Panama

Panama

Central America

Central America
65
Overall score
Strong overall
Language
Spanish
Currency
USD
Citizenship
5 years
Personal tax
0% foreign income (territorial); 0–25% local
Cost of living
$1,300 / mo (single)

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.

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

Status & mobility
Passport
71
Citizenship
22
Residence
41
Money & business
Taxes
88
Corporate tax
29
Business
60
Investment
61
Economy
74
Wealth building
69
Living, study & work
Education
63
Salary & work
64
Cost of living
75
Buying power
69
Quality of life
Safety
44
Healthcare
67
Infrastructure
72
HDI
84

Status & mobility

Passport

Rules change often and depend on your situation. Confirm any travel or visa decision with a qualified professional, or do your own research, before acting.

Passport power
Good
71

Passport-index style mobility for the Panama passport. The score above is its world reach: the share of 198 destinations reachable without a prior visa.

141 / 198
Mobility
#34
Global rank
Yes
Biometric
  • Visa-free93
  • On arrival44
  • eTA4
  • Visa required57

Passport Index style mobility data (2024–2025 estimate). Placeholder figures; verify current entry rules with each destination’s authority before travelling.

Citizenship

Rules change often and depend on your situation. Confirm any citizenship decision with a qualified professional, or do your own research, before acting.

Citizenship accessibility
Low
22
Years required5 years of permanent residence
Dual allowedNot formally recognised (oath to renounce; original passport often retained de facto)
LanguageSpanish + Panama history/geography exam
Residence5 years legal residence before applying
NotesResidency is often fast (Friendly Nations / Qualified Investor); citizenship itself is discretionary and slow.
Residence

Rules change often and depend on your situation. Confirm any residence / visa decision with a qualified professional, or do your own research, before acting.

Openness to residents
Limited
41
How this score is calculated

Our 0–100 score combines how international the population already is (migrant stock at 45%), governance quality (regulatory quality at 25%), and the curated residence-pathway signal (30%). Available indicators are reweighted; the published values are shown below.

Migrant stock10.6% of population (2024)
Regulatory quality-0.07 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Main pathways
Friendly Nations VisaQualified Investor (US$300k)Short Stay Remote WorkerPensionado
StudentStudent visa for enrolled students; limited work.
WorkWork permit tied to employment; some quota restrictions.
Self-employedForm a Panama company; Friendly Nations route allows economic activity.
PermanentPermanent residency via Friendly Nations (with economic ties) or investment.

Money & business

Taxes

Rules change often and depend on your situation. Confirm any tax decision with a qualified professional, or do your own research, before acting.

Tax friendliness
Excellent
88
Personal0% on foreign-source income; 0–25% on Panama-source
Corporate25% on Panama-source income only (territorial)
Capital gains10% on Panama-source gains
Dividends5–10% on local-source dividends
Exit taxNone
Foreign cosNo CFC regime (territorial system)
Personal tax

Rules change often and depend on your situation. Confirm any tax decision with a qualified professional, or do your own research, before acting.

Personal tax
Moderate
55
Personal0% on foreign-source income; 0–25% on Panama-source
FreelanceForeign-source freelance income untaxed; local activity needs a permit
Capital gains10% on Panama-source gains
Dividends5–10% on local-source dividends
Exit taxNone
Corporate tax

Rules change often and depend on your situation. Confirm any tax decision with a qualified professional, or do your own research, before acting.

Corporate tax
Low
29
Corporate25% on Panama-source income only (territorial)
Capital gains10% on Panama-source gains
Dividends5–10% on local-source dividends
Foreign cosNo CFC regime (territorial system)
Business
Business friendliness
Moderate
60
How this score is calculated

Our 0–100 score leans on the two things founders ask about most: the tax burden (headline corporate rate at 20%, broader tax friendliness at 15%, and freedom from exit-tax / CFC rules at 10%) plus the regulatory and bureaucratic environment (regulatory quality 15%, government effectiveness 15%), on top of the curated company-rules signal (25%). Available indicators are reweighted; the values are shown below.

