Panama has been for many years a global leader in ship registration, offering vessel owners unparalleled benefits, making it the preferred choice for commercial and private fleets.
Tax advantages
No income or withholding taxes payable when the income is a result of the operation of a vessel engaged in international trade.
Panama is considered to be one of the best places in the world to register a ship. This is applicable to ship owners, boat owners, yacht owners or sailboat owners.
Competitive costs
There are considerable lower costs for registering a ship in Panama compared to other jurisdictions. If you compare cost to other legislations you will notice that the Panama register of ships is one of 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.
- Fleet Discounts: When registering three or more vessels, with a combined gross tonnage of 50,000 to 100,000 GRT, a ship-owner may qualify for a discount in registration fees of 20% (up to 50% if the tonnage exceeds 100,000 GRT. Additionally, fleets whose combined tonnage is over 100,000 GRT may receive a discount of 50% of the annual tonnage tax.
- Rapid Enrollment: The enrollment of vessels under the Panama flag can be obtained in one business day.
Ownership
Any person or company, regardless of nationality and place of corporation is eligible to register ship under the panamanian flag. 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 protection structure (corporation) to register and ensure that your vessel’s income and ownership will be safe and anonymously protected.
No restriction on the age of the vessel.
No minimum tonnage requirements.
Bareboart charter in / out registration (Dual Registry).
Panama ship register dual system can be of great advantage for shipping companies, ship owners. Bareboat registration means that a ship registered in one state (the primary state), based on a bareboat charter party is simultaneously registered in another state (the bareboat state). The ship is granted the nationality of the latter state and is given the right to sail under the flag of that state for a limited agreed period.
This ship register method will allow a foreign ship to register in the Panama ship register at the same time without a cancellation of the registration in 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.
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.
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.
Special purpose registration
Vessels under construction or for a scrap delivery can obtain provisional registration.
Vessels under construction may apply for the provisional registration and radio call letters.
Advantages for Pleasure Vessels (Yachts, Boats, Sailing Vessels)
There is a sole enrollment charge of US$1,500.00 for Yachts, however, if the yacht is owned by Panamanian natural person, Panamanian company or a Panama Foundation this charge shall be of US$1,000.00.