Panama has quietly become a tax-smart choice for expats and retirees.
With its territorial tax system, residents only pay tax on Panama-sourced income, meaning foreign income goes untaxed locally.
This setup appeals to entrepreneurs and retirees alike looking to stretch their dollars.
While Americans still owe Uncle Sam, benefits like the Foreign Earned Income Exclusion and certain tax treaties can lower overall obligations.
It’s not all sunshine and savings, compliance remains key, with FBAR and FATCA requirements looming.
My Take…
Panama is not on my personal list as a retirement destination, but I get its appeal.
Especially for high net worth individuals and its close proximity to the USA.
For more details click on the link:
https://www.forbes.com/sites/kathleenpeddicord/2025/09/16/how-to-pay-less-tax-when-you-retire-overseas/
