Zero Taxes for Creators and Influencers: Panama Residency and New Mexico LLCs

An Italian creator with a €150,000 turnover leaves almost half of it behind in personal income tax (IRPEF), surtaxes, and contributions, and those still in the flat-rate regime see their margins shrink with each threshold they exceed. This guide explains, in a concrete manner and without unrealistic promises, how influencers, content creators, YouTubers, video makers, video editors, social media managers, photographers, models, and creators of subscription platforms, SEO and communication agencies can reduce their personal and corporate income taxes to zero. There's only one structure: you move your tax residency to Panama and collect your work through an LLC registered in New Mexico. This scheme has replaced the old model built in Dubai and the Emirates, now rendered unusable by the mandatory media license for creators, the suspension of freelance visas, the corporate tax effective from 2023, and the geopolitical risk of the Gulf. In the following lines, you'll find out who can use this structure, how it really works from a tax perspective in Italy and the United States, how much it costs, and the mistakes that undermine it.

One point must be made immediately: zero taxes for creators and influencers doesn't mean disappearing or simulating a transfer, but rather truly changing country of residence and organizing their digital activity so that their income is not taxable in Italy, Panama, or the United States. When each of these three pieces is in place, the result is legal and defensible in the event of an audit. If one is missing, the advantage disappears and an audit arrives. This is why the page dedicates the same space to obligations as benefits, and includes a section on who should not use this model.

Zero Tax for Creators and Influencers: Who Needs This Structure?

The Panama plus LLC structure works for those who produce and sell services or content online, earn revenue from clients and platforms spread across multiple countries, and don't need a physical office in Italy to operate. This is the profile of much of the creator economy. Here are the professions for which the model is already operational:

• Influencers and content creators on Instagram, TikTok, X and other social networks, who earn money through sponsorships, brand deals, affiliations and paid content.
• YouTubers, video makers, and podcasters who monetize with AdSense, channel subscriptions, memberships, and advertising deals.
• Video editors, motion designers, color graders, and post-producers working remotely for agencies, studios, and creators around the world.
• Models, models, and creators on subscription platforms, including adult content platforms, who charge subscription fees, tips, and on-demand content.
• Social media managers, copywriters, and publicists who manage channels and campaigns for companies and public figures.
• SEO agencies, communications and digital marketing agencies, even small ones, that bill foreign clients.
• Photographers, graphic designers, illustrators, and digital content developers who sell licenses, services, and information products.
• Streamers and gaming content creators who live off donations, sponsorships, and subscriptions.

The common thread is that this is a digital nomad by nature: the value lies in talent and content, not in a property or machine rooted in a specific territory. This is the profile for which moving tax residency produces the greatest impact with minimal operational friction. This is the primary page for this topic; the more vertical profiles, such as adult content creators, are summarized here and will be explored in more detail in dedicated guides.

Why the Dubai Model for Influencers No Longer Works

For years, the standard advice for an Italian creator looking to pay less taxes was Dubai: a free-zone company, visa, zero taxes. That model is now obsolete, and not for just one reason, but for four. Anyone still suggesting Dubai to an influencer is working with a 2022 dataset.

Mandatory media license for creators in the UAE

Since 2025, monetized content creation has been a regulated activity in the UAE. Pursuant to Federal Decree-Law No. 55 of 2023 and its implementing resolutions, anyone posting promotional content on social media must hold a commercial license and a media permit issued by the UAE Media Council, with registration expiring on January 31, 2026.

Failure to register exposes users to fines ranging from AED 10,000 to AED 1 million, with penalties of up to AED 2 million for serious violations. The published content must also comply with twenty standards set by the Media Council on national values, religion, and public order. For a creator, this means working under license and content control; for a creator of adult content, the matter itself is incompatible with the UAE legal framework. The regulatory framework is evolving and should be reviewed upon initiation of the process.

Freelance visa suspended and corporate tax at nine percent

The second issue is access. As of July 5, 2025, the issuance of new freelance visas in Dubai has been suspended indefinitely. The only remaining option is a Free Zone company with an associated visa, which costs between $15,000 and $25,000 for the first year and $5,000-$10,000 for annual renewal.

Added to this is the federal corporate tax introduced in 2023: 9% on corporate profits exceeding AED 375,000, approximately €102,000, with exemption in the Free Zone limited to qualified income only. The tax advantage that justified Dubai's costs and complexity has been eroded on both sides.

