Panama — FAQ
Frequently asked questions
Does Panama tax my foreign income?
No. Panama uses a territorial system, so income earned outside Panama is not taxed there. Only Panama-source income is taxed, progressively up to 25%. This does not by itself remove obligations to a country that taxes on citizenship, such as the United States.
Is the 300,000 USD investment figure permanent?
No. The 300,000 USD real-estate threshold for the Qualified Investor Visa is scheduled to rise to 500,000 USD around October 2026 under Decree 193-2024, unless extended again. Verify the current figure before committing.
Does Panama residency lead to a passport?
Not quickly or automatically. Naturalisation is possible only after five years of residence, is discretionary and slow in practice, and Panama’s constitution calls for renouncing your prior nationality. Treat Panama as residency first, citizenship as a distant possibility.