⚖️ 🇨🇺 Cuba vs 🇵🇦 Panama
📊 AT A GLANCE
| Metric | 🇨🇺 Cuba | 🇵🇦 Panama |
|---|---|---|
| Top Personal Income Tax | 50.00% | 25.00% |
| Effective Top PIT Rate | 50.00% | 25.00% |
| Corporate Tax Rate | 35.00% | 25.00% |
| VAT / GST | — | 7.00% (ITBMS) |
| Tax System | Worldwide | Territorial |
| Tax Treaties | 3 | 18 |
💰 INCOME TAX RATES
| Rate | Cuba | Panama |
|---|---|---|
| Top PIT Rate | 50.00% | 25.00% |
| Effective Top PIT | 50.00% | 25.00% |
| Capital Gains Tax | — | 10.00% |
| CG Notes | Limited private capital markets; gains generally taxed as income. | Real estate capital gains 10% on gain or 3% on total sale value (whichever is elected). Securities gains 10%. |
| SS Employee | 5.00% | 9.75% |
| SS Employer | 12.00% | 13.25% |
🏦 WITHHOLDING RATES
| Type | Cuba | Panama |
|---|---|---|
| Dividend WHT | — | 10.00% |
| Interest WHT | — | 12.50% |
| Royalty WHT | — | 12.50% |
📋 OTHER TAXES
| Tax | Cuba | Panama |
|---|---|---|
| Corporate Tax | 35.00% | 25.00% |
| Inheritance Tax | — | — |
| Wealth Tax | — | — |
🔧 TAX FEATURES
| Feature | Cuba | Panama |
|---|---|---|
| Personal Income Tax | Yes | Yes |
| Capital Gains Tax | No | Yes |
| Corporate Tax | Yes | Yes |
| VAT / GST | No | Yes |
| Wealth Tax | No | No |
| Inheritance Tax | No | No |
| Exit Tax | No | No |
| CFC Rules | No | No |
| Digital Services Tax | No | No |
| Crypto-Specific Rules | No | No |
| Participation Exemption | No | No |
| Territorial Exemption | No | Yes |
🌟 SPECIAL REGIMES
| Regime | Cuba | Panama |
|---|---|---|
| Digital Nomad Tax Regime | No | No |
| Non-Dom Regime | No | No |
Active Special Tax Regimes
| Detail | Cuba | Panama |
|---|---|---|
| Regime | Free Trade Zones (Zona Libre de Colón) | |
| Sede de Empresas Multinacionales (SEM) |
📅 RESIDENCY & FILING
| Detail | Cuba | Panama |
|---|---|---|
| Residency Threshold | 180 days | 183 days |
| Residency Rules | Complex residency rules linked to Cuban citizenship and domicile. Foreign workers taxed at 15% flat on salary. | Resident if in Panama for 183+ days in a fiscal year, or if center of economic/vital interests is in Panama. |
| Filing Deadline | April 30 | March 15 |
| Auto Extension | No | No |
| Filing Notes | Self-employed must file annual returns. State employees generally have tax withheld. | Annual tax return due March 15 for individuals. Corporate returns also due March 15. |