By the lawyer. Valeria Blasser A., LL.M., for AIRE SOS
For Italian investors looking to expand their businesses globally or diversify their portfolios, Panamanian companies, particularly Sociedades Anónimas (S.A.), offer an attractive opportunity to maximize returns and protect assets.
Tax advantages:
The S.A. Panamanians boast a favorable tax environment. They are exempt from income taxes on profits made outside Panama, and capital gains from the sale of shares in a Panamanian SA are not subject to Panamanian taxes. Additionally, a double tax agreement between Panama and Italy prevents investors from being taxed twice on the same income.
Privacy and flexibility:
Confidentiality is a fundamental characteristic of Panamanian S.A.s. The names of shareholders and directors are not disclosed publicly, providing a level of privacy. This advantage is further strengthened by asset protection, since the assets of the S.A. protect shareholders’ personal assets from creditors. Setting up a Panamanian SA is also refreshingly simple. Only two or more people of any nationality can join forces to form a company, and Panamanian corporate law is known for its simplicity and practicality.
Bonus benefits for Italian investors:
In addition to the main advantages, Italian investors enjoy further advantages. Panama boasts world-class infrastructure, which streamlines business operations. The US dollar as the official currency simplifies financial transactions. Panama’s strategic location offers business advantages and the country offers a high quality of life to those seeking a cosmopolitan lifestyle. An investor residency program is also available to Italian citizens.
Important considerations:
It is important to be aware of recent developments in Panama. The country’s credit rating was recently downgraded to “speculative” by rating agencies, and in there has been some social unrest in recent months.
Recommendations for success:
Before undertaking any investment, thorough research is essential. Consider your investment time horizon and diversify your portfolio for mitigate the risk. Seeking professional legal and financial advice is essential to navigate the legal aspects and maximize the potential of your investment.
Further tips:
Consultation with Italian and Panamanian tax, legal and financial professionals guarantees complete guidance. Remember, Italian investors in S.A. Panamanians may still be subject to Italian taxes on the income generated. Consulting an Italian tax advisor is essential to clearly understand the tax implications.
Understanding the benefits and considerations of S.A. Panamanian, Italian investors can exploit them as a strategic tool for international expansion and asset protection. Remember, careful planning and professional guidance are key to achieving success.
