Panama
Pure territorial taxation, USD-denominated economy, and the Friendly Nations Visa for fast-track residence.
The position in figures.
Headline treatment for an individual tax resident. Source, asset and treaty rules can change the payable result.
Where the jurisdiction fits.
Best for
- Online-business owners and investors with foreign-source income
- USD-denominated wealth seeking American-hemisphere base
- Latin-America-oriented entrepreneurs
- Friendly Nations Visa holders (50+ qualifying countries)
Consider carefully
- Buyers expecting EU treaty access
- Reputation-sensitive structures (Panama Papers legacy)
- Anyone whose business is primarily Panama-source income
Programmes that matter.
Friendly Nations Visa
For citizens of ~50 friendly countries: real-estate purchase ($200k+), fixed deposit ($200k for 3 years), or local employment. Two-year temporary residence first, then permanent.
Qualified Investor Visa
Direct permanent residence with $300k real-estate investment, $500k stock-market portfolio, or $750k bank deposit (3-year lock).
Pitfalls to resolve early.
- 01
Panama is on the EU list of non-cooperative jurisdictions intermittently — affects EU counterparties and banking.
- 02
The treaty network is limited (~17 treaties), restricting tax-treaty-based optimisation.
- 03
Local banking has tightened materially since 2018; account opening requires real substance.
- 04
Territorial principle is generous but Panama tax authorities increasingly probe "what is foreign-source".
Direct answers.
Is Panama a tax haven?
Panama operates pure territorial taxation — only Panama-source income is taxed. EU and OECD have repeatedly listed/delisted it for transparency standards.
How much does Panama residence cost?
Friendly Nations Visa from ~$200k (real estate or deposit) plus fees. Qualified Investor Visa offers direct permanent residence from $300k real estate.
Do I need to live in Panama to keep residence?
No formal minimum-stay rule, but you must visit at least once every two years for permanent residence to remain valid.
Continue the comparison.
Put Panama against your current position.
See a first-order comparison, then bring the open questions to your advisor.