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Panama Wealth Tax Guide 2026

Panama abolished its wealth tax (Impuesto al Capital) in 2019. There is currently no tax on net worth, assets, or capital in Panama. Combined with no inheritance tax and no CFC rules, Panama is one of the most tax-efficient jurisdictions for high-net-worth individuals.

No Wealth Tax

Panama's wealth tax was formally abolished with effect from 2019. There is no annual tax on an individual's or company's net worth, assets, or capital. This includes no tax on:

  • Cash and bank deposits (in Panama or abroad)
  • Investments in stocks, bonds, or mutual funds
  • Real estate (beyond the annual property tax)
  • Business interests and shares
  • Jewelry, art, and other personal property
  • Vehicles, yachts, and aircraft

What Panama Does Tax

While there is no wealth tax, Panama does impose limited asset-based taxes:

  • Annual property tax: Progressive 0.5-1.0% on real estate (see Property Tax Guide)
  • Vehicle registration tax: One-time tax based on vehicle value
  • Business license fee (Aviso de Operación): Annual fee based on business type and capital

Comparison with Other Countries

Panama stands out among Latin American countries for its complete absence of wealth-related taxes. For comparison, Argentina and Colombia have wealth taxes, France had a wealth tax (now on real estate only), and Spain and Switzerland impose regional wealth taxes. Panama's combination of territorial taxation, no wealth tax, and no inheritance tax makes it uniquely attractive.

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