Moving to Panama from Canada: Taxes, Safety & Visas 2026
Every winter, the same message reaches us from somewhere between Victoria and Halifax: we are tired of the cold, the cost of living and the tax bill, and we keep hearing about Panama. Is it the real deal?
I can answer that with some authority, because I made the move myself. I relocated from Canada to Panama in 2021, and today I run Panama Properties, a licensed Panamanian real estate brokerage, splitting my time between Pedasí and Panama City. I Personally Moved to Panama form Canada in 2020 Due to Taxes, regulations and rapidly changing and increasing costs
This guide covers the three things Canadians ask us about most: the tax benefits, safety, and how to get legal residency. It also covers the part most relocation articles skip, which is what the Canada Revenue Agency still takes after you leave. You deserve the full picture before you sell a house or hand back a provincial health card.
A quick note on who we are. Panama Properties is a real estate brokerage, not a tax firm or an immigration law practice. Everything below is general information, current as of September 2026. Your final tax and visa decisions belong with a Canadian cross-border tax professional and a licensed Panamanian immigration attorney, and we are happy to introduce you to professionals we have worked with.
WHY CANADIANS ARE CHOOSING PANAMA
Panama checks a combination of boxes that few warm-weather countries match. It uses the US dollar, so there is no local currency to worry about once your money arrives. Canada has an embassy in Panama City, a free trade agreement with Panama has been in force since 2013, and the capital has good private hospitals. Panama's residency programs were built specifically to attract foreigners, and Canadians qualify for all of the main ones.
Canadians can also visit without a visa for up to 180 days, which means you can test life here for a full winter before committing to anything. Many New direct flight options from Toronto, Montreal and Calgary now exist too
THE TAX BENEFITS OF MOVING TO PANAMA FROM CANADA
The tax story has two halves. Panama's half is genuinely excellent. Canada's half is where people get surprised. Here are both.
Panama's territorial tax system
Panama taxes income based on where it is earned, not where you live. Income generated outside Panama is generally not subject to Panamanian income tax, whether or not you are a resident. For a Canadian, that typically means Panama does not tax your CPP, your OAS, your RRSP or RRIF withdrawals, dividends from your Canadian or US investments, or income from remote work for employers and clients outside Panama.
Income earned inside Panama is taxed. Panamanian-source personal income is taxed progressively: 0% on the first US$11,000, 15% up to US$50,000, and 25% above that. Rent from a Panamanian property and gains on the sale of Panamanian real estate count as Panamanian-source income.
You may see headlines about a new economic substance law. Law 526 of May 2026 applies to foreign-source passive income earned by companies that are part of multinational groups, starting in fiscal year 2027. It is not aimed at individuals living here on pensions or foreign income, but if you hold investments through a corporate structure, raise it with your advisor.
The Canadian side: becoming a non-resident
This is the part that matters most. Canada taxes based on residency, not citizenship. You can remain a proud Canadian citizen for life, but you only stop paying Canadian tax on your worldwide income once the CRA considers you a non-resident.
That comes down to your residential ties. The significant ones are a home in Canada, a spouse or common-law partner in Canada, and dependants in Canada. Secondary ties, such as provincial health coverage, a Canadian driver's licence, bank accounts and memberships, also count. According to the CRA, you usually become a non-resident on the latest of three dates: the day you leave Canada, the day your spouse or partner and dependants leave, and the day you become a resident of your new country.
Form NR73 lets you ask the CRA for an opinion on your residency status. It is optional and not legally binding, and many cross-border advisors only recommend filing it in certain situations. Get advice before you send it in.
One common trap: keeping a furnished home in Canada "just in case." A home available to you in Canada is one of the significant ties the CRA looks at, and it can keep you a Canadian tax resident even while you live in Panama.
Departure tax
When you leave, Canada treats you as if you sold most of your capital property at fair market value on the day you became a non-resident. This is called a deemed disposition, and it can create a capital gains bill on investments you never actually sold.
Several major assets are excluded, including Canadian real estate, RRSPs, RRIFs, TFSAs and most pension plans. Canadian real estate you keep is still taxed by Canada when you eventually sell it. If the total value of the property you own is more than C$25,000 when you leave, you also have an extra reporting form to file (Form T1161).
