Panama
Territorial tax system means all foreign-sourced crypto gains are 100% tax-free. Crypto traded on international exchanges is considered foreign-sourced. No VAT on crypto transactions.
FATCA Partner
Yes
FATF Status
Clear
EU Blacklist
Yes
Dual Nationality
Allowed
CARF Status
Not yet committed
Bitizenship
Not yet
Tax Rates
Activity Taxes
Staking
0% (foreign-sourced)
Mining
0% (foreign-sourced)
DeFi
0% (foreign-sourced)
NFTs
0% (foreign-sourced)
Taxable Events
Crypto → Fiat
Not taxable
Crypto → Crypto
Not taxable
Holding Period
No holding period benefit
All foreign-sourced gains tax-free regardless of holding period
Regulation & Residency
Regulatory Body
No specific crypto regulator; general financial supervision
Residency Requirement
Friendly Nations Visa, Pensionado Visa, or investment-based residency
Reporting Requirements
Minimal; crypto regulation still in development
Citizenship & Residency Path
Friendly Nations Visa; permanent residency after 5 years; citizenship after 5 more years
Resilience & Plan B
Jurisdictional Resilience
How well-equipped this jurisdiction is for a crypto holder who wants stability, access, and protection.
JRS
Institutions (25%), banking (20%), tax clarity (20%), business (15%), privacy (10%), geopolitical (10%). Full methodology →
Plan B Readiness
How fast you can go from “I want to move” to “I’m a tax resident with banking and optionality.”
PBR
Business ease (25%), citizenship path (20%), dual nationality, quality of life & safety (15% each), Bitizenship (10%). Full methodology →
Notable Conditions
- →Territorial tax system - only Panama-sourced income is taxed
- →Crypto on international exchanges = foreign-sourced = tax-free
- →Crypto not classified as a security
- →Regulatory framework still in development phase
- →US dollar is the local currency
Living & Lifestyle
Cost of Living
Low-Moderate
Banking Access
Good (dollarized economy)
Quality of Life
Moderate-High
Lifestyle Scores