Most private boat owners in Panama hold the boat in their own name or through a sociedad anónima (S.A.). A private interest foundation suits estate planning, not running charters. Decide on three questions: will the boat earn money, who should get it when you die, and how much yearly cost and paperwork you will accept.
The three options side by side
| In your own name | Sociedad anónima (S.A.) | Private interest foundation | |
|---|---|---|---|
| Best for | A private boat, one owner | Charter use, several owners, separation from personal assets | Succession and holding family assets |
| Can run a charter business | As a sole trader only | Yes | No: commercial acts only occasionally (Ley 25 of 1995, Art. 3) |
| Yearly state fee (DGI tasa única) | None | B/.300 | B/.400 |
| Resident agent (Panamanian lawyer) | No | Required | Required |
| Accounting records (Ley 52 of 2016) | Your own | Required | Required |
| On your death | Passes through your estate | The shares pass through your estate, unless held by another entity | Follows the foundation's rules for beneficiaries |
This page is the decision. How each structure is formed, registered and run is in owning a boat through a Panama corporation or foundation.
In your own name: the simple default
The AMP registers you as owner. There is no yearly entity fee, no resident agent and no separate books. Selling is a straightforward transfer at the AMP; see transferring boat ownership.
The trade-offs: claims against the boat reach you personally, so liability insurance matters more, and on your death the boat passes through your estate. For an expat, that can mean a probate process in Panama as well as at home. For a small boat used privately, many owners accept that and buy good liability cover.
Sociedad anónima: for charter and shared boats
An S.A. is Panama's standard company. It owns the boat; you own the shares. That helps when:
- the boat will carry paying guests, because the business, its insurance, ITBMS and contracts sit in the company;
- several people share the boat, because each can hold shares;
- you want to keep the boat separate from your personal assets.
The cost is ongoing. The DGI charges a tasa única of B/.300 a year, adds B/.50 for late payment, and after three unpaid years suspends the company and charges a B/.1,000 rehabilitation fine. You also pay the resident agent, who must verify who you are and what the company does. A sale can be of the boat or of the shares; a buyer's lawyer will check the company's debts before agreeing to buy shares.
A sociedad de responsabilidad limitada (S. de R.L.) is an alternative for partners; Ley 4 of 2009 requires at least two. Setting either up for a charter is covered in setting up a charter company.
Private interest foundation: for succession
Ley 25 of 1995 created the fundación de interés privado. Its assets are separate from the founder's (Art. 11), it is run by a foundation council of at least three members unless the council is a company (Art. 17), and its founding documents say who the beneficiaries are. That makes it a succession tool: the boat can pass under the foundation's rules rather than through probate.
A foundation cannot pursue profit and may carry out commercial activity only occasionally (Art. 3). It can, however, hold the shares of a company. Some owners therefore use a foundation that owns an S.A., which owns the boat. That adds a second tasa única (B/.400 for the foundation) and a second set of records. Ask a lawyer whether your situation needs both.
Checks before you decide
- Insurance. The named insured should match the registered owner. If a company owns the boat, the policy should name it, and any lender.
- Registration. The AMP registers the entity as owner, so its paperwork must be current to renew the patente or sell.
- Tax at home. Panama taxes only Panamanian-source income, but your home country may tax you on foreign entities you own. A US taxpayer, for example, should ask a US tax adviser before forming a foreign company or foundation.
- Charter licensing. A 2021 cabotage law asks companies seeking an AMP operating licence for services in Panamanian waters to show at least 75% Panamanian shareholders, subject to exceptions; the corporation and foundation guide has the detail. Ask a lawyer whether it applies to your charter before you choose the shareholders.
- Work. Owning a Panamanian company does not let you work in it. Captaining your own charter is work and needs the right status; see work permits for foreign crew.
The costs of each structure belong in your budget; see boat ownership costs and bookkeeping for a boat business.
A quick way to decide
- Will anyone pay for trips? Yes: use a company. No: go to question 2.
- Is the boat shared? Yes: a company makes the shares clear. No: go to question 3.
- Is succession a real concern, with heirs in more than one country? Yes: ask a lawyer about a foundation. No: hold it in your own name and insure it well.
The Florida comparison, with LLCs instead of S.A.s, is in boat ownership entities.
Your practical starting checklist
- Decide whether the boat will ever carry paying guests.
- List the owners and who should inherit the boat.
- Ask a Panamanian lawyer to price the S.A. or foundation, resident agent and yearly fees.
- Ask your home-country tax adviser about owning a foreign entity.
- Register the chosen owner with the AMP and match the insurance policy to it.
- Diary the tasa única and keep the entity's records current.
Frequently asked questions
Should I own my boat through a Panamanian S.A.?
If the boat will carry paying guests, is shared, or you want it apart from your personal assets, usually yes. For a private boat with one owner, holding it yourself is simpler and cheaper.
Can a private interest foundation run a charter business?
No. Ley 25 of 1995 lets a foundation carry out commercial activity only occasionally. It can own the shares of a company that runs the boat.
How much does a Panamanian S.A. cost each year?
The DGI tasa única is B/.300 a year, plus the resident agent's fee and any accounting. Ask a lawyer for the agent's price.
Can a foreigner own a Panamanian company that owns a boat?
Yes, for private use. For a charter company, ask a lawyer about the shareholding rules for an AMP operating licence. Working in the company, including captaining paid trips, is a separate immigration question.
¿Conviene poner el yate a nombre de una sociedad anónima en Panamá?
Sí, si va a cobrar viajes, si tiene varios dueños o si quiere separar el yate de su patrimonio personal. La tasa única es de B/.300 al año, más el agente residente.
En español: sociedad anónima, fundación o a título personal
Para una embarcación privada con un solo dueño, ponerla a su nombre es lo más simple: no paga tasa única ni necesita agente residente. Una sociedad anónima conviene si la embarcación va a generar ingresos, si hay varios socios o si quiere separarla de su patrimonio personal; paga una tasa única de B/.300 al año a la DGI. Una fundación de interés privado (Ley 25 de 1995) sirve para la sucesión, pero no puede dedicarse habitualmente a actividades comerciales; paga B/.400 al año. Consulte a un abogado panameño y a su asesor fiscal antes de decidir.
The next question to answer
The full costs and insurance collection. Read Boat ownership costs and insurance in Panama.
How each structure is set up. Read Owning a boat through a Panama corporation or foundation.
S.A. to RUC for a charter. Read Setting up a charter company in Panama.
Same topic in Florida: coming from the US? Compare Personal vs Entity Boat Ownership.
Official resources
Use the relevant Panamanian authority for current requirements and fees. These resources are the next place to check; a practical recommendation is not an agency determination.
- DGI (MEF): Tasa Única, sociedades and fundaciones ↗
- Ley 25 de 1995, fundaciones de interés privado (Órgano Judicial, CENDOJ) ↗
- Kraemer & Kraemer: Law 52 of 2016 on accounting records (secondary, law-firm summary) ↗
- Ley 4 de 2009, sociedades de responsabilidad limitada (Órgano Judicial, CENDOJ) ↗
- PwC Worldwide Tax Summaries: Panama, taxes on corporate income (secondary) ↗