in first-year setup runs roughly US$2,600. The true annual cost is two to four times the US$300 figure alone.
Not easily. Local Panama banks are reluctant to onboard non-resident-owned crypto, fintech, and high-risk companies, and de-risking since the Panama Papers and the FATF grey-listing period has tightened access further. In practice, owners often bank through European electronic money institutions offering multi-currency IBANs, or through specialist non-resident-friendly institutions in other jurisdictions. Expect to provide apostilled corporate documents, a certificate of good standing, source-of-funds evidence, and a business plan, and budget a 2 to 8 week onboarding. A fully crypto-only operation may not need a Panama account at all.
A Panama company does not grant EU market access or passporting rights, and MiCA contains no third-country equivalence regime. MiCA Article 61 permits a third-country firm to serve EU clients only when the client initiates contact entirely on their own initiative, but ESMA interprets this narrowly: any EU-targeted marketing, EU-language content, or geo-targeted advertising voids the exemption. Operators seeking systematic EU market access should obtain a separate CASP authorisation in an EU member state. See the reverse-solicitation guide for the documentation requirements and the boundaries of the exemption.
It depends which list. Panama was removed from the FATF grey list in October 2023 and from the EU anti-money-laundering high-risk list in August 2025. However, as of it remains on the EU list of non-cooperative tax jurisdictions (Annex I), which is a separate, tax-focused list with its own consequences, including EU defensive measures at some counterparties. So Panama is clear on the two anti-money-laundering lists but still on the EU tax list.
No, not in the way older marketing suggests. Beneficial owners are recorded on a private register maintained by the resident agent under Law 129 of 2020, accessible to competent authorities, and the three directors of a Sociedad Anónima appear on the public register. Bearer shares are immobilised and held by an authorised custodian. Nominee officers are a long-standing practice that keeps the beneficial owner off the public director list, but the company is not anonymous to authorities. Treating a Panama company as untraceable is both inaccurate and a compliance risk.
Yes. The US$300 annual franchise tax is a flat charge that applies regardless of activity, so a dormant company still owes it and faces a US$50 surcharge plus escalating penalties for late payment. Dormant companies must also keep accounting records and provide them to the resident agent annually under Law 254 of 2021, and keep beneficial-owner data current. Three consecutive years of unpaid franchise tax leads to suspension of corporate rights, after which reactivation costs up to roughly US$1,000 plus provision of records.
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References
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- Republic of Panama, Law 32 of 1927 on Corporations (Sociedades Anónimas), panama.justia.com, accessed .
- Republic of Panama, Law 4 of 2009 on Limited Liability Companies (SRL), docs.panama.justia.com, accessed .
- Republic of Panama, Law 25 of 1995 on Private Interest Foundations, panama.justia.com, accessed .
- Registro Público de Panamá, company registry and incorporation guidance, registro-publico.gob.pa, accessed .
- Dirección General de Ingresos (DGI), tax authority, dgi.mef.gob.pa, accessed .
- PwC, Worldwide Tax Summaries: Panama (corporate tax, ITBMS, tasa única, withholding taxes, Pillar Two), taxsummaries.pwc.com, accessed .
- Republic of Panama, Law 52 of 2016 as amended by Law 254 of 2021 (accounting records and provision to resident agent), panama.justia.com, accessed .
- Republic of Panama, Law 129 of 2020 (private and unique beneficial-owner register), panama.justia.com, accessed .
- Republic of Panama / DGI, franchise-tax suspension and reactivation provisions, dgi.mef.gob.pa, accessed .
- GAFILAT, Panama mutual evaluation and follow-up reports, gafilat.org, accessed .
- European Commission, Delegated Regulation (EU) 2025/1184 amending the list of high-risk third countries (Panama removed), finance.ec.europa.eu, accessed .
- Financial Action Task Force, Panama jurisdiction page and October 2023 statement on removal from increased monitoring, fatf-gafi.org, accessed .
- OECD, Crypto-Asset Reporting Framework and multilateral competent authority agreement (Panama signature, December 2025), oecd.org, accessed .
- Superintendencia del Mercado de Valores (SMV), securities regulation, supervalores.gob.pa, accessed .
- Superintendencia de Bancos de Panamá (SBP), banking supervision, superbancos.gob.pa, accessed .
- Junta de Control de Juegos (JCJ), online-gaming licensing, jcj.gob.pa, accessed .
- Ministry of Commerce and Industries (MICI), Multinational Headquarters (SEM) regime under Law 41 of 2007, mici.gob.pa, accessed .
- Hague Conference on Private International Law (HCCH), Apostille Convention status table (Panama), hcch.net, accessed .
- Council of the European Union, EU list of non-cooperative jurisdictions for tax purposes (February 2026 update, Annex I), consilium.europa.eu, accessed .
- PwC, Worldwide Tax Summaries: Costa Rica (territorial tax, 30% corporate rate), taxsummaries.pwc.com, accessed .
- Belize, Belize Companies Act 2022 and Economic Substance Act 2019, nationalassembly.gov.bz, accessed .
- ESMA, Guidelines on reverse solicitation under MiCA (ESMA35-1872330276-2030, applicable 27 April 2025), esma.europa.eu, accessed .