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Panama vs Costa Rica Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%
Costa Rica25%
Corporate Tax
Panama25%Lower
Costa Rica30%
Capital Gains
Panama10%Lower
Costa Rica15%
VAT / Sales Tax
Panama7%Lower
Costa Rica13%
| Category | Panama | Costa Rica |
|---|---|---|
| Tax System | Territorial | Territorial |
| Top Income Tax | 25% | 25% |
| Corporate Tax | 25% | 30% |
| Capital Gains | 10% | 15% |
| VAT / Sales Tax | 7% | 13% |
| Crypto Tax | No | No |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 5 |
| Currency | PAB | CRC |
The bottom line: Panama vs Costa Rica
Panama has the lower headline rate on 3 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 Costa Rica uses a territorial one. Panama has the wider tax-treaty network (18 agreements), which can reduce withholding tax on cross-border income.
- Income tax: identical in both (25%)
- Corporate tax: Panama is lower (25% vs 30%)
- Capital gains tax: Panama is lower (10% vs 15%)
- VAT / sales tax: Panama is lower (7% vs 13%)