This is the best reason to sit down with a cross-border tax professional a year before you go, not a month after you arrive.
CPP, OAS, RRSPs and TFSAs after you move
Your Canadian pensions follow you to Panama. What changes is how Canada taxes them.
Canada and Panama have a tax information exchange agreement, but no comprehensive tax treaty that lowers withholding rates. That means Canada's standard 25% non-resident withholding tax generally applies to CPP, OAS, and RRSP and RRIF payments. You may find websites quoting a lower treaty rate for Panama residents. Plan on 25%.
The upside is that for many retirees, that 25% is the final Canadian tax on those payments, and Panama adds nothing on top. If your Canadian income is modest, a Section 217 election may allow you to file a Canadian return and recover part of what was withheld. The OAS clawback still applies to higher incomes.
Two benefit rules to know before you go. OAS can keep being paid abroad indefinitely only if you lived in Canada for at least 20 years after turning 18; otherwise, it stops after six months outside Canada. The Guaranteed Income Supplement stops after six consecutive months abroad.
Your TFSA can stay open and keeps growing tax-free in Canada, but you cannot make new contributions as a non-resident.
Put simply, a Canadian retiree living in Panama on CPP, OAS and RRIF income typically pays a flat 25% to Canada on those payments and nothing to Panama. For people with larger pensions who were paying higher provincial rates, that can be a meaningful saving. For people with modest incomes, the benefit can be smaller than the internet suggests. Run your own numbers with a professional.
One more honest point: Panama shares tax information with Canada under that 2013 agreement and international reporting standards. Moving here is a legal way to change where you are taxed. It is not a way to hide income from the CRA.
Property taxes in Panama
If you buy a home here, property tax is modest by Canadian standards. When a property is registered as your primary residence, the first US$120,000 of its registered value is exempt. The portion between US$120,000 and US$700,000 is taxed at 0.5% a year, and anything above US$700,000 at 0.7%.
On a US$300,000 home registered as a primary residence, that works out to about US$900 a year. Our Panama property tax guide covers the details, including the rates for rental and vacation properties. property-tax-information
IS PANAMA SAFE FOR CANADIANS?
Safety is usually the second question we get, and the most useful answer comes from Ottawa rather than from us.
The Government of Canada's travel advisory for Panama rates the country at "Take normal security precautions," the lowest of its four risk levels. Global Affairs Canada describes that level as taking the same kind of precautions you would take at home. For comparison, Canada rates Costa Rica, one of Panama's main competitors for Canadian retirees, one level higher, at "Exercise a high degree of caution," because of crime.
That national rating comes with regional exceptions, and you should know exactly where they are.
Exercise a high degree of caution: Colón Province, parts of the District of San Miguelito, Veracruz, and several Panama City neighbourhoods: Calidonia, Curundú, El Chorrillo, Panamá Viejo, Río Abajo, Santa Ana and 24 de Diciembre.
Avoid all travel: Darién Province south of Metetí toward the Colombian border, and the remote Mosquito Gulf coastline on the Caribbean side.
The areas where Canadians typically settle, including Pedasí and the Azuero Peninsula, Boquete, Coronado and Bocas del Toro, are not on that list. In Panama City, the historic district of Casco Viejo is not on the list either, though it borders El Chorrillo and Santa Ana, so it is worth learning where its edges are.
Now the numbers, because you should have them. Panama's homicide rate was 14.6 per 100,000 people in 2025, according to the US State Department's Overseas Security Advisory Council. That is below the Central American average, but well above Canada's rate, and we will not pretend otherwise. The same report notes that violence in Panama is concentrated in specific areas rather than spread evenly across the country.
For everyday life, the risks Canada's advisory highlights are the ordinary ones: petty theft in busy areas, break-ins at homes left empty, and poor road safety. The habits that handle them are simple. Do not leave a home empty for months without a caretaker or professional property manager. Drive defensively, especially at night on the Pan-American Highway. Use registered taxis or rideshare apps. Demonstrations occasionally happen and can block roads, so keep an eye on local news before long drives.
