Search

Exclusive look at The conduit (04-01-2009)
Jigsaw Puzzles Online (03-04-2009)
Six Popular Movie Commentaries For You To Check Out (12-02-2009)
Review of the Farmville Facebook Application (12-26-2009)
FruitMachineX Review – Slot Machines Games Download (03-22-2009)
DIY Home Improvement (10-20-2009)
Seven Excellent Suggestions For An Astounding Film To Enjoy Today (01-07-2010)
Enlightening Synopses Of A Cross Section Of Silver Screen Movies (11-26-2009)
Looking For A Fantastic Movie? Check Out These Excellent Movie Opinions (12-01-2009)
A Selection Of Various Motion Picture Synopses To Check Out (12-01-2009)

Offshore Banking: Where Do I Get An Offshore Bank Account

November 23rd, 2008 by Doug Williams

by Nigel Biddelsworth

Whether you are trying to protect $50,000 or $5 million you need to select an offshore banking jurisdiction that offers true asset protection and rock solid banking privacy laws. Panama stands head and shoulders above the crowd.

Panama: Strong Banking Secrecy & Privacy Laws

The top rated tax haven for banking secrecy and privacy protection is Panama. Panamanian bank accounts can be set up in the name of an anonymous corporation with the account signatory information kept in records only accessible by the bank you are dealing with. If a third party wants to find out the name of an account signatory for a Panamanian bank account they will need to get a court order from a Panama court. Court orders in Panama are only given out in the case of serious crimes such as money laundering or drug trafficking.

Corporate vs Personal Offshore Bank Accounts: What Do I Need?

Although the process for setting up a personal bank account in Panama is easier than for a corporation using a personal bank account is not advisable for 2 main reasons: many countries have reporting requirements for foreign personal bank accounts and wires coming in and out of your account will have your personal name on them. This immediately makes all of your privacy planning worthless. Corporate accounts have the name of the corporation on the wiring details shielding your personal name from liability.

Stability of Panama Banks

Panama does not have a central bank and hence Panama banks do not have a lender of last resort. This translates into very conservative lending practices. The words “sub prime mortgage” do not exist in Panama since all mortgages to foreigners must be secured with at least a 30% down payment. Furthermore, Panama banks will only lend money to purchase Panama real estate not for foreign real estate purchases preferring to lend in a market they know well. Since Panama banks do not lend for foreign real estate purchases they are not exposed to the declining values found in real estate markets elsewhere.

Economic Effects of Canal Expansion

Panama is currently experiencing an economic boom with an economy that is set to increase by over 9% this year vs. a 10% increase last year. This economic boom is partially fueled by the Panama Canal expansion project which is a multi billion dollar project to widen the Canal to allow larger ships passage. Upon completion, revenues for the Canal are expected to double. In addition, operation of the Canal is a highly profitable part of the Panama economy with some ships paying upwards of $500,000 for passage.

Panama Bank Account Interest Rates

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.

About the Author:

For more information about offshore banking in Panama or to find out more about our Panama offshore services please visit our website.

Share and Enjoy: