When you retire in Panama on the Pensionado
When you retire in Panama on the Pensionado Visa, you cannot work, but you can own a company. Me, as an example, being a Pensionado, I cannot work, but I can own a company and pay income taxes on my company’s income to the government of Panama.
If you come to Panama with a Friendly Nations Visa, you could own a company, but in many respects, you cannot work. Moreover, if you cannot work, you cannot have income. Hence, you cannot pay taxes either.