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Panama

PA • SPANISH • PAB (B/.)

Panama remains a premier hub for sovereign individuals, anchored by its territorial tax system and the US dollar. Starting a business is streamlined, offering a strategic gateway to global trade. While systemic corruption persists within the bureaucracy, the nation provides a stable, pro-market environment with robust property rights. Entrepreneurs enjoy a high quality of life, tropical freedom, and minimal state interference in foreign-sourced wealth. It is a strategic fortress for those seeking to decouple their capital from high-tax jurisdictions.

Upsides
  • Territorial taxation system providing exemption for foreign-sourced income from local taxes.
  • Full dollarization of the economy ensuring monetary stability without a national central bank.
  • World-class logistics infrastructure and strategic connectivity through the canal and free zones.
Downsides
  • Persistent systemic corruption within the judicial and executive branches of the government.
  • International regulatory pressure and inclusion on financial gray lists impacting global banking.
  • Bureaucratic inefficiency and complex administrative procedures for obtaining business licenses.

Taxation

Corporate Tax 25%
Income Tax 0–25%
VAT 7%
Tax Treaties 18
IP Box ? Intellectual Property Box. A tax incentive offering reduced rates on income derived from patents, copyrights, and other intellectual property. No
Exit Tax ? A tax on unrealized capital gains triggered when a taxpayer moves their tax residence to another country. No

Compliance

BEPS ? Base Erosion and Profit Shifting. An OECD framework to combat tax avoidance strategies used by multinationals to shift profits to low-tax jurisdictions. Member
FATF ? Financial Action Task Force. An intergovernmental body that sets standards to prevent money laundering and terrorist financing worldwide. Non-member
FATCA ? Foreign Account Tax Compliance Act. A US law requiring foreign banks to report accounts held by US citizens to the IRS. Signatory
CRS ? Common Reporting Standard. An OECD standard for automatic exchange of financial account information between tax authorities globally. Signatory

Blacklists

FATF Blacklist ? Countries identified by FATF as having serious deficiencies in anti-money laundering and counter-terrorist financing measures. Clear
EU Blacklist ? The EU list of non-cooperative tax jurisdictions. Countries that fail to meet transparency and fair taxation standards. Listed

Payment Platforms

Stripe Unavailable
PayPal Available

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