The advantages of obtaining a second residency are plentiful and come with more than just financial benefits. Obtaining citizenship in a foreign country allows you to relocate your family, access better healthcare and education, and enjoy a comfortable lifestyle. Additionally, many developed countries have tax agreements that prevent double taxation.
Panama is one of the countries that provide all of these benefits and more. It attracts people from all over the world and is a viable solution for people seeking to escape their financial woes.
In this article, we highlight a few benefits of obtaining a Panama Residency.
Reduced Cost and Taxes
The residents of Panama believe strongly that governments shouldn’t mandate reporting requirements or demand taxes for revenues generated from outside of its borders. Such an economic policy has worked in favour of the country and has resulted in an annual GDP per capita growth rate of 5.5%, 1.5% higher than the region’s average.
The reduced costs and taxes have managed to attract numerous businessmen and entrepreneurs from around the globe seeking to do business without breaking any laws that limit profitability.
Doing business in Panama opens the door to increased revenues due to a number of factors. Firstly, the country’s financial and banking sector represents the lifeline of Latin American logistics, trade, investments, and finance. Second, its well-developed infrastructure consists of metro lines, highways, underground transportation, beaches, luxury hotels, and a myriad of entertainment spots sporting a wide range of cultural diversity.
Finally, Panama is home to the Colon Free Trade Zone which is the world’s second-largest port through which 12,000 merchant vessels pass annually and accounts for $5 billion worth of imports and exports. Moreover, those that do manage to obtain a Panama Residency have access to world-class tourism sites including the Latin American Convention Center and the Regional Tax-Free Shopping destination.
Asset Protection and Privacy
Part of the local laws in Panama ensures asset protection, tax exemption, and complete privacy. Businesspeople are not obliged to pay capital or sales tax. They can also own bank accounts in Panama and can buy and sell properties without the need for a publically registered shareholder change.
In light of these benefits and more, Panama ranks as one of the best countries to set up an offshore company in.
Fortunately for you, The Expat Money Show offers free consultation services to businesspeople seeking to establish an offshore company. Doing so will allow you to protect your assets from litigation while keeping your business operations completely safe and confidential. Contact me today for more information.
ABOUT THE AUTHOR:
Mikkel Thorup is the host of The Expat Money Show podcast and the author of #1 Best-Selling book, Expat Secrets. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran.
His goal now is to help Expats just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again.