Why Panama?

Simply because, apart from the lifestyle - the escape from the mad frenzy of the developed world - Panama is a safe, stable, affordable country that offers a whole heap of financial benefits to people who want to move here, or who are just looking for asset protection, banking security, and a great place to have a holiday home.

Not only that, but Bocas del Toro is one of the few  remaining undiscovered corners of the Caribbean. Think Florida Keys 40 years ago. Think Costa Rica 10 years ago. Bocas has just started its own boom phase. Major developers have moved in and are building large condominium resorts on Isla Colon and Red Frog Beach. But Dolphin Bay, the most beautiful and protected part, remains untouched by big business (so far). This is an excellent long-term investment. Or, if you want to run it as a hotel/resort, would provide a great ongoing income combined with a fantastic lifestyle.

So why are we selling? Simply because a change in family circumstances means we are not able to get out there nearly as often as we would like.
 

CLIMATE
Yearly average temperature: 27 Centigrade or 82 grades Fahrenheit. Rainy seasons from May to August and from December to January. Dry seasons from February to April and September/November.

LANGUAGE
The official language in Panama is Spanish but English is widely spoken in Bocas del Toro.

CURRENCY
Balboa: this is exactly equivalent to the American dollar, which is freely used in the country. In fact, there are no Balboa bills, only coins, that are equal to the American dollar in size and value. Just bring US money.

POPULATION
9.883 inhabitants (2000 census) across the the islands.

ELECTRICITY
110 VAC/50 cycles. Some places have also 220 VAC/60 cycles.
 

The following information has been taken from my lawyer's website: Panama Offshore Services, Inc. I cannot assume any responsibility or liability in connection with the use of this information, which should not be construed as legal advice. For personal legal advice please contact POSI who will give you excellent service.

Selecting an offshore jurisdiction is an integral part of establishing an offshore structure or financial account. The jurisdiction that you choose should have at the very minimum, the following 10 characteristics:

1. A Full Fledged Tax Haven - no capital gains tax, no interest income tax, no inheritance tax, etc.

2. Favorable Incorporation Laws - the corporate laws of the country should enable you to hold "Bearer Shares", have directors from any country, inexpensive, and be able to incorporate Private Interest Foundations.

3. Stable Currency With No Currency Restriction Regulations - there should be no restrictions on the movement of funds in or out of the country.

4. Strict Privacy Laws - there should be strict privacy laws that protect your banking information and corporate book information from anyone, including foreign governments.

5. Stable Government - the government of the country should be stable and should use the opposite legal system of your domestic country (if your country uses common law, you should seek a country that uses roman law). The country should be safe to visit.

6. Stable Economy - the economy of the country should be stable.

7. Excellent Banking System - the banking system of the country should be advanced both in areas of banking infrastructure, government auditing, and technology.

8. Excellent Communications System - the communications systems of the country should be technologically advanced in comparison with first world countries.

9. Language Compatibility - the language of the country should be suitable for your understanding.

10. Time Zone Compatibility & Close Location - the time zone of the country should be such that you can contact your offshore provider or financial institution during your normal domestic business hours & fly to the country quickly if necessary to handle business.

After careful research, you will find Panama to be the ideal jurisdiction for your offshore needs. The Panama corporation law was promulgated over 70 years ago and has since been copied by many of the other tax haven nations such as Bahamas, St. Vincent, Bermuda, Belize, Isle of Man, etc.. Panama is one of the most popular places in the world to incorporate, with currently over 350,000 registered entities. Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today.

Panama offers the following benefits and advantages:

1. Panama is a 100% Tax Haven: Non-resident Panamanian International Business Corporations (IBC's) and Private Interest Foundations do not pay tax on any of their income (as indicated below), nor do they have any reporting requirements to the Panamanian government.

• No income tax.

• No capital gains tax.

• No interest income tax.

• No sales tax.

• No tax on issuance of corporate shares.

• No tax to shareholders.

• No stock sale or transfer tax.

• No capital stock tax.

• No property tax.

• No estate tax.

• No gift tax.

• No stamp tax.

• No succession tax.

• No inventory tax.

