Country tax profile · 2026
Panama income tax
What a nomad, retiree or founder needs before moving to Panama: the real rate, what actually gets taxed, and the residency bar you must clear. Local currency: USD/PAB.
Panama tax calculator
Enter your income to estimate what you would pay in Panama, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.
How much is income tax in Panama?
Panama taxes personal income at rates up to 25%. Foreign income EXEMPT (territorial)
Compiled by MyNomadWorld for Panama and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Panama digital nomad visa
Visa de Corta Estancia como Trabajador Remoto (Decreto Ejecutivo 198 de 2021)
- Income requirement: Foreign-source income of at least US$36,000/yr (~US$3,000/mo)
- Initial length: 9 months · renewable
- Max stay: 9 months, extendable once for another 9 months (18 months max); non-resident category, no path to residence
- Tax on nomad income: Territorial system; foreign-source income not taxed. Non-resident short-stay visa; no work permit needed for foreign clients
- Family / dependents: Not specified
Official source: Visa de Corta Estancia como Trabajador Remoto (Decreto Ejecutivo 198 de 2021) · as of 2026
Capital gains, wealth & property tax
- Capital gains: 10% on gains (securities: 5% WHT on sale price as advance; real estate: 3% advance / 10% final on gain)
- Wealth tax: No net wealth/worth taxes
Inheritance & gift tax in Panama
No inheritance, estate, or gift taxes N/A - tax does not exist
Corporate tax & VAT
The standard corporate profits tax is 25%.
How to become a tax resident of Panama
Physically present and generating income in Panama for more than 183 days in the year (or permanent home / center of economic interest).
Cost of living & lifestyle
Cost of living is about 45% of the US level, with average purchasing power near $42k (PPP). Pick a city below to see its monthly climate and cost.
Banking in Panama
You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Panama.
Climate & cost by city
Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.
Panama tax treaties
Panama maintains around 17 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.
Major treaty partners
Chips with a link open the full withholding-tax detail for that treaty pair.
Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.
Panama tax treaty guides
Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 2 of Panama's partners:
Who can help you in Panama
Vetted partners for the move: immigration and tax lawyers, relocation services, banking and eSIM, guides and local experts. One Gold partner and up to three standard listings per country.
Expats in Panama
The free Panama expat community: who is already there, who is arriving, the Telegram group and straight answers on the paperwork. Expats in Panama →
Members see each other by first name, origin and plans. Emails stay private.
Planning a move to Panama?
The headline rate is the easy part. Residency, banking and exiting your current tax net are where it goes wrong. Get matched with a vetted Panama advisor.
Talk to a Panama advisor →Panama income tax FAQ
How much is income tax in Panama?
Panama taxes personal income at rates up to 25%. Foreign income EXEMPT (territorial)
Does Panama tax capital gains?
10% on gains (securities: 5% WHT on sale price as advance; real estate: 3% advance / 10% final on gain)
How do you become a tax resident of Panama?
Physically present and generating income in Panama for more than 183 days in the year (or permanent home / center of economic interest).