The San Blas Archipelago stretches off the Atlantic coast of Panama, whose 378 islands and islets await visitors with crystal blue waters and palm-fringed icing sugar beaches. Welcome to the easy-access tax haven Panama!
Unfortunately English is not a common language in Panama. Fortunately, they speak Spanish and not some little-used language, as for example in Thailand.
Panama is a very safe country with no noteworthy attacks on tourists or foreigners. Only border regions such as Darién should be avoided. Yes, there are some dangerous drug dealers near the columbian border.
In the tropical environment of Panama is always good weater between 24-33°C. Even in rainy seasons you'll enjoy it for sure. A breathtaking variety of flora and fauna meets highly civilised cities and also simple villages.
Panama is providing a lot of agricultural products like bananas, cocoa beans, coffee, coconuts, timber, beef, chicken, shrimp, corn, potatoes, rice, soybeans, and sugar cane. However, Panama imports also a lot of food from the US and some other countries.
The tap water in Panama City is very safe to drink, as is the water in most other parts of the country. Just some provinces require a water purifier or bottled water.
In Panama one drives on the right side of the street. The traffic in the capital is not for the faint of heart. However, beside that it should be OK.
With the Panama Friendly Nations Visa it is very easy to get a permanent residence. Countries: Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Monaco, Montenegro, Netherlands, New Zealand, Norway, Paraguay, Poland, Portugal, San Marino, Serbia, Singapore, Slovakia, Spain, South Africa, South Korea, Sweden, Switzerland, Taiwan, United States of America, Uruguay and United Kingdom.
Those who live in Panama are subject to local territorial taxation. In plain language: only income that is earned in Panama or funds that reach Panama are taxed. All other foreign income does not have to be declared and is therefore tax-free. So enjoy this beautiful environment with a value added tax of 7%.
Within Panama the corporate tax is very high (25% but multinationals can negotiate). If you want to earn money in Panama, we advice you to combine it with another tax haven like Canada.
Income tax (wages, rent, etc.), progressive
0 - 11 TUSD Annual Income: 0%
11- 50 TUSD Annual income: 15%.
> 50 TUSD Annual income: 25%
Capital Gain Tax 10% (Taxation of profits)
Interest income is tax-free.
There is no inheritance tax in Panama.
The real estate market in Panama is internationally one of the most interesting locations for real estate investments.
The following information has some special rules which you can benefit from in several situations.
Real estate sales tax: 2% on the sales value
Real estate tax
up to 30,000 USD / exempted
30,000 - 250,000 USD / 0.6% p.a.
250,000 - 500,000 USD / 0.8% p.a.
over 500,000 USD / 1.0% p.a.
You need to prove “professional and economic ties with the Republic of Panama“. That’s why you first have to establish a Panama company.
You additionally need “Proof of Economic Solvency is a requirement“. That’s why you first need to get a Panama bank account and deposit temporarily 5,000 USD in it. Solvency is not defined but this amount should be enough as experience says. It depends on immigration officer.
After the application is filed along with all required documents the immigration office will issue a one year temporary residency card (carnet) which will be replaced by a permanent residency card once the application is approved.
Get a personal bank account in Panama. Maybe you need to try several banks. We can set up interview dates as soon as you know when you can come to Panama. Here you better have some documents prepared. I don’t know if all are always necessary but those are the recommendations I can give. The better you are prepared the easier it will be:
Get your documents in your country and their authorization by the Panama consulates.
When the immigration application process starts you need to be at least 7-9 business days in Panama City.
Finishing the immigration process: Once the approval comes in you will get informed by the agency and you have 3 month time to go to Panama for personally getting your new Panama ID card.
Getting the Permanent Residency Card. 2-3 month after your ID you need to come back to get your Permanent Residency Card issued by the Civil Registry (“cedula”). It takes 2-3 business days.
You have to visit Panama every 2 years to keep the Permanent Residency. You can now check for an affordable “address” with utility bills. The agency might know how to get one.
Estimated Fees & Costs
FEES: Legal Fees
FEES: Company Formation
FEES: Our Service Flat Rate
EXPENSES: Rights of Application
EXPENSES: Immigration Deposit
EXPENSES: Temporary Card
EXPENSES: Permanent Card
EXPENSES: Multiple Return Visa
EXPENSES: General (Notary, Health, etc)
EXPENSES: Banking Lobby
The total is approximately =
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