Americas · USD
Panama
Reviewed 2026-06-21
Top income tax
25%
Self-employed SS
Optional
VAT
7%
Capital gains
10%
Exit tax
No
Nomad visa
Yes
74
/ 100
Tax efficiency66
Ease to enter81
Ease to exit93
Cost of living80
Internet50
English25
Panama taxes individuals and companies only on income sourced inside the country, so foreign earnings of a remote solopreneur generally fall outside the net. Personal income tax is progressive with a tax free band up to about 11,000 USD, a 15 percent middle bracket, and a 25 percent top rate above 50,000 USD, the same 25 percent applies to companies. There is no wealth, inheritance, or net worth tax, capital gains on shares are taxed at 10 percent, and the country uses the US dollar alongside the balboa.
Personal income tax
Income tax structureProgressive
Top income tax rate25%
Entry income tax rate15%
Top rate threshold$50,000
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate9.75%
Employer SS rate13.25%
Indirect & other taxes
VAT standard rate7%
Capital gains rate10%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate25%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$3,000
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index45
Internet speed219 Mbps
English proficiencyLow
Civil liberties78
Sources
- PwC Worldwide Tax Summaries — Panama Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Panama Individual Other taxes (social security, ITBMS, capital gains, wealth/inheritance)
- PwC Worldwide Tax Summaries — Panama Corporate Taxes on corporate income
- US SSA — Social Security Programs Throughout the World: Panama (self-employed coverage)
- EF EPI — Panama English proficiency profile
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.