Key takeaways
- Panama taxes on a territorial basis: foreign-source income is not taxed, even for residents. Only income from activities in Panama is taxable, at progressive rates up to 25%.
- Popular routes for expats are the Pensionado visa (lifetime pension of at least USD 1,000/month), the Qualified Investor visa (from USD 300,000 in new-build real estate, USD 500,000 for resale property, securities or deposits) and the Friendly Nations visa for citizens of listed countries (employment, or real estate or a fixed deposit of about USD 200,000).
- Remote workers can use the Short Stay Visa for Remote Workers (foreign income of about USD 36,000 a year), which does not make their foreign income taxable in Panama. Multinationals' staff can benefit from the SEM and EMMA regimes.
Last reviewed: October 2026
Panama combines territorial taxation, a US dollar economy and well-established residence programmes. This guide summarises the incentives for expats, retirees and digital nomads in 2026.
Panama incentives – key figures (2026)
| Programme / rule | What it offers |
|---|---|
| Territorial taxation | Foreign-source income untaxed |
| Income tax on Panamanian income | 0% up to USD 11,000; 15%; 25% above USD 50,000 |
| Pensionado visa | Permanent residence for retirees with ≥ USD 1,000/month pension (USD 750 if you own property worth USD 100,000+); local discounts |
| Qualified Investor visa | Permanent residence: USD 300,000 in a newly built property (first sale) or USD 500,000 in a resale property, Panamanian securities or a fixed-term deposit (September 2026 decree) |
| Friendly Nations visa | Residence for citizens of listed countries with a Panamanian job, or real estate or a fixed deposit of about USD 200,000 |
| Remote worker visa | Short stay for remote workers earning ≥ USD 36,000/year from abroad |
| SEM / EMMA regimes | Special visas and reduced taxation for staff of multinational headquarters |
Territorial taxation in practice
Income earned outside Panama – foreign salaries, dividends from foreign companies, foreign capital gains – is not taxed, whether or not you are resident. Panamanian-source income is taxed at progressive rates, and Panamanian dividends are subject to withholding. Panama does not issue tax residence certificates easily unless you meet a 183-day presence requirement or have a local home.
Which programme fits?
- Retirees: the Pensionado visa – simple, permanent, with discounts on travel, healthcare and services.
- Investors: the Qualified Investor visa – fast-track permanent residence.
- Citizens of Friendly Nations: a route via employment or property investment.
- Remote workers: the remote worker short-stay visa, renewable, without local tax on foreign salary.
Example: A French retiree with a EUR 2,200/month pension obtains the Pensionado visa and lives in Boquete. Panama does not tax his French pension. Under the France–Panama treaty, his French public pension remains taxable in France, while a private pension may be taxable only in Panama – which is untaxed under territoriality.
Frequently asked questions
Does Panama tax foreign income?
No. Panama's territorial system only taxes income from Panamanian sources.
What is the Pensionado visa in Panama?
A permanent residence visa for retirees with a lifetime pension of at least USD 1,000 a month, including local discounts.
Is there a digital nomad visa in Panama?
Yes, the Short Stay Visa for Remote Workers, for people earning at least about USD 36,000 a year from foreign employers or clients.
Can I get a tax residence certificate in Panama?
Generally only with significant presence (183 days) or a home in Panama, plus supporting evidence.
Related guides
Sources
- PwC Worldwide Tax Summaries – Panama: Taxes on personal income
- Panama Fiscal Code; Dirección General de Ingresos (dgi.mef.gob.pa); Servicio Nacional de Migración
This guide is general information, not personalised tax or immigration advice.
Considering Panama? Get a personalised residence plan with Heavnn → heavnn.io
