Panama Crypto Taxes in 2026: What Is Taxed and What Is Not

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You hold crypto, trade some of it, maybe get paid in stablecoins, and Panama looks like a quiet place to do it. After this guide you will know what Panama taxes in 2026, where the grey zones are, and what to document.

Panama cryptocurrency taxes in 2026: the key figures

Panama uses the US dollar at par with the balboa (B/.), so USD and B/. amounts are the same.

What changed for 2026

• No Panamanian crypto tax law was found for 2026. The individual income tax summary we checked, last reviewed on 4 August 2026, reports no significant developments for individuals in the past year.
• Law 526 of 28 May 2026 creates an economic substance regime for certain foreign-source passive income. It targets Panamanian entities in multinational groups and applies from fiscal year 2027. If an entity fails the substance test, that income is taxed at 15% instead of 0%.
• If you plan to hold crypto through a Panamanian company, watch that law. A plain personal holding is outside it.

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 or stablecoins by foreign or Panamanian clients;
• wonder whether a Panamanian company makes sense for crypto activity.

Probably not your case if you…

• run an exchange, custody service or token issuance for Panamanian customers: you need licensing and anti-money-laundering advice first;
• are still comparing countries: start with our Panama tax landscape overview.

How does Panama tax crypto?

Panama has no crypto chapter in its tax rules. We found none on the tax authority's law index, which lists no crypto or virtual-asset law. So the general rules apply, and the general rule is territoriality.

Under that principle, income produced outside Panama is not taxable, including income from services performed outside Panama. The same summary says Panamanian residents are taxed only on income generated in Panama.

Here's the catch: where is a crypto gain "produced"?

A token has no obvious location. In practice, advisers look at where the activity takes place, who the counterparty is and where you sit when you trade.

A sale on a foreign platform to a foreign counterparty is widely treated as foreign-source. We found no public tax-authority ruling that confirms this for crypto, so treat it as a reasoned position, not a certainty.

The risk rises if you sell to Panamanian buyers, use a Panamanian OTC desk, or run trading as a business from a Panamanian office. Then the Panamanian-source argument gets much stronger.

Rates that can apply

The scale comes from the DGI Tarifa, the 5% share withholding from DGI Form 108, and the 10% and 3% figures from the PwC other taxes summary (secondary). Shares and property are covered in our Panama capital gains tax guide.

What if you are paid in crypto?

Crypto pay is taxed like money. What matters is who pays you and where the work is done.

1. Foreign client, work performed abroad. Generally foreign-source and untaxed, as with a bank transfer.
2. Panamanian client or employer. Panamanian-source. Convert to US dollars on the day you receive it and apply the scale above.
3. Staking, lending and mining. No specific rule was found. Treat the source as the place where the activity really happens, and document it.
4. Panamanian employer withholding. Employees with one salary fully withheld by the employer do not file. Everyone else with Panamanian-source income files by 15 March, or 15 April with an extension, per the DGI filing page.

Panama uses the US dollar, so valuation is simple. Record the dollar value at receipt and at sale.

Should you hold crypto through a Panamanian company?

Sometimes. A Panamanian company is taxed at 25% only on Panamanian-source income. Foreign-source income is not subject to income tax, but dividend tax can still apply when it is distributed.

The DGI income tax guide sets 10% withholding on Panamanian-source profit and 5% on foreign-source, exempt or export profit. Shareholder loans count as dividends at 10%. A complementary tax applies if the company distributes less than 40% of net profit.

Companies also have fixed costs: a USD 300 annual franchise tax, accounting and filings. See our legal forms guide for the comparison.

Panama has no controlled foreign company rules. Your home country probably does. If you live elsewhere, it can tax the company's profits.

Residents, non-residents and leaving Panama

Residence matters less in Panama than in most countries. PwC describes a resident as someone physically in Panama and earning income there for more than 183 days in the year. Non-residents are taxed on Panamanian-source income through withholding.

We found no Panamanian exit tax on crypto. Your next country may have one, so read our guide to ceasing Panama tax residency before you move on.

Comparing neighbouring regimes

If you are choosing between Latin American bases, compare the rules in Paraguay and Brazil. They tax crypto very differently.

Common mistakes (and what they cost)

• Selling to Panamanian buyers or local OTC desks → the gain may be Panamanian-source and taxed at up to 25%.
• No records of cost basis and source → you cannot prove the gain is foreign-source, and banks may refuse funds.
• Assuming a Panamanian company shields you at home → your home country may tax its profits, and Panama has no CFC rules to protect you.
• Ignoring Law 526 of 2026 for group entities → foreign passive income can lose its 0% rate from fiscal year 2027 without substance.
• Moving before your old country lets you go → exit or temporary-residence rules can tax gains after you leave.

Frequently asked questions

Is crypto tax-free in Panama in 2026?

For most individual investors, gains from genuinely foreign activity are generally outside Panamanian tax under the territorial principle. There is no specific crypto rule and no public ruling we could find. Crypto earned from Panamanian clients or a local business is taxable at 0%, 15% or 25% for individuals.

Does Panama have a crypto tax law?

We found no crypto-specific tax law in the tax authority's law index or in the secondary summaries we checked for 2026. General income tax rules apply to crypto, and regulators may impose licensing or anti-money-laundering duties on businesses. Check the Gaceta Oficial before relying on this if you run a crypto business.

Do I pay tax in Panama if a foreign client pays me in USDT?

Generally no. Income from services performed outside Panama is outside the territorial tax, whatever the currency. If the client or the work is Panamanian, the income is Panamanian-source and taxed on the 0% / 15% / 25% scale. Value the stablecoin in dollars on receipt for your records.

Is there a holding period for crypto in Panama?

We found no holding-period rule for crypto, and none is needed if the gain is foreign-source and untaxed. Holding periods may still matter in your previous or next country. Some countries tax gains made shortly before or after you change residence.

Can a Panamanian company hold my crypto tax-free?

Foreign-source income is not taxed at the corporate level, but dividends paid from it can carry 5% dividend tax. Substance rules from fiscal year 2027 may affect group entities. Your home country may also tax the company. A personal holding is simpler if you genuinely live in Panama.

Is a Panamanian resident's crypto reported abroad?

We could not confirm Panama's crypto-reporting status from the official pages available to us. Assume that exchanges apply reporting rules in their own countries, and that your country of residence may receive data. Keep records that match what you declare at home.

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 Brazil
• All country tax guides

Sources

• Tarifa del impuesto sobre la renta – DGI Panama
• Generalidades del impuesto sobre la renta – DGI Panama
• Formulario 108, retención del 5% por enajenación de valores – DGI Panama
• DGI – laws, decrees and resolutions index
• PwC Worldwide Tax Summaries – Panama, individual other taxes (secondary)
• PwC Worldwide Tax Summaries – Panama, corporate income determination (secondary)
• PwC Worldwide Tax Summaries – Panama, corporate group taxation (secondary)
• PwC Worldwide Tax Summaries – Panama, corporate significant developments (secondary)

This guide is general information, not personalised tax advice. See how we research and review.