Quick answer
Panama has no specific crypto tax law in 2026. Under its territorial system, gains on crypto traded on foreign exchanges and held in foreign wallets are generally treated as foreign-source and untaxed. Crypto earned from Panamanian clients or a Panama-based crypto business is taxable like any other income: 0%, 15% or 25% for individuals, 25% for companies.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Find my savings →You hold crypto, trade some of it, maybe get paid in stablecoins, and Panama looks like a calm place to do it. This guide shows how much you really pay in Panama in 2026, where the grey zones are, and how to keep your position clean and legal.
Panama cryptocurrency taxes in 2026: the key figures
| Item | 2026 position |
|---|---|
| Specific crypto tax law | None in force; the 2022 crypto bill (Bill 697) never became law |
| General principle | Territorial: only Panamanian-source income is taxed (Fiscal Code, article 694) |
| Gains on foreign exchanges, foreign wallets | Generally foreign-source, not taxed |
| Crypto paid by Panamanian clients or employers | Taxable income: 0% to USD 11,000, 15% to USD 50,000, 25% above |
| Panamanian company trading or dealing locally | 25% corporate income tax on Panamanian-source profit |
| Holding-period relief | None – there is no long-term rate, because most gains are outside the tax |
| Wealth or exit tax on crypto | None |
| VAT (ITBMS) on crypto exchanges | No specific rule; ITBMS is 7% on taxable goods and services |
Is this guide for you?
Read on if you…
- are, or will be, resident in Panama and hold or trade crypto;
- get paid in crypto by foreign clients or employers;
- want to know whether a Panamanian company makes sense for crypto activity.
Probably not your case if you…
- run an exchange, custody service or token issuance serving Panamanian customers – you need licensing and AML advice first;
- still live in a high-tax country and are only comparing – start with our Panama tax landscape overview.
How does Panama tax crypto gains?
Panama has no crypto chapter in its tax code. The tax authority applies the general rules, and the general rule is the source principle.
Income is taxed only if it is "produced" in Panama. Gains on assets located abroad, or on transactions that take effect abroad, are outside the tax.
Rates by asset type
| Asset | Resident individual in Panama | Non-resident |
|---|---|---|
| Crypto on a foreign exchange or self-custody, sold abroad | Generally not taxed (foreign-source) | Not taxed |
| Crypto received for work for Panamanian clients | Ordinary income, 0% / 15% / 25% | Withholding on Panamanian-source fees |
| Shares of foreign companies, foreign funds | Not taxed (foreign-source) | Not taxed |
| Shares of Panamanian companies | 10% gain, 5% advance withheld on price | Same |
| Panamanian real estate | 10% gain, 3% advance on price, plus 2% transfer tax | Same |
The full rules for shares and property are in our Panama capital gains tax guide.
Here's the catch: where is a crypto gain "produced"?
A token has no obvious location. Most advisers look at the exchange, the counterparty and where the transaction takes effect. A trade on a foreign platform with a foreign counterparty is widely treated as foreign-source.
The risk grows when you sell to Panamanian buyers, use a Panamanian OTC desk, or run trading as a business from a Panamanian office. The DGI has not issued a public ruling on these cases.
What if you are paid in crypto?
Crypto income is taxed like money income. What matters is who pays you and for what.
- Foreign client or employer, work for them abroad. Generally foreign-source and untaxed, the same as a bank transfer.
- Panamanian client or employer. Panamanian-source. Value the crypto in US dollars on the day you receive it, then apply the normal scale.
- Staking and lending yields. No specific rule. Yields from foreign protocols and platforms are generally treated as foreign-source.
- Mining in Panama. Rewards from equipment operating in Panama are likely Panamanian-source. Electricity costs are a deductible expense.
Panama uses the US dollar alongside the balboa, so valuation is simple: record the USD value at receipt and at sale.
Should you use a Panamanian company for crypto?
Sometimes. A Panamanian sociedad anónima holding crypto on foreign platforms pays no corporate tax on foreign-source gains. Distributions of those profits to shareholders carry a 5% dividend tax.
But a company adds costs and obligations: registered agent, annual franchise tax of about USD 300, accounting records, and filings. Your home country may also tax the company's profits under controlled foreign company rules if you are not truly resident in Panama.
Compare the options in our legal forms of business in Panama guide.
