For Canadian residents
An analysis for Canadians considering Panama

Canada to Panama.
A serious Plan B.

Residency, real estate, and lifestyle in Panama for Canadians weighing their options. Permanent residency in 30 days, a path to citizenship after five years, and direct flights from Toronto and Calgary. Run by people who have actually done it.

Residency in30 days
Citizenship path5 years
Foreign-source tax0%

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We will send you a short series on residency, real estate, and tax position, and one of us will be in touch within 48 hours.

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02 · Why Canadians are looking south

Canada has changed. You can change with it.

Higher taxes, longer winters, and a political climate that has Canadians quietly asking the question they would not have asked five years ago. Panama is one of the few jurisdictions that answers it without compromise.

The combined federal and provincial top marginal rate in Alberta is over 48%. In Ontario it is 53.5%. Capital gains inclusion rates have moved twice in recent years. Departure tax under Income Tax Act section 128.1 is real and significant, but it is a one-time event, not a recurring drag on your wealth.

Panama runs a territorial tax system. Income earned outside Panama is not taxed in Panama. There is no foreign-source income tax, no inheritance tax, no wealth tax, no capital gains tax on Panama-source securities held more than 12 months.

You will need Canadian tax advice on your departure. We work alongside your accountant. We do not replace them.

03 · What our Canadian clients tell us

Five reasons, in roughly the order they come up.

01

Tax efficiency

Territorial system. Foreign-source income is not taxed. No wealth, inheritance, or capital gains tax on most assets. Severing tax ties from Canada is a deliberate, structured exercise; we help coordinate it with your Canadian accountant.

02

Winter escape

Average daily high of 30°C, twelve months of the year. Five-hour direct flights from Toronto, Calgary one-stop. Many of our clients spend three to six months a year in Panama and the rest back home.

03

Real estate yield

Pre-construction returns in Panama City run at 8 to 12% gross yield on well-selected units. Branded-residence operators handle short-term rental. Bank financing for non-residents at 60 to 70% LTV.

04

Cost of living

Panama is roughly 30 to 40% cheaper than Calgary or Vancouver across food, healthcare, services, and labour. A C$10,000-per-month retirement budget goes further here than C$15,000 does in Canada.

05

Plan B

Panama residency grants you the legal right to live, work, own property, and access healthcare. After five years it becomes a path to citizenship. Optionality, on your timeline, at your discretion.

04 · What Panama actually offers

The real product, not the sales pitch.

Panama is not a tax haven, a passport scheme, or a retirement brochure. It is a small, stable, US-dollar economy with a 30-year track record of welcoming foreign capital and foreign residents. Here is what that means in practical terms.

i

Permanent residency, not temporary.

The Friendly Nations Visa and Qualified Investor Visa both grant permanent residency, not five-year conditional. Spouse and dependent children included. Renewals are administrative, not discretionary. The Qualified Investor Visa is granted in 30 days for those who qualify.

ii

Real estate as the residency anchor.

A property purchase from a qualifying minimum (USD 200k to 300k depending on the visa route) anchors your residency. The property itself is yours. You hold it personally or in a Panamanian Private Interest Foundation for estate planning. We handle the introductions to the developers, the lawyers, and the banks.

iii

A path to citizenship after five years.

After five years of permanent residency you can apply for Panamanian citizenship. Dual citizenship with Canada is permitted (Panama does not require renunciation in practice). A second passport is optionality, not a tax dodge.

iv

Healthcare, education, infrastructure.

Hospital Punta Pacifica is JCI-accredited and affiliated with Johns Hopkins. International schools at Canadian-equivalent standards. The Panama Canal funds a substantial chunk of the national budget, which has kept infrastructure investment consistent for decades.

05 · Who you are working with

Real estate, in Panama, by expats who actually live here and have gone through the exact same process you are considering.

Panamigos Realty has been placing foreign buyers into Panama property for over a decade. We are not a referral website. We are on the ground, in the buildings, at the closing table.

Luke Abbott, CFA

Managing Partner · Chairman, BCCP

Kiwi by birth, Panama-resident since 2016. Chairman of the British Chamber of Commerce in Panama. Has placed foreign buyers into Panama property for over a decade, with a focus on pre-construction and branded residences. Speaks regularly in Calgary, Edmonton, and Toronto on Panama as a Plan B for Canadians.

$200M+

In transactions placed

Total volume of foreign buyer real estate transactions Panamigos Realty has been involved in since founding, spanning pre-construction, resale, and branded-residence investment units.

Thousands

Canadians have made the move

Already living in Panama, full-time or as snowbirds. Panamigos hosts investor dinners in Calgary, Edmonton, Toronto, and Vancouver each year. You are not the first one to ask.

06 · What happens after you submit

No high-pressure pipeline.
A real conversation.

Most Canadian buyers take six to eighteen months from first enquiry to closing on a Panama property. We are happy to be patient.

07 · The questions every Canadian asks

Answered, briefly.

Do I have to give up my Canadian citizenship?
No. Panama does not require renunciation in practice. Many Panamigos clients hold dual Canadian and Panamanian citizenship, or retain Canadian citizenship indefinitely while living in Panama on permanent residency.
What about Canadian departure tax?
Departure tax under Income Tax Act section 128.1 is real and applies when you cease to be a Canadian tax resident. It is a one-time deemed disposition on most non-real-estate assets. It is structured, planned for, and not a reason to avoid relocation, but you need Canadian tax advice to plan it properly. We work with your accountant, not instead of them.
Is Panama safe?
Panama City has lower violent crime than Toronto, Vancouver, or Edmonton on per-capita basis. The high-end residential neighbourhoods (Punta Pacifica, Costa del Este, San Francisco, Marbella) are amongst the safest urban areas in Latin America. We will be honest about which areas to avoid; there are some, the same as any city.
What does it actually cost to live here?
A comfortable retirement budget for a couple is around C$5,000 to C$7,000 a month including rent. Premium lifestyle with private school, healthcare, and a city apartment is C$10,000 to C$15,000 a month. Roughly 30 to 40% cheaper than Calgary or Vancouver, before factoring in tax savings.
Do I need to live in Panama full-time?
No. For tax residency you do. For permanent residency status you do not, beyond an initial period and occasional visits. Many Canadian Panamigos clients split the year, spending three to six months in Panama, the rest at home.
Can I get a mortgage as a non-resident?
Yes. Panamanian banks lend to foreign buyers at 60 to 70% loan-to-value on most properties. We make the lender introductions and handle the documentation alongside our preferred mortgage broker.
What is the catch?
Panama is hot, the bureaucracy is slow, the political class is no better or worse than Canada's, and you will not love every Panamanian driver. You also need to take the structuring seriously, which is why we work with proper lawyers and accountants on both sides. None of this is reason not to do it. All of it is reason to do it properly.

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