Dedicated to providing you with credible information about living overseas
Best Places In The World To Retire Community Questions and Answers about living and retiring abroad

Questions & Answers

Q & A Menu Q & A BY TOPIC
To navigate, use menu bar to the left
Jeff Barton of Punta Pacifica Realty – Best Places In The World To Retire User Account
Expat owned Heliconia Inn, Western Azuero Peninsula, Panama – Best Places In The World To Retire – International LivingIf you are living and working in Panama, you are required to pay income tax to Panama for income earned in Panama as part of the obligation to the Panamanian government.
 
If you’re on a payroll in Panama, there will be payroll deductions made from your paycheck for social security in Panama, for federal taxes. However, you will pay fewer taxes in Panama than in the US because the taxes are less burdensome than in the US.  
 
(Expat owned Heliconia Inn, Western Azuero Peninsula, Panama pictured.)
Terry Bradford of Origen Real Estate Panama – Best Places In The World To Retire User Account
You will pay taxes on income that you earn in Panama but it is so much lower than the taxes you pay in the US. As a corporation, we would pay around 15% in taxes so it is a lot different than how much we pay in the US. We have write-offs, too, which are the same as the write-offs as the US, only it is a write off against our Panamanian taxes; not the US taxes.
 
Even if we ran a company under our own names and not as a corporation, we would still have write-offs. So when we entertain, we keep the receipts and we keep the registry on it on our check registry and on my calendar. We even get to write-off our property here up to 1/3 because this is our legal office under the multi-tecnica, which is like the department of real estate for Panama, so we get to write-off 1/3 of the cost of our rent, electricity, and any overhead that we have here.
Gloria Valderrama  of Infante & Perez Almillano – Best Places In The World To Retire User Account
Panama taxation system is based on the territoriality principle. The income tax applies to  Panamanian sourced income, regardless your citizenship or residency. To put it in other words, if you earn money in Panama and that money comes from a Panamanian source, you have to pay income tax on earnings.
Tabitha Paddock of Greenback Expat Tax Services – Best Places In The World To Retire User Account
No matter what your residency status is, taxes will apply to Panamanian sourced income. Fortunately, Panama is known for their advantageous tax schedule, and the overall tax burden one would face in Panama in exceptionally low. In fact, tax rates on personal income range from only 7% (on any income over $9,000), to a max of around 27%.
 
So, if you are earning money in Panama, it will be subject to Foreign Taxes.
 

Go Here Next

 
Best Places In The World To Retire Expat Stories contains text, video, and photos by people just like you who are already living abroadUse the menu on this page to go to categories of Stories.
Best Places In The World To Retire Community Questions and Answers about living and retiring abroadUse the menu on this page to go to other categories of questions.
The Best Places In The World To Retire Location Advisor makes personalized recommendations for where to live and retire overseasGet matched to your ideal location to live abroad.
Best Places In The World To Retire Community Questions and Answers about living and retiring abroadAnswers about living, working or visiting abroad.
Best Places In The World To Retire Expat Stories contains text, video, and photos by people just like you who are already living abroadStories by expats & others about their life aborad.
Best Places In The World To Retire - MarketplaceFind for profit, non-profit and religious organizations.
 

Our Pledge To You

Best Places will present information from the Community in a transparent way, unedited, except to conform with our Conditions of Use.

You can trust that Best Places does not manipulate content to sell you anything. All opinions in the Community Q & A and Expat Stories are those of its authors, not Best Places.

Get Known To The Community

Those who contribute to the Best Places Community are our heroes! And being a Best Places hero is fast, fun, and easy. Just go to Questions & Answers, find your first question to answer, click on it, and then click the Contribute Your Answer To This Question Button. If you’d rather enter a Story, go to Expat Stories and click the Contribute Your Story Button".

Contact/Support

Please contact us. We would love to hear from you! Customer Service
Technical Support
Business Development
Suggestions
Press
Phone: (US) 520-940-0481