Panama
Coming soonTerritorial taxation, US-dollar economy and well-known residency routes such as Friendly Nations and Pensionado.
Good for:EntrepreneursRetireesPlan B
At a glance
- Income tax (top)
- 25 %
- Corporate tax
- 25 %
- Dividends & capital
- 10 %
- Foreign income
- tax-free
- Minimum stay
- no fixed minimum
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At a glance
Is Panama right for you?
Advantages
- Only Panamanian-source income is taxed – foreign income stays tax-free
- US dollar as legal tender, no currency risk against USD
- Pensionado visa with discounts for retirees; Friendly Nations route for many nationalities
- International flight hub and established banking centre
What you should know
- Opening a bank account as a newcomer can take time and strict documentation
- Living costs in Panama City are high compared to the region
Who it suits
- Entrepreneurs
- Retirees
- Plan B
Less suited for
- People who expect quick bank account openings
- Anyone looking for a low-cost life in the capital
Taxes & facts
Taxes and legal facts
Facts at a glance
As of 2026- Income tax (top)
- 25 %
- Corporate tax
- 25 %
- Dividends & capital
- 10 %
- Foreign income
- tax-free
- Special regime
- Territorial taxation: only Panamanian-source income is taxed
- Tax residency
- Tax residency usually with 183 days of presence or a permanent home in Panama
- Wealth tax
- none
- Inheritance tax
- none
Simplified headline figures from public sources, without guarantee.
Editorial draft – being verified with local providersUpdated October 25, 2026
Sources: DGI – Panamanian tax authority · UK FCDO – foreign travel advice (safety)
Living there
Living there
Healthcare
Very good private hospitals in Panama City; care in rural areas is limited.
Safety
Most expat areas are safe; some city districts and the Darién border region should be avoided.
Cost of living
Moderate to high in Panama City, noticeably lower in the interior.
Your Panama relocation checklist (PDF)
Everything to do before you leave and after you arrive – deregistration, insurance, taxes, documents – in the right order.
- Tailored to your home country
- Free with your ResidencyHub account
- Updated when rules change
Transparent and fair: no hidden costs, you decide what we may send you and can change it anytime in your account.
Expat updates
Changes that matter when you move: tax, residency, cost of living, banking. Summarised by ResidencyHub, each with its source.
No updates yet for this country.
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General information, not tax or legal advice. Rates are simplified headline figures; your individual case is assessed by a licensed professional.