Mayra Lamboglia Attorney At Law

Always the right counsel

Panama, Republic of Panama

 

 

Ship and Vessel Registration

Advantages

1) Any person or entity, no matter their nationality and place of origin, is eligible to register ships under the Panamanian flag.
2) The registration procedure is simple and flexible, allowing the registration of a ship within eight hours, provided it complies with all requirements.
3) Reliable system of naval mortgages backed by the national and international banking.
4) Operation Panama offices 24 hours to respond to Asia and Europe despite the time difference.
5) Strategic representation in sixty countries around the world through the consulates of the merchant fleet.
6) Adoption of the quality control.
7) Strict compliance with international conventions on maritime safety, the ISM, STCW 78/95, among others.
8) Exemption of taxes on profits from the activity.
9) As a result of the law passed the 25 of June 3, 2002, it may be granted an additional discount of up to twenty five percent (25%) of the annual tax and fifty percent (50%) of the Consular Annual Rate for a term of four years , provided that such groups of at least four new construction ships representing at least more than fifty thousand gross registered tons (50.000 GRT) to one hundred gross registered tons (100.000 GRT) and groups of four ships more than 100.000 GRT, an additional discount of up to 35% of the annual tax and 50% on Consular Annual Rate, provided that the owner or owners agree to keep the ship in the Panamanian registered for a term of four years.
10) The owners and operators of vessels under Panamanian flag have access to the system under the corporations law.
11) There is no minimum tonnage requirements, however, ships with over 20 years will have to pass a special inspection by an authorized Panamanian inspector to obtain the patent or registration permit.
12) Ship owners who wish to transfer to the Panamanian flag need not be re-inspected if the vessels have a valid certificate of safety and tonnage issued by a recognized society or organization, but when registered a recognized entity shall issue new certificates on behalf of the Panamanian administration.
 
Choices

1) If you are going to live in your boat, anchor it in the harbor of Panama and you do not plan to be sailing out of the territorial water of Panama very often then you will have to pay the following taxes. customs will want a 5% to 15% tax depending on the purchase price, material your hull is manufactured and other factors with plus a 7% ITBMS tax to introduce your sailing boat in Panama just like any other thing. But the annual expenses will vary depending on the size of your vessel. and the other government fees to introduce are much lower. To proceed with this option, the boat has to be in Panama and the taxes paid to customs. In this option, the initial cost is higher but the future cost are much lower.
2) You can Register your sailing boat for international travel, do not pay the customs' fees but you will have to pay a fee depending on the size and displacement of your vessel the first year and every two years you will have to renew the patent and pay the fees depending on the size and displacement of your vessel. This process can be started from your country. With this option, your initial cost is much lower but the future cost are much higher.

3) Transit permit. Monthly fee depending on the size of your vessel plus $5.00 permit.

With either option one or two you can place the boat and all your goods in a corporation or a foundation. If your boat is in a corporation or foundation the fees for option 2 are lowered.
 
DOCUMENTS NEEDED

1) Power of attorney given by the owner of the ship. Must be authenticated, legal and current.
2) Title of the vessel properly registered in the Public Registry.
3) That the vessel is in good standing in their tax payments.
4) Tonnage or tonnage certificate issued by a recognized authority in Panama and its confirmation by the New York office.
5) Certificate of purchase (Bill of sale) original Title Deed of Ownership.
6) Certificate of cancellation of previous registration.
7) Construction certificate (if new construction).
8) Technical certificates belonging to the ship in accordance with international rules
9) Radio license application.
 

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