As you plan to expand your business operations, banking in Panama can offer banking, residency options, and more. A bank account in Panama will help you to conduct transactions in different currencies and receive payments. Here are the things you need to open a foreign account:
Identification Documents
Banking in Panama requires you to confirm your identity, and as a US citizen, the primary identification document is your state-issued driver’s license. Your bank might also accept a US passport or an identification card. If you have served in the military, use your military ID card to confirm your citizenship. Other acceptable forms of identification are a birth certificate and social security card. These documents must have your photo on them.
Proof of Address
You must confirm that you physically reside in your country of origin. Several organizations send documents that contain both your name and physical address. The most common are utility bill documents, such as those for internet, gas, water, and electricity services. Local banks can also provide a bank statement that includes both your name and address. The lease agreement with your landlord or property owner can confirm your residence.
If you own a vehicle, the registration or title may work. Other forms of proof are paychecks or pay stubs and official letters from government agencies or institutions. The bank may also accept mortgage statements and school enrollment documents. The bank may accept documentation from a landlord or homeowner confirming your residency in some cases.
Deposit
Many banks require an initial deposit to open an account, and the amount depends on the type of account you’re opening. A minimum deposit can range from a nominal amount to several hundred or even thousands of dollars. Your bank may waive the initial deposit requirement in special circumstances, like setting up direct deposit.
SSN or EIN
The foreign bank will request your tax identification number to comply with the tax laws of their country as well as yours. This number is commonly known as a Social Security Number (SSN), while for businesses, it can be an Employer Identification Number (EIN).
Reference Letter
If you have a good relationship with your current bank, apply for a reference letter. The letter confirms details like the length of your account tenure and average balance. Another option is to request a reputable individual to vouch for your character and financial stability. That person may be your employer or someone with whom you have a professional relationship.
Proof of Source of Funds
The bank will want to know that your money comes from legitimate sources such as business or employment. Your tax returns, employment contract, and pay stubs can help demonstrate the source of your money. If you inherited the money, provide the will.
Start Banking in Panama
Banking in Panama can streamline business operations and even lower your tax expenses. Although you can open the bank yourself, the best strategy is to consult a financial advisor or legal professional. They will find a solution that is perfect for your specific situation.