Panama
How Panama performs
Tax
Lighter than most. Taxes here are below average: Panama is 35th of 123. Most people keep a good share of their income and business profit. Personal income tax 15% - 25%, corporate tax 25%, VAT 7%.
Source: Heritage Foundation, Index of Economic Freedom (Tax Burden sub-score)
Safety
Average safety. Safety here is about average for the countries we cover: Panama is 69th of 117.
Source: Institute for Economics and Peace, Global Peace Index
Cost of Living
Fairly expensive. Everyday life costs more here than in most countries we cover (73rd of 118). Budget for it.
Source: Numbeo Cost of Living Index
Education
Below average. Education here is weaker than in most countries we cover (89th of 120). Families may want to look at international schools.
Source: UNDP & MBRF, Global Knowledge Index
Every figure is published by the institution named against it. We do not adjust, model or estimate the underlying values. See the formulas.
The detail behind the scores
Taxation
| Corporate income tax | 25% |
|---|---|
| Personal income tax | 15% - 25% Applicable tax rate varies based on the amount of income earned. |
| Standard VAT | 7% |
Rates change without notice. Confirm with the relevant tax authority before acting.
Naturalization Requirements and Immigration Pathway
- Residence for naturalization
- 5 years
- Language requirement
- YesBasic command of Spanish
- Investment Immigration Pathway
- Panama Investment Visa - Qualified Investor Immigration
- Official language
- SpanishEnglish is also widely used
- Dual citizenship
- Allows with conditions
2 immigration pathways
Program terms change. Always confirm the current rules with the issuing authority before acting. This page is informational and is not legal or tax advice.
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