expatplayer

Have you ever considered starting an international business in Panama?

GlobalGreen

Of course! I think that's what many foreigners who live in Panama do... because they don't have to pay any taxes on their income... for some it's even a reason to move to Panama in the first place. And there are many more reasons for doing so.

Lalaguayaba

Well, that only works if you are not an American; citizens of the U.S. are required by law to pay income taxes to the U.S. gov't, regardless of where they live on the planet. So while one is not paying income tax to the Panamanian gov't, one is paying to the gov't of country where they don't even reside.
Another lovely little note is that you will continue to be required to pay taxes until (you) "give notice of your expatriating act or termination of residency (with the requisite intent to relinquish citizenship or eliminate such status) to the Department of State or the Department of Homeland Security and provide and initial expatriation statement (Form 8854) to the I.R.S."--unless you left the country before June 3,2004 when these new regs went into effect
http://www.irs.gov/pub/irs-pdf/i1040nr.pdf
IRS.gov Search Results

Write your congressperson and suggest an amendment...

Cheers.

p.s. I love the avatar! Why not put a porcupine in a gas mask?

panamapal

What happens to people who left the United States before June 3, 2004?

Lalaguayaba

Please read the link from the IRS--that is why I made sure it was included. Your answer may be found on page 7.

Cheers.

Panama Mike

I would like to setup a company here in Panama for IT development servicing international clients. I would not personally be living here, rather the programmers would be Panamanian - My clients would be in Europe, North America etc... - Can I do this by setting up a company here and off-shore bank account so I can invoice clients from Panama globally and pay my programmers? The groundwork is done, my clients exist, I just want to get the ball rolling now in Panama...

Can I also avoid 40K small biz visa with this as I wont live here? Might be repeating myself a little but in panama now and ready to go... Hope you can all help as you sound like you have gone down the path I am trying to now!!!!

Beer offered to anybody who helps me while I am here!!!

Cheers

Mike