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Territorial Tax System
PanamaTax Regimehigh confidence
Panama taxes only income sourced within Panama. Foreign-sourced income is fully exempt regardless of residency status. Popular with digital nomads and retirees.
Investment
N/A
Processing
3 months
Min stay
183 days/year
Tax rate
0%
How popular is this programme?
Searches/mo
10
Interest
Low
Trend
Stable 0%
Demand score27/100
Based on Google search demand (US). Updated periodically.
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Key Details
Leads to PR—
Dual citizenship—
Remote work—
Healthcare included—
Crypto accepted—
Same-sex recognised—
RenewableYes
Stay Requirements
Special/zero tax regime: benefiting requires becoming a tax resident; the standard test is 183 days physical presence per year
medium confidenceHighlights
- Only local income is taxed
- Foreign income is fully exempt
- Popular among digital nomads
- Simple tax compliance
- Attractive for expatriates
The catch
- You have to actually live there. At least 183 days a year in-country — this becomes your main home, not a paper residency.
Auto-summarised from the data we hold — always confirm specifics on the official page.
What could change
Potential reforms in tax law could alter the current benefits.
Tax Notes
Panama's territorial tax system means only income sourced within Panama is taxed.