Panama offshore residency – how to avoid OECD Common Reporting
In response to the G20 request, the Common Reporting Standard (CRS) was developed and approved by the OECD Council on 15 July 2014. CRS calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
The easiest way to avoid reporting is by offshore residency. One of the easiest solution is the residency in Republic of Panama. Panama’s residence has the following advantages:
- Persons and corporations pay no tax on foreign profit.
- Banks offer high interest rates on the USD deposits.
- Temporary residency ID is issued during the first visit in the Immigration Office.
- The costs of the process are much lower than for example in United Arab Emirates or other jurisdictions that offer no taxation.
- To maintain residency the person has to come only once every 2 years to maintain the residency.
- CRS – automatic exchange of information – client can use residency documents (Panama’s national ID and residency confirmation) and declare Panama as his/her residency to banks all over the world for the purpose of CRS reporting. This way reports from those banks go to Panama, not to the country of origin of the client.
For more informaiton please contact us.