Obtaining a Panama bank account is the perfect way to diversify your assets. A Panamanian bank account will make it easier for you to do business internationally and invest in foreign markets. Over three years have passed since the Panama scandal, and the offshore bank account remains absolutely legal and has not become less interesting and significant for international investors.
Despite attempts to discredit Panama in the eyes of foreign investors, by influential countries, the volume of investment in the country decreased just slightly. Nevertheless, Panama in Central America receives more than 50% of foreign direct investment, compared with other countries in the region. Just now, in the modern world, a foreign resident needs to be more responsible for the choice of a bank, as well as to the entire process of issuing a bank account, to comply with all the requirements of a particular jurisdiction.
Why open bank account in Panama
Most banks in Panama are highly liquid and financially self-sufficient institutions with a conservative approach that do not need financial rescue in the event of any crisis. Panamanian banks’ requirements for customers wishing to open bank account in Panama are much stricter than in many banks in the European Union and the USA. Panama law protects the privacy of citizens and residents. For the disclosure of banking information, bank officials may be prosecuted. With a bank account in Panama, you can legally reduce your tax expense.
Panama is a country with territorial taxation, so you will not pay taxes on foreign dividends and interest. Many Panamanian banks provide an opportunity to open a bank account in several world currencies. A multicurrency account allows you to reduce the risk in case of fluctuations of certain monetary units in the world market and to quickly interact between several deposits within the banking system.
Methods to open a bank account in Panama
More than eighty international banks run in the banking sector of Panama, including a sufficient number of banks with well-known names. Compared to banks in other countries, Panama banks put forward more formal requirements when opening accounts for their customers. The first thing to say is that it’s no longer possible to open the Panama bank account online. A foreigner must come to Panama and visit a bank branch personally.
The set of documents is rather standard though when opening an account in Panama, banks may require more documents from the client, for example, not one bank reference letter, as usual, but two. In the process of checking documents that can last up to a month or even more, the bank may also request additional information explaining any transactions or the origin of finances. Moreover, any bank will open an account for a foreign client only if he has a residence permit in Panama, that is, an official document indicating the status of a temporary or permanent resident of the country.
Who can open an offshore bank account in Panama?
Present-day international requirements for banks have become much tougher. Panamanian banks, like banks in other countries, are forced to comply with both EU standards and OECD requirements, as well as FATF recommendations. That means:
- In order to open Panama offshore bank account, you need to obtain a residence permit in the country, a local identification card (Cedula) with confirmation of the availability of residence.
- The place of residence may be rented real estate at a specific address or purchased property in Panama in your name.
- To begin the process of issuing a Panamanian bank account, you will need to visit your chosen financial institution and meet with a bank representative in person.
However, having received a residence permit or permanent residence in the country, you can become a tax resident of Panama, which will help you strengthen the security of your international assets.
Benefits of Panama offshore bank account
A Panama bank account for foreigners, unlike domestic bank accounts in your country, provides access to international finance.Atrium Business Solutions
You can open a bank account in the currencies of different countries (EUR, GBP, CHF, and others) in many offshore banks in Panama, such way diversifying your assets and investments.
This feature can be valuable if you directly need to conduct business transactions in a certain currency or, for example, when you earn dividends on foreign deposits in certain currencies in another country, and there is an interest in storing the profit received in Panama. At the same time, the main account in Panama opens in US dollars. Additionally, offshore banks offer their customers higher interest rates on term deposits and savings accounts than ordinary state banks in your country of origin.