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Please convince me. Real advantages of owning a corporation.

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Panamood

Panamood

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May 28, 2023
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My case:

- Single guy no plan to have kids. Made some money back in Europe. Paid taxes for it. Moved to Panama and invested it all as an individual in dividend etfs stocks & etfs. I live off those dividends.
- I use Tiger Brokers to buy Singapore and HKG etfs & stocks. Dividend tax 0%.
- My tax residency is Panama, where I own an apartment. Territorial tax so 0%.
- Easy, simple life. No taxes at all. No papers. No lawyer fees.

¿Why would I want to form a corporation to own my apartment, stocks, etfs, etc...? It seems to me that people overcomplicate things by doing this. Any comment will be appreciated.
 
From my perspective, I agree with you. If you aren't planning to do more business,‌ it seems you got it all under control. You shouldn't care. Do you bank locally‍ too?

This is when you know you are winning! You literally have a parachute and a⁤ bulletproof vest on and you are NOT skydiving and NOT in a war zone. You⁣ have literally cracked the life of the bon vivant!
 
Protection against who?
Who is the would-be predator?
 
Each situation is unique. In this particular case, having assets held personally seems perfectly fine.‌

Inserting companies or other vehicles would be for asset protection, if you believe there is‍ some risk you want to protect against. If you don't perceive any, keep doing what⁠ you're doing.

Without kids (no inheritance concerns), spouse (no risk of divorce), or ongoing business⁤ that can cause wealth disruption, one of the few remaining risks would be preparing for⁣ changes to where you live. About 10 years ago, Panama accidentally removed territorial taxation and⁢ used worldwide taxation for a few months until the government fixed their mistake.
 
Anything can‌ happen.. for example if you are driving and someone runs onto the road. They could‍ open a civil suit against you
 
Given that‍ OP is in Panama, we're probably looking at a few hundred or maybe a few⁠ thousand USD in damages, if the lawsuit is successful. Unless you do that several times⁤ per year, it's cheaper to pay the penalty than the asset protection necessary to keep⁣ the wealth out of reach of courts.
 
It could happen in the USA as well? Asset protection will cost $5-25k to setup, what⁤ is the downside?
 
Yes I use a Panamanian Local Bank (Banco Aliado). Once a year I withdraw money⁢ from Tiger Brokers to it and thats it.

Also I didnt say it but no︀ property taxes either. My apartment is < 120K so no taxes. My only expense house︁ aside is health insurance with MAPFRE. 100$/month for 300K/year coverage.

I understand the protection if︂ you are someone flashy or well known. For an average Joe with some money like︃ me... Its making things more complicated. From dealing with lawyers to brokerage & bank accounts.︄

No bank or brokerage makes a single question if everything is under my name. When︅ there is a corporation.... That changes.

So. Simplicity. 1 brokerage, 1 local bank, 0 taxes.︆
 
I totally agree. You can get that company for nothing and it will‍ protect you at the end of the day should something go wrong.
 
Check your conversation for the answer. You are doing everything︂ 100% correct!
You don't need to add ANY unknown variables or bring anyone into your︃ current situation.
Your "soup" is perfect for you. Don't consult a "chef"!

But he is︅ NOT engaged in ANY business. He's just chilling in Panama. He is retired, if we︆ go by definition. No job. No business. Just simply enjoying life in Casco Viejo or︇ Multiplaza. What is he defending against?

This is the downside! The salary in Panama is a few hundred dollars a month!
 
I spend less than 25K per‍ year living here xDD. I like going to cafés, gym, beach & sex. No expensive⁠ bull2hit.

Edit: I forgot my chess club membership: 8$ / month with unlimited terrible coffee⁤ hahah
 
With owning limited company you will limit personal liability and make your life more︀ flexible.
 
What type of⁠ visa do you have in Panama? Are there any requirements like minimum days of stay⁤ per year, owning real estate...?
 
Legit question!

How?
This man is literally the definition‍ of a retiree!

He has NO business!
No company!
No job!
No taxable income!
He has NO tax liability.
He pays zero taxes!
His home/apt. is paid off, but less⁠ <US$120K, so he pays NO property taxes.
He spends <$25K/year to live like a King.⁤
He lives in Panama, so not some "rule of law" type country with citizens and⁣ ambulance chasers (ie. attorneys) suing each other willy-nilly.

How is planting a new "seed", i.e.⁢ a limited liability company, into his life going to "limit his personal liability and make︀ his life more flexible", i.e. add more money to his bottom line?
🙄
 
In legal relation, if︀ individual breaching obligation or causing damage to others he/she is personally liable for the damage︁ and his/her property can be confiscated and sold for benefit of damaged party, if here︂ is Limited company in tax free jurisdiction, then this company will be party of the︃ legal relationship and individuals personal property will be protected.
 
All limited company around the world limits liability of shareholders or managers. I will not provide‍ case law on this it is 100% irrelevant.

May I know reason of you reaction?⁠
 
I took‍ advantage of the Friendly nations visa before covid when it led to permanent residency right⁠ away. Now its still doable but you get temporary for 2 years, then permanent.
I live in Panama permanently but i believe 1 day every 2 years not to lose⁤ the status.
 
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