About Panama's Tax System
Panama, located in North America, offers a territorial tax system. Under a territorial tax system, only income earned within the country's borders is subject to taxation, making it an attractive destination for international entrepreneurs and digital nomads.
With a corporate tax rate of 25% and a top personal income tax rate of 25%,Panama offers a moderate tax environmentin our World Tax Index with an overall score of 59/100.
Tax Information
25%
Standard corporate tax rate is 25%.
25%
TerritorialTop marginal rate is 25% on locally-sourced income.
Economic & Investment Climate
Measures how often a country's tax regulations have changed over the last decade. Higher score means more predictable tax environment.
Indicates how independent the country's tax system is from global pressures. Higher score means more control over own tax policies.
A measure of the country's overall economic health and predictability, based on GDP growth, inflation, and sovereign credit ratings.
Reflects the safety and security of investments in the country, considering factors like legal protections for investors and political risk.
Based on perceived levels of public sector corruption. Higher score indicates a cleaner, more transparent business environment.
Rates the value of special programs offered, such as tax-free periods for new residents or designated economic zones. Higher score means more attractive incentives.
Investment & Residency Programs
Panama offers residency programs for foreign investors looking to establish a presence in the country.
Minimum Investment
$300,000
Investment Type
Real Estate, Bank Deposit, Stock Exchange
Minimum Stay
Visit Panama at least once every 2 years.
Special Conditions
Known as the 'Qualified Investor' visa.
Panama offers a Digital Nomad Visa for remote workers and freelancers looking to live and work from the country.
Visa Duration
9 months, renewable
Minimum Income Requirement
$3,000/month
Minimum Stay
No minimum
Special Conditions
For remote workers with foreign contracts.
Citizenship Pathways
Panama offers citizenship through ancestry or bloodline connections.
Rule
Jus Sanguinis (Right of Blood)
Conditions
A child born outside Panama is a citizen if at least one parent is a Panamanian citizen by birth, but the child must establish residency in Panama to formalize it.
Panama's policy on birthright citizenship.
Rule
Jus Soli (Right of Soil)
Conditions
Any person born in the territory of Panama is a citizen, regardless of the parents' nationality or status (with the exception of children of foreign diplomats).
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