Cost of Living and Geopolitical Risk in the Gulf

The third issue is the cost of living: a single person in Dubai spends between $3,500 and $6,000 a month, compared to $1,500-$2,500 in Panama City. Over five years, the difference often exceeds the tax savings the move is expected to generate.

The fourth issue is country risk. Since 2026, the Emirates have been affected by regional geopolitical instability that affects flight continuity and insurance premiums, a variable that until recently was not included in the relocation plans. Panama, without an armed force since 1990 and outside any major conflict zone, does not face this factor.

The structure that works today: Panama residency and New Mexico LLC

The current model separates two functions that the Dubai model combined within a single company. On the one hand, it requires a vehicle that collects seamlessly from platforms and customers, mostly from the United States. On the other, it requires a tax residence that does not tax that income. The New Mexico LLC fulfills the first function, Panama the second.

New Mexico LLC as a Collection Vehicle

The LLC, or Limited Liability Company, is the simplest type of company under US law. For a creator, it's the ideal front end: YouTube, advertising networks, exchanges, agencies, and American brands pay for a US LLC without friction, because it's the form they know and the one their payment and accounting systems manage every day. A Panamanian company, no matter how valid, creates more friction with US processors and platforms. That's why New Mexico is the front end and Panama is the base.

Member confidentiality and public register

New Mexico is one of only four U.S. jurisdictions, along with Wyoming, Delaware, and Nevada, that allow the formation of an anonymous LLC. It is also the strictest in this regard: the names of partners or managers do not appear in the incorporation documents filed with the Secretary of State. Ownership is defined only in the Operating Agreement, an internal document that is not filed with any authority.

It should be frankly stated that confidentiality does not mean opaqueness towards the tax authorities: the US tax authorities, banks, and judicial authorities can still trace the owner, because the EIN and accounts require identification of the beneficial owner. Confidentiality concerns the public register accessible to anyone, not legal obligations.

Opening and maintenance costs

New Mexico is the cheapest US jurisdiction. The state incorporation fee is approximately $50, a one-time fee. There is no annual reporting requirement for LLCs, whether domestic or foreign, and there is no franchise tax for those who do not physically operate in the state. The only ongoing structural cost is the registered agent, which costs around $100-150 per year.

Additionally, obtaining an EIN, the federal tax identification number required for banking and compliance, and annual tax filings are required. Regarding the beneficial ownership register, entities incorporated in the United States by US or foreign persons are currently exempt from the federal BOI reporting requirement; this is a developing matter and must be verified at the time of incorporation.

Residency in Panama as a territorial tax basis

An LLC alone is not enough. A foreign company registered in the name of an individual who remains resident in Italy does not generate any savings, because the income is still taxed by the Italian shareholder. A new tax residency is required, and Panama is the option that combines ease of entry with a favorable tax regime.

What does territorial taxation mean for a creator?

Panama applies the territorial taxation principle: income tax applies only to income generated within Panama. Foreign-source income is exempt. For a creator residing in Panama, compensation from foreign platforms, agencies, and brands, as well as distributions from a New Mexico LLC, are not subject to income tax in Panama. There is no wealth tax on worldwide assets or inheritance tax on assets located outside Panama.

The Italy-Panama Treaty of 1963

Italians enjoy a privileged channel. The 1963 Italy-Panama Treaty of Friendship, Commerce, and Navigation allows direct access to permanent residency with accessible requirements, without the investment pathways required elsewhere. This is why an Italian entrepreneur obtains permanent residency in Panama, rather than a temporary permit tied to a company that must be refinanced annually, as was the case with the Dubai Free Zone model.

When the Panama and LLC structure produces zero taxes

The logic is linear and is based on three systems which, each according to their own rules, are not entitled to tax the same income.

The New Mexico LLC receives revenue from platforms, brands, and agencies. Because it is a single-member, non-US member company, it is transparent for US tax purposes and does not pay federal tax on foreign-source income not connected to a US business.

The income reaches the owner in the form of a distribution. In Panama, where the owner is resident, that distribution is considered foreign-source income and therefore exempt. In Italy, if the transfer is genuine and documented, the individual is no longer a resident and that income is excluded from the Italian tax base.

