Latin America · Central America

Panama

The region's most institutionalised residency market: a dollarised economy, a genuinely territorial tax system, and a 30-day permanent residency for USD 300,000 — priced to rise to USD 500,000 in October 2026.

Last verified July 2026148 visa-free destinations

Tax position

Income tax (top)
25% (on Panamanian-source income over USD 50,000)
Capital gains
10% on securities; 3% of price or 10% of gain on real estate
Wealth tax
none
Inheritance tax
none
Special regime
Territorial system: foreign-source income is not taxed. Law 526 of 28 May 2026 adds economic-substance and reporting rules for Panamanian entities in multinational groups earning foreign passive income, effective FY2027 — 15% tax if substance is not met.
Territorial
Yes — foreign-source income generally outside scope
CFC rules
No
Exit tax
No
CRS
Participating

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