Why choose Panama for retirement? This small country located in Central America has a great biodiversity, good weather all year round, legal stability and an enviable financial system in the region. Despite being a country of only 4.5 million inhabitants, Panama’s attractions, level of development and competitiveness are undeniable.

One of the reasons that make this country the preferred destination for many foreigners is its tax system combined with a solid financial services system. Panama is a territorial income country, which means that it only charges taxes on profits generated on Panamanian soil. Additionally, the country has signed agreements to avoid double taxation with countries such as Spain, France, United Kingdom, among others. This translates into a better return of money for those who receive foreign income or pensions.

Unlike many countries in the region, Panama is characterized by its legal and economic stability. Prior to the global crisis caused by the pandemic, the Panamanian economy was positioned as one of the fastest growing. Even after the hard blow it suffered between 2020 and 2022, it has been recovering rapidly and economists have a positive attitude towards it.

One of the most important factors to consider when emigrating is the immigration laws. Panamanian regulations contemplate special categories for those foreigners seeking to invest and retire in the country and grant permanent residency on an expedited basis. Once the person obtains this residency, in only 5 years he/she can be nationalized as a Panamanian.

If you need advice in your decision to retire or move to Panama, do not hesitate to contact me.