Residency in Panama – Options, Benefits, and Practicalities

As the global landscape becomes increasingly uncertain, more of our American clients are asking about viable options for establishing a foothold outside the United States. Whether you’re concerned about potential capital controls, wealth taxes, social instability, or simply want more geographic flexibility, having legal residency in another country creates options that could prove invaluable in turbulent times.

Panama offers some of the most accessible residency programs in the Americas, a dollar-based economy, excellent infrastructure, and a territorial tax system. When properly structured, this can provide certain advantages for US taxpayers looking to internationalize, although this area requires careful planning due to US worldwide taxation (more on this later).

The country’s long-standing relationship with the United States, combined with its unique geographic position and business-friendly policies, makes it one of the most practical options for establishing a presence abroad. Moreover, Panama has consistently offered a stable, legally sound pathway for Americans looking to diversify internationally.

In this Alert, we’ll break down the current residency options in Panama, explain the benefits and drawbacks of each, and help you understand whether Panama might be right for your Plan B strategy.

Why Consider Panama?

Before diving into the specifics of residency programs, it’s worth understanding why Panama has become such a popular destination for Americans looking to internationalize: