Panama
Panama is one of the world's most attractive tax jurisdictions thanks to its purely territorial taxation system. All foreign-source income is fully tax-exempt. The Friendly Nations Visa facilitates relocation for British and EU citizens, and the cost of living is very competitive. Panama City is a modern metropolis with a well-developed international banking system. English is widely spoken in business circles.
Taxation
Income tax brackets
| Bracket | Rate |
|---|---|
| 0 € → 11 000 € | 0 % |
| 11 000 € → 50 000 € | 15 % |
| 50 000 € → unlimited | 25 % |
Corporate tax
25 %
Capital gains
10 %
VAT
7 %
Special regime : Taxation territoriale
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.
Illimitée (systeme fiscal national permanent)
Tout résident fiscal au Panama. Aucune condition particuliere : le systeme territorial s'applique à tous les contribuables.
- 0 % d'impot sur tous les revenus de source étrangere
- 0 % sur les plus-values étrangeres
- 0 % sur les dividendes de source étrangere
- Pas d'impot sur la fortune ni de droits de succession sur les actifs étrangers
Visa options
Visa Pensionado
passive-incomeDuration: Permanent
Cost: Environ 2 000 USD (~1 840 EUR) frais d'avocat inclus
Requirements: Pension mensuelle d'au moins 1 000 USD (~920 EUR) de source étrangere. Ouvert à tous les ages (pas de minimum d'age).
Friendly Nations Visa
investorDuration: Permanent
Cost: Environ 3 000 USD (~2 760 EUR) frais d'avocat inclus
Requirements: Citoyens de 50 pays amis (dont la France). Lien économique avec le Panama : emploi, investissement immobilier de 200 000 USD+ ou création de société. Dépot bancaire de 5 000 USD.
Visa SEM (Sede de Empresa Multinacional)
entrepreneurDuration: Permanent
Cost: Variable, environ 5 000 USD (~4 600 EUR)
Requirements: Création d'un siege régional d'une multinationale au Panama. 5 employés minimum dont 3 Panaméens.
Living in Panama
Popular locations among expatriates
Cost of living
Comparison with the French average (vertical line)
Single person
Couple
City center rent
Outside city center rent
The cost of living in Panama is moderate, about 50% lower than the UK. A single person can live comfortably in Panama City on £750/month excluding rent. The US dollar as official currency eliminates exchange risk. Food and transport are cheap.
Settling in Panama
Practical indicators to prepare your relocation
Safety & stability
Procedures
Start a business
The Friendly Nations Visa facilitates relocation for British and EU citizens with a $5,000 bank deposit and an economic link (employment, real estate, or company). Panama City is a modern metropolis with quality infrastructure and an international air hub (Copa Airlines). The US dollar is the official currency, eliminating exchange risk. The international expat community is sizeable and welcoming.
The Panamanian private health system is of good quality, especially in Panama City (Hospital Punta Pacífica, Johns Hopkins affiliate). Costs are far below US levels. The public system (CSS) is accessible to affiliates but uneven in quality. Private health insurance costs £60-150/month depending on age. Panama is a recognised medical tourism destination in Central America.
Quality of life
Panama City is a modern metropolis with skyscrapers, shopping centres, and lively nightlife. The climate is tropical, hot, and humid year-round. The country is an international logistics hub thanks to the Panama Canal. Main drawbacks: constant heat, intense rainy season, and limited international expat community outside the capital.
Pros and cons
Advantages
- Territorial taxation: 0% on all foreign-source income
- Friendly Nations Visa accessible for British/EU citizens
- US dollar as currency (no exchange risk)
- International hub with developed banking system
Disadvantages
- No tax treaty with the UK (double taxation risk)
- Very hot and humid climate year-round
- Time difference of -6h with the UK
- Offshore reputation may complicate banking relationships
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Verified on January 15, 2025All data on this page comes from public and institutional sources.
FAQ
What is the tax rate in Panama?
The top marginal income tax rate in Panama is 25%. The corporate tax rate is 25%. A special regime exists: Taxation territoriale.
What is the cost of living in Panama?
The monthly cost of living for a single person in Panama is approximately 900 EUR (excluding rent). City center rent costs around 700 EUR per month.
Is there a tax treaty between the United Kingdom and Panama?
Check HMRC for the current status of the tax treaty between the United Kingdom and Panama.
These results are estimates.
The data presented are estimates and do not constitute tax advice. Consult a professional for your personal situation.