Tax residency is a crucial concept for both individuals and businesses, as it determines where you are liable to pay taxes. It can be a complex issue, particularly for those who live or work in multiple countries, and it affects how much tax you pay on your global income. Understanding the intricacies of tax residency rules is important for anyone engaged in international business, employment, or investments. This article delves into the fundamental aspects of tax residency, explaining its significance, how it is determined, and the implications for taxpayers worldwide.

Panama has become one of the most attractive destinations for individuals seeking favorable tax conditions, primarily due to its territorial tax system. Unlike many other countries, Panama does not tax its residents on worldwide income. This key advantage, combined with straightforward residency programs, makes Panama an appealing option for retirees, investors, and professionals. In this article, we will explore how to get tax residency in Panama and the significant benefits it offers.

In the nomad capitalist world, taxes are an important matter. In fact, they are to be taken seriously by everyone, but the implications of international structures take the situation to whole new levels of complexity. What is the federal tax rate in my country? What is employment tax? What is taxable income and what are the deductions? With these Frequently Asked Questions, we want to go back to the basics of taxation. At the end of the day, you can’t design an elaborate plan without knowing your basics. What is federal income tax? You’ve probably heard these words many times. They describe those taxes that are due at a federal level.

What would you say if we asked you to name one concept that is common to all times, countries, and cultures? When we go a little deeper into our society’s essence there are very few aspects that we can pinpoint as common denominators defining people's lives in the modern world, in Roman times, or in ancient Egypt. Probably the word that we will write next is the one that you least expected: tax. Whether we like it or not, it’s something that everyone accepts naturally, and this makes sense since taxes have been ingrained in society since the very beginning. 

International taxation is one of our favorite topics as it concerns everyone who wants to grow their businesses beyond previously given borders. Also, those who live abroad must have a clear understanding of where to pay taxes, and we highly recommend setting up the structure with an international tax advisor. In the meantime, we share this piece on the three basic types of tax residency that every expat should know.

The question of “how to do your taxes” is important if you want to be in full compliance both at a personal and corporate level. “How to file your taxes” is a topic that concerns both individuals and entities. Luckily, we are in contact with best-in-class experts in Panama who have agreed to explain the essence of personal tax in this business-oriented country. 

Since its implementation, CRS has been a big question mark for many. Having an international bank account today means that you have to deal with CRS banking, but this doesn't have to be as intimidating as it sounds. International business banking is ideal for those who want to have access to new currencies and investments. If you're thinking of international banking as your solution for the new year don't let CRS stop you.

Taxes are a major concern for anyone, and this is why a solid financial plan must consider how to save on taxes. A popular strategy consists of getting tax residency in a territorial taxation country and establishing one’s largest assets outside of this jurisdiction. Let's analyze how to lower taxable income through tax reduction strategies like this one. Every country has its tax system, the difference lies in how they interpret a person's relation to the country and hence the tax responsibility. 

No businessperson should underestimate the importance of tax residency, however, this concept may be hard to understand, thus creating a field where misconceptions can grow freely. When it comes to why is tax residency useful there are many aspects to consider, and this includes a deep understanding of the matter. Naturally, the best way to establish tax residency effectively in low-tax jurisdictions is through a certified expert. In this regard, providing oneself with the right advice is not negotiable. 

Panama is more than an attractive destination for business: it’s a great place for those looking for tax residency and low-tax solutions. However, amidst the allure, several misconceptions about tax residency in Panama have emerged. In this article, we will shed light on common myths surrounding this country’s tax residency and reveal the truth behind them.