Remote Banking in Panama

Comprehensive Banking Guide for Panama: Everything You Need to Know

Panama, known for its vibrant economy and business-friendly environment, offers a range of banking options for both residents and non-residents. In this guide, we will cover essential information about banking in Panama, including banks accepting foreigners, KYC requirements, availability of services like Wise and Revolut, ATM fees, multi-currency options, the account opening process, currency exchange tips, and tax residency clarification.

Banks Accepting Foreigners

Panama boasts a variety of local and international banks that welcome foreign clients. Some of the most popular banks for expats and non-residents include Banco General, Banistmo, and Scotia Bank. These institutions offer a wide range of services, including savings and checking accounts, credit cards, and investment products.

KYC Requirements

Know Your Customer (KYC) regulations are stringent in Panama to prevent money laundering and other financial crimes. When opening a bank account, you will need to provide identification documents such as a passport, proof of address, and proof of income. Additionally, some banks may require a reference letter from your current bank.

Wise/Revolut Availability

Digital banking services like Wise and Revolut are increasingly popular among expats and travellers. While Wise is widely available in Panama and allows for low-cost international transfers, Revolut is not yet operational in the country. However, you can still use these services to manage your finances and make cross-border payments.

ATM Fees

ATM fees in Panama can vary depending on the bank and your account type. Some banks charge a flat fee for each transaction, while others may offer a certain number of free withdrawals per month. To avoid excessive fees, consider using ATMs affiliated with your bank or opting for a no-fee account.

Multi-Currency Options

Many banks in Panama offer multi-currency accounts, allowing you to hold and transact in different currencies. This feature can be beneficial for expats or frequent travellers who deal with multiple currencies regularly. With a multi-currency account, you can avoid foreign exchange fees and currency fluctuations.

Opening Process

Opening a bank account in Panama is a straightforward process, albeit with stringent requirements. To start, visit a branch of your chosen bank with the necessary documents, complete the application form, and undergo an interview with a bank representative. Once your application is approved, you will receive your account details and can start using your new account.

Currency Exchange Tips

When exchanging currency in Panama, consider using reputable exchange services or banks to get the best rates. Avoid exchanging money at airports or tourist areas, as they often offer unfavourable rates. Additionally, monitor exchange rates and plan your transactions strategically to maximise your savings.

Tax Residency Clarification

Understanding your tax residency status in Panama is crucial to comply with local tax laws. While Panama offers favourable tax conditions for residents and non-residents, you must determine your tax obligations based on your residency status. Consult with a tax advisor or the local tax authority to clarify your tax residency and fulfil your obligations accordingly.

In conclusion, banking in Panama offers a host of opportunities for expats, travellers, and investors. By selecting the right bank, complying with KYC requirements, utilising digital services like Wise, managing ATM fees wisely, exploring multi-currency options, following the account opening process diligently, exchanging currency strategically, and clarifying your tax residency status, you can make the most of your banking experience in Panama. Whether you are looking to establish a local presence or manage your global finances, Panama's banking sector is equipped to meet your diverse needs.