If you’re looking to get a bank account in Panama, ask key questions to choose the right bank: What type of account do I need? Will I move money internationally? What is the bank’s reputation? What services do they offer?
Consider all factors, including online banking, customer service, and banks popular with expats. Interest rates in Panama vary by bank and account type, but are generally competitive, often higher than in other countries.
Types of Bank Accounts
Panama offers several banks for foreigners, including well-known international and local banks such as Banco General, Banistmo, and Scotiabank. Each bank may have different requirements and services.
The best bank account for foreigners in Panama depends on their specific needs. Personal bank accounts are ideal for everyday banking and savings, while corporate accounts are suitable for business activities. Banks like Banco General and Banistmo are popular choices due to their wide range of services and favorable terms.
Now let’s talk about the type of bank accounts that we have available.
Corporate Bank Accounts
We have corporate bank accounts, which include savings and checking accounts.
Personal Bank Accounts
We also have personal bank accounts, which include savings and checking accounts. The difference between the corporate and personal bank accounts is that the personal bank account is for a natural person, which means an individual. If you are married, you can get a joint account along with your wife or husband. The corporate bank account is just for legal entities, or if you’re independent, you can get a corporate bank account too. If you are doing any type of immigration process, then you should choose the personal bank account.
Requirements for Opening a Bank Account
To open a bank account in Panama, you will typically need to provide identification (passport), proof of income (employment letter or financial statements), reference letters from your current bank, and proof of address.
Yes, non-residents can open a bank account in Panama. They need to meet specific requirements, including providing identification documents, proof of income, and undergoing a due diligence process.
Personal Bank Accounts
Let’s start with the easiest one, the personal bank account. To get a personal bank account, you must present before the bank:
- The tax information or proof of income
- Your passport
- A second ID from your country
In some banks, mostly the local ones, are going to ask for your immigration ID. It is important to note that this tramit must be done personally. In rare cases, you’ll be able to open a bank account from abroad or online.
Corporate Bank Accounts
After talking about the personal bank account, then we are going to move to the corporate or legal bank accounts. The requirements will depend on which bank you are going to select and, of course, your needs. Some banks will request more information and documentation than others. For example, the most international ones will request the following documentation:
- Information from the legal entity
- Operation permit
- Social security number (PCT)
- IDs from all final beneficiaries
Other banks will just request your presence and your ID, plus your immigration ID in Panama, your passport, and of course, the operation permit and the social PCT. It is important to note that every bank works differently here in Panama, which is why we urge you to contact us in case you have any inquiries or need to open a corporate bank account. Considering our expertise about these topics, we can actually guide you to get a bank account on the bank that suits your company’s needs.
Proof of Income
If you need to know more about this topic, you can go to our website ndm.com.pa where you are going to find a lot more information about this tramit and you are going to be able to get in touch with one of our lawyers that will assist you in anything you need in order to get your bank accounts open here in Panama. Talking about the proof of income, it is important to know that on the personal bank accounts, you are going to need to bring a proof of income such as your tax declaration or your payslip.
Corporate Accounts
If we talk about the corporate accounts or legal accounts, then you need to know that all the final beneficiaries need to present their tax declarations. If the company is new and hasn’t done a tax declaration per se, if the company has done a tax declaration before, then we have to present the company’s tax declaration in order to get that bank account open.
Due Diligence and Process
Understanding the due diligence and the process, after we gather all the information and documentation necessary, we need to go to the bank with the legal representative to have an initial interview. In this interview, the agent will ask you about the activity of the company, your personal income, and how long the company has been working, along with the rest of the information they need in order to know more about the client. After that, if you get our services, you won’t have to do anything else but provide some information to us in order to fill up the forms needed to open the bank account. We will be responsible, after the first interview, for getting that bank account open.
Time Frame
The process of opening a bank account in Panama can take anywhere from a few days to a few weeks, depending on the completeness of the documentation provided and the bank’s internal procedures.
Corporate Bank Accounts
Usually, if you open a corporate bank account in Panama, it will take local banks about 1 to 2 days to open one. The more international ones will take about two weeks to open a corporate bank account.
Personal Bank Accounts
For personal bank accounts, it’s usually done the same day.
Initial Deposit
Corporate Bank Accounts
It is important to know that if you are going to open a corporate bank account, you must deposit at least between $600 and $1,000.
Personal Bank Accounts
For personal accounts, you can deposit from $10.
It is important to take into consideration that you must provide an accurate and updated proof of income. This is due to the fact that they could freeze the account or close it if they don’t have the proper information. For example, you will have to provide every year a tax declaration. If you move more money than the one you were supposed to or than your tax declaration allows, then the bank could freeze your bank account or close it in the worst of cases. So, this is one of the most important topics you should take into consideration.
Additional Documentation
In addition to what we just talked about, if you are moving more money than you declared at the beginning that you were going to move through the bank account, then you should submit additional documents that could support the amount of money you are moving. If it goes over the amount you declared at the beginning of the bank account opening, these documents could be contracts or an updated tax declaration that could support the amount of money you are moving at the moment.
Online Banking
Is it possible to manage your bank account online? The answer is yes, it is possible. Several banks here in Panama offer you the option to get online banking through an app or through their website to make your transactions easier.
Challenges of Online Banking
Opening a bank account and managing it could be challenging at some point. For example, to get the token to make transactions from online banking, you need a soft token to make transactions from your online banking, whether from a personal or a corporate bank account. Usually, there are some issues when you open online banking with some banks.
Common Issues
- Soft Token: This is required for transactions.
- Registration Process: It could be challenging at some points due to the need for biometric information in order to open the bank account. To get that system open, you need to go personally for personal bank accounts. For corporates, you can usually do it online, but they will always request your biometrics and information from your passport.
Benefits of Having a Bank Account in Panama
Opening a bank account in Panama offers several advantages, including financial stability, favorable interest rates, confidentiality, and easy access to international banking services.
People use Panama banks due to their strong privacy laws, favorable interest rates, and stable banking system. Additionally, Panama’s strategic location and robust financial services make it an attractive destination for international banking.
Personal Bank Accounts
You will be able to get a Visa debit card or a MasterCard debit card right immediately. It is easier than in most other countries to open a personal bank account, and you still have your information private.
Corporate Bank Accounts
It is essential to know that you will be able to get a prepaid credit card with your own money, make international transactions easier because Panama uses the dollar, and you will have lower taxes compared to developed countries like the US and Europe. It is important to consider that if one bank doesn’t work for you or your company, you can choose from several banks that are established here in Panama.
Conclusion
As an international law firm, we know about the difficulties that some expats can face through this process of opening a bank account. We understand how challenging this process could be.
You can do this process by yourself, but if you need a legal expert, you can contact see more information in the Superintendency of Banks of Panama.
Or, if you need, you can get in contact with one of our lawyers and we will guide you through this process the best way possible due to our expertise.
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