Panama
Central America
Central America
A dollarised, territorial-tax hub: foreign income is untaxed, residency is fast via the Friendly Nations and investor routes, and banking is strong - though citizenship is slow and dual nationality is not formally recognised.
63
Overall score
Moderate · 95% data coverage
Language
SpanishCurrency
USDCitizenship
5 yearsPersonal tax
0% foreign income (territorial); 0–25% localCost of living
$1,300 / mo (single)Rules change often. Confirm any immigration, tax or legal decision with a qualified professional.
Score breakdown
49
Access
17%57Residence12%
31Citizenship and passport5%
67
Earning power
25%64Salary and work12%
70Buying power13%
71
Business and wealth
20%88Taxes7%
61Business8%
62Investment5%
62
Daily life
25%61Quality of life18%
63Education7%
65
Rights and institutions
13%83Freedom6%
50Rule of law7%
Pros
- 0% tax on foreign-source income
- Fast Friendly Nations & investor residency
- US dollar economy
Cons
- Dual citizenship not formally recognised
- Slow naturalisation
- Spanish needed locally
Best for
Territorial-tax relocatorsInvestors & retireesRemote-income earners
Score profile
Access
Residence
57
Citizenship
22
Passport
71
Earning power
Salary & work
64
Buying power
70
Cost of living
77
Economy
75
Business and wealth
Taxes
88
Personal tax
55
Corporate tax
29
Business
61
Investment
62
Wealth building
70
Daily life
Safety
45
Healthcare
67
Environment
87
Infrastructure
72
Education
63
HDI
84
Rights and institutions
Freedom
83
Rule of law
50
Access
Residence
Openness to residents
57Moderate
Migrant stock10.6% of population (2024)
Regulatory quality-0.07 (−2.5 to 2.5) (2024)
Main pathways
Friendly Nations VisaQualified Investor (US$300k)Short Stay Remote WorkerPensionado
| Student | Student visa for enrolled students; limited work. |
|---|---|
| Work | Work permit tied to employment; some quota restrictions. |
| Self-employed | Form a Panama company; Friendly Nations route allows economic activity. |
| Permanent | Permanent residency via Friendly Nations (with economic ties) or investment. |
Citizenship
Citizenship accessibility
22Low
| Years required | 5 years of permanent residence |
|---|---|
| Dual allowed | Not formally recognised (oath to renounce; original passport often retained de facto) |
| Language | Spanish + Panama history/geography exam |
| Residence | 5 years legal residence before applying |
| Notes | Residency is often fast (Friendly Nations / Qualified Investor); citizenship itself is discretionary and slow. |
Passport
Passport power
71Good
141 / 198
Mobility
#34
Global rank
Yes
Biometric
- Visa-free93
- On arrival44
- eTA4
- Visa required57
Placeholder estimates for 2024 to 2025. Check entry rules with each destination before travelling.
Earning power
Salary & work
Labour-market strength
64Moderate
Output per worker$79,813 PPP (2024)
Unemployment8.4% (2025)
Participation66.3% of 15+ (2025)
Mean monthly earnings of employees
Overall$674 · $1,408 PPP (2024)
Tech (IT & comms)$800 · $1,610 PPP (2024)
| Freelance | Best as a tax base for foreign-currency remote income |
|---|---|
| Job market | Finance, logistics (Canal) & regional HQs in Panama City. |
Buying power
Purchasing power score
70Good
GNI / person$41,770 PPP (2025)
Consumption / person$18,155 PPP (2024)
Price level50 (US = 100) (2025)
Income inequality49.7 Gini (2024)
Inflation-0.2% / yr (2025)
Cost of living
Affordability
77Good
Price level50 (US = 100) (2025)
| Rent | $700–1,300 (1BR Panama City) |
|---|---|
| Monthly | $1,300 |
| Cities | Panama City, David, Boquete |
Economy
Economic strength
75Good
Output & income
GDP$90.5B (2025)
GDP / person$19,790 (2025)
GNI / person$41,770 PPP (2025)
GDP growth2.7% / yr (2024)
Stability & labour
Inflation-0.2% / yr (2025)
Unemployment8.4% (2025)
Output per worker$79,813 PPP (2024)
Sector composition
Agriculture2.6% of GDP (2025)
Industry24.9% of GDP (2025)
Services70.0% of GDP (2025)
Main industries
Logistics & the CanalBanking & financeTrade & free zonesTourismConstruction
Top exports
Re-exports (Colon Free Zone)CopperBananas & seafoodCanal & transit services
| Type | Upper-middle-income, services- and logistics-led |
|---|---|
| Key sectors | Panama Canal & maritime, International banking, Logistics hubs |
| Summary | A dollarised hub economy built on the Canal, logistics, free-zone trade and international banking. |
| Currency | US dollar (alongside the balboa, pegged 1:1); fully dollarised |
Business and wealth
