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Panama vs Malta Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%Lower
Malta35%
Corporate Tax
Panama25%Lower
Malta35%
Capital Gains
Panama10%Lower
Malta35%
VAT / Sales Tax
Panama7%Lower
Malta18%
| Category | Panama | Malta |
|---|---|---|
| Tax System | Territorial | Progressive |
| Top Income Tax | 25% | 35% |
| Corporate Tax | 25% | 35% |
| Capital Gains | 10% | 35% |
| VAT / Sales Tax | 7% | 18% |
| Crypto Tax | No | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 76 |
| Currency | PAB | EUR |
The bottom line: Panama vs Malta
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. Panama runs a territorial tax system, while Malta uses a progressive one. On crypto, Panama is the more favourable — it does not tax cryptocurrency gains. Malta has the wider tax-treaty network (76 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (25% vs 35%)
- Corporate tax: Panama is lower (25% vs 35%)
- Capital gains tax: Panama is lower (10% vs 35%)
- VAT / sales tax: Panama is lower (7% vs 18%)