PANAMA - TAX HAVEN AND TROPICAL PARADISE
Posted by Roy
Panama, tax haven and tropical paradise. The best of both worlds for the investor or the retiree.
Panama (the name means “an abundance of fish and butterflies”) with a population of 2.3 million people is located in Central America and is located on the central isthmus between Costa Rica and Colombia. Perhaps better known for the famous Panama Canal which joins the Caribbean and North Pacific Ocean, it has beautiful palm-fringed beaches and an outstanding variety of exotic, tropical birds. With a superb climate and an excellent, health service it has a lot going for it apart from its tax policies.
Its international airport is 20 miles from the capital, Panama City, and provides international and domestic flights. Major airlines fly into Miami although there are direct flights to USA, Europe and Asia.
Residency is a simple matter, only requiring good health and a verifiable income of $500 per month. Personal effects are duty free.
Panama is a “Territorial Tax Haven” which means that there are some taxes levied, but not on any income earned outside the country. The good news is that Inheritance Tax has been abolished but unfortunately, Capital Gains Tax is still applied. However, to ease this problem, real estate is plentiful and together with rental properties much cheaper than USA or Europe. Interest earned on Panamanian bank accounts is also tax free.
This is definitely one to consider in your list of favourite tax havens. It looks like a lovely place to live either full or part time. It has so much to offer, great climate, lovely country, modern infra structure, relaxed lifestyle, so this has to be one of our own favourites. As with all our choices for tax havens consult your financial advisor for professional advice.
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