HOW EASY IS IT FOR CANADIANS TO GET RESIDENCY IN PANAMA?
Compared with most countries, it is straightforward. Canadians qualify for all of Panama's main residency programs, and some of them grant permanent residency from the day of approval.
The real work is paperwork. Every application is filed through a licensed Panamanian attorney, and your Canadian documents, such as an RCMP criminal record check, need to be apostilled. Canada joined the Apostille Convention in 2024, which has made that step simpler than it used to be.
Start as a tourist. Canadians can stay up to 180 days without a visa and can drive on a Canadian licence for up to 90 days. To start a new tourist stay, you must leave Panama for at least 30 days, and immigration can refuse entry to people who try to live here on repeated short border runs. If you plan to stay, apply for residency.
Option 1: The Pensionado Visa (for retirees)
Who it suits: Canadians receiving a guaranteed lifetime pension.
Requirement: a lifetime pension of at least US$1,000 per month, or US$750 per month if you also own Panamanian real estate worth US$100,000 or more. Each dependant adds US$250 per month.
What you get: permanent residency from approval, plus Panama's well-known retiree discounts on things like healthcare, dining, entertainment and travel.
The Canadian angle: government pensions such as CPP and OAS are lifetime pensions, and they are commonly used by Canadian applicants. (VERIFY with your immigration attorney: combining CPP and OAS to meet the threshold.) There is no minimum retirement age, as long as the pension is guaranteed for life. Note that the Pensionado Visa does not give you the right to work in Panama.
Option 2: The Friendly Nations Visa (for working-age Canadians and buyers)
Who it suits: Canadians who are not yet drawing a pension, especially those planning to buy a home.
Requirement: Canada is one of roughly 50 countries on Panama's Friendly Nations list. You qualify through one of three routes: real estate with a registered value of at least US$200,000 purchased with funds from abroad, a US$200,000 fixed-term deposit held for three years at a Panamanian bank, or a job with a Panamanian company.
What you get: two years of temporary residency, followed by permanent residency.
The Canadian angle: if you are buying a home in Panama anyway, the property itself can be your qualifying investment.
Option 3: The Qualified Investor Visa (for fast-track permanent residency)
Who it suits: buyers and investors who want permanent status immediately.
Requirement: one of US$300,000 in Panamanian real estate, US$500,000 in securities through a licensed Panamanian brokerage, or a US$750,000 fixed-term bank deposit. The investment must come from abroad and be held for at least five years. For real estate, the first US$300,000 must be free of any mortgage, and anything above that amount can be financed.
What you get: permanent residency right away, with no temporary phase.
A note on the "October deadline": you will find many websites saying the US$300,000 real estate minimum rises to US$500,000 on October 15, 2026. The decree as amended in October 2024 sets the minimum at US$300,000 and does not state an expiry date. Panama has adjusted this program by decree several times since it launched in 2020, so confirm the current figure with your attorney before structuring a purchase around it.
Option 4: The Remote Worker Visa (for Canadians still working)
Who it suits: Canadians who want to keep a Canadian job or client base while living in Panama.
Requirement: at least US$36,000 a year in income from outside Panama, as an employee of a foreign company or as a self-employed remote worker.
What you get: a nine-month visa that can be extended once, for up to 18 months in total. It is not residency, and it does not allow you to work for Panamanian employers or clients.
The Canadian angle: it is a good trial run. Remember, though, that living in Panama does not on its own end your Canadian tax residency. Your ties back home still decide that.
Which Panama visa fits you?
Retired on CPP, OAS or a workplace pension: start with the Pensionado Visa.
Not retired and buying a home for US$200,000 or more: look at the Friendly Nations Visa.
Buying at US$300,000 or more and want permanent status now: the Qualified Investor Visa.
Still working remotely and not ready to commit: the Remote Worker Visa, or a first season on tourist status.
