In recent years, there has been a notable trend in Panama, one of the world’s leading countries for global wealth migration. The country has gained increasing popularity among the high-net-worth individual (HNWI) community, as more and more millionaires are migrating to Panama. In fact, Panama has emerged as a leading destination for global capital, not only in the Latin American region but worldwide. The new wave of capital inflow into Panama is driven by the wealthiest individuals from other countries, with the United States of America, Canada, China, and European countries making up the largest share.
This blog post will discuss the top reasons millionaires are migrating to Panama and the benefits of Panama as a global wealth destination. The analysis will be based on data from the latest Millionaire Migration Report from Henley & Partners and New World Wealth.
Record Capital Inflow to Panama
It is no surprise that Panama is one of the world’s leading destinations for global wealth migration. The recent Millionaire Migration Report from Henley & Partners, a global citizenship by investment company, in partnership with New World Wealth, an expert on world wealth data, found that Panama is among the 10 fastest-growing markets for attracting millionaires’ wealth in the world.
According to the report, it is expected that the number of millionaires who relocated to Panama by the end of 2025 will reach around 300. On the other hand, countries like Brazil, Mexico, Colombia, and Argentina are losing the most millionaires, with around 1,200 millionaires leaving Brazil only this year.
What are the Millionaires Moving to Panama?
Millionaires migrating to Panama are mainly from the highest-income countries, including the U.S. and Canada. The largest part of HNWI relocating to Panama each year is over 60%. The other share comes mainly from Asian countries like China and Japan, and from European countries. A relatively small proportion comes from the countries that are now in a state of social and political instability and sometimes economic unpredictability.
The main reason that many of the wealthy from other countries choose Panama is the safety of their assets. The other significant factor is the ability to choose where and when to move, which means that the relocation option is not immediate but instead taken by people who are more likely to plan their finances for the long term.
The other considerations include the fear of fiscal overreach or even expropriation and the need for peace of mind for their wealth and its intergenerational transfer. For the wealthy from other countries, migrating to Panama is especially attractive due to:
Tax Considerations
The main consideration for millionaires when it comes to their relocation decision is the tax situation in the destination country. In this respect, Panama stands out as it has no inheritance or estate taxes, as opposed to many other jurisdictions around the world.
The lack of these taxes is especially important for older millionaires who want to leave their wealth to their children. In addition to these tax advantages, Panama also has one of the lowest rates of capital gains taxes in the world, which is another factor to consider in terms of optimizing and preserving wealth.
Financial Sector Sophistication
Panama is also a country with a well-developed financial services sector, which includes:
– a well-developed banking system;
– services in trust and estate planning;
– legal services for international clients;
– a mature and stable insurance sector.
For these reasons, the country is an especially attractive destination for the relocation of HNWIs as well as their intergenerational transfer of wealth.
Opportunities for Luxury Living
The other key factor in choosing the best global wealth destination is the lifestyle, especially for those millionaires who are used to first-class living in urban environments. Panama City offers luxurious and modern residences and condominiums, upscale neighborhoods, including Punta Pacifica and Costa del Este, private golf courses, upscale shopping centers, and fine dining options. At the same time, there is a cosmopolitan feel to the city and country in general, as well as beautiful beaches.
The country is also rich in biodiversity, with a tropical climate and eco-tourism options. These aspects of Panama make it a very attractive destination for a variety of millionaires, including those with a lifestyle that has a connection to outdoor living.
Improved Legal and Regulatory Environment
The other notable factor that contributed to the favorable change in Panama’s reputation among global millionaires is the country’s recent efforts to improve its regulatory and legal environment, including, for example, the country being removed from multiple international gray lists related to money laundering and other financial irregularities. The reasons that this change in the perception of Panama can help the country attract and retain global capital include:
– increased confidence of international investors who are more sensitive to these issues, such as legitimacy, long-term stability, and the law;
– efforts by Panama’s government to increase the country’s transparency and improve its institutions, as evidenced by the judicial system’s increased aggressiveness in some high-profile corruption cases.
Another element that can help Panama attract more and retain global capital is the country’s strategic position in the Central American region. The country, and its capital Panama City in particular, offer direct and nonstop flights to most major cities in the U.S. as well as Europe and many other places in Latin America via Tocumen International Airport, often referred to as the “Hub of the Americas.”
The other factor, which, of course, is the Panama Canal, is one of the world’s busiest shipping lanes. The high degree of connectivity and transport infrastructure makes it much easier for the relocated millionaires to manage their other international interests and frequent travel. At the same time, other aspects of Panama’s infrastructure, such as telecommunications, time zone, and the power grid, are also very suitable for highly mobile entrepreneurs and investors, contributing to Panama’s status as one of the leading global wealth destinations for many high-net-worth individuals.
Stability of Panama’s Institutions
It is no secret that many countries in the Latin American region, including some of the wealthiest in the area, like Argentina, Colombia, Brazil, and Mexico, are currently facing challenges in their governance, rule of law, and macroeconomic policy. Panama has found a way to deal with that. While Panama’s government may not be perfect, the government and political system do not have to deal with the significant structural challenges that many other Latin American countries must deal with.
One of the most prominent illustrations of Panama’s institutional strength, at least when compared to its regional peers, is the fact that it does not have a standing army. While this fact often comes as a surprise to many foreigners and visitors to the country, the reality is that this has been one of the most notable factors of Panama’s ability to concentrate on building the capacity and efficiency of its civilian institutions, which now serve the millions of residents of the country, including the newly arrived millionaires and their families.
Panama Attracts $2.4 Billion in Global Wealth
As many high-net-worth individuals from other countries are migrating to Panama, this brings in about $2.4 billion of capital. The reasons that Panama is a global wealth destination include:
– a direct injection of money into the country’s real estate, finance, tourism, and luxury goods markets, which in turn supports local employment and demand for high-end products;
– the capital, tax, and regulatory environment, as well as the ability to facilitate international connections via the Panama Canal and its airports, are often reasons that the wealthiest individuals choose to relocate to Panama.
Panama is the Tenth Growing Destination for Global Millionaire Wealth in the World
There are two countries in Central America that Panama can now be mentioned alongside, including Costa Rica, as leading global wealth havens, which represent an opportunity not only for many local people but also for the region as a whole.
While Costa Rica has a comparative advantage in terms of ecological sustainability and higher quality of life, which works exceptionally well for retirees, Panama is a different type of country. Panama has a strong financial sector infrastructure, a tax environment that is especially beneficial for wealth optimization and its intergenerational transfer, as well as the advantage of great international connectivity. These aspects have already made Panama a global wealth destination for many high-net-worth individuals and is likely only to continue attracting global capital in the years to come.
This is a very strong position for any country to be in, and to have now become one of the world’s leading global wealth havens. Panama City is a magnet for attracting global wealth, and there is every reason to believe that this trend is going to continue in the foreseeable future. This means that the country is likely to remain among the most attractive global wealth havens as more and more HNWIs continue to migrate to Panama for an increased tax optimization potential, as well as for peace of mind for the safety of their wealth and the well-being of their families.