Isn’t it complicated when you are making a choice among numerous offshore jurisdictions?
A lot of parameters are taken into consideration because of selecting the place. Each offshore financial center has its own set of advantages and benefits.
Singapore Offshore Jurisdiction
Singapore is one of the world's lowest tax havens and is very keen to attract foreigners. Singapore has established a flourishing financial center of international reputation. It is serving not only its domestic economy but also the wider Asia Pacific region. Singapore's financial center also offers a wide range of financial services, including banking, investment banking, insurance, and treasury services.
Singapore has evolved into one of the world's premier centers of banking. It's a pretty good choice for you to form your offshore company here if you're looking to dispose of assets. It is because there is no capital gains tax.
Singapore does not charge any withholding tax on dividends. Interests and royalties paid to foreigners are subjected to a 10% or 15% withholding tax.
Panama Offshore Jurisdiction
Panama is a Central American country that has the fastest growing economy and the largest per capita income. Panama is a presidential independent and sovereign state. It is one of the most developed centers for international businesses.
The laws of Panama only allow the submissions of accounting records, files, or other documents to foreign authorities with the express permission of the Courts of Panama.
Panama is a perfect jurisdiction for an offshore company for asset protection purposes. The legal system of Panama is well developed, tested, and professional. Panama's advanced corporate code allows for maximum protection.
Panama v Singapore
Is Panama the next Singapore? Are you facing complications in deciding which jurisdiction will be perfect for forming an offshore company? In this blog, we will provide you with all the details that will make your job easier.
- Panama is a shipping, banking, and corporate headquarter hub like Singapore. Both Singapore and Panama are tax havens. The point where both the countries diverge is GDP per capita and the cost of real estate. The GDP per capita of Singapore is about four times that of Panama. The GDP figure for Singapore appears to be more stunning as the population of Singapore is 50% greater than that of Panama.
- The average price per square meter for apartments in Singapore is eight times more than that of the current average cost in Panama. So, you just imagine the property values in Panama. It is perfect for you to open an offshore company in Panama with such fewer property values.
- Panama has 100 times more land area than that of Singapore. Hence, there are different markets at work in Panama. The real estate prices will increase in Panama as the country continues to mature, which is why it will reach levels to be considered as expensive. The prices in the interior of Panama and in most of the beach areas will be more affordable than those in the United States. This will allow Panama to continue to attract foreigners from North America and Europe, making it a perfect location for an offshore company.
Is Panama a Global Banking Haven
Panama is generally considered as a banking haven. It will be a perfect place for you to open an offshore bank account here. Panama is an international banking center. There are currently 78 licensed banks in Panama, out of which two are state-owned, 28 are international banks, and 48 are general licensed banks.
Business and Taxation
Panama is the best place in the world to run a business. It is one of the biggest advantages of Panama as a jurisdiction right now.
Another important thing about local trade-in Panama is that it is restricted to foreigners. The doctors, lawyers, accountants, etc. are restricted to Panamanian citizens, as are retail businesses. The foreigners who want to be in business in Panama focus on tourism-related opportunities or other service-related businesses.
If you’re looking for a place to open an offshore company, you won’t find a better place than Panama.
The offshore services available here is another very important benefit of Panama as a jurisdiction. So, in this way, Panama is very similar to Singapore. While Singapore has taken the offshore structures to another level, Panama is working hard to catch up. We can say that this can be beneficial for you to form an offshore company in Singapore.
Panama corporations do not pay any income tax in their own country. This makes Panama a very good place for you to set up your offshore company.
Pushing For First World Status
Panama is being pushed towards First World status. All the revenues are being thrown off by the Panama Canal and then being invested in infrastructure improvement projects across the country. You will find some or the other construction works when you drive through Panama City.
This shows that investment opportunities are tremendous here to base an offshore company in Panama. So, Panama is the next Singapore.
We hope that all the above information will give you a clear picture of deciding whether to start an offshore company in Singapore or Panama.
Business Setup Worldwide is a platform to guide you through this. If you need any assistance, then you can contact us! We’d be glad to assist you.