Vessel Registration in Panama
Do you own a yacht? Or maybe you have a merchant shipping company? Consider registering your vessel or vessels in Panama. There are many advantages to Panama vessel registration.
Tax Advantages of Panama Vessel Registration
Republic of Panama vessel registration offers the advantage of tax breaks to vessel owners, yacht owners and boat owners. Furthermore, Panama’s taxation is territorial only. It doesn’t tax the income of vessel on international trade. Citizenship, nationality or residence for anyone willing to register a vessel under the Panamanian Flag has no bearing, there is no bias.
Dual Vessel Registry System
Law No. 1 of 1973 established the dual vessel registry system in the Republic of Panama. Law No 3, later in that same year, changed it. These laws explicitly state that a foreign yacht, vessel or boat chartered by a period of two years is eligible for registration in the Republic of Panama. This can be held without having to give up its previous registration for that same period of time, and can also be done by a Panamanian-registered vessel in other countries. A Certificate of Consent from the country where the vessel was originally registered is required. Otherwise, Dual Registry is not reciprocal, as the registration in its home country must allow it.
Panama vessel registration with the dual vessel registry system is very advantageous for ship owners, merchant shipping companies, yacht owners and boat owners who have no registration under the open registry. The Dual Registry System could allow European shipping companies with inordinately high overhead due to the use of flags from European countries to benefit from Open Registry.
No Minimum Tonnage Requirements for Panama Vessel Registration
The Republic of Panama has no minimum tonnage requirement for Panama vessel registration. Registering a yacht, vessel or boat in Panama is inexpensive and convenient for who have registered their vessel in the name of a Panamanian Corporation, including a Panama International Business Corporation (IBC).
Panama Vehicle Registration
Taxes and Privacy Registering a vessel under a Panamanian flag is a one-time fee, with no further fees. If you register your vessel under a Panamanian Corporation, you will be eligible for a discount. This includes IBC and Bearer Share corporations.
You pay for your bill of sale’s registration at approximately $0.20 $0.20 per registered ton, then pay an additional 20% surtax. There will also be annual taxes on your tonnage. Nonetheless, Panama vessel registration under the flag of the Republic of Panama will be the least expensive option overall in comparison to anywhere else in the world.
If your Panama vessel registration is under a Panamanian corporation, including an IBC, offshore corporation or bearer share corporation, you have the option of owning your vessel anonymously. Panamanian corporations and foundations of personal interest are designed primarily for asset protection, privacy and confidentiality. Also, a Panama corporation can change hands quickly and easily and will not have to pay taxes over the sale.
Thus overall, Panama is the most advantageous jurisdiction for vessel registration. |
