Panama International Structures Overview
An overview of Panama corporations, private interest foundations and the legal framework that supports international clients.
Panama remains well known for its corporations and private interest foundations, but their practical use today must be understood within the country’s legal services framework, due diligence standards and ongoing compliance requirements.
Corporations and Foundations
The two structures most commonly used in international planning through Panama.
Territorial Tax System
Foreign-source income is generally not taxed in Panama, subject to the facts of each case.
No Paid-In Capital Requirement
Panama corporations may be formed without a minimum paid-in capital requirement, subject to their intended use and structure.
Beneficial Ownership
Beneficial ownership is reported through Panama’s private legal framework and is not publicly accessible, subject to applicable regulations.
Ongoing Records
Accounting records, resident agent obligations and due diligence now form part of the practical framework.
Panama’s legal services platform in today’s compliance environment.
Panama’s corporate and foundation laws continue to offer practical legal structures for international clients, but their practical value today depends on proper legal administration, due diligence and ongoing maintenance. Resident agents, beneficial ownership reporting and accounting records are now central to the responsible use of these entities.
Panama was removed from the FATF process of increased monitoring on October 27, 2023, and the European Commission announced Panama’s removal from the EU high-risk third-country list on June 10, 2025. Those developments reflected meaningful progress in Panama’s AML and CFT framework while reinforcing the practical importance of compliance for legal entities administered from Panama.
Legal Framework
Panama corporations are governed by Law 32 of 1927, while private interest foundations are governed by Law 25 of 1995. Both structures remain relevant in international planning and are formed through established Panamanian legal and registry procedures.
Corporate Basics
Incorporation commonly takes four to five business days. Foreign directors may be appointed, meetings may be held outside Panama and a corporation may be used without a minimum paid-in capital deposit.
Ongoing Requirements
Resident agents, due diligence, beneficial ownership reporting and accounting records obligations now form part of the normal legal administration of entities used through Panama.
A legal framework that continues to serve international clients
When properly structured and maintained, Panama corporations and private interest foundations remain practical legal tools within international arrangements.
Contact
Contact us to discuss your legal needs in Panama.
OUR OFFICE
Advanced Tower, 1st Floor
Panama City, Panama.
In the Banking District, next to Hyatt Regency Panama City.
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