Law 57 of 2008 · General Merchant Marine Law
How to register a ship under the Panama flag
Any person or company of any nationality can register a ship in Panama, with no domicile required, through a resident agent who must be a Panamanian lawyer.
Registration starts with a precheck, then a provisional patent of navigation and a provisional radio license, each valid for up to six months, issued by the General Directorate of Merchant Marine or a merchant marine consulate. Within that time the owner files for the permanent patent, which lasts up to five years.
- 6months, provisional patent and radio license
- 5years at most, permanent patent
- 15days, validity of a precheck
- US$1,500yacht fee every two years
Registering a ship in Panama, from precheck to permanent patent
Who can register a ship
Any person, individual or company, can register one or more vessels it owns in the Panamanian Merchant Marine, with no special requirement of nationality or domicile. A foreign owner does not need to form a Panamanian company to do it.
Every owner names a resident agent, a lawyer or law firm licensed to practice in Panama. The agent files requests, makes payments and receives notices for the vessel, and must keep the owner’s contact details up to date.
Source: Law 57 of 2008, articles 3, 102, 103 and 105
Step one: the precheck
Before any vessel enters the registry, the Panama Maritime Authority runs a precheck. A Panamanian law firm or a Panamanian merchant marine consulate requests it, and the Authority assesses the risk of the ship, its owner, its operator and its charterer. The answer is approved or rejected, sometimes with conditions to meet after registration, and it is valid for 15 calendar days.
A new precheck is needed if the data change, and it is also required when the owner or bareboat charterer of a ship in international service changes. A change of name or operator alone does not need one.
Source: Merchant Marine Notice MMN-11/2024, revised May 2026, paragraphs 3 to 13
Age limits
The Authority does not accept oil tankers or bulk carriers over 15 years old, with exceptions up to 20 years after a satisfactory internal risk assessment. Tankers that will operate in Panamanian waters can be accepted up to 25 years old with an operating license. For other types of ship there is no fixed age, but the law lets the Authority weigh age as a reason to refuse registration.
Source: Merchant Marine Notice MMN-11/2024, paragraphs 8 and 9; Law 57 of 2008, article 5
Provisional registration
Once the precheck is approved and the fees are paid, the General Directorate of Merchant Marine or an authorized consulate issues a provisional patent of navigation and a provisional radio license. Both are valid for up to six months. The Directorate can grant up to six more months, and further extensions only for justified causes not attributable to the owner.
Source: Law 57 of 2008, articles 23 to 25
Permanent registration
Within the provisional period the owner files, through a lawyer in Panama, for the permanent patent. It requires the title recorded at the Public Registry, the appointment of the resident agent, the deletion certificate from the previous registry or the builder’s certificate, the technical and safety certificates, a satisfactory inspection and the payment of fees. Cargo ships also file their International Tonnage Certificate and their Safety Management Certificate.
The permanent patent is issued for up to five years. A reform of the General Merchant Marine Law that would change this has been authorized for presentation to the National Assembly, but no reform law has been enacted, so the 2008 rules apply.
Source: Law 57 of 2008, articles 26, 27 and 31; Merchant Marine Circular MMC-233, section II; Cabinet Resolution 5 of 2024
What the State charges
The official fees are set by law and published by the Authority in circular MMC-232. For a bulk carrier of 5,000 gross tons and 3,000 net tons, the yearly charges add up to US$3,640, and the first year adds a one-time registration fee of US$2,000. Groups with several ships and ships with no port state detentions in 24 months can get discounts.
Source: Merchant Marine Circular MMC-232, sections 1 and 5 to 8; Law 4 of 1983, articles 3 to 6; Law 57 of 2008, articles 149 to 152
Taxes
Income from the international maritime trade of merchant ships registered in Panama is not subject to Panamanian income tax, even when the contracts are signed in Panama. Activities carried out in Panamanian waters are taxed.
Panama’s new economic substance law, Law 526 of 2026, applies from the 2027 tax year, and it has a specific exclusion for entities that operate ships registered in Panama and meet three conditions.
Source: Tax Code, article 708, literal e, as worded by Law 57 of 2008, article 172; Law 526 of 2026, articles 6 and 707-M
Where you can register
Provisional registration, the preliminary recording of title deeds and mortgages, and pre-cancellation notices can be handled at the General Directorate of Merchant Marine in Panama or at the merchant marine consulates on the Authority’s official list. SEGUMAR offices provide technical support and certificates; in what we have read they do not issue provisional registrations.
Source: Merchant Marine Circular MMC-3, November 2023; Law 57 of 2008, articles 109, 110 and 156
Financing: the ship mortgage
A ship mortgage can be written in any language and recorded first on a preliminary basis, at a consulate or at the registry in Panama. The preliminary recording has the full effect of the final one for six months, and the final recording relates back to its date and hour.
Source: Law 55 of 2008, articles 251, 252 and 260
Sanctions screening
Panama cancels the registration of vessels that appear, or whose registered owners appear, on the OFAC, United Nations, European Union or United Kingdom sanctions lists, and refuses to register them. A duly recorded mortgage remains in place, and the registry notifies the creditor.
Source: Executive Decree 512 of 2024, articles 1 to 7; Law 57 of 2008, article 49
Key points
-
Owners can be individuals or companies of any nationality, with no domicile in Panama.
Source: Law 57 of 2008, article 3 -
Every registered vessel needs a resident agent, who must be a lawyer or law firm licensed in Panama.
Source: Law 57 of 2008, article 102 -
The provisional patent of navigation and the provisional radio license are each valid for up to six months.
Source: Law 57 of 2008, article 23 -
The permanent patent is issued for up to five years.
Source: Law 57 of 2008, article 26 -
Income from international maritime trade of Panamanian ships is not taxed in Panama; activities in Panamanian waters are.
Source: Tax Code, article 708, literal e, as worded by Law 57 of 2008, article 172 -
A preliminary mortgage registration has the full effect of the final one for six months.
Source: Law 55 of 2008, article 252
Guides
The Panama Maritime Authority, its consulates and SEGUMAR
What the Panama Maritime Authority does for registered ships: the Directorate of Merchant Marine, the consulates, SEGUMAR and the circulars.
Why so many ships fly the Panama flag
Why owners choose the Panama flag, in the law itself: an open registry, tax-exempt international shipping income, consulates abroad and fleet discounts.
Changing flag to or from Panama
Changing flag to or from Panama: the deletion certificate, the 30-day consent to deletion, the US$1,000 fee, bareboat charters and sanctions.
Crew certificates and the MLC on Panama-flagged ships
Crew rules on Panama-flagged ships: STCW certificates, endorsements of foreign certificates under Regulation I/10, and the MLC certificate.
Registering a yacht under the Panama flag
Register a private yacht under the Panama flag: the US$1,500 fee every two years, the two-year patent, the MMC-9 size rule and inspections.
Registering a ship mortgage in Panama
How a ship mortgage is recorded in Panama: any language, a preliminary recording with six months of full effect, its rank and the official fee.
Provisional and permanent registration: patent of navigation and radio license
Panama’s two-step ship registration: the precheck, the six-month provisional patent and radio license, and what to file for the permanent patent.
Panama ship registration fees and annual tax
Official Panama ship registry fees from circular MMC-232: registration, annual tax, consular, inspection and casualty fees, an example and discounts.
Registering a ship under construction in Panama
How a newbuilding enters the Panama registry before delivery: registry data in advance, the builder’s certificate as title and a mortgage.
How we work with you
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