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Panama

#6 of 25Territorial25%

Central America · Panama City · USD

Territorial tax system means 0% on foreign-source income. USD economy, easy residency, and a strategic hub between North and South America.

75
Overall Score
Tax100
Funding60
Visa90
Residency73
Tax Res.80
Practical81
Remote68
Family80
Ecosystem40
Panama City

Dimension Profile

Jurisdiction Risk Warnings

1 Watch
Banking & Financial AccessWatch

Stringent AML/KYC requirements persist

Removed from FATF grey list in October 2023, but banking KYC requirements remain strict. Foreign companies must maintain proper accounting records with penalties up to USD 100,000.

KPMGApr 1, 2025

Risk signals are informational only. Conditions change rapidly - verify with current government advisories and qualified legal counsel before making residency or incorporation decisions.

Dimension Breakdown

Corporate Tax Rate
25%
Capital Gains Rate
10%
Crypto Capital Gains
0%
Territorial system - crypto traded on foreign exchanges is foreign-source and untaxed; domestic transactions may face 10% CGT
Territorial System
Yes
IP Box Regime
No
Tax Treaties
17
VAT Rate
7%
Dividend Withholding
10%
Holding Company Viable
Yes
Notes
The territorial system is the core draw. A Panama company doing business entirely outside Panama pays 0% corporate tax. SEM (Multinational Headquarters) regime offers preferential treatment.
3 sources cited

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