Panama’s banking sector offers many opportunities for expatriates seeking global investment options. The country has a stable and growing economy, favorable tax policies, liberal financial regulations, and a US dollar-based banking system. This makes banking in Panama an ideal decision when looking to manage and grow your international assets. Here are some investment opportunities in Panama’s banking sector for expats:
Asset Diversification
As an expat in Panama, you can open a bank account to enjoy cross-jurisdictional diversification. Banking in Panama gives you financial privacy and favorable tax conditions that allow you to manage your wealth more efficiently. With a Panama bank account, you can access global brokerage platforms to trade in commodity futures, exchange-traded funds, and physical assets.
Panamanian banks allow you to fund international accounts and trade precious metals like gold and silver. Other physical commodities include crude oil and agricultural goods. The country doesn’t tax foreign-sourced income, allowing you to keep profits from your offshore accounts.
Foreign Stocks
You can link your Panama bank account to global brokerage platforms to access stock markets in the US, European, and Asian markets. Some Panamanian banks have partnerships and investment subsidiaries that facilitate opening international trading accounts. Since the country doesn’t tax capital gains from foreign equity trading, you can retain profits from foreign stocks.
Whether you prefer major exchanges like the NYSE and NASDAQ or smaller brokerages, Panama’s banking structure gives you a stable financial base. You can use a Panama bank account to manage a diversified equity portfolio with lower tax rates on your profits. Assets are often shielded from domestic lawsuits and foreign claims.
Government Bonds
Panamanian sovereign bonds and foreign government securities provide additional investment opportunities for expats living in Panama. Local banks allow you to open investment sub-accounts, which you can then use to purchase government bonds. Government bonds and securities offer conservative asset classes with predictable returns.
Bonds are purchased in US dollars through international brokers funded by your Panama bank account. Since Panama has a USD-based banking environment, you won’t incur losses due to foreign exchange controls. Capital gains and income from foreign government bonds are also tax-exempt, making it an efficient choice for bond investments.
Mutual Funds
Panamanian banks give you access to various mutual funds through partnerships with global fund managers. Many banks also have investment divisions specializing in mutual funds. With your Panamanian bank account, you’ll be able to invest in a wide range of regional and international USD-denominated funds. They cover broad international markets, asset classes like ESG and real estate, and specific industries.
Mutual funds are also available through wire transfers from your account to offshore platforms. Like most foreign assets, mutual funds held outside Panama are not subject to capital gains taxes.
Start Banking In Panama Today
Your Panamanian bank account allows you to invest in many other options, including forex and cryptocurrencies. These offshore banking services are built on the latest technology standards and offer superior asset protection. Contact a reputable law firm today to find out more about banking in Panama and what you need to open your investment account.
