Q: How can I form a company in Panama?

To form a company in Panama, you must follow these steps: Define the type of company: Choose between Anonymous Society (S.A.) - the most common - or Limited Liability Company (S.R.L.) Define the corporate purpose: Clearly define the commercial activities that the company will carry out Provide shareholder and director information: Complete the Due Diligence Form with all personal data and addresses of shareholders and directors Register in the Public Registry: Formally register the company with Panamanian authorities Obtain tax identification: Apply for the Unique Taxpayer Registry (RUC) and Tax Identification Number (NIT) Complete operational registrations: Process the Operation Notice and other corresponding fiscal registrations according to the activity Our legal team can guide you through the entire process, ensuring compliance with all legal and regulatory requirements efficiently.

Q: What are the benefits of a Panamanian company?

Panamanian companies offer numerous benefits, including: Territorial principle of taxation: Only taxes income generated within Panama Confidentiality and protection: High level of confidentiality and asset protection Corporate flexibility: Great flexibility in corporate structure No minimum capital: No minimum capital required for incorporation Non-resident directors: Directors do not need to be Panama residents Bearer shares: Possibility of having bearer shares (with certain restrictions) International platform: Excellent platform for international business Country stability: Recognized political and economic stability

Q: What documents do I need to purchase a property in Panama?

To purchase a property in Panama, you will generally need: Personal identification: Valid ID card or passport Promise to Purchase Agreement: Preliminary document establishing the transaction terms Public Registry Certification: Verification that the property is free of liens and restrictions Public Deed: Formal document signed before a Public Notary Purchase registration: Registration of the transaction in the Public Registry ANATI update: Update of the transaction before the National Land Administration Authority

Question 1

What legal services does Jurado Attorneys & Consultants offer?

Accepted Answer

We offer a wide range of legal services including: corporate law, real estate, immigration, civil proceedings (succession processes, executive processes, mortgage foreclosures, ordinary proceedings, summary proceedings, incidents), labor law, family law, intellectual property, and consumer protection jurisdiction. Our expert team of lawyers provides personalized advice to meet the legal needs of our clients both in Panama and internationally.

Question 2

What languages does your law firm handle?

Accepted Answer

At Jurado Attorneys & Consultants, we offer legal services in Spanish and English. Our team of lawyers is bilingual, allowing us to effectively serve national and international clients. For procedures that require it, we can coordinate with authorized public translators who provide translation services in various languages.

Question 3

How are your legal fees structured?

Accepted Answer

Our fee structure varies depending on the type of legal service required. For some matters, such as company incorporations or immigration procedures, we offer transparent fixed rates. For more complex cases such as court proceedings or ongoing advisory services, we can work with hourly fees or monthly retainer agreements. In all cases, we provide clear cost estimates before starting our services and are committed to maintaining transparency in our billing.

Question 4

How can I schedule an initial consultation?

Accepted Answer

You can schedule an initial consultation through our website by completing the contact form or calling us directly at +507-214-6766. We offer in-person consultations at our office in Panama City, as well as virtual consultations via videoconference for international clients or those who cannot attend in person.

Question 5

How can I form a company in Panama?

Accepted Answer

To form a company in Panama, you must follow these steps:

Define the type of company:
Choose between Anonymous Society (S.A.) - the most common - or Limited Liability Company (S.R.L.)
Define the corporate purpose:
Clearly define the commercial activities that the company will carry out
Provide shareholder and director information:
Complete the Due Diligence Form with all personal data and addresses of shareholders and directors
Register in the Public Registry:
Formally register the company with Panamanian authorities
Obtain tax identification:
Apply for the Unique Taxpayer Registry (RUC) and Tax Identification Number (NIT)
Complete operational registrations:
Process the Operation Notice and other corresponding fiscal registrations according to the activity

Our legal team can guide you through the entire process, ensuring compliance with all legal and regulatory requirements efficiently.

Question 6

What are the benefits of a Panamanian company?

Accepted Answer

Panamanian companies offer numerous benefits, including:

Territorial principle of taxation:
Only taxes income generated within Panama
Confidentiality and protection:
High level of confidentiality and asset protection
Corporate flexibility:
Great flexibility in corporate structure
No minimum capital:
No minimum capital required for incorporation
Non-resident directors:
Directors do not need to be Panama residents
Bearer shares:
Possibility of having bearer shares (with certain restrictions)
International platform:
Excellent platform for international business
Country stability:
Recognized political and economic stability

Question 7

What are the annual obligations and/or requirements to keep a Panamanian corporation operational?

