Americas · USD
Panama For Solopreneurs - Tax, Immigration, Lifestyle
Reviewed 2026-06-21
Top income tax
25%
Self-employed SS
Optional
VAT
7%
Capital gains
10%
Exit tax
No
Nomad visa
Yes
74
/ 100
Tax efficiency66
Ease to enter81
Ease to exit93
Cost of living80
Internet50
English25
Panama taxes individuals and companies only on income sourced inside the country, so foreign earnings of a remote solopreneur generally fall outside the net. Personal income tax is progressive with a tax free band up to about 11,000 USD, a 15 percent middle bracket, and a 25 percent top rate above 50,000 USD, the same 25 percent applies to companies. There is no wealth, inheritance, or net worth tax, capital gains on shares are taxed at 10 percent, and the country uses the US dollar alongside the balboa.
Personal income tax
Income tax structureProgressive
Top income tax rate25%
Entry income tax rate15%
Top rate threshold$50,000
Taxation basisTerritorial
Local/state income taxNo
Social security
Self-employed social securityOptional
Employee SS rate9.75%
Employer SS rate13.25%
Indirect & other taxes
VAT standard rate7%
Capital gains rate10%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate25%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$3,000
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index45
Internet speed219 Mbps
English proficiencyLow
Civil liberties78
Digital nomad visa
Panama runs the Short-Stay Visa for Remote Workers, which lets you live here legally while earning from clients or an employer abroad. You need to prove $3,000/mo.
ProgramShort-Stay Visa for Remote Workers
Income requirement$3,000/mo (USD 3,000/month (USD 36,000 annually) from foreign sources)
Duration9 months
Renewableyes, extendable once for additional 9 months (maximum 18 months total)
Application fee$300 (B/.250 government fee + B/.50 card issuance fee (approximately USD 300 total))
Processing time30-45 business days
How it is taxed
Foreign-source income is exempt from Panamanian taxation for temporary residents; only Panama-source income taxable.
What you need to qualify
- remote work for foreign employer or own foreign-registered company
- proof of USD 3,000+ monthly income from abroad (bank statements, employment contracts, tax returns)
- valid passport
- notarized power of attorney and application
- clean criminal background certificate
- health certificate
- sworn statement of personal background
Verified 2026-07-17 · high confidence
Golden visa
Panama offers residency by investment from $200k. Unlike the nomad route, this buys residency through capital rather than proven income.
Qualified Investor Visa + Friendly Nations Visa
| Route | From | Notes |
|---|---|---|
| Friendly Nations (real estate/deposit) | $200k | designated nationalities only |
| Qualified Investor (real estate) | $300k | $300k to 15 Oct 2026 then $500k; immediate PR |
| Qualified Investor (securities) | $500k |
Residency grantedImmediate permanent residence (QIV)
Physical presencenone strict
Path to citizenship5 years + Spanish/civics
Verified 2026-07-08 · medium confidence
Sources
- PwC Worldwide Tax Summaries — Panama Individual Taxes on personal income
- PwC Worldwide Tax Summaries — Panama Individual Other taxes (social security, ITBMS, capital gains, wealth/inheritance)
- PwC Worldwide Tax Summaries — Panama Corporate Taxes on corporate income
- US SSA — Social Security Programs Throughout the World: Panama (self-employed coverage)
- EF EPI — Panama English proficiency profile
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.