In short
If your S.A. serves clients abroad and doesn’t trade in Panama, Panama generally doesn’t tax that profit and you file no Panama income tax return. You still pay the $300 yearly franchise tax and keep a resident agent.
Facts checked November 2026
Panama company formation
A Panama corporation (S.A.) or private interest foundation, filed with the Public Registry through our resident agent.
SA or Foundationfrom $1,499 one-time
- 1–2 weeks
- Territorial tax
- Nominee directors available
At a glance
- Company types
- Corporation (S.A.) from $1,499 · Private Interest Foundation from $1,799
- Corporation (S.A.)
- At least 3 directors, plus a President, Secretary and Treasurer. Nominees cost $490 for year one and are included in Pro.
- Foundation
- At least $10,000 of initial assets, a council of 3 members (or one company), and no habitual commercial activity.
- Resident agent
- Mandatory, and a lawyer for a foundation. Ours in Panama City is included for year one.
- Authorised capital
- Usually 100 shares and $10,000 authorised.
- Every year
- The $300 franchise tax for an S.A., the resident agent renewal and accounting records to your agent.
- EU status
- Moved from the EU blacklist to the grey list on 9 October 2026. Still on France’s list of non-cooperative states.
- Timeline
- 1–2 weeks
Taxes, explained simply
Your company pays
-
Territorial
What Panama taxes
Only income from Panama. Profit from clients and activity abroad is generally not taxed there.
-
25%
Tax on Panama income
Above $1.5m of taxable income, the greater of 25% of net income or 4.67% of gross income.
-
7%
ITBMS (VAT)
Register once Panama turnover passes $36,000 a year. 10% on accommodation and alcohol, 15% on tobacco.
-
$300
Yearly franchise tax
Every S.A. pays this tasa única each year, whatever it earns.
-
15%
From 2027, for group companies
Companies in a multinational group without real substance in Panama pay 15% on foreign passive income, such as dividends and interest.
You personally
-
10% / 5%
Dividend tax
Where it applies, 10% on Panama-source profit and 5% on foreign-source profit, or 20% with bearer shares.
-
None
Wealth or inheritance tax
Panama has no wealth, inheritance or exit tax.
You’re still taxed where you live. Your home country may tax the company’s profit or treat it as managed from there, and some countries tax payments to Panama at higher rates.
How it works
-
Form your S.A.
S.A. or Foundation, filed with the Public Registry by our agent.
You get: Panama company
-
Get a resident agent
Agent in Panama City, which every Panama company must have.
You get: Agent of record
-
Set up your directors
An S.A. needs 3 directors. We can provide nominees.
You get: Certificate of incumbency
-
Open a bank account
We introduce you to a Panama bank and prepare its file.
You get: Bank-ready file
-
Stay compliant
Yearly franchise tax and agent renewal keep you in good standing.
You get: Deadline reminders
What’s included
Fixed one-time prices. Government fees are shown before you pay.
Explorer
$1,499one-time
Panama SA, gov. fees included
- Articles or foundation charter
- Public Registry filing
- Year-one resident agent
- Compliance reminders
- Email support
Go
$1,899one-time
Panama SA, gov. fees included
Everything in Explorer, plus:
- Bank introduction
- Certificate of incumbency
- WhatsApp support
Pro
$2,499one-time
Panama SA, gov. fees included
Everything in Go, plus:
- Multi-bank support until an account opens
- 3 nominee directors for year one
- Priority support, same-day replies
Then $999 a year from month 13.
Not included: Translation or apostille of your documents.
What you’ll need
- Certified copy of the passport of every shareholder, director or founder
- Certified proof of address for each of them. We send the wording for the notary or lawyer
- Source of funds, such as a statement or bank reference
- Two name choices. We add S.A., Inc., Corp. or Foundation
- What the company does, or the foundation’s purpose and beneficiaries
Banking
- Go includes a Panama bank introduction. Pro adds multi-bank support until an account opens.
- On Explorer, add bank account help for $199.
Approval is always the bank’s or provider’s decision.
After formation: what’s due
| When | What |
|---|---|
| 15 July or 15 January | $300 franchise tax: 15 July if incorporated January to June, 15 January if July to December |
| 4 months after year end | Accounting records to your resident agent, for companies without Panama operations |
| Monthly | ITBMS returns once registered |
| If it applies | Income tax return, only with Panama-source income, a notice of operations or assets invested in Panama |
| Every year | Resident agent renewal, in our annual plan from month 13 ($999 S.A., $1,099 foundation) |
Panama company formation FAQs
How long does it take to form a Panama company?
Usually 1–2 weeks after your documents are ready.
Do I need three directors?
Yes. A Panama S.A. needs at least 3 directors and a President, Secretary and Treasurer. Pro includes 3 nominee directors for year one, or add nominees for $490.
How is a Panama company taxed?
Panama taxes only income earned in Panama. Profit from clients and activity abroad is generally not taxed there. Panama profit is taxed at 25%.
Is there VAT?
Yes, ITBMS at 7%. Registration is required once Panama turnover passes $36,000 a year.
What are the yearly costs?
A $300 government franchise tax for an S.A., plus our resident agent renewal: $999 for an S.A. or $1,099 for a foundation.
What is a private interest foundation?
A Panama entity for holding and passing on assets. It needs at least $10,000 of initial assets and a council of 3 members (or one company), and it can’t run a business habitually.
Do I need to file accounts?
Companies without Panama operations keep accounting records and give them to the resident agent within 4 months of year end. They aren’t filed publicly.
Is Panama on the EU blacklist?
No. The EU moved Panama from its blacklist to its grey list on 9 October 2026.
Can I move my existing Panama company to you?
Yes, for $290 plus the annual plan. Your current agent must confirm no fees are owed before the change is filed.
Sources (9)
Rates and fees from official and Big Four sources, with the date each was last reviewed.
- PwC: Panama corporate income tax 4 Aug 2026
- PwC: Panama other taxes (ITBMS, franchise tax) 4 Aug 2026
- PwC: Panama significant developments (Law 526) 4 Aug 2026
- PwC: Panama tax administration 4 Aug 2026
- Deloitte: Panama Highlights 2026 Apr 2026
- Law 25 of 1995 (private interest foundations) In force
- Law 32 of 1927 (corporations) In force
- KPMG: EU list of non-cooperative jurisdictions 9 Oct 2026
- PwC: France withholding taxes (non-cooperative states list) 24 Apr 2026
General information, not legal or tax advice. Rates and fees change, and your own situation decides what applies. We are not a law firm; where a lawyer or licensed agent is needed, a local partner handles it.
