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need advice Panama residency and future crypto earnings️

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Hespenn

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Feb 11, 2025
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#1
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I am a digital nomad and obtained permanent residency in Panama. Citizenship is from high tax EU country. I rent out a house in the country of citizenship. All other ties are cut. I declared my new residency to my citizenship country.

Now it's time to look for new streams of income. It could be attractive to sell online coaching for me. I think of a simple payment processor for cryptopayments only and not bother with banks except my private Panama banking. 'Preferably with included accounting.

Please lords of foreign adventures, help a fellow newbie find its way minimizing all burdens of a too complex view. What's the minimum effort to earn 3-4000usd /month and make use of the territorial taxation system of beloved Panama?

Is it a smart move to open a LLC in another country for that?
 
#3
Hespenn said:
I am a digital nomad and obtained permanent residency in Panama. Citizenship is from high tax EU country. I rent out a house in the country of citizenship. All other ties are cut. I declared my new residency to my citizenship country.

Now it's time to look for new streams of income. It could be attractive to sell online coaching for me. I think of a simple payment processor for cryptopayments only and not bother with banks except my private Panama banking. 'Preferably with included accounting.

Please lords of foreign adventures, help a fellow newbie find its way minimizing all burdens of a too complex view. What's the minimum effort to earn 3-4000usd /month and make use of the territorial taxation system of beloved Panama?
Click to expand...
we all wish for this. id take a mini-effort 4k a month too. ;)
Hespenn said:
Is it a smart move to open a LLC in another country for that?
Click to expand...
yes. panama banking suxx big time.
 
#4
Misunderstanding. I only like to know how this in future generated stream of income can be proper accounted for me. What LLC or other company fits best for lifestyle coaching and selling digital goods? Do I even need one? What is cost effective and comes with the smallest effort possible?
 
#6
US LLC is probably the simplest option.
Be aware that Panama is blacklisted in some countries, but this is probably only relevant if you sell B2B.
Not sure how your residency can affect your banking, some banks may not like Panama residency.
 
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#7
Hespenn said:
I am a digital nomad and obtained permanent residency in Panama. Citizenship is from high tax EU country. I rent out a house in the country of citizenship. All other ties are cut. I declared my new residency to my citizenship country.

Now it's time to look for new streams of income. It could be attractive to sell online coaching for me. I think of a simple payment processor for cryptopayments only and not bother with banks except my private Panama banking. 'Preferably with included accounting.

Please lords of foreign adventures, help a fellow newbie find its way minimizing all burdens of a too complex view. What's the minimum effort to earn 3-4000usd /month and make use of the territorial taxation system of beloved Panama?

Is it a smart move to open a LLC in another country for that?
Click to expand...
As long as you keep ownership of the property which can be used for living, even rented out, it is prossible that you are a tax resident of that country. Almost every European country has a rule in a law which says that ownership, or having rented or having accesibility to any residential property is considered a tie to the country so strong that person is a tax resident of a country.
 
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#8
sknomad said:
As long as you keep ownership of the property which can be used for living, even rented out, it is prossible that you are a tax resident of that country. Almost every European country has a rule in a law which says that ownership, or having rented or having accesibility to any residential property is considered a tie to the country so strong that person is a tax resident of a country.
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Then, we have to learn where he is from.
 
#10
sknomad said:
As long as you keep ownership of the property which can be used for living, even rented out, it is prossible that you are a tax resident of that country. Almost every European country has a rule in a law which says that ownership, or having rented or having accesibility to any residential property is considered a tie to the country so strong that person is a tax resident of a country.
Click to expand...

Really depends on the country. Many countries don't consider it a tie if it's rented out long term, so you don't have access (not only as an AirBnB).
On the other hand, you would usually at least have to submit a tax return and declare your global income, even if it's not taxed. If you're a high earner, this might give them a reason for going after you.
Might be better to gift the property to a relative with low income.
 
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#13
JustAnotherNomad said:
Really depends on the country. Many countries don't consider it a tie if it's rented out long term, so you don't have access (not only as an AirBnB).
On the other hand, you would usually at least have to submit a tax return and declare your global income, even if it's not taxed. If you're a high earner, this might give them a reason for going after you.
Might be better to gift the property to a relative with low income.
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Sure. And if there is not such relative, it can make sense to transfer property to a company owned by a foreign entity without UBO.
 
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#14
sknomad said:
Sure. And if there is not such relative, it can make sense to transfer property to a company owned by a foreign entity without UBO.
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No, you sell it and are free. How should this transfer work anyway? In most places mentioned, you need an notary for the sale and he needs to assess whether you are actually allowed to transact on behalf of the company. If you then sign those papers yourself, your setup won't fly far.
 
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#15
JustAnotherNomad said:
Really depends on the country. Many countries don't consider it a tie if it's rented out long term, so you don't have access (not only as an AirBnB).
On the other hand, you would usually at least have to submit a tax return and declare your global income, even if it's not taxed. If you're a high earner, this might give them a reason for going after you.
Might be better to gift the property to a relative with low income.
Click to expand...

I file proper tax returns. That's why I came here to ask for the best set up. I won't earn much, but want to make it right and will not spend much money on high priced tax attorneys to make something so simple. Would be a Wyoming or Delaware LLC better in sight of accounting requirements for crypto payments?

I live full time in Panama. Haven't visited my country of citizenship for years. The real estate is managed by a external property management company. I don't have access.
 
#16
Hespenn said:
I file proper tax returns.
Click to expand...

Like I said, if the real estate is in a high-tax country, you would usually have to declare your global income, even if it is not taxed, because it will be taken into account to calculate how much tax you should pay on the rent. You may want to think long and hard about whether you really want to do that, especially without spending at least some money on a good tax attorney in that country to understand the consequences of moving to a country that is most likely considered a tax haven. You may be fine, but you may also face problems.
 
#17
JustAnotherNomad said:
Like I said, if the real estate is in a high-tax country, you would usually have to declare your global income, even if it is not taxed, because it will be taken into account to calculate how much tax you should pay on the rent. You may want to think long and hard about whether you really want to do that, especially without spending at least some money on a good tax attorney in that country to understand the consequences of moving to a country that is most likely considered a tax haven. You may be fine, but you may also face problems.
Click to expand...
I feel you are trying to warn me about something... Could you help me and explain under what theoretical circumstances global taxation would harm my setup? I understand double treaty taxation and the necessity of exchange of information with Panama and my country of citizenship. I need to prove that I don't have access to the real estate.

Isn't it good for me, I don't pay taxes on foreign income here and have good accounting from USA LLC? If i want to trade stocks with a broker account or get another real estate I can provide my source of funds.
 
#18
Hespenn said:
I feel you are trying to warn me about something... Could you help me and explain under what theoretical circumstances global taxation would harm my setup? I understand double treaty taxation and the necessity of exchange of information with Panama and my country of citizenship. I need to prove that I don't have access to the real estate.

Isn't it good for me, I don't pay taxes on foreign income here and have good accounting from USA LLC? If i want to trade stocks with a broker account or get another real estate I can provide my source of funds.
Click to expand...
It depends on the country. But here is hot it works. Two estate income is taxed where the real estate is (that's the general rule). Then, the tax rate depends on your total income (again, general rule, there are flat rate tax places at like 10%). Now, in other to assess your taxes, they take your global income to determine your average tax rate and then apply it on you real estate gains only.

You can avoid this by selling or transferring into a company where your then pay corporate tax rates and withholding tax but won't have to disclose any income you make elsewhere.
 
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