Taxes
Tax friendliness
88Excellent
| Personal | 0% on foreign-source income; 0–25% on Panama-source |
|---|---|
| Corporate | 25% on Panama-source income only (territorial) |
| Capital gains | 10% on Panama-source gains |
| Dividends | 5–10% on local-source dividends |
| Exit tax | None |
| Foreign companies | No CFC regime (territorial system) |
Personal tax
Personal tax
55Moderate
| Personal | 0% on foreign-source income; 0–25% on Panama-source |
|---|---|
| Freelance | Foreign-source freelance income untaxed; local activity needs a permit |
| Capital gains | 10% on Panama-source gains |
| Dividends | 5–10% on local-source dividends |
| Exit tax | None |
Corporate tax
Corporate tax
29Low
| Corporate | 25% on Panama-source income only (territorial) |
|---|---|
| Capital gains | 10% on Panama-source gains |
| Dividends | 5–10% on local-source dividends |
| Foreign companies | No CFC regime (territorial system) |
Business
Business friendliness
61Moderate
Regulation & bureaucracy
Regulatory quality-0.07 (−2.5 to 2.5) (2024)
Government effectiveness0.25 (−2.5 to 2.5) (2024)
Operating rules
| Foreign company | Yes: foreign-owned companies & IBCs common |
|---|---|
| Local company | S.A. via resident agent (lawyer) in days |
| Freelance | Foreign-source freelance income untaxed; local activity needs a permit |
Investment
Investing environment
62Moderate
Market cap30% of GDP (2025)
Private credit100% of GDP (2020)
| Capital gains | Foreign gains untaxed (territorial); 10% on local-source |
|---|---|
| Dividends | Data not available yet |
| ETFs & funds | Data not available yet |
| Wealth tax | None |
| Brokers | Good via local banks & international brokers |
| Foreign access | Data not available yet |
| Tax-advantaged | Data not available yet |
Wealth building
Wealth accumulation
70Good
Salary & work
64Moderate
Business
61Moderate
Investment
62Moderate
Tax friendliness
88Excellent
Cost of living
77Good
Daily life
Safety
Safety & stability
45Moderate
Institutions & stability
Control of corruption-0.55 (−2.5 to 2.5) (2024)
Political stability0.26 (−2.5 to 2.5) (2024)
Check current government travel and security advice before relocating.
Healthcare
Healthcare score
67Good
Outcomes
Life expectancy79.8 years (2024)
Under-5 mortality15.3 per 1,000 births (2024)
Capacity & resourcing
Physicians1.63 per 1,000 (2022)
Hospital beds1.95 per 1,000 (2023)
Health spending$3,318 PPP / person (2023)
System & costs
| System | Public (CSS) + strong private sector |
|---|---|
| Insurance | Private insurance common; modern private hospitals |
| Average cost | Private cover ~$1,000–2,500 / yr |
Environment
Environment score
87Excellent
Environmental pressure
PM2.5 exposure15.1 μg/m³ annually (2023)
Water stress0.9% (2022)
Infrastructure
Infrastructure score
72Good
Digital infrastructure
Internet use72.8% (2024)
Internet resilience50 / 100 (2026)
Fixed speed89 / 100 download index (2026)
Mobile speed53 / 100 download index (2026)
Sources: World Bank World Development Indicators · Internet Society Pulse Internet Resilience Index
Utilities
Electricity access97.0% (2023)
Grid losses6.6% of output (2023)
Transport
Transport quality3.30 / 5 (2022)
Rail density6.5 km / 1,000 km² (2000)
Air connectivity27,084 departures / million people (2023)
Education
Education score
63Moderate
Attainment
Expected schooling13.3 years (2023)
Mean schooling10.8 years (2023)
Participation & investment
Tertiary enrolment54% gross (2023)
Education spending2.5% of GDP (2023)
| Tuition | $3,000–12,000 / yr (private) |
|---|---|
| Public university | University of Panama low-cost for residents |
| Languages | Spanish, English (some private) |
| Student work | Limited work for students |
HDI
Human development score
84Excellent
HDI0.839 (2023)
Knowledge
Expected schooling13.3 years (2023)
Mean schooling10.8 years (2023)
Rights and institutions
Freedom
Freedom score
83Excellent
| Freedom in the World | 83 / 100 (Free) |
|---|
Sources
Rule of law
Rule of law score
50Moderate
| Rule of Law percentile | 50 / 100 |
|---|
Sources
Resources
Official references
Servicio Nacional de Migraciónmigracion.gob.paDirección General de Ingresos (DGI)dgi.mef.gob.paUNDP Human Development Report 2025hdr.undp.orgInternet Society Pulse Internet Resilience Indexpulse.internetsociety.orgWorld Bank World Development Indicatorsdata.worldbank.orgILOSTAT (International Labour Organization)ilostat.ilo.org
Quick links
Data is illustrative. Not legal or tax advice.