WHERE CANADIANS ARE SETTLING IN PANAMA
Pedasí and the Azuero Peninsula: small-town Pacific coast living, surf beaches, fishing and a close-knit expat community. Pedasí Properties For Sale
Boquete: a cooler mountain climate in Chiriquí Province, and a long-time favourite with North American retirees. Boquete Properties For Sale
Coronado and the Pacific beaches west of the city: beach living within driving distance of Panama City. Coronado / Chame / San Carlos regional page
Panama City and Casco Viejo: urban living, with the country's best private hospitals and the international airport close by. Casco Properties For Sale
Bocas del Toro: Caribbean islands and a slower pace of life. Bocas Del Toro Properties For Sale
Not sure which one suits you? Our comparison of Pedasí, Coronado and Boquete lays out the trade-offs side by side. comparison post
YOUR STEP-BY-STEP PLAN FOR LEAVING CANADA FOR PANAMA
STEP 1: Talk to a cross-border tax professional early. Ideally a year before you leave, so you can plan around departure tax, your Canadian home and your registered accounts.
STEP 2: Visit, Spend time in two or three regions, in both the dry season and the rainy season if you can.
STEP 3: Choose your visa and hire a licensed Panamanian immigration attorney. Start gathering and apostilling your Canadian documents early, because this is where most delays happen.
STEP 4: Sort out health insurance. Provincial coverage generally ends once you are no longer a resident of your province, and the rules vary by province. Arrange private international or Panamanian coverage before your provincial plan lapses.
STEP 5: Buy with proper representation. Work with a licensed broker and an independent real estate lawyer, and confirm clean title at Panama's Public Registry before any money changes hands. If the property will be your visa investment, make sure the purchase structure meets that program's rules.
STEP 6: Sever your Canadian ties cleanly, and file your departure-year return as a part-year resident.
FREQUENTLY ASKED QUESTIONS
Do Canadians need a visa to visit Panama?
No. Canadian citizens can visit Panama as tourists for up to 180 days without a visa. Your passport must be valid for at least three months beyond your departure date, and you may be asked for a return or onward ticket and proof of at least US$500 or a credit card.
Will Panama tax my CPP and OAS?
Generally no. Panama's territorial tax system does not tax foreign-source income such as Canadian pensions. Canada, however, generally withholds 25% non-resident tax on CPP, OAS, and RRSP or RRIF payments, because Canada and Panama do not have a comprehensive tax treaty.
Do I stop paying Canadian taxes when I move to Panama?
Only once the CRA considers you a non-resident, which depends on severing residential ties such as a home, spouse or dependants in Canada. You may also owe departure tax on certain investments in the year you leave.
Is Panama safe for Canadians?
The Government of Canada rates Panama at its lowest advisory level, "Take normal security precautions," with higher-risk warnings limited to specific areas such as Colón Province, the Darién border region and certain Panama City neighbourhoods.
What is the easiest Panama residency visa for Canadians?
For retirees, usually the Pensionado Visa, which requires a lifetime pension of US$1,000 a month, or US$750 with a Panamanian property worth US$100,000 or more. For working-age Canadians, usually the Friendly Nations Visa, most often through a US$200,000 real estate purchase.
Can Canadians buy property in Panama?
Yes. Foreigners can generally own titled property in Panama in their own name. Restrictions apply to land near international borders, and some island and beachfront properties are held under possession rights or concessions rather than full title, which is why independent legal due diligence matters.
Do I have to give up my Canadian citizenship to live in Panama?
No. Panamanian residency does not require you to give up Canadian citizenship.
TALK TO SOMEONE WHO HAS MADE THE MOVE
Leaving Canada is a big decision, and the details matter: which visa, which region, which property, and in what order. We have made this move ourselves, and we help Canadians work through it every week, from the first scouting trip to the day you get your keys.
Contact Panama Properties
Ken Norton (English) - WhatsApp +507 6169-2453
Evelyn Díaz (Español) - WhatsApp +507 6718-4140
This article is general information only and is not tax, legal or immigration advice. Tax rules and visa requirements change. Confirm your situation with a qualified Canadian cross-border tax professional and a licensed Panamanian immigration attorney before acting. Panama Properties is a licensed real estate brokerage in the Republic of Panama.
Comments