Panama new legislation
Panama is no longer a tax haven.
This startling change may well be repealed or deemed unconstitutional early in the New Year, but the damage has been done to the Panama tax haven allure.
New legislation passed in Panama from December 2013 has essentially abolished Panama as an offshore center.
Of course, the entire financial and business community is up in arms about this already – as sure as night follows day, this law would destroy their business. President Martinelli is also having second thoughts: he has already tweeted that he welcomes a debate, and if the law needs to be repealed, it will be repealed. This, however, as one commentator posted, just makes the Panamanian government look like clowns.
Panama is already one of the most expensive jurisdictions in the world to form an offshore company. Up until now, there was some justification for this, as the level of professional services in Panama is relatively good (if you choose the right service provider at least.) Many people, however, will now be attracted to cheaper jurisdictions like Seychelles where the level of professional services is on par or if not better than Panama.