Panama Capital Gains Tax
Detailed capital gains tax rates and rules for Panama in 2026.
Capital gains in Panama are taxed at a flat rate of 10% on the net gain. For real estate transactions, a 3% advance tax is withheld on the gross sale price, which can be credited against the final 10% capital gains tax. If the 3% withholding exceeds the actual tax due, the taxpayer can request a refund. Sales of shares of Panamanian companies are subject to a 5% or 10% capital gains tax depending on whether the shares are registered with the Panama Stock Exchange. Gains from foreign-source assets are exempt under the territorial system.
Short-Term Rate
10%
Long-Term Rate
10%
Standard Rate
10%
Exemptions
- Primary residence sale may qualify for preferential treatment
- Shares listed on the Panama Stock Exchange may be exempt under certain conditions
- Gains from the sale of government securities are generally exempt
How Panama Capital Gains compares
Panama’s capital gains tax rate of 10% is the 115th highest of 203 countries TaxAtlas tracks, below the global average of 13.8% and North America’s regional average of 8.9%.
