Retire in Panama: The Ultimate Guide for 2022
According to a study, an average person will spend 90,000 hours at work over a lifetime – that’s one-third of their life. After giving a lifetime of effort and time…
The passport of Panama is currently ranked as 68, with a total score of 86.00. Panama passport ranking relative to other global passports is calculated by relying on the Panama government's approach not just to travel, but also to international taxation laws, global perception, dual citizenship, and personal freedom as just the number of countries Panama passport holder may visit won't tell the whole story and you will have to deal with far different requirements to pay tax, live freely, comply with regulations, and avoid scrutiny when traveling.
For the Panama Travel score calculation, we relied on data from the IATA, Henley Index, and news sources to rank travel access. We calculate the Travel scores by summing up Visa-free, Visa On Arrival, and eTA countries. Based on that data, we assigned Panama a Travel score of 136 as there are 86 countries that Panama passport holders can enter without a visa (i.e. visa-free countries), 47 countries that allow Panama passport holders to enter by obtaining a visa on arrival (i.e. visa-on-arrival countries) and 3 electronic travel authorization (eTA) destinations. Altogether, Panama passport holders can enter a total of 136 destinations — either without a visa, through a visa on arrival, or via an eTA. Separate from these 136 destinations, there are 114 additional destinations which Panama passport holders either need a physical visa to enter or an eVisa.
For the Panama Taxation score calculation, we relied on data from our network of tax vendors, news sources, and tax authorities themselves. We assigned the lowest score of 10 to countries that tax citizens no matter where they live, scores of 20 or 30 to countries that allow citizens to relocate to avoid tax, 40 to those that don’t tax foreign incomes of resident citizens, and 50 to countries with zero tax. Based on that data, we assigned Panama a Taxation score of 40, meaning that Panama don’t tax foreign incomes of resident citizens.
Having a second residence in another country is a great way to diversify away from your home country, pay less in taxes, and possibly obtain a second citizenship, but are you sure that Panama is the best option for you? Let our experienced team create and implement a bespoke, holistic strategy for you to legally reduce your tax rate offshore, protect your assets, invest overseas, obtain a second citizenship, and improve your peace of mind. We've helped 1,000+ HNWI entrepreneurs and investors and we can help you, too.
For the Panama Perception score calculation, we relied on the World Happiness Report, the Human Development Index, and subjective factors from our networks’ experiences to determine how each country’s citizens are received and recognized. We assigned the lowest score of 10 to those whose citizens are refused entry to a substantial number of countries and/or whose citizens encounter substantial hostility, scores of 20, 30, and 40 to countries whose citizens experience intermediate hostility, and 50 to countries ranked among the happiest in the world and whose citizens experience minimal hostility. Based on that data, we assigned Panama a Perception score of 30, meaning that Panama citizens experience intermediate hostility.
For the Panama Dual Citizenship score calculation, we relied on embassy data and our experiences to assess the ability to hold dual citizenship, ranging from a score of 10 for strictly forbidden to a score of 50 for freely allowed. We assigned the score of 10 and 20 to countries whose citizens are strictly forbidden to hold other citizenships, scores of 30 and 40 to countries whose citizens are often allowed to hold other citizenships but with certain restrictions, and 50 to countries whose citizens are almost always allowed to hold other citizenships. Based on that data, we assigned Panama a Dual Citizenship score of 20, meaning that Panama citizens are strictly forbidden to hold other citizenships.
For the Panama Freedom score calculation, we relied on data and news reports on mandatory military service, government surveillance, press freedom, and other factors to determine the personal freedom of citizens, travelers, and expats, with scores from 10 being the least free and 50 being the freest. We assigned the scores of 10 and 20 to countries whose citizens have low freedom, scores of 30 and 40 to countries whose citizens have intermediate freedom, and 50 to countries whose citizens have total freedom. Based on that data, we assigned Panama a Freedom score of 50, meaning that Panama citizens have total freedom.