PANAMA LAWYERS

Panama´s Vessel Registry is number-one worldwide in popularity due to the ease of use and very low registration taxes and fees as compared to other countries throughout the world. Marine vessel registration in Panama is widely used by international shipping companies due to the numerous advantages.

At the time of registration all vessels must pay a one-time enrollment fee, based on a variable scale, plus a government fee. Registration of the bill of sale is $0.20 per net registered ton or fraction thereof, plus 20% surtax. Annual tax is $0.10 per net ton, plus other charges.

Liberal labor laws concerning Panama flag vessels are also an important consideration, and income earned on international shipping activities are specifically and expressly exempted from Panama income taxes.


Panama yacht Registration

It is possible to register recreational yachts in Panama. This has a different pricing structure than the ship registration described above. The registration certificate is issued for a two-year period, which is renewable after this period.

Applicable Registration Tariff:

· $1,500.00 - if owned by a foreigner
· $1,000.00 - if owned by a Panamanian (or a Panamanian corporation which is a nominal expense to arrange)

This tariff must also be paid upon renewal of the Registration.


Documents required for Registration:
1. Sale & Purchase Agreement, Bill of Sale - or if the yacht is newly built, then a Builder's Certificate
2. Power of Attorney
3. Deletion Certificate from previous registry (or Builder's Certificate if brand new)

Please note: you must also comply with the Radio Operator requirements, in order to register the yacht in Panama. If the yacht is more than 20 years old, then it will also be required to undergo a survey and safety inspection.


Registration Process
Panama offers both provisional and permanent registration of vessels.

Provisional Registration
The purpose of provisional registration is to allow the title to be duly registered in the Public Registry office and to ensure compliance with other requirements for permanent registration.

The patent of provisional registration is valid for three months, and may be obtained promptly from the Bureau of Vessels. Applications for the provisional license may be filed through Panamanian consulates world-wide. In such cases, the Bureau will authorise the Consulate via fax to proceed with the registration. Please do not hesitate to contact Abogados De Gracia, Jaén & Asociados for assistance with the application for provisional registration Permanent Registration.

In the 6 months following a provisional registration being granted, the Bill of Sale, or the Builder’s Certificate in the case of a newly constructed vessel, should be filed in the Republic of Panama. Following registration of these documents in the Public Registry Office, Abogados De Gracia, Jaén & Asociados will proceed to request the issuance of the Permanent Navigation Patent (which is valid for 4 years, or 2 years in the case of pleasure craft) from the Bureau of Vessels.

This patent is renewable for similar periods of time, so long as the vessel is up to date in its payment of fees and taxes and is in compliance with all applicable laws and regulations.
Please note that Panama’s legislation requires that any vessel registered in Panama maintain a legal representative or registered agent locally. This agent must be an attorney or law firm. Abogados De Gracia, Jaén & Asociados would be pleased to provide this service, acting as a liaison with the Panamanian authorities.

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