PA · Taxes
Taxes and tax residence: Panama
The Tax Code taxes income produced within Panama's territory, wherever it is received. The visa requires precisely that your work has effects abroad and that your income comes from a foreign source, which fits that principle. But the visa rules contain no tax provision of their own, and pay for personal work may be treated as Panamanian income depending on how the case is analysed: confirm it with an adviser.
Panama City · Boquete · Bocas del Toro
General guidance · not legal or tax advice
General information based on cited official sources, to help you get oriented and prepare questions. It does not replace the competent authority or a professional: confirm requirements and amounts at the source before applying.
2026 tax edition. Check obligations and benefits for your year, profile and income categories.
A territorial system
The Tax Code taxes income produced within Panama's territory, wherever it is received. The visa requires precisely that your work has effects abroad and that your income comes from a foreign source, which fits that principle. But the visa rules contain no tax provision of their own, and pay for personal work may be treated as Panamanian income depending on how the case is analysed: confirm it with an adviser.
Your home country still counts
Panama not taxing your foreign income does not mean nobody does: your country of residence or citizenship may still treat you as a taxpayer. Before you move, check when you stop being tax resident there and whether there is a treaty with Panama.
Prepare your tax consultation
Gather stay dates, previous residence, contract, clients and income by category. Ask about treaty, registration, returns, VAT and contributions for your profile, and deadlines for the relevant year. Special benefits require confirming conditions and application.
Things to keep in mind
These points vary with your situation, your home country or the consulate. They are worth confirming with the official source before you take the next step.
- How your remote-work income is treated under article 694 of the Tax Code in your specific case.
- Your tax position in your home country while you live in Panama.
Talk to a professional
Tax advisers and gestorías
Tax residence and paperwork with a professional.
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Sources and scope
- Órgano Judicial de Panamá · Ley 1 de 2014 (restituye el artículo 694 del Código Fiscal)
Artículo 694: grava la renta producida dentro del territorio, sea cual fuere el lugar donde se perciba · Sources consulted: 11 October 2026
Dates record editorial consultation, not professional approval. Consular, nationality and profile conditions are checked separately.