People from all over the world like to register their ships and vessels with Panama. When it comes to registering your vessels and ships, the laws are different than other countries, so what should you know? Here is a basic guide on the uniqueness of Panama laws.

There are three main reasons that Panama’s vessel and ship laws are so appealing to people around the world. First, the country has better tax laws for vessels. Second, Panama has an open registry. Third, the legal process is much more efficient.

Panama’s Tax Laws for Vessels

Panama’s territorial tax system is beneficial to the maritime industry, since taxes are only paid in Panama for what is generated locally, therefore all the operation and income generated by the vessel outside the territory, is not subject to the payment of taxes in Panama.

Registering with an Open Registry

An open registry means that anyone around the world can register their vessel on that registry. All vessels and ships must be registered in a country to determine taxes and operating procedures. The responsibility of the owner to register in a country means that the owner of the vessel or ship is looking for an optimal place to have it in operation.

Just because there is an open registry, it does not mean that anyone can register any ship or vessel with the country and forget about it. There are still inspections done by the government in Panama to make sure that the vessels are safe to sail. If there is a working crew on board, the government also verifies that there are safe working conditions.

Efficient Legal Process

Registration can take months in some countries because of a slow legal process or other red tape that must be observed. In Panama, the legal process is efficient. Registration is easily done online, not requiring the owner to even be present for the proceedings. This process allows more vessel owners and operators to get to work faster.

If a problem does arise and a judicial forum is required, the legal process is still simpler than many other countries. The Panama Maritime Admiralty Court is open all day, every day of the year, so they are accessible to any vessel owner. The process is even easier if you hire a Panamanian maritime lawyer who is familiar with the process.

Expert Legal Help

If you are interested in registering your vessel or ship in Panama, having an experienced lawyer on your side is a game-changer. It is easy and efficient to register with the help of a lawyer, avoiding the most common mistakes. Mata & Pitti is a law office full of experienced experts who reside in Panama and know the laws forward and backward. Give us a call today to help with your Panama legal needs.