The Republic of Panama has the largest and most popular shipping registry in the world today. Over the years, international shipping companies have flocked to Panama to take advantage of the low registration taxes and fees applied by the Panama government as compared to other countries.
Panama Ship Registration
All vessels are subject to a one-time enrollment fee that is based upon a variable scale, plus a government fee, at the time of registration. Registration of the bill of sale is $0.20 per net ton registered or fraction thereof plus a 20% surtax. The annual tax that is due is $0.10 per net ton plus other charges. All international shipping income is exempt from Panama taxes.Panama Yacht Registration
Registration certificates for yachts in Panama are issued for 2 year periods and must be renewed every 2 years for as long as the yacht is registered in Panama.Documents Required For Registration
- Purchase & Sale Agreement, Bill of Sale or a Builder's Certificate if the boat is new
- Power of Attorney (to our law firm)
- Deletion Certificate from the previous registry or Builder's Certificate if the boat is new
Vessel Registration Process
Panama's Maritime office will issue a "temporary" Provisional Navigation License which is valid for a 6 month period and can be renewed. Within this 6 month period the applicant needs to apply for a "permanent" or Definitive Navigation License which is valid for a 2 year period.All boats registered in Panama must also meet the Radio Operator licensing requirements. First, a "temporary" Provisional Radio Operator License will be issued which is valid for a 3 month period. A "permanent" Definitive Radio Operator License must be obtained within this first 3 month period or fines are imposed until the Definitive Radio Operator License is acquired.
If the yacht is over 20 years of age it will also be required to undergo a safety survey and other safety requirements.
Anonymous Yacht Ownership Using Panama Bearer Share Corporations
In order to have anonymous ownership for your Yacht or vessel in Panama you will need to first incorporate a Panama corporation in bearer share form. Use our law firm and nominee directors to set up the bearer share corporation and file all of the proper paperwork on your behalf ensuring your name stays out of any public registration databases. This allows you to maintain total control over the Panama corporation and boat ownership anonymously. Additional layers of privacy protection can be achieved by having a Panama Foundation own your Panama Corporation. Call us for more details.Since your corporation is in bearer share form you can easily transfer the boat ownership by simply selling the corporation and share certificates to another party. No record of the transaction needs to be recorded nor any taxes paid in Panama upon completion of the sale.
Acquiring Panama Residency Visas Using Your Yacht
Option #1: If your boat is valued at $150,000 or more
You may qualify for Panama's "Business Investor Visa" program. The Business Investor Visa program requires that you invest at least $150,000 (+ $4,000 for each dependent seeking a residency visa) in a Panama company. You will also need to employ 3 or more Panamanians full time which can be easily achieved by hiring 3 full time crew members for your boat.
Option #2: If your boat is valued at $200,000 or more
You may qualify for the "Person of Means Visa" program. Under the Person of Means Visa guidelines you are not required to hire 3 Panamanians full time since you can argue that you are making an investment in a home. In order to make this argument valid you may need to invest in a full time moorage in a Panama port making it your second home or "home away from home". Full residency and a cedula card are issued after 1 year of temporary residency. After 5 years full citizenship is granted.