Panama tax residency w/US C-Corp

[reelay]

I have an LLC and I have residency in Panama... If you work from your home in Panama and you behave while living in Panama, you have nothing to worry, they will not come after you.

Thanks man, do you know any good lawyers in Panama that you could refer to to help with immigration?

 

[Radko]

Thanks man, do you know any good lawyers in Panama that you could refer to to help with immigration?

These guys are really good, everything was perfectly explained, they work fast, maybe a bit pricey but well worth the money, they are the top immigration lawyers in Panama.

https://kraemerlaw.com/en/home/

 

[reelay]

These guys are really good, everything was perfectly explained, they work fast, maybe a bit pricey but well worth the money, they are the top immigration lawyers in Panama.

https://kraemerlaw.com/en/home/

Fantastic, thank you!

 

[flagfree]

if Panama is regarded as the place where the central management is located of your LLC then it could become liable for tax in Panama.

I am missing why the need of an LLC. Is it because you need some entity that hides your name?

As far as i know it should be possible to invoice directly from Panama yourself from abroad, with the same 0% you would get with an LLC

 

[Don]

I am missing why the need of an LLC. Is it because you need some entity that hides your name?

As far as i know it should be possible to invoice directly from Panama yourself from abroad, with the same 0% you would get with an LLC

Panamanian income tax is levied based on the territoriality principle. Panamanian-source income is subject to taxation whether it is received by a resident or non-resident entity. Residency is only relevant to determine if the entity is subject to withholding tax (WHT) or not.

Corporations are subject to income tax at a fixed rate of 25%.

 

[Deepbarrels]

I have an LLC and I have residency in Panama... If you work from your home in Panama and you behave while living in Panama, you have nothing to worry, they will not come after you.

Your bank in Panama does not ask you questions every time a big transfer comes in your account? What about yearly forms to file for final beneficiary, what you do, who's your employer, etc?

 

[Radko]

Your bank in Panama does not ask you questions every time a big transfer comes in your account? What about yearly forms to file for final beneficiary, what you do, who's your employer, etc?

I'm no longer in Panama. But the bank in Panama didn't ask me about anything whatsoever, why would they?

I don't have an employer, I have an LLC and I keep my accounts in the name of the LLC in the U.S. (bank account and Brokerage account).

 

[turmpy]

I'm no longer in Panama. But the bank in Panama didn't ask me about anything whatsoever, why would they?

I don't have an employer, I have an LLC and I keep my accounts in the name of the LLC in the U.S. (bank account and Brokerage account).

does this work while you not live in Panama any longer? I thought they would close your account if not resident account holder.

 

[Radko]

does this work while you not live in Panama any longer? I thought they would close your account if not resident account holder.

I don't have an account in Panama anymore, I have accounts in the US under the LLC. I can live anywhere in the world and work from home, I'm a trader, so as long as I live in a country that doesn't tax foreign income, I don't have to pay taxes.

 

[turmpy]

I don't have an account in Panama anymore, I have accounts in the US under the LLC. I can live anywhere in the world and work from home, I'm a trader, so as long as I live in a country that doesn't tax foreign income, I don't have to pay taxes.

ahhh, that's great. My fault, read as if you had a Panamanian account.

 

[Radko]

ahhh, that's great. My fault, read as if you had a Panamanian account.

But if you leave Panama, they will allow you to keep your account in Panama, they won't close your account just because you moved out of the country.
All banks want to have as many customers as possible.
I was just using my Panamanian bank account to pay for my expenses in Panama, but when I left I didn't need the account anymore.
You can open an account in Panama even if you don't live there, but keep in mind that Panama belongs to the CRS.

 

[Deepbarrels]

I was just using my Panamanian bank account to pay for my expenses in Panama, but when I left I didn't need the account anymore.
You can open an account in Panama even if you don't live there, but keep in mind that Panama belongs to the CRS.

So I guess you gave up on waiting to get the Panama passport then? How difficult was it to create a brokerage account from your US LLC?

 

[Radko]

So I guess you gave up on waiting to get the Panama passport then? How difficult was it to create a brokerage account from your US LLC?

Yes, I didn't get the Passport, I already have 3 others.

Opening a brokerage account under an LLC is not difficult at all. All US brokers (Charles Schwab, Interactive Brokers, Fidelity..) will do it.

 

[Radko]

@Radko a biz account even if I don't live there? Or a personal one?

Both!

 

[Radko]

How would you open a personal account then? As a non resident. With an agent, with an initial deposit of a few thousand $?

And If friendly nations plays a role here as well, I'm not from the list.

Friendly nations doesn't play a role, at least not that I know of.

It's probably better to use an agent that has contacts in different banks.

If you open the account by yourself, be prepared to answer KYC questions.

Don't forget that Panama belongs to the CRS. If you're fine with that, then go ahead.

 

[JustAnotherNomad]

I don't have an account in Panama anymore, I have accounts in the US under the LLC. I can live anywhere in the world and work from home, I'm a trader, so as long as I live in a country that doesn't tax foreign income, I don't have to pay taxes.

Except almost no country would consider this foreign income. But of course, if you live in a less developed country, enforcement is weak and it will work.

 

[flagfree]

Panamanian income tax is levied based on the territoriality principle. Panamanian-source income is subject to taxation whether it is received by a resident or non-resident entity. Residency is only relevant to determine if the entity is subject to withholding tax (WHT) or not.

Corporations are subject to income tax at a fixed rate of 25%.

Sorry, upon reading this answer (bit late but I did) I still do not understand...

If income is generated from abroad, Panamanian tax is 0%.
Having an LLC as a non-us resident is also 0%.

So I was wondering what is the advantage of invoicing through an US LLC or directly from Panama, if not for anonymity. Maybe an example can make me understand better.

 

[Don]

Sorry, upon reading this answer (bit late but I did) I still do not understand...

If income is generated from abroad, Panamanian tax is 0%.
Having an LLC as a non-us resident is also 0%.

So I was wondering what is the advantage of invoicing through an US LLC or directly from Panama, if not for anonymity. Maybe an example can make me understand better.

There might not be an advantage.
Some consider US LLC-s more reputable.
EU for instance considers Panama as a non-cooperative jurisdiction

 

[Radko]

Are they pricey, though? Opening an LLC - around $1'5k, I've asked them recently. This is more or less an average price. Not? There may be additional fees, though.

relofirm [.] com quoted me $2k

 

[Radko]

EU for instance considers Panama as a non-cooperative jurisdiction

Is that still the case? I thought Panama is now a CRS jurisdiction.