Panama vs Peru
Weighted for the selected setup lens
51/100
6-10 weeks
$3,500
Weighted for the selected setup lens
64/100
6-12 weeks
$3,500
Operational Ease updated: Panama 51; Peru 64.
What are you setting up?
NavviPal's formation fee in Panama is $3,500. In Peru, it's $3,500. Formation takes 6-10 weeks in Panama and 6-12 weeks in Peru.
How to decide
Operational Ease scores and category leaders are mechanical outputs from the source facts, not a universal country recommendation. Use the selected lens, then assess the complete legal, tax, banking, payroll, and operating requirements for your structure.
Review Panama
Review Panama if this market remains in scope after you assess its entity types, local-management requirements, published cost basis, tax rules, banking timeline, and payroll obligations.
View Panama guideReview Peru
Review Peru if this market remains in scope after you assess its entity types, local-management requirements, published cost basis, tax rules, banking timeline, and payroll obligations.
View Peru guideSource-backed formation and operating facts
The selected lens changes which source facts appear first and how the five dimension scores are weighted. Category leaders use the displayed calculated scores only.
| Category | Panama | Peru |
|---|---|---|
| Corporate tax | Corporate income tax applies at 25% to net taxable income from Panamanian sources. For companies with taxable income above $1.5 million, the CAIR comparison uses the greater of ordinary tax or 4.67% of gross taxable income. Foreign-source income is generally exempt under the territorial system. From fiscal year 2027, certain multinational-group entities may instead owe 15% on foreign-source passive income unless they meet the economic-substance requirements in Law 526 of 2026. Country guide | Peru's corporate income tax (Impuesto a la Renta de Tercera Categoría) is levied at 29.5% on net taxable income. Monthly advance payments (pagos a cuenta) of approximately 1.5% of net monthly revenue are required throughout the year, with a final settlement in April. Country guide |
| Local management or representation | Panama does not require directors to be Panamanian nationals or residents. The law requires a minimum of three directors or officers, typically a President, Secretary, and Treasurer, who can be of any nationality and don't need to live in Panama. What is mandatory is a licensed Panamanian resident agent, an attorney or law firm that must be maintained on record at all times: if the company goes more than 90 days without one, the Public Registry suspends its corporate rights, with fines of $1,000 plus $100 per day until the gap is cured. NavviPal provides resident agent services as part of our corporate package. Country guide | Peru requires companies to have a legal representative (Gerente General) who is a Peruvian national or legal resident. NavviPal provides a qualified local legal representative who acts solely on your company's instructions with full indemnity protections. Country guide |
| Payroll and employment | Panama's labor framework is governed by the Código de Trabajo. Panama has a structured social security system administered by the CSS (Caja de Seguro Social), with employer contributions among the more significant in Central America. Country guide | Peru's labor framework is governed by the Decreto Legislativo 728 (LPCL). Employers must budget for mandatory CTS (severance), profit sharing (under certain conditions), and social security contributions. Country guide |
| Formation timeline | 6-12 weeks Country guide | |
| Foreign ownership | Panama permits 100% foreign ownership across virtually all sectors with no local shareholding or directorship nationality requirements. Panama's legal framework is specifically designed for international holding structures, asset protection vehicles, and regional headquarters. Bearer shares were abolished in 2015, and all ownership is registered. There are no restrictions on profit repatriation, though multinational-group entities relying on the territorial exemption for foreign-source passive income should confirm their exposure to Law 526's 2027 economic substance requirement before assuming that income stays untaxed. Country guide | Peru permits 100% foreign ownership in most sectors. All economic ownership can be held by foreign nationals, but a Peruvian national or foreign resident with a valid work visa must serve as Gerente General. Restrictions apply in broadcasting, commercial aviation, and land within 50km of national borders. Foreign investment registration with PROINVERSIÓN is optional but recommended for stabilization agreements and investment recovery guarantees. Country guide |
| Corporate bank-account timeline | 2-8 weeks Country guide | |
| NavviPal formation fee | $3,500 Country guide | $3,500 Country guide |
| VAT or indirect tax | Panama's ITBMS (Impuesto de Transferencia de Bienes Muebles y Servicios), VAT, is levied at 7% on most goods and services. A 10% rate applies to alcoholic beverages, and a 15% rate to tobacco. Panama's VAT rate is among the lowest in Latin America. Monthly ITBMS declarations are required for entities with commercial activity in Panama. Country guide | Peru's VAT (IGV, Impuesto General a las Ventas) is levied at 18% (16% IGV + 2% municipal promotion tax, IPM). Monthly IGV declarations are filed electronically through the SUNAT portal. Electronic invoicing (comprobantes electrónicos) is mandatory. Country guide |
| Authorities | DGI (Dirección General de Ingresos): General revenue directorate responsible for RUC issuance and tax administration, Public Registry of Panama: Official registry where companies are incorporated and corporate records are maintained Country guide | SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria): Peru's tax and customs authority responsible for RUC issuance, tax compliance, and customs administration Country guide |
| Entity types | Sociedad Anónima (S.A.), SRL (Sociedad de Responsabilidad Limitada), Branch Office Country guide | SAC (Sociedad Anónima Cerrada), SRL (Sociedad de Responsabilidad Limitada), SA (Sociedad Anónima) Country guide |
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Services you'll need in both markets
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