Tax Residency

Panama: tax only on local income.

Panama's territorial system excludes foreign income. Relocating residency is legal — if genuine, documented and CRS-compliant.

How it works

Panama adopts a territorial tax system: individuals and entities pay tax only on income generated within Panamanian territory. Foreign-source income — such as an online business with international clients, dividends from foreign companies or consulting abroad — is not taxed.

This does not mean "zero taxes forever". It means that, by correctly structuring your activity and legally relocating residency, you can drastically reduce your tax burden — in full compliance with the regulations of your country of origin.

The relocation must be genuine, not fictitious. Fictitious residency to evade taxes in your country of origin is illegal and penalised. Ragusa Matteo Stefano illustrates only compliant paths.

Key requirements

Physical presence (>183 days)

More than 183 days per year in Panama (continuous or fractional) to establish effective tax residency.

Valid residence permit

Friendly Nations Visa, Investor Visa, Qualified Professional or Pensionado. Each category has specific investment or qualification requirements.

Centre of vital interests

Transferring your habitual residence, business and main family/financial interests to Panama.

Tax residency certificate

Obtaining the Certificado de Residencia Fiscal from the Autoridad Nacional de Ingresos (DGI) after 183 days.

Italy vs Panama

Comparison of the tax burden on foreign-source income.

IncomeItalyPanama
Self-employment income (foreign)23% – 43% + INPS0%
Dividends (foreign company)26%0%
Real-estate capital gains (foreign)26%0%
Rental income (foreign)progressive (23–43%)0%
Local business income (Panama)IRES 24% + IRAP 3.9%25%

Simulate your relocation

Enter your details to estimate the annual tax saving.

Relocation Simulator
€120,000
0183 residency threshold365
Not eligible — 183+ days/year required
Tax Residency Guide →

Ricorda: la Dolce Vita SA è partner dello Studio Malizia per le materie legali e della fiduciaria PM Consulting.

FAQ

Common questions on tax residency and 2026 taxation

Ragusa Matteo Stefano answers the most frequent questions on tax relocation, 2026 regulations and international compliance.