a) Tax advantages
Panama is considered to be one “if not the best” place in the world to register ships. Once you apply on a Panama ship register service, ship owners will have the advantage of tax breaks that Panamanian law offers within the Panama Maritime Authorities and legislation. This is applicable to ship owners, boat owners, yacht owners or sailboat owners. The panama register of ships will also allow ships to operate international trade without taxation as its only territorial and will not tax the income of ships involved in international navigation or trade. The panama ship register will not discriminate the citizenship or nationality of anyone willing to register a vessel under the Panama Flag.
b) Competitive costs
There are considerable lower costs for registering a ship in Panama compared to other Jurisdictions. If you compare to other legislations you will notice that the panama register of ships is one “if not the” most economical in the world. Taking in consideration that the tax savings are part of the system, you will find out its way cheaper in the long term.
c) No restriction on the age of the vessel.
However, vessels over 20 years old will have to pass a special inspection by an authorized Panamanian inspector, in order to obtain the Permanent Navigation Patent.
d) No minimum Tonnage requirements
There is no minimum tonnage required for the registration of a vessel in Panama.
Any person or company, regardless of nationality and place of corporation is eligible to register ships under the Panamanian flag. Furthermore, there is no income or withholding taxes payable when the income is a result of the operation of a vessel engaged in international trade.The panama ship register allows the registration under a Panamanian corporation. This will give protection to the vessel and anonymous ownership. You will be able to use a bulletproof asset protection structure (corporation + foundation) to register and ensure that your vessel’s income and ownership will always be safe and anonymously protected.
f) Dual Registry
This panama ship register dual system can be of great advantage for shipping companies, ship owners and merchant shipping companies who have no ship register under the open registry.
Vessels registered under the Panama flag but under charter to a company incorporated in other country, may also be simultaneously registered in that country.
This ship register method will allow a foreign ship that has a previous registration of two years in a foreign country to register in the panama ship register at the same time without a cancellation of the registration of the previous country. This panama ship register system is also possible to be applied the opposite way. This is only allowed with a certification of consent from the country that originally had the register of ship or ships.
g) Advantage of a preliminary registration of title / mortgage.
Preliminary registration of title / mortgage is easily accepted by US, European and worldwide banks as providing satisfactory security.
h) Advantage of Technical Certificates
Ship owners who wish to transfer their ships to the Panamanian flag will not be required to have them re-surveyed if the ships possess valid safety and tonnage certificates at the moment of registration, obviates the necessity to have the ship dry docked prior to registration and consequently saves the ship owner considerable expenses. However, upon the registration, a recognized entity (national or international) should issue a new set of certificates on behalf of the Administration.
i) Vessels under construction can obtain provisional registration.
Vessels under construction may also apply for the provisional registration and radio call letters.
j) Advantages for Pleasure Vessels (Yachts, Boats, Sailing Vessels)
There is a sole enrollment charge of US$1,500 for Yachts, however, if the yacht is owned by Panamanian natural person, Panamanian company or a Panama Foundation this charge shall be of US$1,000.