U.S. citizens living in Panama are allowed to earn up to $80,000US annually without paying taxes to the American government.

Other tax advantages you receive when you live in Panama are:

• If you purchase a home, whether it is newly built or previously owned, you will not pay property tax in Panama for 20 years.
• Transfer taxes when buying property are paid by the seller.
• Foreign-earned income is not taxed in Panama.
• A maximum of 30% is paid for personal income tax.

There is no inheritance tax in Panama.

If you are a U.S. citizen, you must file a U.S. Tax Return yearly.  Not doing so will jeopardize your Social Security income.