Fiscal Benefits of offshore investments in Panama
Offshore investments can be defined as foreign investments which take place in offshore financial centers or those which use this tax haven as a base for their operations. These investments allow numerous benefits, some of which are mentioned below:
- No taxes:
As capital income is deposited in offshore bank accounts they automatically are free of taxes. Remember that tax havens don't tax capital gains, interest earned on bank deposits, the emission of corporate actions or dividends paid to shareholders.
- Risk diversification:
Offshore investments allow the diversification of investments reducing the risk of suffering losses which may affect your heritage. This is because your capital will be distributed in different countries with different currencies and diverse products. You can invest in stocks, bonds, currencies, futures, etc. on any stock exchange in any market in the world. This diversification protects you from arbitrary actions done by the states which limit the movement of capital and also protects you from the possible weakening of the economic and financial system of your country.
Strict rules of confidentiality and bank secrecy allow investors to carry out their operations with privacy guaranteed by the legal stability of the country where the transaction takes place. Investor's banking information will be completely private and anonymous.
- Freedom for investment:
Offshore financial centers generally do not impose exchange controls or capital controls so that you can invest in both traditional markets as well as in emerging countries without suffering any legal or administrative trouble. This allows you to make financial investments in products that you could not access from your home country.
Remember that to be able to make an offshore investment you must have a certain minimum capital to place in the stock market. To do this you will have to open an offshore bank account where the profits earned from different financial transactions will be deposited. It is important to hire the services of a bank that has multi-currency accounts since you can operate in different currencies without having to pay for currency exchange in case the investment is made in a currency other than the one held in your account bank.
Offshore investments can be of different types and levels of investment depending on your needs, levels of risk and the amount of capital you want to invest. In the following bullet points we mention some investments you can make in tax havens to be able to enjoy the tax advantages they offer:
- Private banking:
These banks are specialized in foreign investment. They offer all sorts of financial products plus the advice from a personal financial consultant that will manage your portfolio of clients based on your preferences and risks.
- Stock exchange:
This investment implies the buying and selling of stocks through international stock markets allowing risk diversification by putting the capital in different products and currencies.
Foreign investors can buy government or private bonds emitted by the state (national, provincial, municipal, etc.) or by private companies (industrial companies, commercial companies or service providers).
They are future contracts for the purchase or sale of commodities and financial instruments. With them you agree to buy or sell a stock at a fixed price on an exact future date.
- Currency market:
It is the buying and selling of foreign currency in international currency markets obtaining profits based in speculation of their values.
- Investment Funds:
These investment portfolios are managed by professionals with a proven reputation in the market. This type of investment provides dividends and profits on tax free capital, unrestricted investment options and low costs in the administration of the funds.
Panama is a country which is internationally recognized for having one of the most advanced stock markets in Central and South America. This guarantees a developed bank infrastructure for offshore investments supported by the U.S. dollar as the currency in circulation. Delvalle & Delvalle is a law firm specialized in offshore services which benefits from the location of Panama as the main center of banking, finance and business in Latin America.
To discuss your case in detail, make an appointment with our lawyers.