Panama is recognized by the community of insurances and reinsurance like a jurisdiction of first category that offers an ideal legal frame for the operation of insuring of prestige and solid constitution.
Through the Law No. 60 of 1996, “ By which the insuring operations of “captives” insurer are regulated, Panama offers diverse advantages as far as the establishment of a captive insurer, advantage that do not own other addresses where we see that there are hundreds of captives already established.
In order to initiate, Panama is the first country of Hispanic speech that becomes address of captives, with a favorable geographic position, a stable and modern economy, and the use of the American dollar like currency of legal course, great fiscal incentives and international a banking center.
It is worth reviewing what is a captive, is simple, is an insurer that is established in a country to secure from that territory to foreign countries not competing against local insurance companies as their businesses are headed overseas. The owners are usually companies or insurance companies that are not but want to protect their interest under one umbrella, so they establish for that function. Example: A multinational company opens a captive in Bermuda thence to assure the risks the company mother and subsidiaries. A multinational company opens a captive in Bermuda and from there to insure the risks of its parent company and subsidiaries
The advantages to establish a captive are translated generally in savings in relation to taxes and costs, to obtain benefits, to simplify and to make flexible the subscription and the administration of risks. At least in Panama, the captives do not have to pay to any tax on the businesses that subscribe abroad (neither on subscribed premiums nor on the originating utilities of this) and the capital that must maintain free of tax to confront their obligations is relatively low (B/.150,000 for general branches and B/.250,000 for all the branches), as well as is it the annual rate that must pay (B/.2,000). Besides, the legal proceeding to obtain the authorization to operate is agile and simple.