David B. Says:
I’ve been an International Living reader for a couple years, and you guys often say Panama is pro-business with lots of freedoms. Would it be tough to set up a small business, jet ski rentals or the like, when I retire there?
Panama Lawyer Rainelda Mata-Kelly Says:
Dear Reader,
It is possible for you to open a small business, such as jet ski rentals in Panama. As with any business, there are a number of issues to deal with, starting with the first decision: Will you operate in your name or under a corporation? Your first step should be to retain the services of a local lawyer.
Your lawyer will need to advise you on the national or local permits you will need to obtain (depending on the business activity), any restrictions and the taxes you will need to pay in Panama.
One restriction to watch out for is that foreign nationals are not allowed to own retail businesses. Also, as a foreign resident with the Pensioner Residency Visa you may own a business and oversee its operation, but you cannot work in it as a regular employee, since you would not be entitled to get a work permit.
If your intention is to work in your business, then make sure to explain this to your lawyer prior to applying for residency, so you may apply for a visa which grants you a work permit.
Good preparation certainly makes good luck!
Editor’s Note: Rainelda is a well-respected attorney in Panama, and she will be at our 2023 Fast Track Panama Conference to reveal the details of all of Panama’s attractive visa options and all the legal issues you’ll want to know about: the ins and out of buying real estate, importing your household goods, estate taxes, corporations and family trusts, and much more.
As one former attendee at the Fast Track Panama Conference said of Rainelda: Her content alone was “worth the price of admission.”