Finance and economics mentoring
New Horizons Paraguay
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OK, thank you. I thought you were alluding⁢ to the fact that the 25% corporate would ultimately have to be paid at some︀ point, even on foreign sourced income, e.g. if it doesn't stay foreign and goes back︁ to Panama corporation. I see now what you were saying.

I will check out Legal500︂ - Thank you for the recommendation.
 
Be aware that Panama is closing its Friendly Nations visa. If you're interested in Panama,‌ you should probably hurry, as there are only a few weeks left to apply. The‍ visa is only $3000 or so. Once you have it, you'd be able to keep⁠ it.
But new applications won't be possible, or require a substantial investment.
 
Panama is somewhat similar to US, so you will find it easy to⁤ adopt if you live in us for so long. Just gotta know Spanish.
For europeans/asians,⁣ Panama is a steeper step to adopt and EU does not like them and depending⁢ what you want to do with the Panama residency, it can make life more difficult︀ with banks due to Panamas bad reputation.

Also you gotta really hurry with the friendly︁ nation visa, I've read till 20 august you should have filed it and gotten your︂ temp residency card before that day.
 
Sounds pretty interesting. Didn't know theres an new IP⁠ Box option within the EU. The last interesting one was in Lux iirc but they⁤ didn't accept anyone new back then. You got any further informations on the cyprus one?⁣
 
Does that still exist? I thought Cyprus had done away with that a couple years‌ ago?
I thought Ireland or Malta might still have something like that though?
 
Thank you both for the input. I was unaware that Panama are closing the Friendly‌ Nations Visa window. I'm not sure that I'm ready to commit to living in Panama‍ just yet.

My general plan was to base the corporation there and continue being a⁠ true Nomad for a few more years (perhaps forever, or until health declines; I'm nearly⁤ 40). Before covid I was travelling 365 day a year for several years (visiting the⁣ US periodically to keep the green card). Now that Covid is subsiding, I'm back to⁢ travelling (been in Europe since May with a rental car until November and I've been︀ visiting various countries). Even during Covid I was renting long-term airbnb's. I haven't rented aa︁ real apartment since 2017. Committing to living in one place will be a big step︂ for me.

My understanding is that Panama allows foreigners to own corporations in Panama, meaning︃ my plan should be possible,. But, if I'm wrong about that, then I should jump︄ on the Friendly Nations visa.

I've been to Panama many times and have spent extended︅ periods there. I greatly prefer being outside the major cities (Panama city is too noisy︆ for me)... and fortunately I'm very strong in Spanish so I can communicate just about︇ everywhere.
 
You should really talk to a Panamanian immigration/tax lawyer ASAP.
I believe that if you‌ base your company in Panama, it would be subject to 25% corporate income tax -‍ unless you have a foreign branch elsewhere or so.
So it would probably be beneficial⁠ for you to only have your personal residency in Panama (you don't have to spend⁤ much time there) and set up the company somewhere else.
Panama is very popular with⁣ nomads - but that window is closing now. Instead of thinking about it, you should⁢ just contact a lawyer as soon as possible to discuss your options.
Honestly, if you're︀ considering moving to Panama later, I would just lock in that visa now. Worst case︁ you've spent $3000 for nothing, but then at least it would give you the option︂ to decide later if you want to live there or not.
 
The bank account opening will be tricky if you can't produce readily kyc docs for‌ the Panama banks, but your lawyers can help. You know the game with utility bills,‍ blood and stool sample 😉.
But you need to decide muy muy pronto.
If you⁠ base your corp there, you will then pay tax if you transfer from corp to⁤ personal as it is in-country earnings.
You also do not need to live in Panama⁣ under that visa. I made it years back as backup and actually never lived there⁢ as of yet, maybe in the future.
 
sigh.... I don't like rushing on things, but maybe I have to do so here.‌

The real hold-back is the US green card (LPR). If I apply for residency somewhere‍ else, then I'm de-facto making the decision to give up the LPR (as per the⁠ terms of the LPR). And, I should expect they'll find out about that and invalidate⁤ the LPR whether I like it or not. Although I'm fairly certain about wanting to⁣ abandon the LPR anyway, I was hoping to make that decision closer to November, after⁢ the European trip.

