Panama Tax Guide
In 2026, the headline personal income tax rate in Panama is 25% and the corporate tax rate is 25%. Checked against official guidance on 8 November 2026. There is also a special tax regime that can lower the bill for people who qualify.
- Personal income
- 25%
- Corporate
- 25%
- Special regime
- Yes
At a glance
| Personal income tax (headline rate) | 25% |
|---|---|
| Corporate tax | 25% |
| Capital gains | Unlock with Signal |
| Crypto tax | Unlock with Signal |
| Dividend tax | Unlock with Signal |
| Rental income tax | Unlock with Signal |
| Residency threshold (days) | Unlock with Signal |
| Special tax regime | Yes |
Source: official guidance· last verified 8 Nov 2026
Informational only. Not tax or financial advice. Verify with a qualified professional before you act.
Panama residency rule
Panama residency is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed tracks the full rule and counts the days for you.
Signal ($99 a year) unlocks the full residency rule.
Unlock with SignalRecent changes in Panama
Regulatory stabilityModerate3 rule changes in 24 months, occasional adjustments. See how Panama ranks.
- Tax · 1 Jan 2027
Panama taxes foreign passive income of group entities without local substance at 15% from 2027
Law 526 of 28 May 2026 requires Panamanian entities that belong to a multinational group and earn foreign-source passive income (dividends, interest, royalties, capital gains and other capital income) to show adequate economic substance in Panama and report it in their annual income tax return. Entities that fail the test pay a single and final 15% tax on that net taxable income. Supervised financial entities are excluded for income from their regulated activities. The law applies from fiscal period 2027.
- Business · 8 Sept 2026
Panama Executive Decree 17 of 2026 sets new Qualified Investor residence thresholds
Executive Decree 17 of 8 September 2026 updates Panama's Qualified Investor permanent residence programme. According to the Ministry of Commerce and Industries, the minimum investment is B/.300,000 for new first-sale real estate, B/.500,000 for second-sale property and B/.500,000 for fixed-term deposits at Banco Nacional de Panama or Caja de Ahorros, with wider securities-market options and clearer processing timelines.
- Exemption · 31 Aug 2026
Panama exempts the first B/.120,000 of a new home's value from the property transfer tax and sets reduced rates up to B/.200,000
Panama's Law 546 of 31 August 2026 exempts from the real estate transfer tax (ITBI) the first B/.120,000.00 of the taxable base on the sale of a new home. For sales between B/.120,000.00 and B/.200,000.00, the tax is charged only on the part above B/.120,000.00, at rates from 0.50% to 1.80%.
Move, incorporate, and bank in Panama
Panama on Heed isn't just a tax profile. Heed also lists residency programmes and company structures with their official sources, and the banking providers it is still verifying.
A first look. Matching these programmes and structures to your own situation is on Pro; banking opens when Financial Navigator launches.View Pro
What Heed tracks in Panama
Legislative changes
Confirmed changes to Panama tax law, each checked against its official source.
Residency thresholds
Day counts against Panama residency rules, with proactive warnings.
Regime updates
Special regimes and rule changes for Panama residents, where an official source publishes them.
Panama tax, common questions
Is Panama a tax haven?
Panama operates a special tax regime that offers meaningful advantages versus standard residency. Whether it qualifies as a tax haven depends on your income mix and structure. Heed tracks the regime conditions and flags a change when we publish it, verified against its official source.
What is the income tax rate in Panama?
The headline personal income tax rate in Panama is 25%. Effective rates vary by income level, residency status, and applicable regime. Heed keeps the rate alongside the legislative changes that move it.
Does Panama tax cryptocurrency?
Crypto taxation in Panama varies by holding period, activity type, and residency. Heed maintains the current rate and surfaces a change when we publish it, verified against its official source. The headline rate is available inside the Heed dashboard on Signal and above.
How long do I need to stay in Panama to become tax resident?
Tax residency in Panama is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed counts the days for you and warns before you cross. The full residency rule, including the day threshold and rolling window, is available on Signal and above.
Does Panama have a digital nomad visa or special regime?
Panama offers a special tax regime that nomads and expats use to optimise their position. Eligibility and benefits change. Heed flags amendments and treaty updates when we publish a verified change.
How does Panama compare with other Americas jurisdictions?
Heed's Tax Rankings compare Panama with other Americas jurisdictions on employment, capital gains, dividend, crypto, rental and corporate tax. The full table is inside the app, from Signal up.
Compare Panama with...
Where Panama stands: the lowest tax countries and the highest.
How Heed tracks Panama
Panama surfaces across three Heed tools: every legislative change matched to your profile, every threshold counted, every rate compared.
See Panama's full tax profile.
Track Panama on your Heed dashboard. Signal ($99 a year) unlocks the full rate set including capital gains, dividend, crypto, rental, and the complete residency rule.
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