Regulation & bureaucracy
Regulatory quality-0.07 (−2.5 to 2.5) (2024)
Government effectiveness0.25 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Rules & taxes
Foreign co.Yes: foreign-owned companies & IBCs common
Local co.S.A. via resident agent (lawyer) in days
FreelanceForeign-source freelance income untaxed; local activity needs a permit
Corporate tax25% on Panama-source income only (territorial)
Capital gains10% on Panama-source gains
Exit taxNone
Foreign cosNo CFC regime (territorial system)
Investment

Rules change often and depend on your situation. Confirm any investment / tax decision with a qualified professional, or do your own research, before acting.

Investing environment
Moderate
61
How this score is calculated

Our 0–100 score is mostly the investor-tax signal (capital-gains treatment, broker access, wealth tax, and ETF or other taxes on investment, 70%), lightly contextualised by equity-market depth (market cap / GDP at 18%) and credit depth (domestic credit to the private sector / GDP at 12%). Available indicators are reweighted.

Market cap21% of GDP (2024)
Private credit100% of GDP (2020)

Source: World Bank World Development Indicators

Capital gainsForeign gains untaxed (territorial); 10% on local-source
DividendsData not available yet
ETFs & fundsData not available yet
Wealth taxNone
BrokersGood via local banks & international brokers
Foreign accessData not available yet
Tax-advantagedData not available yet
Economy
Economic strength
Good
74
How this score is calculated

Our 0–100 score combines income level (GDP and GNI per capita, output per worker), growth momentum (real GDP growth), price stability (inflation) and labour utilisation (unemployment). Available indicators are reweighted; the sector split and industry profile below are descriptive, not scored.

Output & income
GDP$86.5B (2024)
GDP / person$19,161 (2024)
GNI / person$39,260 PPP (2024)
GDP growth2.7% / yr (2024)

Source: World Bank World Development Indicators

Stability & labour
Inflation0.7% / yr (2024)
Unemployment8.4% (2025)
Output per worker$79,813 PPP (2024)

Source: World Bank World Development Indicators

Sector composition
Agriculture2.7% of GDP (2024)
Industry25.5% of GDP (2024)
Services69.3% of GDP (2024)

Source: World Bank World Development Indicators

Main industries
Logistics & the CanalBanking & financeTrade & free zonesTourismConstruction
Top exports
Re-exports (Colon Free Zone)CopperBananas & seafoodCanal & transit services
TypeUpper-middle-income, services- and logistics-led
Key sectorsPanama Canal & maritime, International banking, Logistics hubs
SummaryA dollarised hub economy built on the Canal, logistics, free-zone trade and international banking.
CurrencyUS dollar (alongside the balboa, pegged 1:1); fully dollarised
Wealth building

Rules change often and depend on your situation. Confirm any tax / investment decision with a qualified professional, or do your own research, before acting.

Wealth accumulation
Good
69
How this score is calculated

How favourable Panama is for building wealth: earnings and business/investment upside, tax drag, and how much a typical income keeps after living costs. Estimated from the factors below.

Salary & work
Moderate
52
Business
Moderate
63
Investment
Good
72
Tax friendliness
Excellent
88
Cost of living
Good
75

Living, study & work

Education
Education score
Moderate
63
How this score is calculated

Our 0–100 score combines attainment (expected schooling at 30% and mean schooling at 25%) with participation (tertiary enrolment at 25%) and public investment (government education spending at 20%). Available indicators are reweighted; tuition and study rules remain separate profile fields below.

Attainment
Expected schooling13.3 years (2023)
Mean schooling10.8 years (2023)

Source: UNDP Human Development Report 2025

Participation & investment
Tertiary enrolment54% gross (2023)
Education spending2.5% of GDP (2023)

Source: World Bank World Development Indicators

Tuition$3,000–12,000 / yr (private)
Public uniUniversity of Panama low-cost for residents
LanguagesSpanish, English (some private)
Student workLimited work for students
Salary & work
Labour-market strength
Moderate
64
How this score is calculated

Our 0–100 score combines output per worker (a proxy for wage potential at 40%), unemployment (35%) and labour-force participation (25%). Available indicators are reweighted; the curated profile fields remain below.

