iby

I've spent a significant amount of time lately trying to understand the tax laws in Panama as they relate to "Panama Sourced Income". Alas, I must inquire here because I keep getting confused.

As an US Citizen, working for a US based company.. if I were to relocate to Panama and continue to work for that same company as a telecomuter, that would be considered non-panimanian sourced income as I understand it... and thus not taxable.

but I also read that if you stay in Panama over 70% of the time during a given year, that's no longer the case and you then would have to pay income taxes?

Anyone have any first hand knowledge of this? I surely appreciate any comments/input or suggestions

-ib

dsc

iby,

I'm fairly certain it's the first scenario listed. This is a huge part of the appeal of Panama, of course.

If anywhere, the answer is probably in this forum or in this website: http://www.panamalaw.org/

Note: I've never used this law firm nor am I promoting them. I merely like it as a source of info on Panama. There's a ton of info in their site.