Don't forget to bring your Panel to the Front when dynamically creating it in the form constructor. Example of transparent panel overlay of tab control.
panel1 = new TransparentPanel();
panel1.BackColor = System.Drawing.Color.Transparent;
panel1.Location = new System.Drawing.Point(0, 0);
panel1.Name = "panel1";
panel1.Size = new System.Drawing.Size(717, 92);
panel1.TabIndex = 0;
tab2.Controls.Add(panel1);
panel1.BringToFront();
// <== otherwise the other controls paint over top of the transparent panel