Is it necessary to register with AIRE to establish tax residency?

For natural persons, registration in the consular district of their new country of residence is relevant; for legal entities, it coincides with their country of origin/incorporation.

Do I need to open a company to obtain residency in Panama?

The Panama-Italy Treaty requires a commercial connection with Panama: you open your own company (of which you are the actual owner). Avoid "recycled" companies: they risk cancellation of your residency and future problems (including during the citizenship process).

Can Panamanian residency be replaced with another? Are there better countries?

Yes, it depends on your profile and goals. Panama is among the best, but there's no one-size-fits-all solution.

How is tax residency determined?

It depends on the country's legislation and practical criteria: days of presence, domicile/home, center of vital and economic interests, work, family, accounts, and documentary consistency. It's not a single element: it's a comprehensive evidentiary framework.

Is legal residency enough to be a tax resident?

Not necessarily. Legal residence (immigration) and tax residency are different concepts. You can obtain a visa and remain a tax resident elsewhere if you don't meet the criteria or if your home country continues to consider you a resident for its own purposes.

What evidence is needed to prove living abroad?

Housing contracts, utilities, local registrations, insurance, children's schooling, employment, relevant bank transactions, travel and attendance records, local official documents, and any other evidence that demonstrates a real life location outside the country of origin.

What happens if I maintain strong ties to my country of origin?

The stronger your ties (family, primary residence, work, economic interests), the greater the risk that your home country will challenge your foreign tax residency. A consistent exit strategy is essential to mitigate this risk.

Are attendance days the only criterion?

No. Days matter, but the decisive criterion is often the center of interests. Some countries consider a resident someone whose domicile or main interests are even fewer days old. A defensible position must be built on multiple fronts.

Do you need AIRE to leave Italy for tax purposes?

AIRE registration is an important factor, but it's not the only one. Real consistency is needed: actual relocation, proof of living abroad, and a reduction in the ties prevalent in Italy.

How to manage accounts and banking to avoid inconsistencies?

Consistency: correct addresses, updated documents, bank accounts compatible with the new residence, clear financial reasons. Banking inconsistencies often trigger audits or disputes.

What mistakes trigger tax audits?

Mismatch between declarations and real life, maintaining home/center of interests in the country of origin, inconsistent days of presence, undeclared economic activities, unclear accounts and flows, and official communications with incorrect addresses.

Is it possible to have dual tax residency?

This can occur due to conflicting criteria between countries. In that case, tie-breaker rules (double tax treaties) are applied, where available, and evidence and consistency are applied to avoid double taxation and disputes.

Tax Residency FAQs | Panama Italy Studio

Q: What is a tax residence?

It is the place where the person has their habitual residence; the tax domicile is the principal place of business/interests and for notifications to the tax authority.

Q: Why is it advantageous to apply for tax residency?

It allows you to coordinate activities and taxation in suitable jurisdictions (treaties, free trade, even very low/zero rates). For individuals: choose where and on what to be taxed.

Q: How many tax residences can you own?

Up to four different tax residences, depending on the regulatory framework and personal circumstances.

Q: What documents are needed to obtain tax residency?

Cumulative registry certificate (residence, citizenship, birth, family status) and criminal record + pending charges, all apostilled.

Q: Do I have to be of legal age to obtain tax residency?

The Services are intended for persons 18 years of age or older.

Q: What is the number one destination for digital nomadism?

Playa del Carmen (Mexico), for its infrastructure, connectivity, and competitive cost of living.

What is a tax residence?

Tax residence is the "place where a person has their habitual abode," while tax domicile is the place established by the person as the principal place of business and interests and as the place where all official notices and communications from the Revenue Agency are received.

Why is it advantageous to apply for tax residency?

It's advantageous to own one or more tax residences for the ability to manage an offshore business or multiple offshore businesses, coordinating them with the tax authorities best suited to that activity. It's not simply a matter of paying more or less tax, but rather of being able to take advantage of free trades, in the form of conferences, free trade agreements, and even different, often zero, taxes.
For the individual, however, a tax residence allows them to decide where and on what basis they are taxed, deeming one location more appropriate than another.

How many tax residences can you own?

Up to 4 different tax residences.

Do I need to register with AIRE to make my tax residency effective and valid?

No, in theory, the legal duration of your tax residency begins on the day you are registered in the consular district of your new country of residence, for natural persons. For legal entities, it simply coincides with the country of origin or incorporation of the company.

What documents are needed to obtain tax residency?

Regardless of the country you choose, the documents required are: a cumulative certificate of residence, citizenship, birth, family status, and a general criminal record certificate combined with a certificate of pending charges. All must be annotated.

Do I have to be of legal age to obtain tax residency?

All our services are intended for people aged 18+.

Do I have to open a company to obtain residency in Panama?

The convention that you, as Italians, will refer to to apply for permanent residency in Panama is called the "Friendship Treaty" in slang terms and officially the "Panama-Italy Trade and Navigation Convention." As you will notice, the legal name emphasizes the words "trade" and "navigation." The convention was created to guarantee two things: residency and then citizenship in Panama for Italians. To obtain residency and then be entitled to citizenship, Italians must demonstrate a "commercial" connection with the Republic of Panama. This requires the opening of a company of which you are the sole true owners and sole shareholders (or 50% shareholders) of a company, one and only one. This requirement is often misunderstood or deliberately omitted by street advisors, as they are called in Panama, that is, the last resorts looking for clients, whose goal is not to guarantee a legal transfer procedure to Panama, but to profit at the expense of poor clients who accept the risk to save on the company. What happens? Essentially, the client doesn't pay for the company, but only the legal process for obtaining residency. Their advisor, perhaps just the front page of some unfortunate law firm, will use a company that has been recycled hundreds of times, swapping its shares for the name of the last unfortunate individual. The unfortunate individual will proceed to obtain the residency that will initially be provided. After a year or two, during a routine migration review, it is discovered that the same company the client knew nothing about has been blacklisted due to the excessive number of clients who have become residents through the same residency. The result: the residency is revoked, and they are unable to re-obtain it for the rest of their lives. Even worse, if the five-year period expires, and upon the citizenship application, a review of past requirements is carried out to discover whether there was any prior negligence, concealed from the client. This is a typical case of a "last-minute offer" that many fall for.

Source: Panama Migration

Source: PDF Source (Number 8 in the PDF refers to the company)

FAQ

Read about how to get residency in Panama, the procedures and its visas

What is the number one destination for digital nomadism?

Currently the number one destination for digital nomadism is Playa del Carmen, Mexico. This tropical town, overlooking the second largest coral reef in the world and nestled in a tropical jungle that almost looks like something out of a movie, has the best infrastructure, such as fiber optic internet up to 700 Mbps, Wi-Fi everywhere, zero crime, zero rainfall, and sunshine 365 days a year with a cost of living 5.5 times lower than Panama and 8 times lower than Italy (average).

Is Panamanian residency replaceable with another? Are there better countries than Panama?

Yes, of course. Panama isn't the best place to live at the moment. It's certainly one of the best. As with accounts and companies, there's no "one size fits all" solution. It depends on your needs and your business, as well as your lifestyle.

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