Regardless of the amount of money you are trying to protect from creditors you need to choose an offshore banking destination that truly protects your assets. Panama has many advantages over other tax havens.
Panama: Strong Banking Secrecy & Privacy Laws
Panama has the strongest financial privacy laws in the world. A court order indicating evidence of serious crimes from a Panama court is the only way that the account signatory on a Panama bank account can be found out by a third party. Bank accounts in Panama can be created using an anonymous corporation further protecting your privacy. Sadly, many jurisdictions have excellent privacy laws on paper but they are not enforced. This is not the case in Panama where banking secrecy laws are not only enforced but offenders face jail time for breaking these laws, a strong deterrent.
Personal vs. Corporate Offshore Bank Account
Getting a personal bank account in Panama is an easy to complete procedure that can often be done without a visit to Panama. While a personal account is easy to set up is it suitable as part of an asset protection strategy? The short answer is no, for two reasons: many countries require you to declare personal bank accounts in foreign countries and wires coming and out of personal accounts will have your name on them. Either of these reasons is enough to destroy your asset protection plan completely so make sure to set up a corporate account if privacy is a concern for you.
Banks of Panama: Are They Stable?
Panama does not have a central bank and hence Panama banks do not have a lender of last resort. This translates into very conservative lending practices. The words "sub prime mortgage" do not exist in Panama since all mortgages to foreigners must be secured with at least a 30% down payment. Furthermore, Panama banks will only lend money to purchase Panama real estate not for foreign real estate purchases preferring to lend in a market they know well. Since Panama banks do not lend for foreign real estate purchases they are not exposed to the declining values found in real estate markets elsewhere.
Panama Canal Expansion Economic Effects
Panama is currently experiencing an economic boom with an economy that is set to increase by over 9% this year vs. a 10% increase last year. This economic boom is partially fueled by the Panama Canal expansion project which is a multi billion dollar project to widen the Canal to allow larger ships passage. Upon completion, revenues for the Canal are expected to double. In addition, operation of the Canal is a highly profitable part of the Panama economy with some ships paying upwards of $500,000 for passage.
Interest Rates on Panama Bank Accounts
Interest rates for savings accounts in Panama in many cases are comparable to rates attainable onshore. There is one bank in Panama that pays almost 7% interest on large deposits. The average interest rate on savings accounts is roughly 4.5%. Any capital gains or interest earned on money in a Panama bank is tax free by Panamanian law. So if you can get your money into Panama you need not worry about it's safety, there is a good chance it's safer in a Panamanian bank than in your own country. - 15224
Panama: Strong Banking Secrecy & Privacy Laws
Panama has the strongest financial privacy laws in the world. A court order indicating evidence of serious crimes from a Panama court is the only way that the account signatory on a Panama bank account can be found out by a third party. Bank accounts in Panama can be created using an anonymous corporation further protecting your privacy. Sadly, many jurisdictions have excellent privacy laws on paper but they are not enforced. This is not the case in Panama where banking secrecy laws are not only enforced but offenders face jail time for breaking these laws, a strong deterrent.
Personal vs. Corporate Offshore Bank Account
Getting a personal bank account in Panama is an easy to complete procedure that can often be done without a visit to Panama. While a personal account is easy to set up is it suitable as part of an asset protection strategy? The short answer is no, for two reasons: many countries require you to declare personal bank accounts in foreign countries and wires coming and out of personal accounts will have your name on them. Either of these reasons is enough to destroy your asset protection plan completely so make sure to set up a corporate account if privacy is a concern for you.
Banks of Panama: Are They Stable?
Panama does not have a central bank and hence Panama banks do not have a lender of last resort. This translates into very conservative lending practices. The words "sub prime mortgage" do not exist in Panama since all mortgages to foreigners must be secured with at least a 30% down payment. Furthermore, Panama banks will only lend money to purchase Panama real estate not for foreign real estate purchases preferring to lend in a market they know well. Since Panama banks do not lend for foreign real estate purchases they are not exposed to the declining values found in real estate markets elsewhere.
Panama Canal Expansion Economic Effects
Panama is currently experiencing an economic boom with an economy that is set to increase by over 9% this year vs. a 10% increase last year. This economic boom is partially fueled by the Panama Canal expansion project which is a multi billion dollar project to widen the Canal to allow larger ships passage. Upon completion, revenues for the Canal are expected to double. In addition, operation of the Canal is a highly profitable part of the Panama economy with some ships paying upwards of $500,000 for passage.
Interest Rates on Panama Bank Accounts
Interest rates for savings accounts in Panama in many cases are comparable to rates attainable onshore. There is one bank in Panama that pays almost 7% interest on large deposits. The average interest rate on savings accounts is roughly 4.5%. Any capital gains or interest earned on money in a Panama bank is tax free by Panamanian law. So if you can get your money into Panama you need not worry about it's safety, there is a good chance it's safer in a Panamanian bank than in your own country. - 15224
About the Author:
For more information regarding offshore banking in Panama or to find out more regarding our Panama offshore banking services please visit our website.
