# Offshore Corporation

> Panama offshore corporations (Law 32 of 1927) allow international operations with 0% tax on foreign-source income, corporate privacy, no minimum capital. Formation in 48-72 hours, cost $800-1,500. Ideal for international trading, holdings and asset protection.

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A Panama offshore corporation is a corporation (S.A.) incorporated under Law 32 of 1927 that operates exclusively outside Panama. Thanks to the territorial tax system, income generated outside Panama is exempt from Income Tax (0% CIT). This structure offers corporate privacy through nominee directors and shareholders, requires no minimum capital, and can be formed in 48-72 hours. Ideal for international trading, holding structures, asset protection and global investments.

## Benefits

### Tax Benefits

- **0% Tax on Foreign-Source Income** (0%) — Income generated from operations outside Panama pays no Income Tax.
  - _Source: Ley 32 de 1927, art. General_
- **No Tax on Foreign Dividends** (0%) — Foreign-source dividends are exempt from withholding.
  - _Source: Fiscal Code, art. Territorial System_
- **No Capital Gains Tax (Foreign Assets)** (0%) — Sale of foreign shares or assets without capital gains tax.
  - _Source: DGI Guidelines_
### Privacy and Confidentiality

- **Nominee Shareholders** — Ability to use nominee shareholders for complete privacy.
  - _Source: Ley 32 de 1927_
- **Nominee Directors** — Nominee director services available for privacy.
  - _Source: Common Practice_
### Corporate Flexibility

- **No Minimum Capital** ($0) — No minimum capital required to incorporate.
  - _Source: Ley 32 de 1927_
- **100% Foreign Ownership** (100%) — 100% foreign ownership allowed without restrictions.
  - _Source: Ley 32 de 1927_

## Frequently asked questions

### Can I open a bank account with a Panama offshore corporation?

Yes, but banks require due diligence: apostilled corporate documents, beneficial owner identification, proof of economic activity and CRS/FATCA compliance.

### Do I need to visit Panama to incorporate?

No. The entire process can be done remotely with apostilled documents. However, to open a bank account, an in-person visit is usually required.

### What about CRS/FATCA?

Panama complies with CRS (Common Reporting Standard) and FATCA. Banks report account information to tax authorities of member countries. An offshore does not eliminate tax obligations in your country of residence.

_This information is for guidance only and does not constitute legal, tax or financial advice. Offshore corporations must be used for legitimate purposes. Consult with lawyers and tax advisors in your jurisdiction before incorporating. Misuse may result in legal penalties. Last updated: February 2026._