2. Panama offers the most favorable and most flexible incorporation laws available in the world. Private Interest Foundations are also available, and are one of the most widely used estate planning structures in the world today.

• Panama is the registered domicile for over 400,000 corporations & foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong.

• Panama does not impose any reporting requirements for non-resident Panamanian corporations.

• Panama does not allow "piercing the corporate veil".

• Panama corporations share certificates can be issued in Nominative or Bearer form (anonymous form of ownership), with or without par value.

• Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid.

• Panama corporations directors, officers and shareholders may be of any nationality and resident of any country.

• Neither the directors nor the officers of Panama corporations need to be shareholders.

• Meetings of directors, officers, and shareholders may be held in any country and accounting books may be kept in any country.

• It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation.

• Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.

3. Panama's circulating currency is the US Dollar, and Panama has no currency exchange controls or currency restrictions so funds can flow in and out of the country freely.

• Panama uses the U.S. dollar as its legal tender (currency), instilling tremendous fiscal and monetary discipline while keeping inflation very low - under two percent for the last 40 years.

• A dollar economy insulates Panama from global economic shocks. During the Asian monetary crisis of 1998, Panama became one of the healthiest economies in Latin America.

• No currency exchange controls. Panama has no restrictions on monetary remittances abroad, including dividends, interests, branch profits and royalties.

• No restrictions on funds flowing in or out of the country.

4. Panama continues to maintain what we consider to be the most solid banking and corporate book secrecy laws in the world, which are engraved in its' constitution. With Britain's proposed regulation for removal of bank and corporate book secrecy in the UK offshore territories, it is clear that Panama remains the most secure offshore financial center - where privacy and confidentiality is not only respected, but vigorously protected by constitutional law.

• Panama offers the best bank secrecy laws in the world.

• Panama offers the best corporate book secrecy laws in the world.

• There is no such thing as "piercing the corporate veil" in Panama.

• Revealing banking information to third parties is a crime, punishable by prison.

• Panama has no mutual legal assistance treaties (MLAT's) for sharing of banking information with any other nation and does not recognize court rulings from other countries. (Under the new laws, they make exceptions in cases of drug money laundering or drug smuggling)

• Panama Corporations offer "Bearer Shares", allowing shareholders to maintain 100% anonymity and privacy.

• Panama Private Interest Foundations allow for Private Protectorate Documents and Private Letters of Wishes, enabling controllers (Protectors) and beneficiaries of Private Interest Foundations to remain 100% anonymous and private.

5. Panama has what is considered by government analysts to be the most stable government in all of Central or South America.

• Democratic government since 1990. The Government of Panama is headed by the executive branch, which is composed of a president and two vice presidents, democratically elected for a five-year term by direct vote.

• Mireya Moscoso, 52, assumed power on Sept. 1, 1999 after winning the presidential elections held on May 2. Moscoso is the country's first woman president and the leader of a country at a moment of great historical importance as the Panama Canal begins a new era under Panamanian administration.
  
  The Panamanian military was abolished by constitutional amendment in 1994, and the government still has a unique security arrangement with the U.S. due to the Neutrality Treaty of the Panama Canal. As a result, the risks of going back to the earlier military regime are virtually non-existent (Source: Euromoney Report/Lehman Brothers, Feb. 26, 1999).

• Stable government with excellent government infrastructure.

• Pro-business government attitude and policy.

• Roman law system.

• Moody's has issued Panama a sovereign debt ceiling of Ba1 and Standard & Poors has assigned a default-risk rating of BB+.

• Panama is a peaceful country with no military. Unlike many neighboring countries, personal security concerns are limited. Panama has the lowest crime rate in all of Central and South America.

6. Panama's economy is one of the most stable, prosperous, and most advanced in all of Central and South America.

• Panama is home to the second largest international distribution and trade center (free trade zone) in the world next to Hong Kong. Panama's Colon Free Zone has over 1500 international import/export businesses operating within it, receives more than 250,000 visitors yearly, and generates exports and re-exports valued at more than US$11 billion annually.

Contact  Panama Offshore Services, Inc for more details on the above.

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