Changing flag to or from Panama
To enter the Panama registry, a ship needs the deletion certificate of its previous registry. To leave, the owner files for deletion with a certificate that no debts are owed, the ship free of liens or with the creditor’s consent, and a US$1,000 fee.
A consent to deletion, valid 30 days, prepares the change. A ship can also fly the Panama flag under a bareboat charter without leaving its original registry.
Coming into the Panama registry
For the permanent patent, the owner files the deletion certificate of the previous registry, or the builder’s certificate or the judicial sale if the ship comes from a shipyard or an auction, legalized when it comes from abroad. Before that, the ship goes through the precheck.
Source: Law 57 of 2008, article 27; Merchant Marine Notice MMN-11/2024
Leaving the Panama registry
- A certificate that no fees or taxes are owed.
- The ship free of liens, or the creditor’s consent.
- The title in the name of the applicant.
- The name of the buyer, the new registry and the reason for deletion.
- The deletion fee of US$1,000.
Source: Law 57 of 2008, articles 46 and 47; Merchant Marine Circular MMC-233, section III; Merchant Marine Circular MMC-232, section 2
The consent to deletion
Before the deletion, the Directorate can issue a consent to deletion, valid 30 calendar days. It suspends charges, and it can be recorded at the registry on a preliminary basis, which blocks new recordings. With a consent issued in December, the next year’s fees are not due if the deletion is filed while it is valid.
Source: Law 57 of 2008, articles 48 and 57 to 61
Bareboat charter registration
A foreign ship chartered bareboat to a charterer can fly the Panama flag without giving up its original registry, if that registry allows it. It pays all Panamanian fees in advance, its special patent lasts as long as the charter, and its title and mortgages are not recorded in Panama. A Panamanian ship chartered abroad needs the Directorate’s consent and keeps all its tax obligations with Panama.
Source: Law 57 of 2008, articles 70 to 87; Merchant Marine Circular MMC-35, August 2022
Cancellation for sanctions
Panama cancels the registration of ships that are, or whose registered owners are, on the OFAC, United Nations, European Union or United Kingdom sanctions lists. The recorded mortgage stays, and the creditor is notified. The owner can ask for reconsideration within 2 business days, or appeal within 2 business days to the Administrator.
Source: Executive Decree 512 of 2024, articles 1 to 6
Questions people ask
How much does deletion from the Panama registry cost?
The deletion fee is US$1,000.
How long is a consent to deletion valid?
Thirty calendar days.
Can a ship keep its flag and fly Panama’s under a bareboat charter?
Yes, if its original registry allows it. The Panamanian registration lasts as long as the charter.
What the law does not say
- How long a deletion takes to process.
- The charges for a consent to deletion and the fee for recording a bareboat charter.
- The fee for the special temporary registry for scrapping or delivery voyages. The 1992 rate was repealed, and the current amount set by the Authority’s board is not in what we have read.
Header photo: Paul Harrison, CC BY-SA 4.0, cropped.
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.