🇵🇦 Panama
Dynamic Central American gateway offering rich biodiversity, a welcoming expat scene, and global business access.
Panama Citizenship and Naturalization
Grade:
BGlobal Rank: 61
Visa-free Access
125 out of 195 countries
Access to Major Destinations
- European Union
- United Kingdom
- Canada
- United States
- China
- Russia
- Japan
| Category | Details |
|---|---|
Citizenship by Descent |
|
Naturalizations |
|
Spouse Naturalization |
|
Birthright Citizenship |
|
Economic Citizenship (Investment) |
|
Other Provisions |
|
Citizenship by Exception |
|
Taxation Overview
Personal Tax Overview: Panama 🇵🇦
Key information about personal taxation in Panama
Tax Residency
Normal rule: 183 days
Special rule: No information
Special Tax Regime
Panama has several special tax regimes aimed at encouraging investment and international business activity.
| From (USD) | To (USD) | Tax Rate |
|---|---|---|
| 0 | 11,000 | 0% |
| 11,000 | 50,000 | 15% |
| 50,000 | and above | 25% |
Dividend Tax
10%
Dividends are exempt from tax if they are paid from exempt income or foreign-sourced income that is not subject to Panamanian taxation.
Capital Gains Tax
10%
Capital gains are taxed at 10 percent on Panama-sourced transactions, while gains from foreign-sourced income or certain newly constructed real estate transfers may be exempt or subject to reduced rates.
Property Rental Income
25%
Rental income from property located in Panama is considered Panama-sourced and is taxed as part of personal income under the progressive personal income tax rates, with 0 percent on the first 11,000 USD, 15 percent on income between 11,001 and 50,000 USD, and 25 percent on amounts over 50,000 USD.
Property Tax
Yes
Property tax is an annual tax imposed on all real estate owners in Panama, calculated based on the property’s assessed value. Rates range from 0 percent to 2.10 percent, with the maximum rate reduced to 0.9 percent from January 2019.
Inheritance Tax
No
Panama does not impose inheritance, estate, or gift taxes.
Wealth Tax
No
Panama does not levy a net wealth or personal assets tax.
VAT
7%
The value-added tax, known as ITBMS in Panama, is levied at a general rate of 7 percent on the sale of movable goods and the provision of services within the country.
CFC Laws
No
Panama does not impose CFC rules on personal taxpayers, meaning residents are not taxed on undistributed income of foreign corporations they control.
