Latin America
Founders building Americas trading flows, Panama
Panama's territorial regime taxes only Panama source income; foreign source trading profits are exempt regardless of remittance. USD as legal tender removes FX overhead between US and LatAm counterparties.
Territorial taxUSD legal tenderAmericas hub
Start setup {placement} 4 min · no card required
Corp tax
25%
Fastest setup
7 days
Tax treaties
18
Region
Latin America
What you'll need
- No resident director required
- Local registered office required
- No substance requirement
- Minimum capital: No minimum capital
- Administrative language: Spanish
- Legal system: Civil law
Tax and treaty profile
- Corporate tax 25%
- Effective rate ~0%
- Tax treaties 18
- VAT rate 7%
- Withholding on dividends 10%
Key treaty partners
SpainMexicoUKSouth KoreaUAESingapore
Banking and payments
- Banking takes 2 to 4 weeks with KYC
- Stripe not supported
- Wise supported
- Crypto banking available
Considerations
If your customers or banks touch the EU
Panama left the EU non-cooperative list in February 2024 and the FATF grey list in October 2023, but residual reputational sensitivity remains — local bank EDD is common and some EU/US counterparties still flag Panamanian entities for enhanced review. For frictionless EU access:
Residual reputational riskBank EDD commonSubstance rules tightened