Panama is one of the most popular places to flag a vessel from a huge ship to a private yacht.  As an example a tax in Europe to register a new Yacht can be 20% of the purchase price.  The tax and operational liability consequences are even greater for large vessels.

The registration of vessels carrying the Panamanian flag represents 22.3% of the worldwide maritime fleet, contributing $70 million to the state and another $200 million to the economy indirectly.

The Directorate General of Merchant Marine seeks to increase the international registration of ships carrying the Panamanian flag, attracting new customers or operators.

In recent years, there has been a reduction in the number of ships registered in Panama, said Panamaamerica.com.pa.

“The decline is due to measures taken by the Directorate General of Merchant Marine to clear the register of boats considered substandard, but in turn, it is seeking to increase registration of newly-built ships with greater tonnage,” said deputy Merchant Marine, Juan Pablo Fabrega.

Source: Panamaamerica.com.pa