Expatriate to Panama from Australia: tax guide 2026
Everything a Australia tax resident needs to know before relocating to Panama. Exit tax, tax residency, treaties, special regimes, crypto, real estate and inheritance.
Income tax
Variable
Capital gains
10 %
Corp tax
25 %
Crypto
0 %
Inheritance
0 %
VAT
7 %
Panama is one of the last countries applying purely territorial taxation: only Panamanian-source income is taxed, foreign income is completely exempt. For freelancers, consultants and entrepreneurs working with international clients from Panama, income tax is effectively 0%.
The Friendly Nations Visa facilitates settlement for nationals of 50 countries. Complete 2026 guide with real costs and procedures.
What you need to know as a Australia resident
Exit tax Australia
Australia applies CGT on unrealized gains when you lose tax resident status. 50% discount for assets held > 12 months.
Why expatriate to Panama?
Territorial taxation: 0% on foreign income
This is the fundamental principle. If your clients are outside Panama and your income is generated abroad, you pay zero tax in Panama. No filing is required for foreign-source income. This is the territorial system in its purest form.
Friendly Nations Visa in 2026
The Friendly Nations Visa grants permanent residency to nationals of 50 "friendly" countries. Conditions: open a Panamanian bank account with a minimum deposit (~USD 1,000), have an economic tie (company formation, work contract or property title). Timeline: 3 to 6 months. Total cost with lawyer: ~USD 3,000-5,000.
Setting up a company in Panama
The Sociedad Anónima (S.A.) is the standard vehicle. CT: 25% on Panamanian-source income only. Dividends: 10% withholding (5% if reinvested). For international income, the S.A. pays nothing. Minimum capital: USD 0 (but USD 10,000 recommended). Formation takes 2-3 weeks.
2026 Tips
- Banks: account opening has become stricter since the Panama Papers. Banesco and Multibank are most accessible to foreigners. Allow 2-4 weeks and a bank reference letter.
- Tax residency: no strict day threshold. Permanent residency + local bank account suffices. But beware: if your origin country applies a center-of-vital-interests test, you'll need to prove actual settlement in Panama.
- Crypto: no specific regulation in 2026. Foreign-source crypto gains are not taxed (territorial principle).
- Cost of living: Panama City is ~50-60% cheaper than Paris. A 1-bedroom apartment downtown: USD 800-1,400/month.
- Healthcare: private hospital system is good quality (Hospital Punta Pacífica, Johns Hopkins affiliated). Private insurance: USD 200-400/month.
Special expat regimes
2 regime(s) available in Panama to optimize your taxes.
Exit tax in Panama
None
No exit tax in Panama. Territorial taxation.
Crypto asset taxation
Capital gains
0 %
Long-term
0 %
Crypto-to-crypto
Exempt
Reporting
Not required
0%: territorial taxation. Only Panamanian-source income is taxed. Crypto gains earned outside Panama are not taxed. No specific crypto regulatory framework. Law 129 (2020) on digital asset compatibility with the banking system.
Legal structures for your business
1 legal structure available for doing business in Panama.
Corporation (SA)
Most common structure
Learn more
* Information for guidance for a Australia tax resident. Consult an international tax expert for your situation. Data 2026.