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Fast-Track Your Future: Fast Residency Opportunities in Panama for Americans
Residency for Americans is a very popular topic and Mundo cannot overlook it since it's directly related to personal freedom. People from the United States, whether citizens or simply residents, have to comply with many requirements when it comes to taxes inside and outside the country.
This article analyzes why somebody would want to leave Uncle Sam’s land and where can Americans go after making this decision.
Residency options for Americans: why would someone want to leave the US?
Nobody doubts the power of the US, but there's a reason why residency for Americans is such a popular topic. Although it's considered one of the largest economies on the planet, this doesn't work for everybody. Many people find better jobs or higher salaries abroad. Moreover, this tendency increased since the pandemic. Now people don’t need to live near the office anymore, instead, they can work for large companies and live in low-tax destinations or places where their income has more value.
The United States have a particular policy that may be a problem for some people. Particularly if they are not in favor of the ruling party, they may want a new place to live.
This is probably not a reason for Americans to be proud of. Discrimination because of race, ethnicity, gender, or sexual orientation is not uncommon. This makes many people feel unwelcome in their own country and naturally, they will look for friendlier environments.
The United States was built by immigrants which makes it quite a diverse country. However, some people may not fit in and would prefer to have new cultural experiences. This country has consolidated a particular philosophy and way of living despite the cultural differences and some people may want to experience something different.
This is a vast universe as you can factor in practically any aspect of a person’s life. We're talking about someone’s unique interests like being close to family or friends that live abroad or a particular liking for certain places.
Financial planning and wealth management
This is Mundo’s specialty. We understand better than anyone the wish or, more precisely, the necessity of optimizing one’s capital. For Americans, this is difficult in many aspects. Not only the government levies high taxes but it gets worse: it taxes assets worldwide.
This means that, no matter where you live, Brazil, France, or Thailand, if you have an American passport or legal residency you have to pay taxes for all your assets in every corner of the world. This means bank accounts, real estate property, investments, companies, etcetera. Moreover, Americans that want to bank offshore usually find higher fees and more complicated processes due to regulations like FATCA. In essence, FATCA requires US people to inform the IRS about all their bank accounts abroad. This means, among other things, more work for the bank as they have to make sure that American clients will comply.
So, where can Americans go?
Moving to Panama from USA with Friendly Nations
The best residency for Americans in Panama is the Friendly Nations Visa. This program was established in 2012 so that citizens from friendly countries can access residency without an investment. Thus, it constitutes a fast residency for Americans, Europeans, Canadians, Argentinians, Brazilians, Chileans, and other countries as well.
As I mentioned above, there's no investment needed and applicants get temporary residency in as little as three to six months. After two years of living in the country, they can apply for permanent residency.
The investing visa is another residency in Panama for Americans and they get permanent residency immediately in exchange for a $300,000 investment in real estate. With the friendly nations visa, besides paying the fees, the applicant must deposit $5000 in a local bank account as proof of economic solvency, being money that they will be able to withdraw after approval. For more information, check out one of our latest entries about the investment visa.
Getting to know the best residency for Americans: the Friendly Nations Visa
Moving to Panama from USA is a great idea especially if you're looking to optimize your capital. Mundo recommends the Friendly Nations Visa as the best residency for Americans because this is one of the fifty countries that can access it. Other individuals have to pursue other options that are either not as easy or much more expensive. So, here are the basics that you should know about the Friendly Nations Visa.
What requirements do I need
To access the friendly nations visa, first of all, you need to be a citizen of one of the 50 countries, and the United States is included on this list.
You have to prove that you have meaningful ties to the country which is usually done through any of the following options:
- Get a job contract in Panama. It has to be duly registered in the Ministry of Work of Panama.
- Have your own operating company in Panama.
To prove that you're financially solvent and that you can support yourself and your family you need to deposit $5000 in a local bank account. The financial records will be presented before the immigration office so that you can get one of the best residency options for Americans. After approval, you can use this money as you please.
All applicants and dependents must be in good health, and, for this, you need to submit a medical certificate issued locally. The same goes when proving the absence of criminal records in the country where the applicant used to live.
Why move to Panama from US?
Where can Americans go if they want a better quality of life? Panama is a great solution. Here are some things to consider when moving to Panama from US.
Better lifestyle at lower costs
In Panama, you can live with much less money than you will live in New York or Miami. This means that, if you work remotely and receive your salary or dividends from the United States, this money will be enough to have a much better quality of life. Panama is very similar to Miami and is a small country with a tropical vacation-like feel. Wherever you are, the beach is never more than two hours away. In Panama City, you have access to first-class cuisine, entertainment, and healthcare.
Taxes and business
Residency in Panama for Americans is a great option as Panama has territorial taxation and plenty of business incentives. But Americans shouldn't get their hopes too high because for them this doesn't make a difference. Since the United States taxes citizens for their worldwide income, no matter where they live, the only chance to take advantage of this territorial system is to give up US citizenship. This is a step that not everyone is ready to take because of the emotional ties involved with one's home country. Anyway, people that move to Panama from the US must consider this option.
It's worth noting that zero tax is not always the best option to pursue. In many cases, one can reduce the tax burden just enough to optimize the financial plan.
Anyway, the best residency for Americans, the Friendly Nations Visa, brings many benefits. With the right advice, you can do lots of things in Panama because it has comprehensive free zone regimes, a solid foundation structure, a dollarized economy, and a developed banking center focused on the international investor.
Disclaimer: This article is merely informative, and the reader should not take this as official immigration or financial advice. Important financial or immigration decisions must be taken with the proper professional guidance.
Mundo helps you get the best residency for Americans
Mundo can help you in various ways. If you want to get residency in Panama for Americans you can turn to Mundo’s experts because they have plenty of experience in this country. Since we have one of our offices here, our team of lawyers knows the legislation very well and can give you first class advice. All you have to do is contact us and you'll be on your way to financial freedom.
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