The zero result isn't the result of a trick, but of the alignment of the three plans. If just one fails, the income becomes taxable somewhere. It's the difference between planning and illusion: the former stands up to scrutiny, the latter doesn't.

How creator earnings are really taxed

This is the technical section, and it's the most important. Most failed schemes don't fail because of bad faith, but rather because of a misunderstanding of how U.S. LLC taxation works.

Foreign-source income and the principle of territoriality

The key question is not where the company is based, but where the income is generated and where the recipient is resident. Income from services is considered generated in the place where the service is physically performed. A creator who shoots, edits, writes, and publishes their content while physically located in Panama generates non-US source income, even if the platform paying them is based in the United States. This is the cornerstone of the entire structure: it's the place where the work is performed that matters, not the nationality of the client.

New Mexico LLCs and the U.S. Internal Revenue Service

Disregarded entities and Model 5472

A single-member LLC is by default a disregarded entity, meaning it does not exist as a separate entity from its owner for U.S. tax purposes. When the sole member is a non-U.S. person, specific disclosure requirements apply. The LLC must file Form 5472 annually, accompanied by a pro forma Form 1120. This is a communication, not a taxable return, but it must be filed accurately: failure to file or late filing carries a penalty of $25,000. This is why the structure should be managed by someone familiar with U.S. requirements, not improvised.

When is a New Mexico LLC taxed in the United States?

An LLC does not pay federal income tax when it is foreign-sourced and not connected to a business activity conducted in the United States (ECI). However, it becomes taxable in the United States when those conditions no longer apply.

The conditions to be met are few and clear: the owner does not physically work from the United States, the LLC does not have an office or permanent presence in the United States, and it has no employees or agents working there. For a creator residing in Panama who produces their content from Panama, these conditions are naturally met.

If, however, the same creator spent most of the year working from Los Angeles, the income would become fully or partially taxable in the United States. The structure is solid as long as the substance matches the form.

Numerical example: a creator earning €180,000

Opening an LLC in New Mexico: Requirements, Timeframes, and Costs

Opening an LLC in New Mexico is the quickest part of the process and does not require a physical presence in the United States. The process involves verifying and registering the company name with the Secretary of State, appointing a registered agent with an address in the state, filing the Articles of Organization, and drafting the Operating Agreement, the internal document that defines the company's ownership and governance rules.

Once incorporation is complete, you'll need anEIN, the federal tax identification number issued by the IRS, which is required to open the account and meet annual requirements. For non-US members without a Social Security Number, the application process follows a separate procedure that takes a few more days. A bank or payment institution account in the LLC's name is then opened and the necessary processors for collecting funds from the platforms are activated.

The overall process takes one to three weeks, depending on the speed of issuance of the EIN. Costs are low: the government fee of around $50 is supplemented by the costs of a registered agent, incorporation and EIN assistance, and initial banking setup. It's a simple structure to set up and maintain, much more streamlined than a company in the UAE Free Zone. The costs and timeframes listed here must be confirmed upon initiation of the process.

Transferring residency to Panama: Procedure for creators and influencers

Residency is the key to the structure, and for a creator, it's also the most convenient in terms of daily life, as there's no office to move. The process leverages the 1963 Treaty and is largely conducted remotely, with only one final trip to Panama City.

The process involves preparing personal documentation, including a passport, apostilled criminal record, birth certificate, and references. A Panamanian company is established to provide the financial basis for the move, and a local bank account. With all the documentation completed, the application is submitted and the resident's permit is obtained.

Personal presence in Panama is only required for a single period of a few days. For immigration residency only, there is no minimum stay requirement to maintain the status. Actual tax residency, discussed later, is a different matter, where the 183-day and center of vital interests criteria apply. Learn more about the six-step residency procedure in Panama for detailed operational details.

Cash in on platforms, brands, and agencies

A tax structure that can't collect is useless. For a creator, the quality of their banking setup and payment processors is just as important as their tax regime.

Accounts and Payment Processors for LLCs

Business accounts for US companies

Neobanks vs. Traditional Accounts

A US LLC can rely on digital payment institutions, so-called neobanks designed for remote companies, or traditional banks. The former offer quick remote opening and an excellent user experience, but apply restrictive policies in certain sectors. The latter offer greater stability and full access to the interbank network, but require longer procedures. The choice depends on the profession and the type of flows. For a video editor or SEO agency, a neobank is almost always sufficient; for profiles with more sensitive revenue streams, a traditional bank or a combination of the two reduces the risk of blocking.

