If you are a wealthy business man or investor looking to minimize your tax burden legally you will need to learn about offshore banking and financial privacy in order to protect yourself and your money properly.
Panama: Strong Banking Secrecy & Privacy Laws
Panama has the strongest financial privacy laws in the world. A court order indicating evidence of serious crimes from a Panama court is the only way that the account signatory on a Panama bank account can be found out by a third party. Bank accounts in Panama can be created using an anonymous corporation further protecting your privacy. Sadly, many jurisdictions have excellent privacy laws on paper but they are not enforced. This is not the case in Panama where banking secrecy laws are not only enforced but offenders face jail time for breaking these laws, a strong deterrent.
Personal vs. Corporate Offshore Bank Account
The requirements to get a personal bank account in Panama are much less strict than to get a corporate bank account and often does not even require the applicant to visit Panama to open the account. But are personal bank accounts suitable as asset protection vehicles? The answer is no since any wires coming in or out of a personal account will have your name on the wire which completely destroys your privacy, the reason for moving money offshore.
Banks of Panama: Are They Stable?
Panama banks have a reputation for being conservative. Foreign investors who would like to get a mortgage for a Panama property must pay 30% of the money as a deposit to secure the loan. Panama has never heard of sub prime mortgages and are not exposed to risky financial instruments like their American friends. Panama does not have a central bank and hence Panama banks do not have a lender of last resort like the Federal Reserve in the US forcing them into conservative lending practices. This means your money is not being used to finance risky investments.
Panama Canal Expansion
Panama is in the midst of an economic boom seemingly defying world trends with an economy that is set to grow more than 9% this year after a 10% increase the previous year. This boom has been fueled by a hot real estate market, increasing tourism and also the massive Panama Canal expansion project which when completed will double the Canal's revenues.
Interest Rates on Panama Bank Accounts
Interest rates for savings accounts in Panama in many cases are comparable to rates attainable onshore. There is one bank in Panama that pays almost 7% interest on large deposits. The average interest rate on savings accounts is roughly 4.5%. Any capital gains or interest earned on money in a Panama bank is tax free by Panamanian law. So if you can get your money into Panama you need not worry about it's safety, there is a good chance it's safer in a Panamanian bank than in your own country. - 16955
Panama: Strong Banking Secrecy & Privacy Laws
Panama has the strongest financial privacy laws in the world. A court order indicating evidence of serious crimes from a Panama court is the only way that the account signatory on a Panama bank account can be found out by a third party. Bank accounts in Panama can be created using an anonymous corporation further protecting your privacy. Sadly, many jurisdictions have excellent privacy laws on paper but they are not enforced. This is not the case in Panama where banking secrecy laws are not only enforced but offenders face jail time for breaking these laws, a strong deterrent.
Personal vs. Corporate Offshore Bank Account
The requirements to get a personal bank account in Panama are much less strict than to get a corporate bank account and often does not even require the applicant to visit Panama to open the account. But are personal bank accounts suitable as asset protection vehicles? The answer is no since any wires coming in or out of a personal account will have your name on the wire which completely destroys your privacy, the reason for moving money offshore.
Banks of Panama: Are They Stable?
Panama banks have a reputation for being conservative. Foreign investors who would like to get a mortgage for a Panama property must pay 30% of the money as a deposit to secure the loan. Panama has never heard of sub prime mortgages and are not exposed to risky financial instruments like their American friends. Panama does not have a central bank and hence Panama banks do not have a lender of last resort like the Federal Reserve in the US forcing them into conservative lending practices. This means your money is not being used to finance risky investments.
Panama Canal Expansion
Panama is in the midst of an economic boom seemingly defying world trends with an economy that is set to grow more than 9% this year after a 10% increase the previous year. This boom has been fueled by a hot real estate market, increasing tourism and also the massive Panama Canal expansion project which when completed will double the Canal's revenues.
Interest Rates on Panama Bank Accounts
Interest rates for savings accounts in Panama in many cases are comparable to rates attainable onshore. There is one bank in Panama that pays almost 7% interest on large deposits. The average interest rate on savings accounts is roughly 4.5%. Any capital gains or interest earned on money in a Panama bank is tax free by Panamanian law. So if you can get your money into Panama you need not worry about it's safety, there is a good chance it's safer in a Panamanian bank than in your own country. - 16955
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