In Panama, a Panama bank account is a must for those planning to establish residency or to run their own business in the country. Having a Panama bank account also makes it easier to accept and send global payments.
Panama banks offer a wide range of financial services to both residents and non-residents alike. In addition to standard savings and checking accounts, most banks offer credit cards, ATM cards with the Clave or Plus logos, as well as foreign currency exchange. Moreover, the majority of Panama banks offer attractive interest rates on savings and time deposits.
The banking system in Panama is regulated by the Central Bank of Panama. There are currently approximately 100 banks operating in the country, with the majority being private. In addition, the two state-owned banks, Banco Nacional and Caja de Ahorros, are popular among locals. Those looking to open a corporate account in Panama will find that the requirements are fairly simple and straightforward, with some of the key criteria including a valid passport, financial statements, commercial and bank references, and apostilled documents.
Opening a Panama bank account as an individual requires a valid passport, proof of address, and an identification card. Additionally, it is recommended that you speak some Spanish to communicate with the staff at the bank. Having a local partner, like a law firm or consultant, will help to streamline the process and ensure that all necessary documentation is in order.
Typically, banks will require a minimum deposit to open an account. Some may also require a minimum balance in order to avoid service charges. Generally, the minimum required amount is between USD$3,000 and $20,000. If you want to open an investment account, then you will need to present additional documentation in order to receive the best terms available.
Incorporating a company in Panama requires a board resolution stating that the business is to be incorporated and the directors and stockholders to be identified. Additionally, the articles of incorporation should include a description of the company’s goals and an organizational structure. The TIN of each director and stockholder must be provided as well.
Panama is a tax-friendly country with an offshore banking industry. In fact, some banks in the country offer competitive interest rates and even credit cards to non-residents. However, it is important to understand the differences between Panama and other countries in Latin America when approaching local banks. In particular, Panamanian banks are big-time conflict avoiders and will often tell you one thing but do another in order to avoid confrontation.
Therefore, if you find that the bank is not willing to work with you, don’t keep beating your head against the wall. Instead, seek out a different bank or partner that is more amenable to your needs and risk profile. Having someone “in the know” can make the process go much faster and smoother, although we would never suggest that you pay money to grease the wheels.