Stripe, PayPal and Wise for creators

Processors allow you to collect payments from direct customers and receive payments from platforms. An LLC with an EIN and account can activate the main services and issue invoices in multiple currencies. Here too, each processor has its own rules regarding permitted business categories: they should be chosen based on the content actually produced, not by chance, because an account opened with an inaccurate description is an account that will sooner or later be closed.

Accounts and earnings for adult content creators

For models and creators on subscription platforms who produce adult content, the banking issue needs to be addressed separately. The activity is legal; the issue is operational.

Many payment institutions and processors exclude the adult content industry by policy. This is not a legal prohibition; it's a business and risk management decision by the institutions. The framework must therefore be built with institutions and processors that explicitly admit this category, and with a transparent and consistent description of their activities.

The guiding principle is never to disguise the nature of the business. An LLC that receives payouts from a subscription platform and declares them as something they aren't creates a risk far greater than any tax savings. The correct approach is to select appropriate banking partners in advance, carefully document the source of the funds, and maintain consistency between contracts with the platforms, invoices, and transactions. Constructed in this way, the structure holds up even for this profile; built on a convenient description, it passes the initial inspection.

Italian tax risks: AIRE, Black List, and foreign tax returns

The most neglected and dangerous area isn't in Panama or the United States: it's in Italy. A creator who opens an LLC and takes Panamanian residency but fails to manage the Italian side leaves himself seriously exposed.

AIRE registration and deregistration

The first step is to remove yourself from the resident population registry and registerwith AIRE, the Registry of Italians Residing Abroad. This is a necessary but not sufficient condition: AIRE registration alone does not prove foreign residency. It is the first piece of a broader evidentiary framework.

Panama Blacklisted and Reversal of the Burden of Proof

Panama is included in the Italian Black List for natural persons pursuant to Ministerial Decree of May 4, 1999. Legislative Decree 209/2023 reformed Article 2 of the TUIR but did not affect paragraph 2-bis, which governs the presumption of Italian residency for those moving to countries with privileged tax regimes.

The consequence is a reversal of the burden of proof: a citizen removed from the registry and transferred to Panama is presumed to be resident in Italy, unless proven otherwise. It is up to the taxpayer to prove that the transfer is effective.

The defense tool is the evidentiary file: lease or property contract in Panama, active and registered utilities, local bank transactions, Panamanian tax residency certificate, LLC documentation, proof of closure of Italian accounts. Without a file, any transfer is vulnerable. Studio Panama Italia sets up the file from the beginning of the process, to neutralize the presumption at the first inspection.

LLC Foreign Investment: A Risk Not to Be Underestimated

This also leads to the difference between immigration residency and tax residency. Migration residency in Panama is maintained without a minimum number of days. Tax residency, which protects against Italian taxation, requires not having a registered residence in Italy (domicile understood as the center of personal and family relations), nor a physical presence in Italy for 183 days or more. In practice, this means spending most of the year outside of Italy and rebuilding one's life elsewhere. The exittax for those holding significant qualifying shareholdings and the correct resetting of the RW form to close the Italian position must also be considered.

How much each profile saves: case studies compared

The structure's advantage varies with the profession, revenue volume, and client base. Below are the five most common profiles among the creators who contact us.

Influencer and content creator on social media

This is the profile for which the model is most profitable. Typical revenues range between €80,000 and €400,000 from sponsorships, affiliations, and paid content, with an international clientele and no physical presence required. With this structure, the deduction from income is zero, and management costs remain marginal compared to revenue. This is also the profile for which the Dubai model is currently most disadvantageous, due to the mandatory media license for content.

YouTuber and videomaker

Revenues come largely from AdSense, a US entity, and the New Mexico LLC manages them seamlessly. For a YouTuber with revenues between €100,000 and €500,000, the structure eliminates taxes and also simplifies collections, because it concentrates payments into a vehicle recognized as standard by American platforms.

Video editors, motion designers, and post-producers

They work remotely for agencies, studios, and creators spread across multiple countries, often with revenues between €50,000 and €150,000. This structure is suitable for the mid- to high-end segment, where savings significantly outweigh management costs. For this profile, the banking setup is simple, as the business does not fall into any sensitive categories.

