Panama

Central America · PA · 18 treaties

Tax profile

What makes you a tax resident — and how hard it is to stop being one.

• Physical presence of more than 183 days, consecutive or alternate, in the fiscal year or in the immediately preceding fiscal year
• Having decided to establish a permanent home in Panama, understood as the person's center of vital interests (economic and/or family)
• Center of economic interests in Panama (main source of income, employment, or business activities in Panama)
• Center of family interests in Panama (immediate family residing in Panama)

Tax residency for individuals is based on 183+ days or establishing a permanent home/center of vital interests in Panama, so ceasing residency is generally achieved by spending fewer than 183 days in Panama and no longer maintaining a permanent home or main economic/family center there, with no citizenship or long-tail domicile rules.

Source: Dirección General de Ingresos (DGI), Ministerio de Economía y Finanzas de la República de Panamá / OECD AEOI portal

Tax treaty network (18)

In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.