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Panama

Taxes, residence and daily life for people moving to Panama: for a wealthy family, an expat employee and a remote worker. Researched .

Open Panama in the interactive guide

At a glance

For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.

Score for a wealthy family
67 / 100
Can EU citizens live here?
income of €10,719 a year · Pensionado (retiree) visa
Can US citizens live here?
income of €10,719 a year · Pensionado (retiree) visa
Other passports
income of €10,719 a year · Pensionado (retiree) visa
Tax on a €30M portfolio
€59,100 a year
Wealth tax
none
Children inherit
tax-free
Living costs, family of five
€195,008 a year
EU member
no
Currency
USD
Capital
Panama City

Tax on investments, inheritance and wealth

Panama has a territorial tax system: foreign dividends, interest and gains on foreign securities are not taxed, and there is no inheritance, gift or wealth tax. Panamanian-source investment income is taxed lightly (10% on local securities gains, 10%/5% final WHT on local dividends). US/EU withholding taxes on the portfolio are a final cost. The balboa (PAB) is at par with the US dollar, which circulates as legal tender.

Income tax for employees and remote workers

Territorial tax on Panamanian-source income: 0% up to USD 11,000, 15% to USD 50,000 and 25% above. Employees pay 9.75% social security plus 1.25% educational insurance with no ceiling.

How to get residence

Panama offers permanent residence by investment (Qualified Investor: USD 300,000 for a new first-sale property, USD 500,000 for resale or securities, from 16 September 2026) and a Friendly Nations visa (USD 200,000, about 50 listed nationalities incl. the US and most EU states, 2 years provisional first). Retirees need a USD 1,000 monthly pension; remote workers USD 36,000 a year. US, EU and other passports are treated alike except for the Friendly Nations list.

RouteKindWhoStatusIn short
Qualified Investor visa (permanent residence)Investor residenceEU citizens, US citizens, other passportsopenPermanent residence for a property, securities or bank-deposit investment. From 16 September 2026 resale property needs USD 500,000; only a new first-sale property still qualifies at USD 300,000.
Friendly Nations visaInvestor residenceEU citizens, US citizens, other passports (some nationalities)openResidence for nationals of about 50 'friendly' countries (including the US and most EU states) who buy USD 200,000 of property, lock a USD 200,000 deposit for 3 years, or hold a formal local job. Starts with 2 years of provisional residence.
Pensionado (retiree) visaPassive income / retirementEU citizens, US citizens, other passportsopenPermanent residence for retirees with a lifetime pension of at least USD 1,000 a month.
Short Stay Remote Worker visaDigital nomadEU citizens, US citizens, other passportsopenA 9-month visa, renewable once, for remote workers earning at least USD 36,000 a year from outside Panama.

Citizenship: Five years of permanent residence (three for spouses of Panamanians), Spanish test and civics exam, solvency and clean record. Shorter periods for some nationalities by reciprocity.

Inheritance law and trusts

There is no fixed share for children, but relatives have a right to maintenance that comes before the will's beneficiaries: children up to age 25, disabled children, parents and the spouse. Panama is the clearest trust-and-foundation jurisdiction here: it has a trust law (Law 1 of 1984), a private interest foundation law (Law 25 of 1995), and the Hague Trusts Convention is in force.

Daily life, scored out of 100

From public indicators (World Bank, UNDP, Transparency International and others); higher is better.

MeasureScore
Safety and personal security35
Political and institutional stability53
Corruption and government integrity35
Legal system and property rights49
Healthcare quality and access78
Education quality26
Human development and quality of life68
Infrastructure and connectivity65
Cost of living and housing84
Business opportunities and economy61
Cultural fit and lifestyle32

Research notes

Panama — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

Panama has a territorial tax system: foreign dividends, interest and gains on foreign securities are not taxed, and there is no inheritance, gift or wealth tax. Panamanian-source investment income is taxed lightly (10% on local securities gains, 10%/5% final WHT on local dividends). US/EU withholding taxes on the portfolio are a final cost. The balboa (PAB) is at par with the US dollar, which circulates as legal tender.

Residence and eligibility

183 days in current or preceding year, or permanent residence (Deloitte Panama Highlights 2026). Territorial basis for everyone.

Capital gains

Panamanian securities 10% (5% price withholding may be final); Panamanian real estate 10% or 3% of price final; foreign assets untaxed. JSON domestic 0.10, foreign 0.

Dividends

Foreign dividends untaxed; domestic 10%/5% WHT final. JSON domestic 0.10, foreign 0.

Inheritance and gifts to children

None (PwC reviewed 4 Aug 2026; Deloitte). JSON basis none.

Wealth tax

None. Property tax up to 0.7% (main residence) / 1%.

Special regimes

None needed; territorial system.

Company taxation (kept separate from personal tax)

CIT 25% territorial; MHQ/free-zone regimes.

Cost of living notes

City: Panama City (Costa del Este / Punta Pacifica).

Open questions

Sources

Change log

Residence and succession sources

Tax sources are cited in the research notes above.