Models and creators on subscription platforms

This is the profile with the greatest tax gap compared to Italy, where this income is fully taxable, and at the same time, it requires the most careful banking. The Panama-plus-LLC structure works, provided you choose institutions and processors that allow adult content and maintain full transparency regarding the nature of the activity. For this profile, Dubai is fundamentally excluded from the UAE legal framework, while Panama offers a residence basis that is neutral with respect to the type of content produced.

SEO agencies, social media managers and advertisers

Small SEO and communications agencies billing foreign clients, and professionals managing channels and campaigns for third parties, find a New Mexico LLC an efficient billing vehicle, and Panamanian residency provides a tax base. Agencies with multiple collaborators must carefully structure their contracts to prevent the presence of staff from creating a permanent establishment in a third country.

Most common mistakes creators and influencers make when transferring

The mistakes that cause these projects to fail are few and far between. Knowing them in advance is the best way to avoid them.

1. Opening an LLC while remaining resident in Italy. This is the most common mistake. A single-member LLC is transparent: if the partner is a tax resident in Italy, their income is imputed and taxed in Italy regardless. A foreign company without a real transfer offers no advantage, and further exposes it to the risk of foreign investiture.

2. Take up residency in Panama but continue to live and work from Italy. If real life and decisions remain in Italy, the LLC's effective place of management is in Italy, and the Italian tax authorities will reinvigorate everything. Residency on paper isn't enough: a substantial relocation is required.

3. Register with AIRE and stop there. AIRE is the first step, not the proof. Without supporting documentation, the presumption of Italian residency in a Blacklisted country remains, and the burden of proof falls on the taxpayer.

4. Believing that an American company doesn't pay taxes because it's American. An LLC doesn't pay U.S. tax only if the income is foreign-sourced and not connected to a business conducted in the United States. A creator who physically works from the U.S. or structures their operations there triggers U.S. taxation. It's the substance that counts, not the acronym.

5. Forgetting US compliance. A foreign-member LLC must file Forms 5472 and 1120 pro forma annually. These are informative disclosures, but failure to do so can result in a $25,000 penalty. A well-designed tax structure can be ruined by one forgotten compliance.

6. Underestimating the banking problem, especially for adult content. Choosing a processor or institution that then blocks your account based on your activity category means interrupting your earnings. Banking partners should be selected early, based on the content actually produced.

When this structure is not suitable

An honest guide should also clarify who this model is not suitable for. There are situations where a Panama-plus-LLC structure offers no advantage, or even creates risks. When a case falls into one of these categories, we disclose this during the preliminary analysis phase, before accepting any assignment.

• Those who can't or don't want to actually move. If for family, personal, or employment reasons you must continue to live permanently in Italy, the system doesn't work and exposes you to the presumption of residency and the possibility of being considered an esterovestito.
• Anyone who physically and permanently works from the United States. In this case, the LLC's income becomes taxable in the United States and the benefit is eliminated.
• Those with clients and services established in Italy. If the services are deemed to be provided in Italy to Italian clients, the income may remain Italian-sourced regardless of formal residence.
• Those with revenues below a certain threshold. Below approximately €60,000, the costs and complexity of the structure are rarely justified by tax savings alone; the move only makes sense if it's also motivated by lifestyle choices.
• Those with outstanding tax liabilities in Italy or significant unplanned qualifying shareholdings. The transfer should be handled after managing any pending litigation and any exit tax, not before.
• Those looking for a paper-only solution. If your goal is to appear to be a foreign resident without changing your lifestyle, the answer is no: it's not our service and won't stand up to scrutiny.

Recognizing these situations early protects the client from a structure that won't hold up and protects the firm from an assignment it can't complete. Studio Panama Italia assists influencers, content creators, YouTubers, video editors, models, and agencies in transferring their tax residency to Panama and in setting up the complete structure: opening an LLC in New Mexico, EIN, banking setup, Panama residencyguide Panama vs. Dubai.

Frequently Asked Questions about Zero Tax for Creators and Influencers

Learn more about how to open an LLC in New Mexico, obtain an EIN, manage IRS requirements, transfer residency to Panama in six steps, register with AIRE, avoid foreign investment, complete the RW form , and manage the exit tax. For a comparison of the destinations, read the Panama vs. Dubai.