I have some thinking to do (and lawyers to find).

Thanks again︀ for your insights.
 
Oh, that is adding another complexity to︁ the mix. Well, and its the US, they certainly have the will and resource to︂ take that seriously.
And for getting us citizenship first and then the extra residency afterwards,︃ there is no time left and you would have to go to Paraguay instead 😉

Well, shoot me a PM if you need a trusted lawyer. They are not the cheapest︄ but got the job done really quick and well which is not a given in︅ that part of the world. Other people interested in Panama told me most lawyers are︆ buried in work as everyone wants the last sit on the tanker before friendly nations︇ closes.
 
I have been "dating" the US for 20 years. If I wanted to "marry"⁠ the US (get citizenship), I'd probably have done it by done. I don't like the⁤ idea of marriage. I am a man who believes in keeping one's options open 🙂

Also, being a citizen would subject me to "worldwide income", even if I left the US⁣ for an extended period. No thanks!
 
I don't think you have to rush the decision. With an EU passport, I'm sure‌ there will be options for you to get residency in Panama later, even if it‍ may cost a bit more.
But I would definitely start talking to a lawyer ASAP,⁠ so you get a clear picture of what your options are.
I just asked a⁤ friend who got the Friendly Nations Visa, she used this company:

https://www.pgs.legal
Seems like they⁣ have both tax and immigration lawyers.
I haven't worked with them, so I can't comment⁢ on their performance, but she was happy.
 
yep there are⁢ options, you need to drop 200k$ in Panamas real estate casino or get a real︀ job there. That will be the option for the time being.
Then you get a︁ two year temp residency and after that the PR (while handing in docs again).
Friendly nations was around 7-8k$ cost all in for life resulting in a national id card︂ with 10 year validity and PR for life.
 
I think the cost for the Friendly Nations visa is more like $2-3k, plus a‌ $5k deposit, which you get back after a few weeks or so.
 
dude, you are already a‍ US person, and as a long term resident (more than 8 years) you are already⁠ subject to the exit tax if you abandon the green card. Dude you are fucked⁤ if you haven't declared your worldwide income already.

Also, you seem to be conflating two⁣ issues here as well.
Just because you lose your immigration status doesn't mean you are⁢ free from your tax obligations, that is only true if you held your greencard for︀ less than 8 years.
And if you never return to the US, or let the︁ green card expire, you are still subject to the US tax law no matter where︂ you live until you formally file the I-407 and the form 8854 along with your︃ last tax return.
 
My point︂ is about the future. Once I get out and pay whatever is due, I'm free︃ from those obligations going forward. I want to get out now and pay the exit︄ while my company is still small and worth less, that way when it grows to︅ become larger I will not owe those taxes to the US. It's growing fast, so︆ the sooner I do it, the better.
 
Join the streamline filing before it is over... They already got rid of OVDP, so the⁣ clock may be ticking to get into compliance.
Especially in this pandemic crisis, everything seems⁢ to be tending to eliminate tax reliefs and tighten their rules ever more.
 
Tighten the rules while spending‍ infinite money AND raising taxes! It's nuts. They've gone "drunk" on their money-printing machine and⁠ the chickens will eventually come home to roost. The advantages the US offered 20 years⁤ ago made it "worth it" to "put up with it", but there's no end in⁣ sight to their madness. Other countries have really caught up, and with everything being online⁢ - including my business/revenue - the location is almost irrelevant. So, unfortunately it's time to︀ say goodbye to the US. I've already been abroad for nearly 5 months and don't︁ miss the US one bit. I'm a lot happier outside the US, in fact.
 
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