# Panama: taxes, residence and cost of living Source: https://domicile.wiki/places/panama/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice. ## At a glance For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader). - 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. - **Ordinary tax residence (territorial)**: Residents and non-residents are taxed only on Panamanian-source income. Foreign dividends, interest and gains on foreign securities are not taxed. Panamanian securities gains 10%; local dividends 10%/5% WHT. ## Income tax 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. - **Qualified Investor visa (permanent residence)** (Investor residence; EU citizens, US citizens, other passports; open): Permanent 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 visa** (Investor residence; EU citizens, US citizens, other passports; open): Residence 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) visa** (Passive income / retirement; EU citizens, US citizens, other passports; open): Permanent residence for retirees with a lifetime pension of at least USD 1,000 a month. - **Short Stay Remote Worker visa** (Digital nomad; EU citizens, US citizens, other passports; open): A 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 (0-100, higher is better) - Safety and personal security: 35 - Political and institutional stability: 53 - Corruption and government integrity: 35 - Legal system and property rights: 49 - Healthcare quality and access: 78 - Education quality: 26 - Human development and quality of life: 68 - Infrastructure and connectivity: 65 - Cost of living and housing: 84 - Business opportunities and economy: 61 - Cultural fit and lifestyle: 32 ## 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). - Prime rent: USD 5,500 a month, the average asking rent for 4+ bedroom units in Panama City from Global Property Guide's April 2026 survey. Mostly large apartments; gated-community houses can cost more. - Price per m2: USD 2,500 (Costa del Este resale average, Q1 2026, Galleria Inmobiliario via Panama Equity, reported by Global Property Guide). New-build: Costa del Este USD 3,800, Punta Pacifica USD 4,300. - International school: International School of Panama, grades 9-12, 2026-27: tuition USD 19,328 plus USD 1,000 annual non-institutional registration fee = USD 20,328 per child. One-off capital donation USD 16,000 per student excluded. - Health insurance and housekeeper: not sourced. #### Open questions - Residence visa investment thresholds not verified. - Exemption for exchange-traded Panamanian securities not verified. - [standard/capital_gains] Exemption for gains on securities registered with the SMV and sold through an organised market (historic Decree-Law 1 of 1999 art. 334) not verified for 2026. #### Sources - Deloitte International Tax: Panama Highlights 2026: https://www.deloitte.com/content/dam/assets-shared/docs/services/tax/2026/dttl-tax-panamahighlights-2026.pdf - PwC Worldwide Tax Summaries: Panama, Individual - Income determination: https://taxsummaries.pwc.com/panama/individual/income-determination - PwC Worldwide Tax Summaries: Panama, Individual - Other taxes: https://taxsummaries.pwc.com/panama/individual/other-taxes - Global Property Guide: Panama residential property market analysis (price history): https://www.globalpropertyguide.com/latin-america/panama/price-history - International School of Panama: Admissions, Tuition SY 26-27: https://isp.edu.pa/admissions/ #### Change log - 2026-10-15: initial research. - 2026-10-15: added cost of living (rent, price per m2, school fee) from Global Property Guide and the International School of Panama fee page. - 2026-10-15: family rent re-checked against the upper-middle-class standard: kept. ## Residence and succession sources - [Qualified Investor Visa in Panama: Executive Decree No. 17 of 8 September 2026](https://www.pacifica.legal/blog/new-update-qualified-investor-visa-in-panama) — Pacifica Legal - [Panama Residency for Investors: the October 2026 deadline](https://symbolconsulting.ltd/en/panama-residency-for-investors/) — Symbol Consulting - [Panama's Friendly Nations Visa: the 2026 guide](https://www.borderpilot.com/blog/panama-friendly-nations-visa-2026-investment-residency-guide) — BorderPilot - [Pensionado Visa Panama Guide 2026](https://www.globalcitizensolutions.com/pensionado-visa-panama/) — Global Citizen Solutions - [A new short-stay visa for teleworkers](https://www.mondaq.com/work-visas/1079592/a-new-shortstay-visa-for-teleworkers) — Mondaq - [HCCH status table: Convention on the Law Applicable to Trusts and on their Recognition (1985)](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — HCCH - [Panama Private Foundation (Law 25): structure, taxes, succession](https://wiki.private.law/en/panama-foundation) — private.law wiki - [Guide to International Estate Planning in Panama](https://pbl.legal/insights/a-comprehensive-guide-to-panama-trusts-and-foundations-for-international-estate-planning/) — PBL Legal