Accepted Answer

The annual obligations and/or requirements to keep a Panamanian corporation operational include:

Single Rate Tax:
Annual payment to the General Directorate of Revenue of the Ministry of Economy (currently US$300.00)
Resident Agent:
Maintain a lawyer or law firm in Panama who submits annual reports to the Superintendency of Non-Financial Subjects and the General Directorate of Revenue
Affidavit:
Annual presentation by an authorized public accountant, if the company carries out economic activities in Panama
Corporate books:
Keep corporate books properly updated
Document updates:
Annually update Due Diligence forms, expired ID cards or passports, and proof of address for Shareholders and Directors

Our firm can take care of all these maintenance aspects to ensure your company remains in good standing.

Question 8

What are the advantages of establishing a private interest foundation in Panama?

Accepted Answer

Private interest foundations in Panama offer numerous advantages, including:

Asset protection:
Effective protection of assets and property against third-party claims
Estate planning:
Ideal tool for estate and succession planning
Confidentiality:
High level of confidentiality in wealth management
Tax benefits:
Tax benefits for assets located outside Panama
Administrative flexibility:
Great flexibility in administration and management
Trust alternative:
Alternative to the Anglo-Saxon trust in a civil law system

They are ideal for the long-term management, protection, and transmission of family assets.

Question 9

What documents do I need to purchase a property in Panama?

Accepted Answer

To purchase a property in Panama, you will generally need:

Personal identification:
Valid ID card or passport
Promise to Purchase Agreement:
Preliminary document establishing the transaction terms
Public Registry Certification:
Verification that the property is free of liens and restrictions
Public Deed:
Formal document signed before a Public Notary
Purchase registration:
Registration of the transaction in the Public Registry
ANATI update:
Update of the transaction before the National Land Administration Authority

Question 10

What is the Horizontal Property Regime and how does it work in Panama?

Accepted Answer

Law 284 of February 14, 2022, is the legal framework that regulates the ownership and administration of horizontal properties with multiple independent units (such as apartments, lotification projects, or urbanization). It establishes the rules of coexistence, responsibilities of owners, administration of common areas, maintenance fees, and conflict resolution. The incorporation of a project into this regime requires a specific legal process that includes the creation of a co-ownership regulation and formal registration with the authorities. Our firm can handle all the steps and processes to give legal life to your real estate project.

Question 11

What are the rates, amounts, or taxes associated with the transfer of real estate in Panama?

Accepted Answer

The main rates, amounts, or taxes related to the transfer of real estate in Panama include:

Real Estate Transfer Tax:
2% of the sale value or updated cadastral value, whichever is greater
Capital Gains Tax:
10% on the gain or 3% of the sale value (seller can choose)
Property Tax:
Annual, with progressive rates and exemptions for lower-value properties, family patrimony, or primary residence
Maintenance fee:
Common expenses if belonging to a Horizontal Property
Public services:
Water Rate (monthly) and Cleaning/Garbage (municipal, annual)

Question 12

How long does it take to obtain permanent residency in Panama?

Accepted Answer

The time to obtain permanent residency in Panama varies depending on the immigration category you apply for. For categories such as Friendly Nations, Investor or Pensioner/Retiree, Married or with a Panamanian Child, among others, the initial process takes approximately 3-6 months to obtain provisional residency, and then 2 years to convert it to permanent. Our immigration specialist lawyers can advise you on the best option according to your personal situation and expedite the process.

Question 13

What documents do I need to apply for Panamanian residency?

Accepted Answer

The documents generally required to apply for residency include:

Valid passport:
With minimum validity of 6 months
Criminal record certificate:
From the country of origin/residence with minimum three (3) months validity, duly apostilled
Specific documentation according to visa type:
For example: proof of pension, evidence of investment, employment contract, etc.

Important note: All documents from abroad must be apostilled or legalized and translated into Spanish by an authorized public translator of the Republic of Panama, if applicable.

Question 14

How are succession processes handled in Panama?

Accepted Answer

Succession processes in Panama can be testate (when there is a will) or intestate (without a will). The process generally includes:

Opening of the process:
Formal initiation of the succession procedure before the courts
Inventory and appraisal of assets:
Identification and valuation of all the deceased's assets
Declaration of heirs:
Legal recognition of persons entitled to inherit
Adjudication of assets:
Formal distribution of assets among heirs
Registration of properties:
Registration of real estate in the name of the heirs

Panamanian law respects testamentary freedom with some limitations to protect forced heirs in certain cases. Our specialized lawyers can guide you through the entire succession process to ensure the correct distribution of assets.

Question 15

How do Panamanian laws affect the inheritance of foreigners?

Accepted Answer

For assets located in the Republic of Panama, Panamanian law generally applies regardless of the owner's nationality. However, for certain aspects such as the capacity to make a will or the validity of the will, the law of the testator's country of nationality may apply. Panama recognizes valid wills granted abroad as long as they comply with the formalities of the country where they were issued. For real estate, the transfer must be registered in Panama following local procedures. It is essential to carry out succession planning that considers the implications both in Panama and in the country of origin.

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