TAX LAWYER

Tax Lawyers and Double Tax Treaty Services in Panama

Panama’s territorial tax system is one of the most attractive in the world: only income earned inside Panama is taxed, while foreign-source income is generally tax-free. At Paralelaw, we advise individuals and companies on tax residency, planning, and compliance with the DGI.

Legal Guidance for Tax Treaties and Compliance

At Paralelaw, we help individuals and businesses navigate Panama’s double tax treaties and optimize their tax obligations with strategic planning and legal compliance.

Our Tax Legal Services

We provide comprehensive legal assistance in:

Advisory on Panama’s double tax treaties and their applications
Tax planning for multinational businesses and expats
Representation in tax disputes and audits
Compliance with Panama tax laws and international standards
Structuring cross-border transactions for tax efficiency

Serving Individuals and International Businesses

We support both local residents and foreign companies operating in Panama with tailored tax strategies that align with their unique financial goals.

Your Legal Partner for Tax Matters in Panama

Comprehensive solutions for local and international tax planning.

Double Tax Treaty Advisory

Our attorneys help clients take full advantage of Panama’s network of double tax treaties, reducing tax burdens and avoiding double taxation on global income.

Tax Disputes and Resolution

We represent clients in disputes with tax authorities, ensuring fair treatment and defending against excessive tax assessments or penalties.

International Tax Planning and Structuring

Our team designs efficient tax structures for cross-border operations, ensuring compliance while minimizing liabilities.

FAQ

How does Panama’s territorial tax system work?

Panama taxes only income generated within its territory. Foreign-source income — dividends, interest, capital gains, or royalties earned abroad — is generally exempt from Panamanian income tax. This makes Panama attractive for holding companies, international business, and globally mobile individuals.

How do I become a tax resident of Panama?

You generally qualify as a Panamanian tax resident if you spend more than 183 days in the country in a year, or if you establish your center of vital and economic interests in Panama. Tax residents can request a Tax Residency Certificate from the DGI, which is useful for applying double-tax treaties.

Does Panama have double tax treaties?

Yes — Panama has double tax treaties with more than 17 countries, including Spain, the UK, France, the Netherlands, Mexico, South Korea, and Singapore, reducing or eliminating double taxation on dividends, interest, and royalties. Importantly, Panama does not have a tax treaty with the United States, so US persons need careful planning.

What taxes apply to companies operating in Panama?

Companies with Panama-source income pay corporate income tax (standard rate 25%), plus applicable ITBMS (VAT, 7%), municipal taxes, and the annual $300 franchise tax. Companies operating only abroad pay no income tax under the territorial system but still owe the franchise tax and must keep accounting records (Law 52 of 2016).

Do US citizens still owe US taxes if they live in Panama?

Yes. US citizens and green-card holders are taxed on worldwide income regardless of residence, and there is no US-Panama tax treaty. Tools like the Foreign Earned Income Exclusion and foreign tax credits may reduce US tax. We coordinate with US tax advisors to keep you compliant on both sides.

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