Doing Business in Panama

Panama is a premier location. Whether traveling on commercial flights or by cruise ship, it is easily accessible to visitors from all over the world. A tax system that supports business start-ups and ship registrations makes the country especially attractive to foreign businesses. Panamanian companies are subject to a territorially-based tax system, which means that tax is only payable on activities undertaken within the territory of the Republic of Panama. Under Panamanian Tax Law business transactions that are agreed, executed or have effect outside Panama are treated as offshore and are not liable for tax, even where the transactions are managed or administered from an office in Panama. Learn more about why you should do business in Panama.