Benefits of Becoming a Resident in Panama

The tax regime

Panama’s tax regime is territorial, this means that Panama will tax all income that is sourced locally, regardless of residency status. This presents a great advantage for foreign investors and digital nomads, as their income most likely is sourced outside of Panamanian territory, thus their income tax will be 0%.

  • spend 183 days in Panama, or;
  • Proof to the tax office that they have strong links with the country that they do not have with any other country.

Ease of business

In Panama, when compared to other jurisdictions, you can be in business in an expedite time. For reference, opening a legal entity takes approximately 2 weeks, a business license for services takes 3 days to be issued and municipality registration takes about 2 weeks. There is no requirement to liquidate the investment, and for most businesses the declared initial investment is USD $10,000, for nominative purposes.

Easily Maintain your Residency

And finally, one of my favorite benefits is that when you become a resident of Panama, you do not have to stay in the country for certain number of days to maintain your residency. You can make Panama your hub to travel the world and come back a few days every 2 years and still be in good standing to maintain your residency status.

Learn More About Obtaining Residency in Panama

Ivette is a freelance business and immigration lawyer in Panama. She has over 9 years of experience in various legal areas concerning relocation.

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