(FEIE Updated to $112,000 for 2022)
Because of the pandemic, many businesses are allowing their employees to continue working from home despite that some offices are partially open again. All you need to be able to work from home is a good internet connection. You can use Zoom or Skype to stay in touch with the office.
Even after the Covid virus, some companies may decide to keep all their employees working from home so they can reduce the high costs of rent and maintenance for an office.
Or, you may decide to move your company to Panama permanently to reduce your taxes and have a better lifestyle.
If you’re working from home, why bother to continue to live close to the office? Or close to the city? Or the same state? Or even the same country?
You could live anywhere!
If going into the office is no longer necessary, that means that you could work from a home in Panama. Many areas in Panama have fiber optics with 100-600 Mbps internet!
You may be able to significantly reduce your cost for housing by moving to Panama even if it’s just for a year or two. You can get a nice furnished two-bedroom condo facing the Pacific Ocean in Coronado for about $1500 a month. Imagine waking up every morning to talk a walk on the beach before you start your workday.
Or you could live on Balboa Avenue in Panama City with an Oceanview for about $1500 a month for a furnished apartment. There is so much to see and do in Panama City. You’ll find plenty of others who are working from home in the City too and they have frequent get-togethers.
The laid-back lifestyle in the heart of cultural events in the Azuero Peninsula may be more your style. There, you can get a great furnished two-bedroom house close to town for $600 a month or live in a beach community about 10 minutes outside of town.
If you prefer cooler Spring-like weather where you don’t need an air conditioner, you could live in Boquete which is surrounded by spectacular mountains ideal for hiking, for about $700 a month for a furnished two-bedroom house. When Panama opens up the economy more, there will be plenty of social activities including live music at multiple venues. From Boquete, you’re only about 90 minutes to some of the best beaches and fishing in Panama!
If you love the beach, surfing, and diving, you may want to try living on the Caribbean side of Panama in Bocas del Toro. It has a bohemian vibe. Recently, I’ve seen cute furnished two-bedroom houses close to the beach for about $600 a month.
Panama is a small yet very diverse country. So you may want to try several different areas in Panama instead of just picking one!
An added bonus, if you live in Panama and you’re a United States citizen, you could qualify for the Foreign Earned Income Exclusion which means you pay NO TAXES in the United States on the first $112,000 of your income. (sorry, the FEIE is only available to people from the US). And you would not owe any taxes in Panama. You get to keep every single penny you make! (check with your CPA or the IRS website for details about qualifications for the Foreign Earned Income Exclusion)
Move To A Place Where You Can Reduce Taxes Too!
If you’re working from home in Panama, you would not need to get a work permit in Panama. But you would need to get a residency Visa to live in Panama full time. Panama has a remote worker visa. Tourists can stay in Panama for six months (if you’re not driving) then you may be able to take a little trip to Costa Rica or Medellin Colombia for a week so you can reset your tourists status in Panama thus avoiding the expense of getting a residency Visa.
Miami is less than a 3-hour flight from Panama City but you need to be careful not to be in the United States for more than 30 days or you will lose your Foreign Earned Income Exclusion.
Once things settle down with the pandemic, you may be required to go back to the office. But while you have an opportunity to work from home, why not work from home in Panama! You can also reduce your cost of living, reduce taxes, and explore how amazing life is in Panama. It’s the best of both worlds.
While you’re working from home in Panama, it’s also a great way to check out Panama for a potential place to retire to!
What are you waiting for?
Move to Panama so you can avoid the snow and cold weather this winter!