Kiplinger: Three Tax Reasons to Retire in Panama
Prestigious personal financial advice publication Kiplinger is out with a new report highlighting the tax advantages of U.S. citizens retiring in Panama.
“In recent years, Panama has become an attractive destination for retirees seeking tax advantages and a lower cost of living,” the report notes.
The report provides an excellent overview of the many tax benefits for retirees in Panama, which will be familiar to many of our clients.
“Panama offers several perks for U.S. retirees,” Kiplinger notes. “In addition to low property taxes and generally tax-free medication, living in Panama boasts a one-time exemption on import tax (generally for household goods and personal effects), no double taxation on foreign-earned income, and loads of immigration discounts.”
Panama’s pensionado visa is considered to be among the best retirement programs in the world, making it easy for retirees to settle into a Panama lifestyle. The perks of the pensionado include:
- 25% discounts on utility bills
- 25% discount on airline tickets, and 30% discount on other modes of transport
- 10% discount on medicines (medication is generally tax-free)
- 50% discount on movie theatres and sports and cultural events
- 15% off dental and eye exams
- 50% off hotels Monday through Thursday, and 30% off on weekends
Retirees can also look forward to a lower cost of living and low property taxes. And, while retirees still have to pay tax in the U.S. on Social Security income, Panama won’t tax the SSA benefits.
The author, Kate Schubel, also took the unusual step of adding a personal note to the report:
“Several years ago, I attended a travel agency video call where I saw some of what life in Panama has to offer,” she wrote. “Retired couples were interviewed about their experience living in the country. They praised how straightforward life was, expressing how much easier it was to learn Spanish being surrounded by Spanish speakers. One couple seemed to enjoy the local fruit cart that brought them fresh produce every morning.”
Want to learn more about the tax benefits offered in Panama? Our in-house experts are ready to answer all your questions.
Read the full Kiplinger article here.
