In this article, we’re exploring why people use Panama banks. We’ll do this by sharing the financial gains, account incentives, and other benefits of banking in Panama as a foreign non-resident and answering common questions we receive from people exploring this topic.
This article is part of our free series on Panama banking benefits. You can access this series right now by using the link above.
In addition to detailed account opening guides, this free series on Panama banking also discusses the largest banks in Panama, Panama opening requirements, the costs of banking in Panama, and much more. Use the link above to start exploring all of your free Panama banking content right now.
Alternatively, use the table of contents to continue exploring more information on why people use Panama banks.
Table of Contents
- Why Do People Use Panama Banks?
- What Are the Benefits of Banking in Panama?
- Frequently Asked Panama Banking Questions
- Do You Want to Open a Panama Bank Account?
Why Do People Use Panama Banks?
People use Panama banks for various reasons, including financial stability, asset diversification, the use of the US dollar, diverse financial services, and investment opportunities.
Compared to other jurisdictions, Panama banks have relatively low deposit requirements and more accessible offshore banks, making it an attractive banking jurisdiction for why people choose to open bank accounts in Panama.
Some banks in Panama have experience in working with non-resident clients, offering non-resident banking services, such as multicurrency accounts, international investments, remote account opening options, and much more.
Not all banks in Panama, including the non-resident-friendly banks, are created equal. The banks available to you will ultimately depend on your citizenship, residency, banking needs, and deposit level.
Bank selection will be an important factor to consider when choosing where to open a bank account in Panama as a non-resident. It’s also important to understand the benefits your specific client profile can take advantage of when banking in Panama. We share these benefits in the next section below.
What Are the Benefits of Banking in Panama?
The benefits of banking in Panama will depend on the person applying to open an account. The reason for this is that certain banks offer different account types, fee structures, and accept different client profiles.
Depending on your profile, the type of account you want to open, and the bank you choose to open an account with, you may be able to access certain benefits that are not available to others.
Here is a list of the seven most common benefits non-residents can tap into when banking in Panama.
Benefits of Banking in Panama
- Remote opening is 100% possible
- Accepting of most passports & residencies
- High savings deposit rates compared to elsewhere
- Stable banking sector based in US dollars
- Banking options with limited retail lending
- Banks with strong correspondent relationships
- European private banks operate here as well
It’s important to consider which banks offer the exact benefits you’re looking for before applying to open an account here. This way, you can reduce your chances of applying to the wrong banks.
If you are interested in learning more about banking in Panama, don’t forget to visit our comprehensive guide on banking in Panama, available in the link above.
Alternatively, if you would like to explore all of your offshore banking options, download our free guide and compare Panama to some of the top banking jurisdictions available.
Do You Want to Explore All Your Offshore Banking Options?
Frequently Asked Panama Banking Questions
Below are a few of the most common questions we receive from people exploring why people use Panama banks. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can a Non-Resident Open a Personal Bank Account in Panama?
Yes, a non-resident can open a personal bank account in Panama as long as they choose the right bank, meet the account opening requirements, and have a suitable client profile. Non-residents can even open personal bank accounts in Panama 100% remotely.
Why Do People Open Bank Accounts in Panama?
People open bank accounts in Panama for various reasons, including asset diversification, financial stability, and access to the US dollar. Many banks in Panama are non-resident friendly, offering a wide range of banking services to non-resident individuals and businesses. The banks available to you will depend on your citizenship, residency, banking needs, and deposit level.
Do Panama Banks Report to IRS?
Yes, Panama banks report to the Internal Revenue Service (IRS). The vast majority of banks around the world automatically report all accounts held by US persons under the Foreign Account Tax Compliance Act (FATCA).
How Safe Are Panamanian Banks?
Panamanian banks are relatively safe and stable as long as you choose banks that have strong management, responsible lending, and maintain adequate capital and liquidity ratios. It’s important to choose the right banks and bankers and maintain reasonable deposits that match your risk tolerance.
Do You Want to Open a Panama Bank Account?
If so, you can access GlobalBanks IQ and start the process of applying in Panama in a few clicks.
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And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.
To learn more about opening accounts with GlobalBanks IQ, use the link in the top menu. Or, contact us directly with any questions!
