Why do ships registered in panama

Tax advantages — Any Income derived by vessels engaged in international trade is not taxed by the Republic of Panama. Provisional registration for ships under construction — Vessels under construction may also apply for the provisional registration and radio call letters.

Contact Us. Prior tonnage certificates are accepted so the vessel does not have to be dry docked at a considerable expense. Panama allows dual registration of both foreign vessels and Panamanian registered vessels with another country. This is considered an advantage for European ships which could otherwise be forced to register with many other European countries at a greater expense versus an open registry offered by Panama.

However, dual registration may not be available for a vessel whose ownership is in a country which does not allow it. Any vessel under construction can apply for a Panama Provisional Registration including radio call certification.

Contact Us for all of your Panama Maritime Law needs. Have a question? We're here to help. Give us a call or send us a message and get a free Panama legal consult. Browse our eBooks and guides on Panama immigration, relocating to Panama, doing business in Panama and more. There are considerable lower costs for registering a ship in Panama compared to other Jurisdictions. Taking in consideration that the tax savings are part of the system, you will find out its way cheaper in the long term.

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.

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. 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.