Expatriation Italy - tax comparison
🇮🇹

Italy

VS
Expatriation Panama - tax comparison
🇵🇦

Panama

Italy vs Panama

Complete comparison for your tax relocation

Data up to date as of January 15, 2025
Top income tax bracket
43%
🇮🇹 Italy
vs
25%
🇵🇦 Panama
Monthly cost (single)
1 200 €
🇮🇹 Italy
vs
900 €
🇵🇦 Panama
Safety
5/10
🇮🇹 Italy
vs
6/10
🇵🇦 Panama

Taxation

🇮🇹Italy
🇵🇦Panama
Top income tax bracket43%25%
Corporate tax24%25%
Capital gains26%10%
VAT22%7%
Tax treaty with FranceYesNo
Special regimeRégime Impatriati (70 % d'exonération)Taxation territoriale
Wealth taxNoNo
Territorial taxationNoYes
🇮🇹

Régime Impatriati (70 % d'exonération)

Duration: 5 ans (prolongeable de 5 ans sous conditions)

Les travailleurs qui transferent leur résidence fiscale en Italie peuvent bénéficier d'une exonération de 70 % de leur revenu imposable (50 % depuis 2024 pour les nouveaux bénéficiaires). Seuls 30 à 50 % des revenus sont effectivement imposés, ce qui réduit considérablement la charge fiscale.

🇵🇦

Taxation territoriale

Duration: Illimitée (systeme fiscal national permanent)

Le Panama applique un systeme de taxation purement territoriale : seuls les revenus de source panaméenne sont imposés. Les revenus générés à l'étranger sont totalement exonérés, y compris les dividendes, intérets et plus-values d'origine étrangere.

Cost of living

🇮🇹Italy
🇵🇦Panama
Monthly cost (single)1 200 €900 €
Monthly cost (couple)1 900 €1 400 €
City center rent900 €700 €
Outside city rent550 €400 €
Private health insurance0 €70 €
Public healthcareAccessibleAccessible

Estimated total monthly budget (single, with city center rent)

🇮🇹 Italy2 100 €/mo
🇵🇦 Panama1 600 €/mo

Panama is approximately 500 € cheaper per month in total.

Quality of life

🇮🇹Italy
🇵🇦Panama
Average temperature15°C27°C
Safety5/106/10
Health index65/10062/100
Internet80 Mbps60 Mbps
Timezone vs Paris+0h-6h
French-speaking communitySmallVery small
LanguagesItalienEspagnol, Anglais
CurrencyEuro (EUR)Balboa / Dollar US (PAB/USD)
Corruption index56/10036/100
Democracy index7.69/107.05/10

Settling in

🇮🇹Italy
🇵🇦Panama
Residence permit delay6 months2 months
Company creation11 days6 days
Bank accountModerateEasy
Political stability7/106/10
Ease of business58th worldwide86th worldwide

Summary

🇮🇹

Italy

  • Top IT: 43% | Corp. tax: 24%
  • Cost of living: 1 200 €/mo
  • Safety: 5/10 | Health: 65/100
  • Regime: Régime Impatriati (70 % d'exonération) (5 ans (prolongeable de 5 ans sous conditions))
View full profile Italy
🇵🇦

Panama

  • Top IT: 25% | Corp. tax: 25%
  • Cost of living: 900 €/mo
  • Safety: 6/10 | Health: 62/100
  • Regime: Taxation territoriale (Illimitée (systeme fiscal national permanent))
View full profile Panama

Comparative analysis: Italy vs Panama

Which country has lower taxes?

In terms of taxation, Panama is generally more advantageous. The top marginal income tax rate is 25% compared to 43% in Italie. Corporate tax stands at 25% versus 24%. Capital gains are taxed at 10% in Panama versus 26% in Italy.

Which country is cheaper to live in?

The cost of living is lower in Panama. A single person spends about 900 EUR/month excluding rent, compared to 1 200 EUR/month in Italie. City center rent averages 700 EUR versus 900 EUR.

Which country is safer?

Panama scores higher on safety (6/10 versus 5/10). In terms of healthcare, Italie leads with an index of 65/100 compared to 62/100 for Panama.

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Disclaimer

The tax information presented is based on estimates from public sources (PwC, OECD, government sources). It does not constitute tax or legal advice. Tax rules change regularly and your personal situation may significantly affect the calculation. Consult a qualified professional before making any relocation decision.