I remember talking to a colleague from Panama and I told him he probably loves the fact they got territorial taxation, and he was all confused and said "I don't know man, I pay a lot in taxes here". So I had to look into the definition of "foreign-source income". In short, income is almost never "foreign-source" if you're actually working in the country, even if the income is coming from clients abroad. Could still be structured properly, but for most people the juice ain't worth the squeeze.
Off topic. Would you consider a video on Gibraltar? I've heard you dismiss it in a past video (when you were in Portugal I think?) but it appears to tick a lot of boxes for me - UK based, African clients, finance industry. Thank you for the work and time you spend on these videos.
Even after having ditched the Friendly Nations option (bummed we missed out on that), Panama still, to my knowledge has the pension visa which makes spending time there easy and quite affordable... As I understand it. Thank you, sir. Always a pleasure to see what you have to say.
As far as I know (I talked to a Panamanian lawyer yesterday) they still have the friendly nations options, meaning that you can invest $200,000 in Panama (like buy a home) and you’ll get the residency, if you don’t have a passport from a friendly nation then the investment is $300K
If you're looking for citizenship by investment, he has a bunch of videos on that. Panama, if memory serves, varies by single/married but is somewhere in the ballpark of $100k in a real estate investment gets you there.
There's a different channel all about that topic here on RUclips, and it has _nothing at all_ to do with this one (or me, for that matter). Search for "Panama Relocation Tours" and you'll find it.
It's a strange place to live. Visited friends there that had permanent residency. It‘s fun for a week or two but then the heat and humidity starts to slow you down. None of my friends lasted longer than a couple of years although they told me they would never leave 😂
@@theoriginalkage no, they have higher altitude regions like Boquete or Volcan, which are the whole year at good temperatures, the same in Costa Rica, or regions in Colombia, Mexico, and so on.
Hi Sean, depends on the complexity of your current circumstances (if any businesses are involved, etc.). Feel free to message us first through the website
I watched your previous video ...in which u said don't get American passport...cause double taxation....what about only until getting green card.....only
If a person is retired in Panama and receives income from bank deposit interest, pension and off-shore investments, is that income all tax-free (as long as that person is not a US citizen)?
I think this should be clarified. Panama has no CFC rules and is a Territorial tax country. 100% that a Panama company with clients or operations or whatnot abroad still may be on the hook if you control it locally from Panama, hence the Panama "source". Although, gets a little confusing cause while you run the risk of your Panama company being treated locally, how would a Cayman company be taxed in Panama if there's no CFC rules?? Switzerland, Monaco same boat. So basically Panama is a good hub to manage investments, just not Panamanian ones haha.
This is somewhat inaccurate. People tend to confuse the 3 sets of rules (corporate residency, source income and CFC) and group them together. Each of these is it's own set of rules that concerns different things. Controlling from Panama doesn't mean all the income is sourced locally. Panama is somewhat permissive on corporate residency rules. Not great but moderate. Then there's the big thing people overlook with Panama, which is dividend withholding taxes.
@@OffshoreCitizen So its 5% on foreign source profits you pay yourself as a Panama resident? I guess im confused with management and control, CFC and Territorial Tax Territorial is great for Passive income. CFC is great for foreign companies not getting zinged but what places do not have management and control rules to not always have to be moving about? To clarify my objective is to reside in Panama (under friendly nations visa) be an employee of a local Panama corp but have the biggest chunk of wealth be in a foreign Nevis company.
Under a territorial taxation system, do online workers living in the country who earn a salary from a foreign employer outside the country have to pay income taxes?
If you are an employee under that company, it should be foreign sourced income, but if you are an contractor you will have to pay taxes. So then if you are a Panama business owner you want to do the opposite - hire international contractors to do the work for you to make it foreign sourced income.
Digital nomads in Panama do not pay taxes on income from outside the country (assumption here they know you are working inside of Panama). It is called a shorty stay visa (1 year) so via default residency is established. Thus, why would one be subjected to local taxes if working online, earning wages outside of Panama on a different visa program?
I remember talking to a colleague from Panama and I told him he probably loves the fact they got territorial taxation, and he was all confused and said "I don't know man, I pay a lot in taxes here". So I had to look into the definition of "foreign-source income". In short, income is almost never "foreign-source" if you're actually working in the country, even if the income is coming from clients abroad. Could still be structured properly, but for most people the juice ain't worth the squeeze.
He must be an idiot then because I know lots of people that legally pay zero tax with the territorial tax system. Nice try though.
Off topic. Would you consider a video on Gibraltar? I've heard you dismiss it in a past video (when you were in Portugal I think?) but it appears to tick a lot of boxes for me - UK based, African clients, finance industry. Thank you for the work and time you spend on these videos.
