Thread: Approximation of Setup Cost

Hi members on Panamaforum,

I am new to the forums but after hours of searching this seems like one of the better opportunities to get acquainted and possibly get advice from more experienced businessmen/investors.

I have recently been made a very good job offer which i have accepted and am suddenly realizing that there are several issues that await me that need to be resolved.

With the current situation in the European Union and the Swiss National bank pretty much betting their entire year on the absurd idea of pegging the EURCHF to a minimum bid rate of 1.20 (which essentially was a stealth bailout for a couple of eastern european banks) the last place on earth i want my money to be located would be the European Union.

I have been looking into Singapoor and Macau aswell as Hong Kong but i have been recommended to look into Panama especially if i wish to start my own consulting firm. My Primary place of residence will remain within the european union but i want my business to be done offshore where i do not have to pay ridiculous tax rates to a government to miss-spend it on entitlement programs and bailouts that simply do not work and ultimately will lead to insolvency of major bank institutes causing an economic desaster of the likes that has not been seen before. But enough with the Politics.

So i hope this isnt too much trouble me asking in here but i wanted to get some "headpoints/guidelines" in regards to what awaits me.

These are the things im looking for:
1) Setting up a consulting company in Panama to limit the amount of taxes i have to pay on my income
2) Legal representation, i want to have legal representation in Panama, from what i understand Morgan & Morgan seems to be a well respected firm and their client base is impressive enough.
3) Offshore bank accounts, 1 should be connected to the consulting company to pay bills and receive payments i will write for consulting work performed. Another account should fulfill the role as my personal banking account, preferably with Debit card, Credit card and online banking. And a third one to receive payments for the work im doing.

What im interested in is how difficult it is to set this up. I am not expecting a miracle and for this to be done within 3 days. I am also not interested in those weird "panama-offshore.com/net/org etc etc" companies.

I am willing to pay the price for a good lawyer and from what limited knowledge i have in this world.. good lawyers NEVER come cheap. So if anybody in here has ever faced the same issue of looking for good legal representation in Panama, having to setup a company, and setting up the appropriate bank accounts.
I would love to know what kind of timeframe this whole endeavour was executed in, im also interessted in what kind of money i will need to invest into this. I am looking for a ballpark figure for total expenses.

To clarify some things upfront, i am not looking into panama to evade paying taxes. Taxes are being paid regardless and this is meant to be a legitimate busines endeavour. So i am not looking for shady advice and how to get things done cheap and dirty.

So if you are able to recommend good legal representation and preferably a fully licensed bank that isnt undercapitalized ( ) as well as a ball park figure of the costs im looking at i would be greatful to you.

Kind regards,
Grey

P.S: Just as an added addendum, i am not the type of person who has millions laying around. Consider me more of the low-mid 6 figure income zone.

Originally Posted by Greygoose

My Primary place of residence will remain within the european union but i want my business to be done offshore where i do not have to pay ridiculous tax rates to a government to miss-spend it on entitlement programs and bailouts that simply do not work and ultimately will lead to insolvency of major bank institutes causing an economic desaster of the likes that has not been seen before.

Hi Greygoose... The first obvious issue is your 'personal status' above all corp and bank account issues. To reside within a high tax regime and engage in an offshore jurisdiction can be problematic in that you will undoubtedly be required to account for all revenue pulled into your country of residency and pay due taxes.

Originally Posted by Greygoose

Setting up a consulting company in Panama to limit the amount of taxes i have to pay on my income

The fact that you wish to limit taxation by using an offshore entity would normally be regarded as being contentious and with an aura of tax evasion. Also, depending on the trading sphere of the consultancy business, there can be other issues. For example, if the consultancy corp earns revenue from your domicile country, this will simply be seen as a tax evasion scenario where funds are being shuffled to avoid paying tax.

Originally Posted by Greygoose

Offshore bank accounts, 1 should be connected to the consulting company to pay bills and receive payments i will write for consulting work performed. Another account should fulfill the role as my personal banking account, preferably with Debit card, Credit card and online banking. And a third one to receive payments for the work im doing.

Hate to say it, but this is appears to be a contrived scenario to enable tax evasion with the usual 'convenient' plastic cards.

Originally Posted by Greygoose

I am willing to pay the price for a good lawyer and from what limited knowledge i have in this world.. good lawyers NEVER come cheap. So if anybody in here has ever faced the same issue of looking for good legal representation in Panama, having to setup a company, and setting up the appropriate bank accounts.
I would love to know what kind of timeframe this whole endeavour was executed in, im also interessted in what kind of money i will need to invest into this. I am looking for a ballpark figure for total expenses.

Would strongly recommend that you discuss your personal status with a tax lawyer/accountant in your country of residence first - if your plans hit problems, this is the country who will be pursuing legal activity related to tax evasion. No offshore lawyer is going to be a guru to the level of covering ass in the country you reside - they are only qualified to practice within their own jurisdictions. Of course they will sell you corps and bank accounts and tell you how privacy rules apply - they want that business which is basically money for very little effort filling in forms and paying government duty.

There are also 'minor' issues when the client status is not 'clean'. For example, which bank accounts can be used as references to open banking accounts in an offshore jurisdiction? An onshore bank account? If that is the case, there are reporting requirements within a number of EU countries where the banks are obliged to report anyone asking for banking references - they are already aware that these 'references' could be used to open offshore bank accounts etc.

Originally Posted by Greygoose

To clarify some things upfront, i am not looking into panama to evade paying taxes. Taxes are being paid regardless and this is meant to be a legitimate busines endeavour.

If taxes are being paid etc., why are you looking into Panama? The only obvious potential benefit is to avoid taxation while you reside within a high tax regime nation.

Now the slightly better news If your domicile country is within the EU, there is an avenue to clean up your 'personal status', tho this involves moving out of your domicile country. If you elected to reside within a low or no tax regime (e.g. Panama), you are free to do so and simply need to pay all due taxes prior to departure. You will not be liable for taxation or tax reporting in your domicile country and can have as many offshore corps and bank accounts as you desire and be able to trade freely with the planet - all totally legal. (This paragraph does not apply to citizens of the US, Libya, UAE and the 'stan' countries where there is a requirement to report global income on an annual basis.)

This reply may appear somewhat pessimistic, but generally when an individual wishes to create an offshore corp structure for their own benefit while residing within a high tax jurisdiction, it is not without a number of potential core basic problems which can then develop into a nightmare scenario. Another side comment - lawyers in Latin America are like mosquitoes - they can be swatted on every street corner - I personally would not trust any of them unless they were personally known for 5-10 years and have a visible track record. To put it another way, you could go thru law college and become an attorney quicker than it takes to get the court system to address any of their foul ups, so beware.

Last, but not least - good luck!