INTERNATIONAL TAX ADVISORY
Panama Tax Planning for Canadian Entrepreneurs & Individuals Leaving Canada
Planning a move to Panama while maintaining Canadian business interests or investments can create important tax residency, departure tax, and compliance considerations. Dexado helps Canadian entrepreneurs and internationally mobile individuals structure their transition strategically and proactively.
- Prosperity
- Protection
- Peace of Mind
Why Clients Choose Dexado
Ex-CRA Audit Expertise
We understand how CRA reviews small business and international tax matters — and how to plan proactively to reduce audit risk before problems arise.
Small Firm, Big Value
We build long-term advisory relationships and help clients make better tax, business, and life decisions at each stage of their journey.
Canada–Panama Network
We collaborate with trusted professionals in Canada and Panama to help clients coordinate tax, legal, residency, and business planning.
Why Some Canadians Explore Panama
Panama has become increasingly attractive to internationally mobile entrepreneurs and professionals due to its tax system, international accessibility, business environment, and lifestyle flexibility. However, moving abroad while maintaining Canadian corporations, investments, or clients requires careful tax and residency planning
Relocating internationally does not automatically end Canadian tax obligations
Services for Internationally Mobile Canadians
Entrepreneurs & Incorporated Professionals
Tax planning for deemed disposition of private company shares and potential LCGE access to reduce departure tax exposure.
Canadians Leaving Canada
Designed for individuals, investors, retirees, and internationally mobile families looking to understand departure tax, residency rules, and non-resident tax planning considerations
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FAQs
If I leave Canada, I no longer pay Canadian taxes.
Not necessarily. Certain Canadian-source income may still be subject to Canadian non-resident withholding tax, including RRSP/RRIF withdrawals, pension income, dividends from Canadian corporations, and some management or other payments to non-residents.
I am not selling my business when leaving Canada, so I do not pay capital gains tax.
Not always true. Canada’s departure tax rules may trigger a deemed disposition of certain assets, including shares of private corporations, at fair market value upon emigration.
Can I claim the Lifetime Capital Gains Exemption (LCGE) on departure?
Potentially yes. However, the corporation and shareholder must meet specific qualifying conditions, including the 24-month holding and asset-use tests at the time of departure.
I am leaving Canada in 3 months and want tax planning for my corporation.
Early planning is critical. In many cases require 24 months. Some tax strategies and LCGE qualification requirements require advance preparation and may not be available shortly before departure.
Can I still be considered a Canadian tax resident after moving to Panama?
Yes. If significant residential ties to Canada remain, you may continue to be considered a Canadian tax resident and may still need to report worldwide income in Canada.
What happens to my Canadian corporation if I leave Canada?
A corporation incorporated in Canada generally remains a Canadian tax resident and continues to have Canadian corporate tax filing and compliance obligations.
Will Panama tax my Canadian income after I relocate?
Generally, Panama taxes Panama-source income. Certain foreign-source income may not be taxable in Panama, depending on the nature of the income and your activities.
Can I receive Canadian income without 25% non-resident withholding tax?
In some cases, yes. Certain types of income may qualify for reduced withholding rates, exemptions, or alternative planning structures depending on the circumstances.
Is becoming a non-resident of Canada always better for tax purposes?
Not necessarily. In some situations, remaining a Canadian tax resident may be more beneficial depending on income sources, business structure, lifestyle, and long-term plans.
Do you offer free consultations for international relocation planning?
No. International tax and relocation planning is highly specialized and complex. Consultation fees apply.