Top 10 Reasons To Move Your Internet Business To Panama (While You Stay Home)

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10. Pay no income taxes on profits your company does not remit to the U.S. You should pay taxes in your country on money your Panamanian corporation pays you, whether in salary or tax-advantaged dividends or capital gains. However, the corporation can pay many of your expenses as legitimate business expenses.

9. Pay no income taxes in Panama. A non-resident Panamanian International Business Corporation or Private Interest Foundation does not pay any kind of tax on any of its income or assets, and does not even have any reporting requirements to the Panamanian government.

8. No Panamanian requirement to collect sales taxes from your customers. (Yea!)

7. No capital gains tax, no tax on interest income, no stock sale or transfer tax, no property tax, and no gift tax.

6. Panama has the most stable government in Latin America, no army (it was abolished by constitutional amendment in 1994; security is provided by the U.S.) and 70 years of the same offshore corporation law. Panama is the registered domicile for nearly 500,000 corporations and foundations, making it the second most popular jurisdiction to incorporate in the world, following Hong Kong. It has the second-largest free trade zone in the world, again following Hong Kong, with almost 2,000 import/export businesses operating inside it and well over 250,000 visitors a year. Products can be imported, warehoused, and sent to customers in any country in the world without paying import or export duties.

There is no requirement for paid-in capital. Directors, officers and shareholders can be of any nationality and reside in any country. Meetings of directors, officers, and shareholders may be held in any country (travel and entertainment expenses are 100% deductible), and accounting books may be kept in any country. Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.

There is no need to travel to Panama to establish a corporation or Private Interest Foundation, conduct any form of business, move funds around, or dissolve the entity.

5. But you will want to travel there! Panama is a beautiful country with world-class beaches on each ocean. If you like to sail, scuba or fish, it is paradise - and still a cheap place to retire. There is excellent medical care and a rich cultural life. Panama has the lowest crime rate in all of Central and South America.

The economy is generally regarded as one of the most stable, prosperous, and advanced in Latin America. Panama's legal tender is the U.S. dollar, and there are no currency exchange controls or restrictions. Inflation has been under 2% for the last 40 years. During the Asian currency crisis, Panama was untouched.

Panama is a major node on the Global Crossing optical fiber backbone, so web pages load remarkably fast for Internet surfers around the world.

4. Bulletproof asset protection. Panama does not allow piercing the corporate veil.
The Panama Private Interest Foundation is one of the most useful asset protection and estate planning vehicles available anywhere in the world. It allows for Private Protectorate Documents and Private Letters of Wishes, enabling the controllers (called Protectors) and beneficiaries of the Foundation to keep their transactions private and remain 100% anonymous.

3. Entirely avoid state and Federal estate taxes, and there is no gift tax. Panama corporation share certificates can be issued as Bearer shares, an anonymous form of ownership.

2. Even after 9/11, Panama's bank secrecy laws, which are in its constitution, are the best in the world. Revealing banking information to a third party is a serious crime, punishable by a fine and jail term. Panama has no mutual legal assistance treaties to share banking information with any other country, and does not recognize court rulings from other countries. The only exceptions are for drug money laundering or drug smuggling, as the government wants to keep that element out of the country.

1. There are reliable, honest people in Panama to handle all your business affairs and Internet hosting, in sharp contrast to some other offshore jurisdictions. The biggest hurdle to going offshore is not language, expense, time or the learning curve. It is not knowing the right people. There are too many "offshore opportunities" where they put your money in their pocket and leave. They know you won't sue - it's too expensive, and in many jurisdictions the bad guys have the judges in their collective pockets.

You must go into Panama or any other offshore jurisdiction with referrals to honest, experienced people who can get you established quickly, inexpensively and, most important, legally under U.S. or your country's laws as well as local laws.

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