Panama offers a platform of tax, logistical and banking advantages to foreigners who use Panama as a destination for their foreign trade. Panama has the best tax platform for offshore activities, as the territorial tax system provides that offshore income (income from activities outside Panama) is not taxed by the Panamanian government.

Non-resident (offshore) companies in Panama offer some of the following tax benefits:

• No income tax: Panamanian companies do not pay capital gains tax on income derived from sources outside Panama.
• No capital gains tax: Panamanian companies do not pay capital gains tax on profits derived from the purchase and sale of securities traded outside Panama.
• No tax on interest: Panamanian companies do not pay tax on any income earned from bank interest, whether inside or outside Panam
• No sales tax: Companies in Panama do not pay tax on sales of products or services carried out abroad.
• No tax on issuance of company shares: Panamanian companies do not pay tax on the issuance of shares.
• No tax on shareholders’ dividends: Shareholders of offshore companies in Panama do not pay tax on dividends, on income generated from offshore sources.

Fixed Term Deposit

When it comes to investing your money there is a wide range of possibilities, some more complex than others. Panama has always been characterised as a reliable investment destination, with legal security, a first world banking system and a dollarised economy. This last point gives stability to your investment as the dollar is a strong currency and is not subject to many exchange rate factors.

In Panama, with the right advice you can set up an investment portfolio in real estate, time deposits and investments in local companies and obtain stable and interesting returns.

Let’s start with the basic question: What is a fixed-term deposit?

A fixed-term deposit is a product in which the customer gives the bank an amount of money for a period of time in exchange for remuneration in the form of an interest rate on the capital borrowed. This interest can be paid at the end of the period or in instalments during the period.

I hope the information has helped to clarify your doubts and if you had no doubts at least to know about the comparative advantages of opening a bank account in dollars in Panama. If you wish we can talk, just send me a message by filling out the contact form you find in the menu or if you are already decided let’s coordinate a web meeting to talk about your new bank account, I leave you our contact below.