Commercial Vessel Registration in Panama
Overview
In Panama, commercial vessel registration—also known as flagging or enrolment—is available to both natural and legal persons, regardless of nationality. This means that individuals or companies from any country can apply to register a vessel under the Panamanian flag. Once approved, it may operate legally under Panamanian jurisdiction, whether for inland or international service.
At Kraemer & Kraemer, we provide specialized maritime legal services to guide clients through the registration process in compliance with national regulations and international standards.
Advantages of Panamanian ship registration
- A reliable ship mortgage system backed by national and international banks.
- Panamanian offices operating 24 hours a day to serve the Asian and European continent despite the time difference.
- Strategic representation in 70 countries around the world through merchant marine consulates.
- Adoption of the quality system.
- Strict compliance with international conventions on maritime safety, ISM, STCW 78/95, among others.
- Exemption from taxes on profits from the activity carried out.
- Through Law 25 of June 3, 2002, an additional discount of up to twenty-five percent (25%) on the Annual Tax and fifty percent (50%) on the Annual Consular Fee may be granted, for a term of four years, provided that they are groups of at least four newly built vessels representing at least, more than fifty thousand gross registered tons (50,000 GRT) up to one hundred thousand gross registered tons (100,000 GRT) and groups of four vessels of more than 100,000 GRT, an additional discount of up to 35% on the Annual Tax and 50% on the Annual Consular Fee, provided that the owner or owners commit to maintaining the vessel in the Panamanian registry for a term of four years.
- Owners and operators of vessels under the Panamanian flag have access to the system contemplated in the Corporations Law.
- There are no minimum tonnage requirements; however, vessels older than 20 years will have to pass a special inspection by an authorized Panamanian inspector to obtain a regulatory patent.
- Owners of vessels wishing to transfer them to the Panamanian flag will not have to be re-inspected if the vessels have a valid safety and tonnage certificate issued by a recognized organization or society; however, at the time of registration, a recognized entity must issue new certificates on behalf of the Panamanian administration.
Flagging rates by tonnage
| Gross Registered Tonnage (GRT) | Rate |
|---|---|
| Ships up to 2,000 GRT | USD $500 |
| Ships of 2,000 – 5,000 GRT | USD $2,000 |
| Ships of 5,000 – 15,000 GRT | USD $3,000 |
| Ships larger than 15,000 GRT | USD $3,000 Vessels over 15,000 GRT will pay B/.0.10 per GRT up to a maximum of B/.6,500.00. |
Order your Commercial Vessel Registration
Please enter Gross Registered Tonnage (GRT):
Contact us
Start your Panama commercial vessel registration today. Contact us at info@kraemerlaw.com for personalized legal support.
Frequently Asked Questions
A: Panama allows the registration of many types of commercial ships, including cargo vessels, tankers, bulk carriers, container ships, and support vessels. There are no minimum tonnage requirements, so owners can register fleets of all sizes.
A: Ships registered for international service don’t pay income tax on profits made outside Panama. Additionally, Panama grants tax and consular fee discounts for new or large fleets, according to Law 25 of 2002.
A: No, it doesn’t. Panama doesn’t require the vessel to be located in the country for commercial ship registration. According to Laws 55 and 57 of 2008, vessels built abroad or still under construction can be registered. The process can be handled from abroad, through a legal representative or a Panamanian maritime consulate, as long as the needed information is submitted and the required fees are paid.
A: Vessels over 20 years old must undergo a special inspection conducted by a technician authorized by the Panamanian Maritime Authority. This is to confirm that the vessel meets Panama’s minimum safety requirements. For vessels under 20 years, this inspection is generally not required.
However, an inspection might be requested: for example, if there are inconsistencies in the documentation, if the vessel has changed its intended use, remained inactive for an extended period, or comes from a flag not recognized by Panama. These situations are reviewed individually by the Maritime Authority.
A: If the vessel already holds valid safety and tonnage certificates issued by an internationally recognized organization, a new inspection is generally not required when transferring it to the Panamanian registry. However, as part of the registration process, a recognized entity must issue updated certificates on behalf of the Panamanian administration in order for them to be valid under its flag.