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Italy vs Panama Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Italy43%
Panama25%Lower
Corporate Tax
Italy27.9%
Panama25%Lower
Capital Gains
Italy26%
Panama10%Lower
VAT / Sales Tax
Italy22%
Panama7%Lower
| Category | Italy | Panama |
|---|---|---|
| Tax System | Progressive | Territorial |
| Top Income Tax | 43% | 25% |
| Corporate Tax | 27.9% | 25% |
| Capital Gains | 26% | 10% |
| VAT / Sales Tax | 22% | 7% |
| Crypto Tax | Yes | No |
| Wealth Tax | No | No |
| Tax Treaties | 100 | 18 |
| Currency | EUR | PAB |
The bottom line: Italy vs Panama
Panama has the lower headline rate on 4 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Italy runs a progressive tax system, while Panama uses a territorial one. On crypto, Panama is the more favourable — it does not tax cryptocurrency gains. Italy has the wider tax-treaty network (100 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (43% vs 25%)
- Corporate tax: Panama is lower (27.9% vs 25%)
- Capital gains tax: Panama is lower (26% vs 10%)
- VAT / sales tax: Panama is lower (22% vs 7%)