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Panama has corporate tax of 25% and personal income tax rate of between 15% and 25%, Cayman islands has zero tax.
by bigtones 9y ago
Panama has corporate tax of 25% and personal income tax rate of between 15% and 25%, Cayman islands has zero tax.
- eloff 9y agoPanama has zero tax on foreign source income, which unless you're going to open a local business, means it has effectively zero tax - personal or corporate.
- StavrosK 9y agoHow much are formation/annual fees for Panama, do you know?
- eloff 9y agoAbout $1000-$2000 for initial setup if you use a law firm to do it for you. $300/year if you registered it as offshore, meaning you don't do business in Panama. In that case you do not even need to file taxes. Otherwise you have $65 filing fees for taxes as well, which you just declare the company as offshore, and have no taxes owing.
- StavrosK 9y agoOh huh, that's pretty cheap. Cheapest I've found in the Caymans is $2500 setup and $1500/yr, and many lawyer firms rip you off by billing you hundreds of dollars to give you unsolicited advice (yeah, it's that bad). Panama sounds like a much better idea, unfortunately it's impossible to get Stripe/another processor for a company outside the EU/US.
- eloff 9y agoI've thought of structuring that by having a Panama company develop and own the IP, and using a US, EU, or Canadian company to do the payment processing, and just pass the revenue through. That company would have no profits, and thus no taxes. I'm hardly an expert though, so I don't know if it would really work.
- StavrosK 9y agoThat would work, although it might be illegal, depending. Probably not, but IANAL.