Frequently asked questions
Short answers to what owners ask most about the Panama flag, each with the rule behind it.
Can a foreigner register a ship in Panama without a company?
Yes. Any individual or company can register a vessel it owns, with no requirement of nationality or domicile.
Source: Law 57 of 2008, article 3
Do I need a resident agent?
Yes. Every registered vessel must have a resident agent, who must be a lawyer or law firm licensed in Panama.
Source: Law 57 of 2008, article 102
How long is the provisional patent valid?
Up to six months, and so is the provisional radio license. Up to six more months can be granted.
Source: Law 57 of 2008, articles 23 and 24
How long does the permanent patent last?
Up to five years. Yachts get a two-year patent.
Source: Law 57 of 2008, articles 26 and 98
Is there a maximum age for ships?
For oil tankers and bulk carriers, 15 years, with exceptions up to 20. Other types have no fixed limit, though age can be a reason to refuse registration.
Source: Merchant Marine Notice MMN-11/2024, paragraph 8; Law 57 of 2008, article 5
Who requests the precheck?
A Panamanian law firm or a Panamanian merchant marine consulate. It is valid for 15 calendar days.
Source: Merchant Marine Notice MMN-11/2024, paragraph 5
How much does a yacht pay?
A single fee of US$1,500 every two years, or US$1,000 when the owner is of Panamanian nationality, which excludes any other fee or tax.
Source: Law 19 of 1992, article 5
How much does it cost to delete a ship from the registry?
The deletion fee is US$1,000, and the ship must be free of debts and liens or have the creditor’s consent.
Source: Law 57 of 2008, article 46; Merchant Marine Circular MMC-232, section 2
Is shipping income taxed in Panama?
Income from international maritime trade of Panamanian ships is exempt. Activities in Panamanian waters are taxed.
Source: Tax Code, article 708, literal e
Can a ship under construction be registered and mortgaged?
Yes. Registry data can be assigned before the ship is finished, and a mortgage can be recorded once the ownership is recorded, using the builder’s certificate as title.
Source: Law 57 of 2008, articles 40 to 44; Law 55 of 2008, article 263
Does a mortgage survive a cancellation for sanctions?
Yes. The decree on sanctions says the recorded mortgage remains and the creditor is notified.
Source: Executive Decree 512 of 2024, article 4
Has the reform of the Merchant Marine Law been approved?
No reform law has been enacted. In 2024 the Cabinet only authorized presenting the bill, so the 2008 rules on provisional and permanent patents still apply.
Source: Cabinet Resolution 5 of 2024; Law 57 of 2008, articles 23 to 26
Spanish–English glossary
- Autoridad Marítima de Panamá, AMP
- The Panama Maritime Authority.
- Dirección General de Marina Mercante, DGMM
- The General Directorate of Merchant Marine, which runs the ship registry.
- Patente de navegación
- The patent of navigation, the vessel’s certificate of registry.
- Licencia de radio
- The ship radio station license, with the call sign and MMSI.
- Agente residente
- The resident agent, a Panamanian lawyer every owner must name.
- Hipoteca naval
- The ship mortgage.
- Anuencia de cancelación
- The consent to deletion, a 30-day pre-cancellation notice.
- Fletamento a casco desnudo
- A bareboat charter.
- Paz y salvo
- A certificate that no fees or taxes are owed.
The Panama Maritime Authority, its consulates and SEGUMAR
Why so many ships fly the Panama flag
Changing flag to or from Panama
Crew certificates and the MLC on Panama-flagged ships
Registering a yacht under the Panama flag
Registering a ship mortgage in Panama
Provisional and permanent registration: patent of navigation and radio license
Panama ship registration fees and annual tax
Registering a ship under construction in Panama
Registering a vessel in Panama?
Book a free 15-minute call with a Panamanian lawyer. We will tell you what your ship needs and what to prepare.