Banking and compliance
Panama's anti-money-laundering law (Law 23 of 2015) applies to banks, and many local banks are cautious with crypto. Keep a clean trail: exchange statements, wallet addresses, dates and USD values. You will need it to open accounts, buy property, or prove the foreign source of your gains.
Residents vs non-residents and leaving Panama
Residence changes little here, since both residents and non-residents are taxed only on Panamanian-source income. Panama has no exit tax on crypto when you leave. Your next country may, though, so read our guide to ceasing Panama tax residency before you move on.
Example – Daniel, British crypto investor
Daniel moves to Panama on a Friendly Nations visa and spends 250 days there in 2026. He sells bitcoin bought in 2019 on a Swiss exchange for a USD 180,000 gain, and earns USD 6,000 of staking on a foreign platform. Both are treated as foreign-source: Panamanian tax is USD 0. In the UK, he would have paid up to 24% capital gains tax, about USD 43,000. He keeps exchange statements and his Migración record as proof.
Daniel's position rests on two facts: real residence and foreign source. Yours should too.
Find out how much you could legally save on your crypto in Panama.
Find my savings →Common mistakes (and what they cost)
- Selling to Panamanian buyers or local OTC desks → the gain may be Panamanian-source and taxed up to 25%, plus surcharges if undeclared.
- Moving before your old country lets you go → some countries tax gains made shortly after departure, or keep you resident, wiping out the Panama benefit.
- No records of cost basis and source → banks refuse funds, and you cannot prove the gain is foreign-source.
- Using a Panamanian company while living elsewhere → your home country can tax its profits through CFC or management rules.
- Ignoring the UK-style "temporary non-residence" rules → returning home within a few years can bring gains back into tax.
Frequently asked questions
Is crypto tax-free in Panama in 2026?
For most individual investors, in practice yes. Panama only taxes Panamanian-source income, and gains on crypto held and sold on foreign platforms are generally treated as foreign-source. Crypto earned from Panamanian clients or a local crypto business is taxable at normal rates. There is no specific crypto law, so keep clear records.
Did Panama pass a crypto law?
The National Assembly approved a crypto bill, Bill 697, in 2022, but it was partially vetoed and did not become law in its approved form. As of 2026, there is no specific crypto tax regime. General tax and anti-money-laundering rules apply to crypto activity in Panama.
Do I pay tax in Panama if I am paid in USDT by a foreign client?
Generally no. Fees from a foreign client for work that takes effect abroad are foreign-source, whatever the currency. Value the stablecoin in US dollars on receipt for your records. If the client is Panamanian, the income is Panamanian-source and taxable at 0%, 15% or 25%.
Is there a holding period for crypto in Panama?
No. Panama has no holding-period relief for crypto because foreign-source gains are not taxed at all. Holding periods may still matter in your previous country, especially if it taxes gains made shortly after you leave or when you return within a few years.
Can a Panamanian company hold my crypto tax-free?
A Panamanian company pays no corporate tax on foreign-source gains, and distributions of those profits carry a 5% dividend tax. But the company costs money each year, needs accounting records, and can be taxed by your home country under CFC rules if you do not genuinely live in Panama.
Does Panama report my crypto to other countries?
Panama exchanges financial account information under the OECD Common Reporting Standard. Crypto held on exchanges is moving toward reporting under the OECD Crypto-Asset Reporting Framework, which many countries apply from 2026 or 2027. Assume your holdings will become visible to your country of tax residence.
Related guides
- Panama capital gains tax
- Legal forms of business in Panama
- How to cease your Panama tax residency
- Panama tax landscape overview
- Cryptocurrency taxes in Paraguay
- Cryptocurrency taxes in Mexico
- All country tax guides
Sources
- Dirección General de Ingresos (DGI) – Panama tax authority
- Asamblea Nacional de Panamá – legislative records
- Gaceta Oficial de Panamá – official gazette
- Superintendencia del Mercado de Valores de Panamá
- OECD – Automatic Exchange of Information (CRS and CARF)
- PwC Worldwide Tax Summaries – Panama (secondary cross-check)
This guide is general information, not personalised tax advice. See how we research and review.
Holding crypto and thinking about Panama?
Find your savings and check your crypto setup before you move or sell.
Start with Heavnn →
