Since 1927, Panama is the pioneer in offshore destinations and it currently has the second largest number of offshore registered companies after Hong Kong.
Panama hosts over 80 international banks that operate under more than 40 banking secrecy laws.
Panama has No Tax for Offshore Companies
Ease of Operation without Reporting Requirements for Offshore Companies
The identity of the shareholders or the beneficiaries is not entered on any public records and the corporations or foundations may have nominee directors or counselors that have no control over their operations.
Most “Tax Heaven” jurisdictions have very little commercial or financial activity beyond the offshore industry itself. This makes it nearly impossible to justify the movement of large amounts of cash in case of audit. Panama is the host of Panama Canal and the second largest duty Free Zone in the world - the largest being Hong Kong. It has also been voted one of the top retirement destinations with hordes of retirees relocating to Panama. Panama is also a center for the head offices of many multinational corporations, call centers and numerous online businesses. Thus Panama provides a unique infrastructure to design offshore structures that can withstand audits.
Equality Between Domestic and Offshore Companies
There are foreign vis-à-vis local investor equality laws that have been designed to protect foreign businesses and investors. According to Panama's Corporation Law 32 of 1927 there is no difference between domestic and offshore companies.