a) Tax advantages
One of the most favorable locations on the planet to register ships is considered to be Panama. Ship owners can take advantage of tax benefits provided by Panamanian law under the jurisdiction of the Panama Maritime Authorities if they apply for a Panama ship registration service. Ship, boat, yacht, and sailboat owners all fall under this category. The Panama Register of Ships will also permit ships to engage in international trade without being subject to taxation as its only territorial activity, and it will not tax the earnings of ships engaged in such activity. The citizenship or nationality of anyone wishing to register a vessel under the Panama Flag will not be taken into consideration by the Panama Ship Register.
b) Competitive costs
In comparison to other jurisdictions, registering a ship in Panama is much less expensive. The Panama Register of Ships is one of the most cost-effective in the world, if not the most, when compared to other laws. You will discover that the system is ultimately less expensive if you take into account the tax savings.
c) No restriction on the age of the vessel.
However, in order to get the Permanent Navigation Patent, ships older than 20 years must pass a specific inspection by a licensed Panamanian inspector.
d) No minimum Tonnage requirements
A minimum tonnage is not necessary for a vessel to be registered in Panama.
Any person or business may register ships under the Panamanian flag, regardless of nationality or location of incorporation. Furthermore, when income comes from operating a ship involved in international trade, neither income taxes nor withholding taxes are due. The registration under a Panamanian corporation is permitted under the Panama Ship Register. The yacht will benefit from this and maintain its anonymous ownership. You will be able to register your vessel and make sure that the income and ownership are always safe and anonymously safeguarded using a flawless asset protection framework (corporation + foundation).
f) Dual Registry
Shipping firms, ship owners, and merchant shipping corporations without a ship register under the open registry may find considerable benefit from the Panama ship registration dual system. It is also possible for vessels sailing the flag of Panama but being chartered by a firm with its corporate headquarters in another nation to be registered there as well. This ship register technique will enable a foreign ship having a two-year prior registration in a foreign country to register in the Panama ship register parallel without canceling the prior country's registration. It is also possible to use this Panama Ship Register method the other way around. This is only permitted if the nation that originally held the patent issues a certification of consent.
g) Advantage of a preliminary registration of title / mortgage.
US, European, and international banks readily accept preliminary registration of title or mortgage as providing adequate security.
h) Advantage of Technical Certificates
If the ships have current safety and tonnage certificates at the time of registration, ship owners who wish to transfer their vessels to the Panamanian flag will not be required to have them re-surveyed. This avoids the need for the vessel to be dry docked prior to registration, saving the ship owner significant costs. However, a recognized organization (national or international) shall issue a fresh set of certificates on behalf of the Administration upon registration.
i) Vessels under construction can obtain provisional registration.
Additionally, vessels under construction are eligible to apply for radio call letters and provisional registration.
j) Advantages for Pleasure Vessels (Yachts, Boats, Sailing Vessels)
Yachts have a single enrollment fee of US$1,500, however if the yacht is owned by a Panamanian individual, a Panamanian business, or a Panama Foundation, the fee is US$1,000.