Why Panama Works for Biotech / Life Sciences
Corporate tax efficiency (100/100) is one of Panama's strongest dimensions for Biotech / Life Sciences founders. Key features include a 25% statutory corporate tax rate, a territorial tax system that exempts foreign-sourced income, viable holding company structures for profit extraction. With 17 active tax treaties, cross-border payment withholding tax is manageable for internationally structured businesses.
Operational ease (81/100) makes Panama practical for Biotech / Life Sciences founders setting up from scratch. Banking difficulty for foreigners is rated moderate. Company formation takes approximately 5 days at a cost of around $2K, with annual compliance costs around $1K. Full foreign ownership is permitted - no local partner required. IP protection quality is rated moderate, which matters for Biotech / Life Sciences businesses with proprietary technology or brand assets.
Personal tax efficiency (80/100) is a meaningful advantage for founders who physically relocate to Panama. The jurisdiction operates a territorial personal tax system (foreign income not taxed), with a top personal income tax rate of 25%. For Biotech / Life Sciences founders paying themselves a salary or dividend from their company, the personal tax environment directly affects total compensation.