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Hi fellow canadian Reg, this may have already been posted somewhere on this blog. Panama does not tax your canadian income or pension.  If you relocate permanently to Panama(or anywhere else I believe), canada levies a withholding tax of 25%. This can be offset somewhat by a lower cost of living if you stay out of tourist areas.

Hey Roy & Reg,

I'm a fellow Canadian hoping to make my first trip to Panama Jan - Feb.. I will going to Boquete..If all is good with life there I plan on relocating in the spring/summer.   I was a surprised to hear about the 25% withholding by Can Gov..  They don't do this with your Capital ..do they...  This is the first time I've heard about withholding 25% of pensions.. With loosing 25% converting Can to US, and then another 25% to the Can Gov that will only leave 50%.  Is this correct. 

However it is really nice to see so many Canadians expating it to Panama..  When are you planning on going?

Good luck

Livin

At the end of the day you will pay no more tax than you would as a Canadian resident. you have seen my post on taxes. That answers your question.

As far as i know the withholding tax is on our total income only, pension or work. We are really over taxed. We are going to David, Panama next Tue/Nov3. We are also heading to the Boquete jazz & blues festival Feb.25-28. Great time to see the sites and experience great music. We are living in Panama for only 6mon so we don't have to worry about the tax. We didn't want to commit to anyplace yet. Roy

Whether or not we are over or under taxed is a matter of opinion but we are taxed the same in Panama or Canada. So I cannot complain.