Panama is a traditional offshore, so it has proper legislation for digital companies and fintech operations. However, since crypto still needs to be officially regulated in Panama, this country is a tricky jurisdiction.
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Panama is a traditional offshore, so it has proper legislation for digital companies and fintech operations. However, since crypto still needs to be officially regulated in Panama, this country is a tricky jurisdiction.
Panama has a high danger security level according to our rating. Jurisdiction has 55.9 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 12.6 per 100,000 inhabitants a year. Story of firearm-related death (3) 9.95 per 100,000 inhabitants a year.
The new crypto bill will probably officially (4) allow crypto payments. However, currently, they are not legal or illegal. At the same time, the Panamanian Constitution recognizes the plurality of currencies that can be used in Panama.
Moreover, in 2018, the Superintendency of Banks claimed(5) that the use of Cryptocurrencies in Panama does not require any permit or license and, since there is no prohibitive regulation against cryptocurrencies, they may be used within Panamanian territory, at the risk of the user who uses them.
No Data.
Panama currently has no crypto regulation. The national assembly has approved(6) a crypto bill with a 0% regime for crypto holders. You can check (7) an official document forwarded to the Constitution Court of Panama - there are details there. However, the country's Supreme Court rejected(8) the bill as unconstitutional in July 2023.
Lastly, Panama remains (9) a crypto-friendly country with a 0% tax regime for foreign income, and some crypto entities operate there without crypto licenses, such as fintech, etc. One of such licenses is E Money license.
Federal Regulators are the Superintendence of Banks (SBP) and the Superintendence of the Securities Market (SMV).
There are also some crypto-friendly banks in Panama, like Towerbank. It declared itself bitcoin-friendly in an announcement(10) on Twitter from Cristobal Pereira, the Latam Blockchain Summit executive director, the meetup where Towerbank made the announcement.
Tax name | Index |
PIT tax Max | 25 |
PIT tax Min | 15 |
Corporate tax (CIT) | 25 |
Max Individual CGT (for crypto) | 10 |
Min Individual CGT (for crypto) | 0 |
Wealth tax Max | 0 |
Wealth tax Min | 0 |
PIT is 15%-25% based on PWC tax summaries (11). Citizens and residents are taxed on income earned from Panamanian sources. Non-residents are taxed only on income from Panamanian sources, and the payer must withhold the tax on any income paid to a non-resident.
According to PWC tax summaries (12), corporations are subject to income tax at a fixed rate of 25%.
According to PWС tax summaries (13), the CGT is 10%. However, we have no information about the crypto taxation procedure in Panama. Please get in touch with us if you have information about it.
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)List of countries by firearm-related death rate
4)Buy Crypto, Instantly. Crypto.com
5)Guía Práctica de las Criptomonedas en Panamá. Practical Guide to Cryptocurrencies in Panama. Article
6)Panama’s Supreme Court will rule on cryptocurrency legislation. Article
7)Se presenta objecon de inexequiblidad ante el pleno de la corte suprema de juristica. PDF-file
9)Panamá y El Salvador entre los países que cobran menos impuestos a criptomonedas. Article
10)Meetup in Panama. Post in Twitter
11)Individual - Taxes on personal income. PWC
12)Corporate - Taxes on corporate income. PWC
13)Corporate - Other taxes. PWC