How is crypto taxed in Panama?

Panama has no crypto tax law as of October 2026. Crypto tax in Panama follows the general income tax rules, and the country taxes only income that comes from Panamanian sources. Tax advisers say crypto gains may be taxed as ordinary income or as capital gains, depending on the transaction, and some may fall outside the tax net if they are foreign-source.

How does Panama's crypto territorial tax work?

Panama's tax system is based on a territorial concept of income, according to PwC. Citizens and residents are taxed on Panamanian-source income, and income from abroad is generally outside the system. For individuals, PwC lists rates of 0% on taxable income up to $11,000, 15% between $11,000 and $50,000, and 25% above that.

For crypto, the hard question is where income comes from. The law firm Legal Nodes says profits from global token trading, staking or token issuance to users outside Panama may be treated as foreign-source and therefore untaxed there. It presents this as a possibility, not a rule, because there is no official guidance on how to source crypto income.

How are crypto gains taxed in Panama?

Under general rules. Ivelisse Bonilla Castillo, tax director at the Panamanian firm ARIAS, writes that crypto may be treated as intangible property. Income from using or disposing of it may be taxed as ordinary or business income in the annual return, or as a capital gain, depending on the nature of each transaction.

For comparison, PwC describes Panama's capital gains rules for other assets:

• Securities. The buyer withholds 5% of the sale price. The seller can treat that as final, or calculate the gain and pay 10% on it, crediting the withholding.
• Fixed assets. Gains are taxed at 10%.
• Real estate. A 3% advance on the sale value can be treated as final, or the seller pays 10% of the gain.

PwC does not say that any of these mechanisms applies to crypto. Keeping records of cost and of where income arises helps with either reading, as explained in what is crypto cost basis.

Is Panama one of the crypto tax friendly countries?

In part. The territorial system means some crypto income may not be taxed in Panama at all, which is why it appears in discussions of which countries have no crypto tax. But income from Panamanian sources is taxable, and the rules lack detail.

That may change. ARIAS says Bill 247, introduced on March 20, 2025, would create a special tax regime for crypto transactions regulated by the tax authority (DGI), plus incentives for blockchain use. It was sent to a subcommittee on September 30, 2025, and its content may change. Panama also has no crypto licensing law after a 2022 bill was struck down, as covered in is crypto legal in Panama.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.