Why Panama – Immigration and IRS
These are the 2 issues non-US citizens should be most concerned about when considering The Valley as their business location. Seriously.
First, getting a green card or visa or citizenship really means some effort and is time-consuming. This why even cruise ships are considered, out in the North Pacific Ocean, to accommodate workforce and work around the immigration problem.
Once you’ve got your immigration status, you’ll become a US tax resident, even with a non-resident visa under circumstances. The rules are complicated and execution appears to be harsh.
Based on that, US citizens and even visa holders are not welcome in banks around the globe anymore, meaning special non-preferred treatment and extra costs.
With a permanent visa or as US citizen, you’ll never stop reporting to Uncle Sam your world-wide income, every year to come. Think about it.
How does it work in Panama? Tranquilo!
There are some ways to get a residency in Panama:
- proof of solvency by investing $300,000 into bank deposit or real estate,
- Invest even less into reforestation,
- being a citizen of one of 44 countries, considered in a friendly relationship with Panama, and willing to establish/run a small business.
As long as you are doing business with customers outside of Panama, you don’t have to report anything tax-wise to anybody.
When you employ workforce in Panama or do business within the country, then get established in one of 2 special economic zones. Find out where your business fits in.
Both zones offer favorable immigration and tax arrangements.
For software and other hightech stuff there is the City of Knowledge.
For logistics, aviation etc. there is Panama Pacifico.
Now it’s up to you to take a closer look at these essential issues. Don’t forget: it will influence your personal and business conditions in a significant way. So better be careful.