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Panama vs Bermuda Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%
Bermuda0%Lower
Corporate Tax
Panama25%
Bermuda15%Lower
Capital Gains
Panama10%
Bermuda0%Lower
VAT / Sales Tax
Panama7%
Bermuda0%Lower
| Category | Panama | Bermuda |
|---|---|---|
| Tax System | Territorial | No income tax (CIT being introduced for large MNEs) |
| Top Income Tax | 25% | 0% |
| Corporate Tax | 25% | 15% |
| Capital Gains | 10% | 0% |
| VAT / Sales Tax | 7% | 0% |
| Crypto Tax | No | No |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 1 |
| Currency | PAB | BMD |
The bottom line: Panama vs Bermuda
Bermuda 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. Panama runs a territorial tax system, while Bermuda uses a no income tax (cit being introduced for large mnes) one. Panama has the wider tax-treaty network (18 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Bermuda is lower (25% vs 0%)
- Corporate tax: Bermuda is lower (25% vs 15%)
- Capital gains tax: Bermuda is lower (10% vs 0%)
- VAT / sales tax: Bermuda is lower (7% vs 0%)