🇵🇦 Panama
PA / PAN #116
Nomad Score
59.0
Cities
14
🇵🇦 PANAMA TAX PROFILE
Data year: 2025
Tax System
Territorial
Panama taxes only Panamanian-source income. Foreign-source income is exempt regardless of whether remitted to Panama.
Panama taxes only Panamanian-source income. Foreign-source income is exempt regardless of whether remitted to Panama.
Top PIT Rate
25.0%
Corporate Tax Rate
25.0%
ITBMS
7.0%
Capital Gains Tax
10.0%
Real estate capital gains 10% on gain or 3% on total sale value (whichever is elected). Securities gains 10%.
Real estate capital gains 10% on gain or 3% on total sale value (whichever is elected). Securities gains 10%.
Social Security (Employee)
9.8%
Social Security (Employer)
13.3%
Dividend Withholding
10.0%
Interest Withholding
12.5%
Royalty Withholding
12.5%
Treaty Count
18
Territorial Exemption
📊 INCOME TAX BRACKETS
Corporate
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| USD 0 | and above | 25.0% | -- |
Personal income
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| USD 0 | USD 11,000 | 0.0% | -- |
| USD 11,000 | USD 50,000 | 15.0% | -- |
| USD 50,000 | and above | 25.0% | -- |
⭐ SPECIAL REGIMES (2)
| Name | Type | Rate/Amount | Duration | Status |
|---|---|---|---|---|
|
Sede de Empresas Multinacionales (SEM)
Multinational headquarters regime allowing companies to establish regional headq... |
Exemption | -- | -- | Active |
|
Free Trade Zones (Zona Libre de Colón)
The Colón Free Trade Zone is the largest free trade zone in the Western Hemisphe... |
Free zone | -- | -- | Active |
🏠 TAX RESIDENCY
Days Threshold
183 days
Residency Rules
Resident if in Panama for 183+ days in a fiscal year, or if center of economic/vital interests is in Panama.
Exit Tax
No
CFC Rules
No
📅 FILING INFORMATION
Fiscal Year
01-01 – 12-31
Filing Deadline
March 15
📚 SOURCES
-
PwC Panama
(accessed Mar 23, 2026)
Territorial system, PIT, CIT rates
🔗 RELATED
🧭 CONTINUE EXPLORING PANAMA