Registering a yacht under the Panama flag

Pleasure or private yachts pay a single fee of US$1,500 every two years, or US$1,000 when the owner is of Panamanian nationality. It is not a yearly levy, and it excludes the payment of any other fee, tax or charge.

Source: Law 19 of 1992, article 5; Merchant Marine Circular MMC-232, section 6

The permanent patent of navigation and the radio license of a yacht are issued for two years. As with any vessel, the owner can be an individual or a company of any nationality, and must name a resident agent who is a Panamanian lawyer.

Source: Law 57 of 2008, articles 3, 98 and 102

The Authority’s circular MMC-9 says a private yacht can be registered in the National Merchant Marine only if it is 20 meters or more in length, or 50 gross tons or more. The General Merchant Marine Law says all kinds of pleasure craft can be registered and lets the Directorate set their special regime. If your yacht is smaller, we confirm its case with the Directorate before you file.

Source: Merchant Marine Circular MMC-9, revised October 2011, section 1; Law 57 of 2008, articles 96 and 98

Circular MMC-171, of May 2026, says pleasure yachts are not subject to the flag safety inspection unless the Flag State Inspection Section orders it. It is later than circular MMC-9, which still says foreign service yachts are inspected every year, and it is issued under the article of the law that lets the Directorate set exceptions.

Source: Merchant Marine Circular MMC-171, section 4.3; Merchant Marine Circular MMC-9, section 2; Law 57 of 2008, article 117

A yacht chartered for profit is not a pleasure craft under the law, which defines it as used for non-profit activities, so the yacht fee does not apply to it. Panama applies the Red Ensign Group Yacht Code: part A for yachts of 24 meters or more in commercial use carrying up to 12 passengers, and part B for 12 to 36 passengers.

Source: Law 57 of 2008, article 168, numeral 10; Merchant Marine Circular MMC-370

• Whether a yacht under 20 meters and 50 gross tons can be registered: the circular and the law point in different directions, and the Directorate decides case by case.
• Whether a Panamanian company owned by foreigners counts as an owner of Panamanian nationality for the US$1,000 fee.
• Which fees a commercial yacht pays: the circulars we have read do not say it pays as a merchant ship.

• Provisional and permanent registration
• The official fees
• Crew certificates