Panama
Famous Friendly Nations visa, US dollar economy and strong flight links.
Important Notice: No Individual Advice
The information provided is for general informational purposes only and does not constitute individual legal, tax, or financial advice. Please consult qualified professionals for personal decisions.
Key Metrics
Cost of Living
Cost Breakdown
Quality of Life
Taxes
Tax information for Panama
Tax resident with residence or economic center in Panama
2024
March 15th of following year
Yes - only domestic income
Income Tax
Only Panamanian income taxed (territorial principle)
| From | To | Rate |
|---|---|---|
| €0 | €10,120 | 0% |
| €10,120 | €46,000 | 15% |
| €46,000 | Unlimited | 25% |
Foreign income and pensions not taxable
Pension Tax
Foreign pensions tax-free in Panama
Pensionado visa offers additional benefits
Capital Gains Tax
10% on gains from Panamanian assets
Foreign capital gains tax-free
Dividend Tax
10% on dividends from Panamanian companies
Wealth Tax
No wealth tax in Panama
VAT
7%ITBMS (VAT) of 7%
Important Notice
This is not tax advice. Panama uses territorial taxation. Consult a Panamanian tax advisor.
This is not tax, legal, or investment advice. Tax laws change frequently and can be complex. The information provided is for general informational purposes only. Please consult a tax advisor licensed in Panama for your specific situation.
Healthcare
Healthcare in Panama
CSS + private
Private recommended
Expat Access
CSS after contribution
Modern in Panama City
€80-200/month
Climate Change & Future Outlook
Climate risks in Panama
Panama: Moderately endangered. #125 readiness (weak), #104 vulnerability. 2% land flooded 2050! Panama Canal threatened. Gardi Sugdub evacuated.
Climate Scenarios
Switch between IPCC SSP pathways
SSP2-4.5
Current policy trajectory – ~2.7°C warming by 2100, moderate mitigation.
Values are approximations relative to our SSP2-4.5 baseline. They illustrate directional change, not exact national projections.
Overall Climate Risk
Projected risk index (0 = low risk, 100 = extreme risk)
Risk Categories
Personal climate risk assessment
Tune the analysis to your health profile and comfort level.
Age group
Sensitivity
Risk tolerance
Personalized risk index
Current level: Very High
Priority risks
Floods & Coastal
Base 86 → Personal 86
Extreme Weather
Base 84 → Personal 84
What to prioritize
- •Prefer elevated districts and buildings with flood-mitigation infrastructure.
- •Look for reliable shelter options and emergency communication plans.
- •Budget for higher insurance/utilities and diversify income streams against climate shocks.
Adaptation Measures
- •€1.2B Gardi Sugdub relocation, canal protection
- •LEAVE coasts/islands! Only inland safe. Dengue protection!
Climate Resilience
ND-GAIN #125/#104. Weak! Gardi Sugdub = first climate refugees. Canal economy endangered.
Tips
- 💡Gardi Sugdub evacuated = harbinger! 2% land flooded 2050.
- 💡Panama Canal water shortage = economic risk!
Pros
- •Panama Canal (still), inland OK, biodiverse
Cons
- •2% land flooded, Gardi Sugdub evacuated, canal endangered, dengue
Notes
2% land (2.01%) flooded by 2050! Gardi Sugdub Island already evacuated = first climate refugees. Panama Canal water shortage (Gatun Lake). €1.2B relocation costs. Only inland safe. ND-GAIN #125 = weak.
Data sources
Scientific Disclaimer
Climate projections are based on models with inherent uncertainties. Actual outcomes may differ. We present mainstream scientific consensus (IPCC) but acknowledge uncertainty ranges. This is not financial advice. Consult climate scientists and experts for specific decisions.
Safety & Security
Safety & Crime in Panama
Safety Indicators
Comparison with DACH Region
For comparison: Germany (CPI: 78), Austria (CPI: 71), Switzerland (CPI: 82)
Notes
Standard precautions recommended in urban areas.
Visa & Immigration
Immigration Options for Panama
Visa Options
Pensionado Visa
One of the best retiree visas worldwide
Friendly Nations Visa
For 50+ countries
Path to Permanent Residency
Permanent residency after 2 years. Citizenship after 5 years.
Important Notice
Visa and immigration regulations change frequently. The information provided is for general informational purposes only. Please consult the official government website or an immigration attorney for current and accurate information.
Climate
Data Sources & Updates
Data Sources
- World Bank World Development Indicators(CC BY 4.0)
- NOAA Climate Data(Public Domain)
- WHO Global Health Observatory(CC BY-NC-SA 3.0)
- World Bank World Development Indicators(CC BY 4.0)
- Numbeo(User-Generated Data)
- Numbeo Quality of Life Index(CC BY 4.0)