Type of Law

Based on Spanish Civil Law with many Common Law influences, especially regarding Company Law, which is based on the Delaware model.

Corporate Legislation

Company law is based upon Delaware and New York legislation (Corporation Law No. 32 of the 1927 Commercial Code, Decree Law 5 of 1997 and Executive Decree 296 of 1997).  but corporate document presentation is very similar to Spanish civil law.

Corporate document presentation very similar to Spanish civil law, however, company law is based upon Delaware and New York legislation as it existed in the 1920s (see Law 32/1927). Has recently introduced 'private interest foundations' which are similar in form to the much more expensive undertakings offered by Liechtenstein (See Law 25/1995) allowing a 'founder' to on the one hand separate legal ownership whilst on the other potentially maintain full control over all endowments.

Unlike most civil law jurisdictions trusts are recognized and exist in Panamanian law. The world's foremost yacht and ship registration territory. Growing banking and insurance sector. Low indigenous individual and corporate taxes. Tax system is based on the 'territoriality' concept; therefore, revenue earned outside of Panama is totally free of Panamanian taxes. Currency trades on a par value with the US Dollar.

Our latest offshore news
30/09/2006
Welcome to join our discussions
on Offshore Companies, Incorporations,
Jurisdictions, etc..
01/09/2008
The IMF has reported that Panama was one of the fastest growing economies in the world last year.
22/08/2008
Cable & Wireless has announced that its principal operations in the Channel Islands, the Caribbean, Panama, Macau, and Monaco are expected to invest more than USD 400 million in Caribbean telecommunications development.
05/07/2008
The IMF concluded the 7th Annual Regional Conference on Central America, Panama and Dominican Republic and examined how globalization and economic integration is impacting Central America's tax structures.
14/03/2008
The President of Mexico Felipe Calderon has initiated talks with Panama regarding a free trade agreement that has been awaited for a long time.
29/02/2008
Panama's long-term sovereign credit rating has been raised by Standard and Poor's to BB+ from BB. This new rating is based on strong economic growth of Panama and continued improvement in fiscal health of its government.
19/11/2007
Recently, a new law was passed by Panama's National Assembly to give multinational companies that perform certain tasks a significant tax break. As a result, according to a company specialising in investment property in Panama, the country's real estate sector is expected to experience an unprecedented boost.
19/09/2007
The WTO has announced completing a Trade Policy Review of Panama and published the results of the review. The report suggested that the rationalization of assistance programmes and the simplification of the trade regime would help Panama to sustain the economic growth.
22/08/2007
Economic growth in Panama is expected to exceed last year's 8.1% because of a strong investment climate, a dynamic services sector and the Panama Canal expansion programme.
03/07/2007
The Trade Promotion Agreement has been signed by Panama and the United States to eliminate tariffs and other barriers to the trade in goods and services between Panama and the US.
21/03/2007
The Panama Canal Authority (ACP) held a public hearing in Balboa, Panama, with the participation of fourteen representatives from shipping and government.
11/01/2007
Panama banks Banco General and Banco Continental have come to the agreement to merge. This merger will create one of the largest financial services companies in the region. The merger is expected to close during 2007.
07/11/2006
Panama hopes to become Argentina's replacement on the UN Security Council after Latin American and Caribbean Group (GRULAC) of the UN Security Council delayed as far as some English-speaking Caribbean members were reportedly upset about not being adequately involved in this process.
08/09/2006
At a meeting of Panama's President and Executive President of the Central American Bank for Economic Integration (CABEI) agreed that by the end of 2006 Panama will become an 'extra-regional' partner of CABEI. This status will provide Panama with the access of funding of about USD 60 million.
28/06/2006
Chile and Panama signed the free trade agreement that opens up 92.5% of the Chilean economy to Panamanian producers. Now most Panamanian products will enjoy a zero tariff when entering Chile's market.