So you want a Panamanian bank account
July 11, 2005You’ve all heard the stories of fugitives drug lords and dictators opening bank accounts in Panama. You are thinking that opening a Panama bank account will be the solution to all of your tax and other problems.
Well it’s not really quite that simple anymore. First of all the bad reputation Panama had has meant that in cleaning the system up it is now a relatively painful experience banking in Panama for foreigners. So before you start the process, it’s propably a good idea to see if you really need a Panamanian bank account first.
Do you really need a Panamanian bank account?
If you live in the US or Europe and the only reason you want to open a bank account is that you want to stash your money away in a cool offshore account, don’t bother. Especially if you are talking about sub $100k balances. Above then I’m guessing you can afford the money to pay for good lawyers to help structure things well for you. Less than that it is not worth it unless you really need a bank account for some practical reason.
Thus, if you are moving to Panama or starting a business here it may be worth while. Again, you may decide that the hassle is too much. Many expats in Panama get along just fine with their accounts from back home or slightly simpler but less tropical offshore jurisdictions such as the UK, Jersey, Isle of Man and Estonia. This of course demands that you have a good bank at home, where you can do everything including wiretransfers via the internet. Obviously you will want some sort of ATM/Credit card as well.
Now if you are in Panama and you have to make and receive payments with local checks or you need a mortgage etc. Opening a local account probably does make sense.
This entry was posted in the following Categories: Banking
