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Capital gains tax in Panama 2026
Occasional sellers pay a flat 10% on the gain: for property the buyer withholds 3% of the higher of price or cadastral value, for securities 5% of the sale value — and either can simply be kept as the final tax when it is lower.
Foreign-asset gains are 0% under the territorial rule, and gains on Panamanian government securities or exchange-traded paper are exempt.
At a glance
- top rate
- 10% on the net gain
- entry band
- 0% on foreign assets and government securities
- tax year basis
- Per transaction
- filing deadline
- Buyer remits securities withholding within 10 days
- residency basis
- Panamanian-located assets and locally invested capital
- regime flag
- Property dealers pay 0.5-4.5% turnover-style rates on new builds
Rates
Capital gains by situation (2026)
| Rate | Base | Applies to |
|---|---|---|
| 10% | Net gain | Property sales outside the ordinary course of business — buyer withholds 3% of price/cadastral value as an advance, electable as final |
| 10% | Net gain | Shares and securities of Panamanian companies — buyer withholds 5% of the sale value, electable as final |
| 10% | Net gain | Movable property |
| 3% | Net gain | Certified farmland and rural homes registered under PAB 10,000 |
| 0.5% / 1.5% / 2.5% / 4.5% | Sale value | Developers' first sales of new housing (by price band) and new business premises |
| 0% | — | Panamanian government securities, exchange-traded placements, and all foreign-asset gains |
Thresholds & allowances
- Refund optionWithholding above the 10% tax
Sellers can reclaim the excess where 3%-of-price exceeds 10%-of-gain
Residency
Residency trigger
Capital and securities economically invested in Panama produce Panamanian-source gains wherever the deal is signed; capital losses are generally not deductible.
Non-resident treatment
Non-residents follow the same 10% and withholding mechanics; the buyer's withholding usually closes the file.
Notes
- Choosing the withholding as final tax means no return for that gain — the practical route for most one-off sellers.
- If a buyer of securities fails to withhold the 5%, the issuing company becomes jointly liable for the tax.
- Property sales inside a taxpayer's ordinary business run through corporate-style taxation instead of the 10%.
- Rental income is ordinary income at the 0-25% scale, after municipal taxes, maintenance and depreciation.
FAQ
What is Panama's capital gains tax rate?
A flat 10% on the gain — with a 3% advance withheld on property prices and 5% on securities sales, either of which can be kept as the final tax.
Are foreign investment gains taxed in Panama?
No — 0%. Gains on assets outside Panama are foreign-source and beyond the territorial system's reach.
Figures: tax year 2026, compiled from public sources. Not tax advice.