Panama residency gives you and your family the right to live, work, invest, and retire in Panama. And one of the best things about having Panama residency is that once you obtain it, you don’t have to spend time in the country to maintain it. This makes it an excellent Plan B option.
Read on about the TOP 4 reasons why you should obtain the Panamanian residency.
#1 Easy Path to Citizenship
Once you obtain your residency, you only need to spend one day every two years in the country to maintain your permanent resident status. This day can be also a simple transit through the airport.
Some countries require you to Some countries require you to spend several months per year to maintain your residency, but not Panama.
From one to five years of permanent residency, you can apply to get your Panamaniam passport, which gives you visa-free or visa on arrival access to 140 countries, ranking the passport 35th in terms of travel freedom according to the Henley Passport Index.
That makes the Panama residency That makes the Panama residency the most sought after of the foreign residency and citizenship programs.
Please read our article about Easy steps to become a Panama Resident with Path to Citizenship.
#2 Panama’s Amazing Tax System
Panama has a territorial tax system, where Panamanian tax residents and companies must pay tax on their Panamanian-sourced income only. Panama does not tax the worldwide income of its tax residents. That means that if you liPanama has a territorial tax system, where Panamanian tax residents and companies must pay tax on their Panamanian-sourced income only. Panama does not tax the worldwide income of its tax residents. That means that if you live in Panama and earn your income outside of Panama you will not be liable to pay most taxes to Panama.
That makes Panama an excellent choice for independent investors or people who run a business that generates income outside of Panama, because you’ll pay very little (if anything) to the Panamanian tax authorities.
US citizens can even use the Foreign Earned Income Exclusion to live in Panama, which would slash their US tax bill to zero on any income below $107,600 in 2020.
#3 Panama’s a desirable International Hub
Panama offers great infrastructure for international businesses and at the same time solid options for asset protection. In fact, Panama corporation and Panama foundation represent one of the best tools available. Improving your standing to that of a local (legal resident) improves the protections afforded through your structure.
At the same time, Panama gives you access to regional and international banks, investments, and other services. To get access to the best banks, you need to have a residency visa. Residency is in fact becoming a common requirement around the world to open an account or start a business.
If you will operate a business or hold significant investments in Panama (especially real estate), having residency in the country will improve your standing. Should you need to sue, or get involved in some type of legal dispute, being a lawful resident will improve your standing and ability to defend your position.
#4 Improve your Quality of Life
Retiring to an attractive an low-cost country like Panama will improve your quality of life.
Residency in Panama offers you a great Plan B (compared to major western and international cities) and/or a great retirement option.
Expats live very well. English is widely spoken. The standard of living is high – Panama City is much like Miami – but much cheaper. And retirees enjoy tremendous benefits like substantial discounts on activities restaurants, airfares and cinemas. The country is close to the US – just a 3-hour flight from Miami and the International Airport of Tocumen is an International Hub connecting the Americas, Caribbean and Europa. Medical services are excellent and Panama is a 100% dollarized economy, so you will only deal with US dollars here.
The weather is great throughout the year. Most days are sunny. And you can choose to spend them in the more tempered highlands with eternal spring weather around Volcan or go down to either the Pacific and the Caribbean Ocean.
For the above reasons, Panama has become a highly sought-after country in terms of permanent residency and citizenship. An investment with Agrorismo will set yourself up for either. Feel free to reach out to one of our consultants to talk further about your plans to invest in Panama.