Setting Yourself Up To Work Tax-Free In Panama

“Kathleen, based on a recent email from you, I believe I can I enter Panama as dependent on a pensionado visa with my wife who will be retired and work online. All my customers and business transactions are done online. But we will be present in Panama, and I plan to receive my salary from my offshore corporation set up in either Belize or Nevis.

“Or do I need to have the new visa Panama is now offering?

“Note that I have dual citizenship, United States and France.

“I am also a subscriber to your newsletter.

“Thank you for your help and advice.”

–Bernard R., United States

As a resident of Panama on a pensionado visa, you can’t take a job or be an employee of someone else’s business. However, you can work in your own business, as it seems you’re planning to do. If that business is online and run through a non-Panama corporation (for example, a corporation in Belize or Nevis, as you’re suggesting), then you’d have no tax obligation in Panama on the income you earn.

However, as an American, you would still have a filing and, depending on the amount of income you take out of the company, a tax obligation in the United States.

Continue reading: 9 Top Expat Retirement Communities

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