Relocation for Australians
Australia is on Panama’s Friendly Nations list, which makes residency easier for Australians than for most. We take care of the Panamanian side of the move: residency, property, banking, schools. The Australian side has to be settled before you leave, and some of it can’t be done once you’ve gone, so the checklist further down is worth reading early.
Residency
Which one fits depends on whether you plan to work, retire or invest.
The usual route if you’re still working. Executive Decree 16 of 2026 kept Australia on the list. You get a two-year provisional residency first, then permanent residency.
For retirees with a pension of at least US$1,000 a month, paid for life. A government pension fits that rule. An account-based super pension isn’t paid for life, so we look at how your retirement income is set up before you apply.
Gives permanent residency directly, with no provisional stage. The rules were rewritten in September 2026.
Amounts are those set by Executive Decrees 16 and 17 of 2026. Requirements and government fees do change, so we check the current rules against your file before you commit to anything.
Why Panama
Panama only taxes income earned in Panama. Income from Australia or anywhere else isn’t taxed here. Australia still withholds tax on some Australian income paid to you as a non-resident, which the checklist below covers.
Panama has used the US dollar since 1904. Groceries, property and bank accounts are all in USD.
Panama City’s main private hospitals normally see patients in English. Hospital Punta Pacífica, for one, is affiliated with Johns Hopkins Medicine International. Public hospitals may not offer English. Medicare doesn’t cover you in Panama, so you’ll need private insurance, which our insurance team can arrange.
Immigration, real estate, school enrollment and the practical setup are handled by the same team, so nothing gets lost between advisers.
On the ground
These are the same relocation services we offer every client, from the day you land until you’re settled.
Before you leave Australia
Leaving Australia has tax and pension consequences of its own, and a couple of them have to be dealt with before you fly. They’re Australian matters, so take them to an Australian tax professional, preferably before you sell anything or book the flight.
The ATO asks whether you still reside in Australia and where your permanent home is. A simpler day-count test has been proposed, but it isn’t law, so the existing tests still apply.
When you stop being a resident, most assets other than Australian real estate are treated as if you sold them at market value, though you can choose to defer that. If you sell your former home after becoming a foreign resident, you generally lose the main residence exemption. CGT rules change again from 1 July 2027.
Your super stays in Australia until you reach preservation age and retire, or meet another condition of release. Leaving the country isn’t one of them: the departing payment is only for temporary visa holders.
Medicare is for people who live in Australia and doesn’t cover you while you’re overseas. Have private health insurance in place before you leave.
Claim it before you leave. Panama has no social security agreement with Australia, so you can’t claim it from there. Once you’re receiving it, it keeps being paid in Panama, but after 26 weeks the rate depends on how many years you lived in Australia between 16 and pension age: 35 years for the full rate.
Australia and Panama have no tax treaty and no information exchange agreement. So Australian interest paid to you as a non-resident has 10% withheld, and unfranked dividends 30%.
Advice Panama is a Panamanian firm. This checklist is general information about Australian rules, checked in September 2026. It isn’t Australian tax, financial or legal advice, and your situation may change how the rules apply, so confirm each point with an Australian tax professional.
Next step
Vera, our AI assistant, takes the first call. She notes what your matter is about, then a professional at the firm follows up.
