When I move to Panama, should I keep a US bank account or open a bank account in Panama or both?
Roy Cannon - Gestoria Cocle - main office in Penoneme
It is recommended that you keep a US bank account and use your ATM card while getting established in Panama. Opening a local bank account is not as easy as you might expect.
Credit cards issued in Panama have a lot of extra charges that are not customary in the US (life insurance, fraud insurance, annual fees to mention a few).
Many US credit cards do have a "catch" however, they apply a "foreign transaction fee" for purchases in US Dollars when made outside of the USA....
Credit cards issued in Panama have a lot of extra charges that are not customary in the US (life insurance, fraud insurance, annual fees to mention a few).
Many US credit cards do have a "catch" however, they apply a "foreign transaction fee" for purchases in US Dollars when made outside of the USA....
It is recommended that you keep a US bank account and use your ATM card while getting established in Panama. Opening a local bank account is not as easy as you might expect.
Credit cards issued in Panama have a lot of extra charges that are not customary in the US (life insurance, fraud insurance, annual fees to mention a few).
Many US credit cards do have a "catch" however, they apply a "foreign transaction fee" for purchases in US Dollars when made outside of the USA. There are some exceptions, so check before you leave and you might want to pick up one of "no foreign transaction fee" cards.
If you plan to open a local bank account, check on the requirements before you leave the US, you will need a bank reference letter from your US bank, as a minimum, and possibly additional documentation.
Credit cards issued in Panama have a lot of extra charges that are not customary in the US (life insurance, fraud insurance, annual fees to mention a few).
Many US credit cards do have a "catch" however, they apply a "foreign transaction fee" for purchases in US Dollars when made outside of the USA. There are some exceptions, so check before you leave and you might want to pick up one of "no foreign transaction fee" cards.
If you plan to open a local bank account, check on the requirements before you leave the US, you will need a bank reference letter from your US bank, as a minimum, and possibly additional documentation.
Posted February 4, 2013
Eddie Montes - Panama Property Rentals
I suggest you both keep your US bank account and open a bank account in Panama especially if you are moving to Panama from the US. There are certain requirements from the IRS in the US for you to do reporting when you move here to Panama and open up a bank account. The more money you have locally here in Panama, the more paperwork is required from the IRS for reporting purposes. So I suggest maintaining a bank account in both areas and wire money over to...
I suggest you both keep your US bank account and open a bank account in Panama especially if you are moving to Panama from the US. There are certain requirements from the IRS in the US for you to do reporting when you move here to Panama and open up a bank account. The more money you have locally here in Panama, the more paperwork is required from the IRS for reporting purposes. So I suggest maintaining a bank account in both areas and wire money over to Panama on an “as needed” basis as opposed to bringing a lump sum and stashing it in the bank here. If you go over a certain threshold which I believe is US $5,000 or a $10,000 threshold, there is more reporting required by the IRS.
As an American, it is difficult to open a bank account in some banks in Panama. There are a handful of banks that are friendly to foreign investors but most banks would require you to be a resident and to have lived in Panama for a significant amount of time, usually 2 years, before they open an account for you. Some of the reluctance to opening bank accounts for American citizens in particular is because the banks themselves are required to report any kind of activity to the IRS as well. Some of the banks here just do not want to deal with the IRS compliance requirements, so they would rather not deal with Americans.
There are American banks in Panama but they are not branches of the American banks, per se. For example, Citibank operates around the entire globe but Citibank in the US is a different entity from Citibank Panama. Citibank Panama, even if it is under the same corporate umbrella, is the separate entity, and you need to go through the requirements of Panama in order to have an account at the local bank here.
(Citibank Panama, pictured.)
Posted October 4, 2015