I’m wondering about Panama - #2 on International Living’s Best Countries to Retire.
So what are the problems with getting out of here?
RE: So what are the problems with getting out of here?
1) Are you planning on relinquishing US citizenship? It isn’t that simple. You have the IRS to deal with.
2) Are you planning to make money in Panama? ( say, rent out a property )? You will of course have to report that income to the IRS.
American is one of a handful of countries that TAXES citizens on income from ALL POSSIBLE SOURCES.
If you are a German living and working in the US, you are not required to file the income you make in the US to the German tax office. If on the other hand, you are an American living and working in Germany, YOU ARE REQUIRED to report your income in Germany for taxation purposes.
In fact, I know of green card holders who became citizens later who left their country of origin and by some good fortune, inherited property or money from a dead relative from that country. THEY ARE REQUIRED TO INFORM THE IRS OF THAT.
I’m heading to the Philippines like some Freepers. Former American territory, kids were taught English the same time as tagalog and the newspapers are mostly in English. I also have dibs on a condo in the financial district and only paid 25K for the 27th floor (yeah, that cheap). The traffic though, is one of the worst.
I would do an awful lot of research before settling on Panama. I spent three years there in the 1980s, and there are always some issues around the advantages of the area.