Panama tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Panama tax profile, with a provisional figure from a published summary where the engine has none yet.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Sources last checked 8 November 2026. Figures last changed 8 November 2026. Profile last reviewed 27 May 2026.
Scroll across the table to see all tax rates.
| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Panama | 36% | 10% | 10% | 5% | 25%† | 10%* |
* Provisional — not yet verified by the Sovereign engine. crypto gains: from PwC, read 10 November 2026. The engine's own figure replaces a provisional one as soon as the Panama profile carries an accepted source for it.
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Panama?
The top rate on a salary is 36%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 25% above USD 50,000.
How are capital gains taxed in Panama?
The top rate on a long-term capital gain is 10%. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Panama?
The top rate is 10% on dividends and 5% on interest. Rental income is taxed at up to 25%.
How is crypto taxed in Panama?
Still unverified: we have not settled how Panama classifies a private investor's crypto gain or at what rate, so the engine states no crypto figure. A missing figure is not an exemption. Provisionally 10%: the top rate on a crypto gain from a PwC summary read on 10 November 2026. The Sovereign engine has not yet computed this rate, so treat it as a pointer, not a verified figure. No specific rule; general 10% rate on gains on assets (securities, fixed assets).
Does Panama tax foreign income?
Generally no. Panama taxes income from sources in Panama. Income from abroad is generally outside the tax, with exceptions.
Does Panama have a wealth tax?
No. Panama has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Panama have an exit tax for individuals?
This is not verified yet: we have not checked whether Panama taxes unrealised gains when a resident leaves, so this page does not say that it does not.
What special tax regimes does Panama have?
Our profiles list 3 regimes: Pensionado Visa (Retirement); Friendly Nations Visa; Qualified Investor Visa. Each has its own conditions.
When do you become tax resident in Panama?
The Panama day test (more than 183 days in this or the prior fiscal year): 184 days in this or the preceding fiscal year, or a permanent home. The day test needs migration records for proof. A certificate and treaty residence require separate review. The travel log cannot establish a permanent home.
Residence decides whether Panama taxes you on these rates. See the Panama day-count test and count your own days.
Sources
The Panama profile cites 8 sources for these rules, 7 of them from a government or a statute. A provisional figure in the table names its own source under the table.
- DGI — Tarifa, personas naturales · official, retrieved 2026-11-03
- Código Fiscal — article 701(e), taxable securities gains · official, retrieved 2026-11-03
- DGI — distributions of Panamanian-source profits · official, retrieved 2026-11-03
- Securities law — articles 334–335, instrument qualifications · official, retrieved 2026-11-08
- Código Fiscal — artículo 694 (historical official compilation) · official, retrieved 2026-11-03
- Decreto Ejecutivo 17 — arts. 2, 4–9, 19–21 · official, retrieved 2026-11-03
- Decreto Ejecutivo 17 — article 9, state-bank exception · official, retrieved 2026-11-03
- PwC Panama individual income tax · summary, retrieved 2026-11-08
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Panama with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Panama side by side with other countries, see every country or try the live demo.
Other countries in Latin America: Peru, Paraguay, Suriname, El Salvador, Uruguay, Venezuela.