Probably, the weightiest advantage that Panama offers is its legislation that allows the corporations (aka International Business Companies, IBC) registered in the country to do tax-free business abroad. The territorial taxation system is applied in very few countries and it is appreciated by international entrepreneurs from all over the world. A Panamanian-based company will let you plan your taxes and lessen your fiscal burden significantly. An offshore company in Panama is going to be an efficient instrument that you can use for entering foreign markets or effectively protecting your assets.