Reduce audit risks by 70% with accurate filings and records
Moving to Panama brings exciting opportunities, but it also creates tax obligations that can feel overwhelming. If you are living, working, or investing in Panama, understanding how expat tax works is the first step to staying compliant and protecting your finances. This guide explains how tax services for expats in Panama operate, the rules you must follow, and how professional support can make your life easier.
Hiring the best expat tax service means working with advisors who not only understand Panamanian tax law, but also know the tax rules of your home country, especially if you are from the US, Canada, the UK, or Germany, where tax obligations can follow you even while living in Panama. Because our firm operates not only in Panama but also in these countries, we are able to offer:
Panama is known for its territorial tax system, meaning you are taxed only on income earned in Panama. However, foreign nationals must still report worldwide income to their home country. That is why expat tax services in Panama are essential, filing in two jurisdictions requires precise planning.
Working with the right team helps you understand these layers, making your tax a smart investment.
As an American living or investing in Panama, you are still required to file certain U.S. tax forms each year. These may include Form 1040 (U.S. Individual Income Tax Return), Form 2555 (Foreign Earned Income Exclusion), and Form 1116 (Foreign Tax Credit). If you hold foreign bank accounts or investments exceeding reporting thresholds, you may also need to file the FBAR (FinCEN Form 114) and FATCA Form 8938. Our team can prepare and file all these forms accurately, ensuring that you remain compliant with U.S. tax laws while also meeting your obligations in Panama.
The United States taxes its citizens on worldwide income, even if you live abroad, which means you may have to submit annual tax returns in both the U.S. and Panama. The U.S. does not have a double taxation treaty with Panama, but American taxpayers can often benefit from strategic planning through structures such as trusts, LLCs, and offshore companies in jurisdictions like Delaware. With the right approach, these strategies can reduce your tax burden, protect your assets, and streamline reporting requirements in both countries.
Thanks to our offices in California, we can manage your U.S. tax filings and coordinate them with your Panamanian returns, giving you one trusted point of contact for all your cross-border tax needs.
For Canadians, the tax situation in Panama requires careful attention. Even after relocating, many Canadians remain subject to filing obligations back home, depending on their residency status for tax purposes. These obligations can include submitting the T1 General (Income Tax and Benefit Return), reporting worldwide income, and completing the T1135 (Foreign Income Verification Statement) if foreign assets exceed CAD $100,000. Factual or deemed residents may also need to disclose foreign investments, trusts, and bank accounts. We help ensure every requirement is met accurately and on time, avoiding costly penalties.
Without a double taxation treaty between Canada and Panama, managing taxes in both jurisdictions can become unnecessarily expensive without the right strategy. By reviewing your full financial picture, we can identify ways to legally minimize the impact of dual filings. Many Canadian clients benefit from integrating international structures such as trusts, holding companies, or offshore entities into their overall plan to maintain asset protection and improve efficiency.
Our presence in Toronto gives you a home-country point of contact while we coordinate your Canadian filings with your Panamanian returns. This way, you have a single team managing both sides of your tax obligations, saving you time, reducing errors, and keeping your compliance process as smooth as possible.
Moving from the UK to Panama offers a fresh start, but it doesn’t mean leaving your UK tax responsibilities behind. If you have income from UK property, pensions, investments, or business activities, HMRC will still expect accurate reporting. Depending on your situation under the Statutory Residence Test, you may need to complete a Self Assessment tax return, declare foreign income, and meet specific disclosure rules for offshore assets. These requirements can quickly become complex when combined with Panama’s own tax system.
Because there is no double taxation treaty between the UK and Panama, timing and structure matter more than ever. The right approach can help you avoid paying more than necessary, especially if you take advantage of legitimate planning options such as corporate structuring, capital gains planning, and wealth protection strategies designed for cross-border living.
With our team operating in London, we bridge the gap between UK and Panamanian tax systems. This means you have local expertise in both countries working together to manage your filings, protect your assets, and keep you compliant without the stress. We take care of the details so you can focus on making the most of your new life in Panama.
Tax Services for German Citizens in Panama
Moving to Panama doesn’t always end your connection with the Finanzamt. If you still own property in Germany, receive rental income, hold investments, or are considered a tax resident under German law, you may still have to file and pay taxes there — even while living abroad.
Our Munich office works directly with our Panama team to coordinate your German and Panamanian filings. We speak German, understand how the two systems interact, and help you stay compliant while exploring legal strategies to protect your wealth and avoid unnecessary double taxation.
The Panamanian tax code (Código Fiscal) states that only income generated within Panama is taxable. However, expatriates must follow these government advisories:
Important: Many expats in Panama overlook the rules on tax residency and the obligations that come with it. Under Panamanian law, you are generally considered a tax resident if you spend more than 183 days in the country within a calendar year or if Panama becomes your center of vital interests. While Panama’s territorial tax system means you do not pay taxes on foreign-sourced income, you may still be required to file a declaration to show the origin of your funds. This is often requested by banks during compliance reviews and, in some cases, by the tax office itself.
Failure to comply can result in fines or restrictions on residency renewals. A qualified expat tax consultant ensures you meet every requirement.
When evaluating expat tax preparation options, focus on firms that offer comprehensive solutions:
Our team of expat tax experts has built a reputation as a trusted expat tax firm because we handle every detail with accuracy and confidentiality.
Trying to manage taxes alone can be confusing. An experienced advisor:
Choosing a professional means you get peace of mind, knowing your filings are correct and on time.
Meet the specialists who turn complex regulations into clear strategies, making your life as an expat easier and stress‑free.
Founder
I am a self-motivated and self-taught professional who likes to solve problems.
Founder
I am a self-motivated and self-taught professional who likes to solve problems.
Founder
I am a self-motivated and self-taught professional who likes to solve problems.
Here’s what our clients have to say about their experience with our team and how our guidance has helped them stay compliant and save money.
Yes. Panama taxes only local income, but many home countries—like the United States—tax worldwide income. A licensed advisor can help you avoid double taxation through treaties, credits, and proper planning.
You must provide proof of income sourced in Panama, expense receipts, residency papers, and any foreign income statements. A specialist can create a checklist and ensure all documents meet DGI and home-country standards.
Yes. Through strategic planning, you can access credits, treaty benefits, and approved deductions. This approach is fully legal and aligns with Panamanian fiscal regulations and foreign tax laws.
Yes. Panama taxes only Panama‑sourced income, but many expats must still file in their home country.
No. Panama is not a tax haven. While it is often perceived as one because it uses a territorial tax system, the reality is different. In Panama, only income generated within the country is subject to taxation, while foreign-sourced income is exempt. However, local income is taxed, financial regulations are enforced, and the country complies with international transparency standards.
Countries like the UAE, Panama, Georgia, and Singapore are known for low or territorial tax systems that favor expats.
Yes. Certain technical services to nonresidents face a 12.5% withholding, reduced if a tax treaty applies.
