BUSINESS OR RETIRE IN PANAMA?
Individuals who wish to become Panamanian residents or who are considering Panama as a permanent residence have a variety of options.
We will discuss three different groups in this article and leave others for future articles. Say you want to move to Panama for one of the following reasons: a) to work, b) to start a business, or c) to retire.
We keep saying "here", because, although we provide our services both in Panama and abroad, through our international network of strategic allies, this cozy and tropical country between the Pacific and the Caribbean, is what we proudly call home.
The possibility of moving to Panama for work.
Generally, foreigners hired in our country are granted temporary visas.
To hire a foreigner, a Panamanian company must comply with the 10% or 15% rule. This means that for every 10 Panamanians, the company can hire a foreigner, and regarding the 15%, these are foreigners who are experts or technicians. However, there are exceptions, such as the SEM (Multinational Company Headquarters), which is a very special regime that does not apply these restrictive percentages. Meanwhile, the Friendly Nations Visa allows you to apply for a temporary work permit for a period of three years, making it much more favorable for foreigners who want to start a business or work locally.
The first step is to create your company in Panama.
Whether you're starting a business from scratch, bringing an already established company from your country, or partnering with local entrepreneurs, our country offers you several types of companies that you can create, including limited partnerships, limited liability companies, and corporations, which are the most popular. To avoid fines, you should ensure that your company receives the necessary legal advice.
As part of these requirements, the company must obtain an Operation Notice, which is nothing more than a notification to the Panamanian Government that it has begun operating. Also, you must register the company with the Social Security Fund, the General Directorate of Revenue, and the corresponding Municipality.
The option of retiring in Panama.
In our country, a foreigner who has already retired from his business or professional activity will find stability and unparalleled security. In contrast, it offers discounts on an array of goods and services, allowing you to save and enjoy your pension fund even more.
A pensioner's most sought-after visa is, in fact, the Pensioned Tourist Visa, which offers pensioners not only discounts (starting at 60 years old for men and 55 years old for women), but also allows them to import a vehicle each two years free of customs taxes and household goods up to a value of US$10,000 only once a year.
When considering whether to do business or retire in Panama, there are several factors to consider. Panama has a growing economy, with a stable political climate and a favorable business environment. The country offers various incentives for foreign investors, such as tax breaks and residency programs. Additionally, Panama's strategic location as a hub for international trade and transportation makes it an attractive destination for business ventures. On the other hand, retiring in Panama offers numerous advantages as well. The country boasts a low cost of living, affordable healthcare, and a range of retirement communities and amenities. Panama's warm climate, beautiful landscapes, and vibrant culture also make it an appealing place to spend one's retirement years. Ultimately, the decision to do business or retire in Panama depends on individual preferences, financial goals, and lifestyle choices.