The World's Countries

Panama Flag

Panama

pa

Panama serves as the definitive logistics and financial crossroads of the Western Hemisphere. Its unique geographical position and the Panama Canal provide unparalleled maritime and air connectivity. A long-standing dollarized economy ensures monetary stability and eliminates exchange risks for international trade. The country operates a territorial tax system that distinguishes between local and foreign income. Global entrepreneurs benefit from world-class digital infrastructure and specialized economic zones designed to foster innovation and cross-border commerce.

Features
  • Territorial Tax
    Taxes only local income.
  • Fast Company
  • Crypto Friendly
    Highly crypto-friendly country
Cities in Country
Name Timezone
Ciudad de Panamá America/Panama
Panama Stadt America/Panama
Panama City America/Panama
Tax Information
Category
Corporate 25.00% Only derived from operations within the country
Capital Gains 10.00% Standard capital gains tax rate
VAT 7.00% For general goods and services
VAT 10.00% On alcohol and lodging
VAT 15.00% On Tobacco
Personal 0.00% Up to $11,000 PAB/USD
Personal 15.00% $11,001 to $50,000 PAB/USD
Personal 25.00% Above $50,000 PAB/USD
Local Currencies
Currency ISO Value Rank
US Dollar USD $ $1.00 #1
Panamanian Balboa PAB $1.00 #0
Internet & Connectivity
Population Growth