When Seeking a Working Retirement in Panama, It Is Best to Bring Your Job With You
One of the big benefits of life in Panama is the affordability of local labor. An average of about $300 per month will buy the services of a domestic willing to cook and clean from sun up to sun down. Handymen, drivers, and nannies can be found at similar pricing. This is good news if you are bringing a first world income with you, bad news if you intend to earn a living when you get to Panama.
Labor rates for foreign workers tend to parallel those of local workers. This means that skilled retirees from the U.S., Canada, and Europe will be very disappointed at the compensation they will find in Panama. This is a function of the local labor market, not of any judgments on the relative merits of new comers.
If you would like to work in Panama, your best bet is to bring a business with you, or buy one when you get here. Panama has a long list of economic incentives for new and existing businesses willing to employ three or more Panamanian nationals. You should discuss your choice of businesses with your Panamanian attorney, but you will find that a wide range of opportunities for new ideas awaits. Panama has the fastest growing economy in the region, and the mix of tax, banking, technology, investment, and government incentives found here is the best in the world.
When you relocate or buy a business in Panama you will find that your capital position will get a boost right away. Life in here is simply more affordable than in the U.S., Canada, or Europe. Just for starters, if you plan the purchase of your retirement home correctly, you can escape the payment of property taxes for as much as 20 years. Calculate these savings against the taxes you paid back home and in short order you can save the capital needed to fund the purchase of that little café you have always wanted to own.
The financial benefits of life in Panama are well known. For starters, you will not pay taxes on income you earn outside of the country. This means that the money you earn from social security, pensions, investments, and business conducted offshore is not subject to local taxes. Panamanian law also allows you to invest and bank in absolute secrecy while providing the mechanisms required to create one of the best estate management strategies on earth.
Another big plus for retirees is called the Pensionado Program. This government backed effort provides qualified retirees with a long list of discounts like 50% off entertainment options (movies, theaters, sporting events, etc.), 50% off of the price of mid-week hotel stays, 50% off of the costs of closing your home mortgage, 30% off public transport costs, 25% off of domestic air tickets, 25% off at restaurants, 20% off of professional and home repair fees, 20% discount on already low Doctor bills, 1. 5% off of hospital bills if you are not insured, 15% off of the cost of dental and eye exams, 10% off of the local prescription prices… and more!
If you are thinking about retiring in Panama or just visiting to develop an asset protection, business, banking, investment strategy, make sure to begin by building a strong relationship with a local attorney. There are many third party sources able to help you select the best attorney for your needs. These groups provide unbiased reviews of providers in Panama’s professional community speeding you to a successful pairing.
For more information on retirement, banking, estate management, taxation, employment, forming a Panamanian foundation or corporation, real estate, trade policy, corporations, tax benefits, local economics, vessel registration, obtaining legal counsel, or any other topic related to doing business in Panama… contact us now.