Interested in moving to Panama?
If you have begun to consider a move to Panama, then you have come to the right source. We have compiled all the information you need in one place. Browse all of our tutorials and guides above, and help yourself make Panama relocation as easy as possible. And don’t forget, download our Panama relocation eBook for free.
Top Reasons to Move to Panama
Low Cost of Living – Panama’s cost of living is significantly lower compared to Europe and the Northern Hemisphere according to a recent Global Cost of Living survey conducted by The Economist. A comfortable salary in Panama is between $1,000-2,000/month, whereby one can live happily. But of course it all depends on your lifestyle. To afford yourself a comparable lifestyle to one lived in a medium size U.S. city, you can expect overall costs to be about 25% less – one of the many great reasons to move to Panama.
Low income tax rates – Income earned outside of Panama is tax free (in Panama) due to Panama’s territorial tax system which only levies taxes on income earned from within the territory of Panama. Panama offers a low 25% corporate tax rate on its corporations. Employees and self-employed in Panama earning less than $11,000 USD are not subject to income taxes. Employees and self-employed who earn between $11,000 USD and $50,000 USD only pay a low 15% tax rate on net income after deductible expenses. Those making $50,000 or higher pay a flat 25% tax rate on their net income after deductible expenses. IMPORTANT NOTE: US persons (citizens or residents) pay tax on their world-wide income regardless of where they reside, therefore, these income tax benefits do not apply to US citizens.
Growing & Stable Economy – Panama has a strong economy which wasn’t hurt by the worldwide economic crisis. In fact, Panama’s economy has grown on average over the past 20 years.
Safe haven for foreign investments – Article 44 of Panama’s Constitution protects real estate private ownership and private investments. The Civil Code of Panama guarantees equal application of the law for citizens and foreigners including leases and commercial contracts. Panama even has a Foreign Investor Protection Law (Law 54 of 1998) providing equal rights for all foreigners in all business matters of trade, industry, importing and exporting.
Panama guarantees that foreigners can dispose of their investment profits as they see fit including repatriating their investment funds and profits to other countries with the unimpeded right to commercialize their production in Panama. This is a great incentive for foreigners looking to relocate to Panama.
Cheap Labor force – Panama labor laws, and cost of hiring Panamanians compared to Europe, Canada, and the U.S. is much lower whereby the current minimum wage in Panama City is $624/mo. Commercial lease space is inexpensive too. And it is easy to start a Panama business. The 2010 Latin Business Index published by the Latin Business Chronicle website named Panama as the number one “best place to do business in Latin America”.
Panama has a good infrastructure with quality highways which connect the Atlantic and Pacific oceans and the interior. Panama City has a modern bus transport and metro subway system. The Panama Canal now handles larger ships. Nearly every international and domestic airport has or is being renovated. New domestic flight airports are being built across the country.
Panama’s immigration laws are amongst the most liberal in the Western Hemisphere with over a dozen residency visas so foreigners can become permanent residents by investing in Panama’s economy for as little as $100,000 USD. The Panama retirement visa, also know as the pensionado visa, applies to anyone over 18 years of age who are receiving monthly lifetime annuities or pensions of a minimum of $1,000 USD can become permanent residents. Panama’s ease of immigration makes Panama relocation a breeze.
Panama has a lot to offer besides what is mentioned above. Panama offers warm year round climate and a variety of beautiful natural environments along with a bustling and exciting capitol city. Foreigners who are considering moving to another country because of their current high cost of living, or the cold weather, should think about what Panama has to offer.
If you are thinking about a move to Panama and Panama Relocation please Contact Us for a personal consultation.