🇵🇦 Panama: 2026 income tax & take-home pay
Panama uses a territorial tax system: Panama-source income is taxed while foreign salary from remote work may be excluded for qualifying individuals when contracts and payment routing align with local rules.
Panama uses a territorial tax system: Panama-source income is taxed while foreign salary from remote work may be excluded for qualifying individuals when contracts and payment routing align with local rules. The economy is dollarized and popular with expat hubs in Panama City.
Last reviewed: · Source: www.dgi.gob.pa
Key Facts — 2026
- →Territorial system: Panama-source income taxed; foreign salary often exempt for qualifying individuals.
- →Friendly Dollar economy; many expats use Panama City as a hub.
- →Specific exemptions depend on immigration and local-source definitions.
Top Rate
25%
Taxation Basis
Territorial
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This page is for informational and planning purposes only — not tax advice. Tax laws change frequently; always verify with a qualified tax professional or the national tax authority. Data accuracy target: 90%+ for a single filer with no dependents. See our methodology for sources and limitations.