Relocation for Britons
The United Kingdom is on Panama’s Friendly Nations list, which makes residency easier for Britons than for most. We take care of the Panamanian side of the move: residency, property, banking, schools. The UK side needs sorting before you leave, and one point, your State Pension, catches most people out, 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 the United Kingdom 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. The State Pension, an annuity or a final-salary pension fits that rule. Drawdown isn’t guaranteed 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 the UK or anywhere else isn’t taxed here. The UK can still tax some UK income paid to you, including pensions paid from the UK, 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. The NHS is based on residence, so once you live in Panama you’ll need private cover, which our insurance team can arrange.
Immigration, property, school enrolment 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 the UK
Leaving the UK has tax and pension consequences of its own. These are the points Britons most often have to plan for. They’re UK matters, so take them to a UK tax adviser, ideally before you sell anything or book the flight.
It’s paid in Panama, but it won’t get the yearly increase. Panama isn’t one of the countries where the State Pension goes up, so it stays at the same amount unless you move back to the UK.
From 6 April 2026 you can only pay voluntary contributions from abroad as Class 3, and only if you’ve lived in the UK for 10 years in a row or paid 10 years of contributions. Check your record before you go.
Tell HMRC you’re leaving, on form P85 or through your Self Assessment return. After that, the Statutory Residence Test decides your status: spending fewer than 16 days a year in the UK, for example, usually makes you non-resident.
Since April 2025 inheritance tax follows residence, not domicile. If you’ve lived in the UK for most of the last 20 years, your worldwide assets can stay within UK inheritance tax for up to 10 years after you leave.
Come back within 5 years and gains on assets you owned before leaving can be taxed on your return. Selling UK property has to be reported to HMRC within 60 days, even if no tax is due. You can keep your ISAs, but you can’t pay into them while you live abroad.
The UK and Panama have had a tax treaty since 2013. It doesn’t stop the UK taxing pensions paid from the UK, so have a UK adviser check how yours will be taxed.
Advice Panama is a Panamanian firm. This checklist is general information about UK rules, checked in September 2026. It isn’t UK tax or legal advice, and your situation may change how the rules apply, so confirm each point with a UK tax adviser.
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.
