Now that I have read a lot of info on this forum and elsewhere I have a couple of questions about US expat income while living in Panama.

I plan to live in Panama as a US expat on tourist visa for at least 9 months of a calendar year (NOT in US for more than 3 months per year & most likely very little time in US to visit family, etc) and earn income from sources outside Panama.

1. If I trade stocks online through US based securities broker (such as Ameritrade, etc) and I have profit from those trades are there capital gains taxes withheld or does the W8-BEN apply to me since I live in Panama?

2. Is income from US-based sources other than stock market, such as 1099 income from commissions, taxed by IRS?

3. If I have income from non-US based sources is there any way IRS is aware of this unless I report it to them?


If anyone here has ideas for earning income while living in Panama, please PM me as this seems to be the biggest hurdle to make this whole idea work out. Thanks much in advance for input/advice