Finance Guides for Panama

Panama has one of the cleanest territorial tax systems in the world: if you earn your money outside Panama, Panama does not tax it. That principle has made the country a reliable choice for digital nomads, remote workers, and retirees restructuring their tax situation. But the details matter, and the marketing often blurs them. This guide explains exactly how the system works, where the lines are drawn, what triggers a Panamanian filing requirement, and what US citizens specifically still owe the IRS no matter how far south they move.

Panama runs on US dollars, eliminating exchange-rate risk for American senders. Wise costs around US$4.61 to send US$1,000; bank wires make more sense for large amounts. Here’s how to move money cheaply and what the receiving side requires.

Getting a local credit card in Panama as an expat is possible – but it takes the right bank, the right documents, and a bit of patience. Here’s exactly how to do it, and what most expats use in the meantime.