Output per worker$79,813 PPP (2024)
Unemployment8.4% (2025)
Participation66.3% of 15+ (2025)

Source: World Bank World Development Indicators

Mean monthly earnings of employees
Overall$674 · $1,408 PPP (2024)
Tech (IT & comms)$800 · $1,610 PPP (2024)

Source: ILOSTAT (International Labour Organization)

FreelanceBest as a tax base for foreign-currency remote income
Job marketFinance, logistics (Canal) & regional HQs in Panama City.
Cost of living
Affordability
Good
75

Our 0–100 affordability score is derived from the local consumer price level (World Bank, US = 100): the cheaper everyday prices are, the higher it scores. Lower price level means your money goes further here.

Price level51 (US = 100) (2024)

Source: World Bank World Development Indicators

Rent$700–1,300 (1BR Panama City)
Monthly$1,300
CitiesPanama City, David, Boquete
Buying power
Purchasing power score
Good
69
How this score is calculated

Our 0–100 score estimates how far money goes for the typical person here. It combines GNI per capita at PPP (30%) and actual household consumption per person at PPP (15%) with a price-advantage term from the local price level (25%) that rewards lower prices, then adjusts for income equality via the Gini index (20%), so unequal economies don't ride a high average, plus price stability via consumer inflation (10%). Available indicators are reweighted; it is a comparison, not a personal budget estimate.

GNI / person$39,260 PPP (2024)
Consumption / person$18,379 PPP (2024)
Price level51 (US = 100) (2024)
Income inequality49.7 Gini (2024)
Inflation0.7% / yr (2024)

Source: World Bank World Development Indicators

Quality of life

Safety
Safety & stability
Limited
44
How this score is calculated

Our 0–100 score combines personal safety (intentional homicide rate at 35%), institutional quality (rule of law at 25% and control of corruption at 20%), and political stability and absence of violence (20%). Available indicators are reweighted; the published values are shown below. Always check current government travel and security advice before relocating.

Personal safety
Homicide rate11.7 per 100,000 (2023)

Source: World Bank World Development Indicators

Institutions & stability
Rule of law-0.26 (−2.5 to 2.5) (2024)
Control of corruption-0.55 (−2.5 to 2.5) (2024)
Political stability0.26 (−2.5 to 2.5) (2024)

Source: World Bank World Development Indicators

Healthcare
Healthcare score
Good
67
How this score is calculated

Our 0–100 score combines health outcomes (life expectancy at 25% and under-5 mortality at 20%) with system capacity (physicians at 20% and hospital beds at 15% per 1,000 people) and health spending per capita (20%). Available indicators are reweighted; the published values are shown below.

Outcomes
Life expectancy79.8 years (2024)
Under-5 mortality15.3 per 1,000 births (2024)

Source: World Bank World Development Indicators

Capacity & resourcing
Physicians1.63 per 1,000 (2022)
Hospital beds1.95 per 1,000 (2023)
Health spending$3,318 PPP / person (2023)

Source: World Bank World Development Indicators

System & costs
SystemPublic (CSS) + strong private sector
InsurancePrivate insurance common; modern private hospitals
Avg costPrivate cover ~$1,000–2,500 / yr
Infrastructure
Infrastructure score
Good
72
How this score is calculated

The score combines digital access, resilience and download performance (30%), electricity access and network losses (30%), and transport infrastructure covering rail, logistics and aviation (40%). Available inputs are reweighted, but a country needs both digital and transport data to receive a score.

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)

Source: World Bank World Development Indicators

Transport
Transport quality3.30 / 5 (2022)
Rail density6.5 km / 1,000 km² (2000)
Air connectivity27,417 departures / million people (2023)

Source: World Bank World Development Indicators

HDI
Human development score
Excellent
84
How this score is calculated

The UN Human Development Index is the geometric mean of three dimension indices (a long and healthy life, knowledge, and a decent standard of living), shown on a 0–100 map scale (HDI × 100). The 2023 UNDP inputs behind each dimension are listed below.

HDI0.839 (2023)

Source: UNDP Human Development Report 2025

Long & healthy life
Life expectancy79.6 years (2023)

Source: UNDP Human Development Report 2025

Knowledge
Expected schooling13.3 years (2023)
Mean schooling10.8 years (2023)

Source: UNDP Human Development Report 2025

Standard of living
GNI / person$34,385 PPP (2023)

Source: UNDP Human Development Report 2025

Resources

Mock data for demonstration only. Not legal or tax advice.