Good suggestion, sure
Careful. Look at latest budget speech from 06/22. Poison
Even after having ditched the Friendly Nations option (bummed we missed out on that), Panama still, to my knowledge has the pension visa which makes spending time there easy and quite affordable... As I understand it.
Thank you, sir. Always a pleasure to see what you have to say.
Yes. Could you see yourself living there?
@@OffshoreCitizen
Yeah, but not for more than a few months a stretch. January through March maybe.
As far as I know (I talked to a Panamanian lawyer yesterday) they still have the friendly nations options, meaning that you can invest $200,000 in Panama (like buy a home) and you’ll get the residency, if you don’t have a passport from a friendly nation then the investment is $300K
thanks
Could speak about Paraguay? Thanks
Is it possible to open bank account for panama company outside pamana?
yes, highly recommended to do so.
Leading a company as CEO from Panama can make this company's income be considered local?
Thanks for the clarification!
Always a pleasure. What do you think of Panama?
What about going to Panama as a retired person? Thanks
If you're looking for citizenship by investment, he has a bunch of videos on that. Panama, if memory serves, varies by single/married but is somewhere in the ballpark of $100k in a real estate investment gets you there.
@@goofballbiscuits3647 I'm going single, not interested at the time in buying. Retired from Canada.
You can do it
There's a different channel all about that topic here on RUclips, and it has _nothing at all_ to do with this one (or me, for that matter). Search for "Panama Relocation Tours" and you'll find it.
...with a sizeable portfolio
It's a strange place to live. Visited friends there that had permanent residency. It‘s fun for a week or two but then the heat and humidity starts to slow you down. None of my friends lasted longer than a couple of years although they told me they would never leave 😂
This is also our experience :D
So every country in the tropics is terrible and unlivable by this description.
@@theoriginalkage no, they have higher altitude regions like Boquete or Volcan, which are the whole year at good temperatures, the same in Costa Rica, or regions in Colombia, Mexico, and so on.
Hey Michael, i am thinking about relocating, will a 30 minutes meeting provide me with a plan on how to setup a residency to pay less tax ?
Hi Sean, depends on the complexity of your current circumstances (if any businesses are involved, etc.). Feel free to message us first through the website
Panama is great 🇵🇦🇵🇦🇵🇦
What do you think makes Panama great?
I watched your previous video ...in which u said don't get American passport...cause double taxation....what about only until getting green card.....only
Same rules apply as a US Citizen unless you give up your green card.
If I’m a contractor getting paid from US am I all good
What about capital gains in stocks and crypto?
That should be simpler, if it's non-Panamanian stock its not taxed
If a person is retired in Panama and receives income from bank deposit interest, pension and off-shore investments, is that income all tax-free (as long as that person is not a US citizen)?
@@robinrickards7483 good question, I think yes, I think they have also a limit of income at which taxation starts.
I think this should be clarified. Panama has no CFC rules and is a Territorial tax country. 100% that a Panama company with clients or operations or whatnot abroad still may be on the hook if you control it locally from Panama, hence the Panama "source". Although, gets a little confusing cause while you run the risk of your Panama company being treated locally, how would a Cayman company be taxed in Panama if there's no CFC rules?? Switzerland, Monaco same boat.
So basically Panama is a good hub to manage investments, just not Panamanian ones haha.
This is somewhat inaccurate.
People tend to confuse the 3 sets of rules (corporate residency, source income and CFC) and group them together.
Each of these is it's own set of rules that concerns different things.
Controlling from Panama doesn't mean all the income is sourced locally. Panama is somewhat permissive on corporate residency rules. Not great but moderate.
Then there's the big thing people overlook with Panama, which is dividend withholding taxes.
@@OffshoreCitizen So its 5% on foreign source profits you pay yourself as a Panama resident?
I guess im confused with management and control, CFC and Territorial Tax
Territorial is great for Passive income. CFC is great for foreign companies not getting zinged but what places do not have management and control rules to not always have to be moving about?
To clarify my objective is to reside in Panama (under friendly nations visa) be an employee of a local Panama corp but have the biggest chunk of wealth be in a foreign Nevis company.
Under a territorial taxation system, do online workers living in the country who earn a salary from a foreign employer outside the country have to pay income taxes?
If you are an employee under that company, it should be foreign sourced income, but if you are an contractor you will have to pay taxes. So then if you are a Panama business owner you want to do the opposite - hire international contractors to do the work for you to make it foreign sourced income.
Digital nomads in Panama do not pay taxes on income from outside the country (assumption here they know you are working inside of Panama). It is called a shorty stay visa (1 year) so via default residency is established.
Thus, why would one be subjected to local taxes if working online, earning wages outside of Panama on a different visa program?
Most developed country and most trash in streets, even nice streets have garbage . Is it worth it ?
Why do you think that is?
@@OffshoreCitizen Seems you have a BOT set up to reply with random questions to massage the algorithm
Yeah, don't move to Panama. Stay away from it👍