Panama is a country with territorial tax, which means that only taxes are paid on profits that are produced within the country.
Some of the typical taxes to pay in Panama:
Taxes on transfers of movable goods and services (ITBMS – 7%): This tax is paid on all consumptions made within the country, except food in the supermarket and school supplies.
Income Tax: It is the tax paid by all individuals or entities on their net income. Individuals pay 0% up to 11,000.00 USD incomes; from 11,000.00 USD up to 50,000.00USD, 15% of net income is paid; and 50,000,000 USD henceforth, 25% of net income must be paid.
Property Transfer Tax which corresponds to 2% of the value of the sale if this is greater than the registered value of the property with the improvements, plus a 5% increase each year since that value was recorded.