Thread: How to Avoid All Corp Taxes in Panama

As you may know, there is a $300 fee dues each year in Panama for an offshore corporation. On top of this you might have attorney fees, nominee directors fees and such so it might run you $1000-$1500 per year.

If however, you avoid Panama entirely for banking (or do offshore as well) and use a bank in Lichtenstein as an example all your annual tax (fee) problems disappear. The Panamanians will never dissolve your corp (at least not within 10 years) and the Lichtenstein authorities will never look for tax records from a foreign nation.

In the meantime you can manage your investments from Lichtenstein or Switzerland in a safe vehicle with a professional, albeit expensive, staff at the wheel.

If you have assets to park and completely hide in the 100-300k range it's certainly a very good option. You can even get a letter from the Panamanian government showing that the corp is NOT in good standing to show your eager creditors.

All this while beating the Panamanians at their own game - Wonderful AND Priceless.

Okay, I'm a bit naive, but a U.S. citizen travels to Lichtensein to set up an investment account in the name of their Panama corporation--is this realistic? Or, is it better (which I would think it would be) that one of the Panama directors does so. Curious how practical this is in the world of increased "transparency." Does this go on?

There is no need to travel to Switzerland or Lichtenstein. Unlike Panama they are civilized countries with customer service.

US Citizens as we all know have been banned from all forms of international business by the IRS and other branches of the US government.

Originally Posted by BalaBeacher

Okay, I'm a bit naive, but a U.S. citizen travels to Lichtensein to set up an investment account in the name of their Panama corporation--is this realistic? Or, is it better (which I would think it would be) that one of the Panama directors does so. Curious how practical this is in the world of increased "transparency." Does this go on?

Just bear in mind that banks can require a Certificate of Good Standing/Apostille and they may ask of that a year from now or 4 years from now - whenever they get round to account auditing/compliance.

From previous posts above, it is also relevant to know that Lichtenstein signed an agreement with the US in circa 2008 to report banking information on US citizens/passport holders with accounts in Lichtenstein. Switzerland is not even worth discussing on the foregoing scenario - that ceased years ago.

You are correct Contrail. The US people are not able to do any business outside their country. The reason behind this is the government has decided to keep their business only in their country because they have already loose their credit ratings last few months ago. They are now giving more importance to their home business and most of the rules for business has been changed.

Obviously if you are a US citizen you need a "host" that gives you the RSA key and access to give instructions by email.

I have done this many times and it works fine. They do not even ask for a certificate of good standing. Apostille they asked for once for the deed, but the other time they were fine validating it online using the Registro Publico's home page. As long as the company has not been dissolved it will not be an issue.

This is by far the cheapest and best asset protection solution I have found. Just the fact that you can show a certificate of NOT in good standing and at the same time manage unlimited funds tax free with a dual layer offshore setup is golden.

Try finding an attorney recommending this approach!

If 300 USD is to much why even bother taking an offshore account. The bank costs are generally higher if you work with those kind of banks. If you choose for a nominee corporation then your name will as well appear on all bank documents as Beneficial Owner.