zero tax Foreign Sourced Income countries

[Brianthedog]

With regards to Foreign source income in Panama, i came across this: Tax Residence In Panama - Tax - Panama

This would suggest a travel agent for example, although physically sat in panama, if selling to US clients in the US over the internet, to travel to destinations other than panama, is tax free

In addition to the above, by doing business from Panama your income is not taxable in Panama, so long as such income derives from foreign sources. It's not even reportable to the Panamanian Revenue Agency. What does this mean? It means that Panama has a Tax System that is based on the Territorial Principle of Taxation. This principle that Panama has embraced means that only Panama-sourced income is taxed.

An entity or an individual which has its activities outside of Panama will automatically escape taxation. On the contrary, an entity or an individual which engages in a business activity within Panama, receiving Panamanian source income, will be subject to pay income tax annually.

According to Paragraph 2 of Article 694 of our Fiscal Code, the income derived from the following activities is not considered from Panamanian source:

1. Invoice, from an office established in Panama the sale of merchandises or products for a higher amount of that for which such merchandises or products have been invoiced against the office established in Panama, always that such merchandises or products only move outside.
2. Manage, from an office established in Panama, transactions that perfect, consume or have effects abroad.
3. Distribute dividends or participations of juridical persons, when such dividends or participations derive from incomes that are not produced within the territory of the Republic of Panama, including those incomes derived from the activities mentioned in literals a and b of this paragraph.

 

[Yoyo331998]

Shouldn’t be a problem if you don’t go for the cheapest license. Get a proper physical office, even if it’s just a small room, and you should be good.

Hello,

Which freezone would you recommend apart from DMCC ?

Thanks

 

[JustAnotherNomad]

Which freezone would you recommend apart from DMCC ?

I can’t really help you with that. I guess it also depends on your business.
I’m sure @rowena , @BlueMist or @ih8socialism can help with that, though.

 

[ih8socialism]

Hello,

Which freezone would you recommend apart from DMCC ?

Thanks

Fujairah, Ajman, RAK, basically it doesn't really matter where you incorporat, you should be able to obtain a bank account with any FZE

 

[wheelspin]

Again, this is very subjective.

For me, the Pros (in a world without COVID) are:

- proximity to the US (45 Min Flight to Miami, 2H30 Flight to NY)
- no income tax, no tax filing
- decent return on real estate investment
- I meet great people while in The Bahamas

About the Cons, it's mostly about the cost of living, and the fact it's an island, but I guess you can't have it all.
For me, it just works out fine, but some people come in and can't stand it for more than a few months for various reasons

On my side, I won't publicly discuss more CONs about a country that was nice to me and gave me so much...

Which island do you prefer in Bahamas?

 

[seobuddy]

Which island do you prefer in Bahamas?

Where I live: New Providence (Nassau)
Where I wish I could live: Harbor Island

 

[sdreaver]

If you like the idea of living in Europe and having the freedom to roam the EU, Portugal is a good option. If you pay yourself in dividends rather than straight income, you'll be taxed at 0% on the foreign income. You kinda just have to figure out at least the part of the world you want to live in and realize there's ways to pay a low tax rate. You can travel every few months and attempt to not trigger tax residency in any country you stay so you're only liable where your business is registered. That way you don't have to spend as much time in a place just because it's your tax haven of choice.