Panama for Americans: the ideal path to residency

Any American moving to Panama should have an idea of what to expect. While being a US citizen brings many benefits it can also be overwhelming especially when it comes to taxation. This is why a second residency is attractive, especially for those willing to find new horizons.

If you want a second home after leaving America, citizenship by investment programs and residency options are available in different countries. From all of them, Mundo chooses this jurisdiction because of its unparalleled program called the Friendly Nations visa. Keep reading this article on Panama for Americans through this innovative residency.

An American moving to Panama? Understanding the problem

Undoubtedly, the US is an advanced country but there are some drawbacks to living in one of the largest world powers.

A US citizen or any person who holds an American green card obtains benefits but is also subject to certain responsibilities that are as strict as they are demanding. The person will have to pay taxes on worldwide income and assets independently of where he/she lives.

Most countries tax every asset anywhere in the world but only if you live in the country. Americans, on the other hand, will have to pay tax even if they have lived in another nation for years.

This is why if you come from America, citizenship by investment is a quick path to obtaining a second citizenship. To achieve this goal, there are outstanding options, through which you can become eligible for citizenship by offering an economic contribution.

In simple words, by making an investment or donation one can apply for citizenship and get approved after the due diligence process has confirmed that you are clean and of good character. From the CBI countries today, Mundo highly recommends either five of the Eastern Caribbean islands or the Pacific paradise known as Vanuatu.

While Vanuatu’s program has been around for a long time and implemented several updates, the five Caribbean nations have recently consolidated a new level of mutual cooperation. Since the five countries signed the memorandum of agreement, changes are being implemented. All in all, despite the increase in prices, it all points to a safer CBI environment with lower corruption and augmented security.

Nonetheless, if citizenship feels like a big step at the moment there are plenty of residency possibilities and Panama is the king.

American moving to Panama: why choose the country of the canal

Panama for Americans is convenient in many ways. Accessing a high living standard at a lower cost is a unique opportunity. Moreover, the country is advanced in infrastructure, culture, education, and financial sectors. 

Panama for Americans: infrastructure, landscapes, and entertainment

In most small countries the capital city is the main urban center and Panama is no exception. In this case, the capital is Panama City, a place that will delight every US citizen that decides to visit or relocate.

Here you’ll find high-end restaurants, bars, and hotels, a wide variety of malls with luxury and renowned brands, advanced hospitals and medical centers, and picturesque places with a historical background.

Beyond Panama City, from Coronado to Bocas del Toro, the provinces welcome American green card holders with impressive landscapes. Naturally, the largest pool of options lies in beaches on the continent and nearby islands. Nonetheless, Panama surprises us with other natural charms like waterfalls, hills, and a volcano. 

Panama for Americans: business and finance

The country is widely known for its financial incentives being the Colon Free Zone one of the most famous examples. We're talking about the largest free zone in the region and the second largest worldwide. 

Thanks to its easy registration and advanced banking, Panama constitutes a financial pillar. A dollarized economy helps Americans by saving them the hassle and costs of exchanging currency. 

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Panama for Americans: lifestyle

Many American and European families choose to relocate here as the country maintains a high level of education, healthcare, and housing. Many schools keep their yearly schedules according to the educational systems of the northern hemisphere (having summer vacations from July to September). The costs here are much lower than in America’s major cities like Miami, New York, or Chicago while the feeling of being in a modern metropolis remains intact.

Move away from America: citizenship by investment can be replaced by Panama residency

An American moving to Panama has an incredible opportunity to obtain residency without investment. Fortunately, the United States is considered one of the 50 countries on the Friendly Nations list.

Through this innovative visa, they can access a 2-year permit which can be renewed. The main qualification requirement is to be a US citizen or a citizen of the stipulated countries, then one must prove having economic ties with the Republic of Panama.

Apply through a work contract

This is the cheapest way yet the most intricate. It requires a Panama company to hire you 100% legally and with the contract registered in the Ministry of Labor. When this is accomplished, the person will have to follow the corresponding immigration process.

Apply through investment

The good news is that thanks to the Friendly Nations the lower real estate investment required is $220,000. It’s lower than the Qualified Investor Visa (350,000, which will soon become 500,000), and practically matches the Caribbean offer now that all the countries have signed the MoA. 

Apply through your own company

For Mundo, this is a perfect middle path. On the one hand, it doesn't require a large amount of money and, on the other hand, you don't depend on someone hiring you. By opening your own company, you can hire yourself, and pay your own salary and social security, thus becoming eligible for the Friendly Nations.

An American moving to Panama can obtain benefits

There are many Americans living in Panama because it offers a friendlier financial environment than they can find back home. The tax burden can be too much to take, especially in typical Western powers. In Panama not only the tax rates are lower but also foreign income is not taxed as long as it's not received in Panama.

Although this doesn't necessarily lower the burden to zero it can be a good solution, especially for those holding large assets abroad like real estate income, crypto businesses, bank accounts, or dividends. For more information about Panama taxation, check out our article in which we uncover the myths of territorial tax residency.

Finally, Panama has everything: a tranquil environment, advanced living standards at lower costs, breathtaking landscapes, a cosmopolitan environment, and a close connection to the English language and culture for the US citizen.

Disclaimer: this article presents a general overview of the best residency in Panama for Americans. However, this is only an editorial opinion hence the article must not be taken as financial or migration advice. For accurate information, contact a professional you trust or one of our experts at the Mundo team.

Mundo brings Panama for Americans closer 

If you want to start your life over in Panama or simply add it as one of your investment destinations, we are here to help you. Whether you are a US citizen, or a citizen in any other part of the world, Panama has a place for you.

Contact us and one of our experts will provide you with all the information you need about the Friendly Nations visa and its requirements. The journey to freedom is challenging but it's not impossible as Big Brother wants us to believe. 

With the right approach and professional advice, it is possible to reduce the tax burden even if it means making adjustments in our lives. Americans living in Panama are many and they find here a diverse country, like-minded ex-pats, and content fellow citizens. 

As a long-running financial online journal, we have plenty of contacts with lawyers, advisors, realtors, and experts in Panama who can help you get the Friendly Nations visa or the most suitable program. 

Contact your Mundo Expert