Do I only pay taxes in Panama if my company is registered here?

It depends on your activities, tax residence, and applicable double-taxation treaties. We evaluate your case to offer the best strategy.

Can I remain anonymous as a shareholder or director?

Panamanian law allows the use of nominee directors and fiduciary structures, although international transparency and AML standards must be followed.

How long does it take to obtain permanent residency?

Processing times range from 3 to 6 months, depending on the visa type and documentation readiness.

Can foreigners buy property in Panama?

Yes, foreigners can buy property almost anywhere in the country (except restricted border zones). Property ownership rights are the same as for citizens.

What are the tax benefits of living in Panama?

Panama uses a territorial tax system — only income earned inside Panama is taxed. Foreign pensions, dividends, remote work income, and capital gains from abroad are completely tax-free for residents.

Can I open a bank account in Panama as a foreigner?

Yes. With the right documentation (passport, proof of income, references, and a valid Panamanian residency), foreigners can open personal and corporate bank accounts at major Panamanian banks. Our team guides you through the entire process.

What is the Digital Nomad Visa in Panama?

Panama's Short Stay Visa for Remote Workers allows digital nomads to live in Panama for up to 9 months while working remotely for foreign companies. Requirements include proof of remote employment or freelance income and health insurance.

How much money do I need to retire in Panama?

With the Pensionado Visa you need a minimum pension of $1,000/month. Living costs in Panama City range from $1,500–$2,500/month for a comfortable lifestyle, making it one of the most affordable retirement destinations in the Americas.

Booming Economy

Panama has built one of Latin America's most dynamic economies, anchored by the Panama Canal, a major international banking sector, and the US Dollar as legal tender alongside the Balboa. Combined with a territorial tax system and no currency exchange risk, this makes Panama a magnet for entrepreneurs, investors, and remote professionals.

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Key Facts

Dollarized Economy

The US Dollar is legal tender in Panama, alongside the Balboa (pegged 1:1). This removes currency exchange risk for American investors and retirees.

Global Trade Hub

The Panama Canal handles a significant share of global maritime trade, making Panama a logistics, shipping, and banking hub for the Americas.

One of Latin America's Fastest-Growing Economies

Over the past two decades, Panama has consistently ranked among the region's fastest-growing economies, driven by trade, banking, tourism, and construction.

Territorial Tax System

Only income generated within Panama is taxed — foreign-sourced income, including pensions, dividends, and remote work earnings, is tax-exempt for residents.

Frequently Asked Questions

Is Panama a good place to start a business or invest? +

Yes. Panama's dollarized economy, territorial tax system, and role as a regional trade and banking hub make it attractive for entrepreneurs and investors — particularly those in international trade, logistics, real estate, or remote-first businesses.

Does Panama have currency exchange risk? +

No. The US Dollar circulates as legal tender alongside the Balboa, which is pegged 1:1 to the dollar, so there is no currency conversion risk for USD-based investors and retirees.

What industries drive Panama's economy? +

The Panama Canal and related logistics, international banking, tourism, construction, and re-export/free trade zone commerce (notably the Colón Free Zone) are among the main pillars of Panama's economy.

Ready to Start Your Panama Journey?

Book a free 15-minute consultation and our attorneys will confirm which visa fits your situation.