This is a big reason that I chose Panama. From Jackie Lange at Panama Relocation Tours.
When you’re considering moving to a different country, you need to research the tax implications closely. Retiring in some countries could double your taxes.
Luckily in Panama, you will not pay any taxes unless you sell products or services IN Panama. But, if you’re a US citizen, you’ll still have to file a tax return and pay taxes in the US.
I was interviewed for this article by TIME magazine about the Foreign Earned Income Exclusion which allows US citizens to deduct $108,700 per person (2021 tax return) in earned/active income to reduce their tax liability. The deduction does not apply to pensions or passive income.
Living in Panama, a couple can make $217,400 without paying taxes in the US!
Get Vaccinated and stay safe!!