Dossier
territorial taxation
Coverage of territorial taxation in the Nexus archive.
- Tax Residency in Panama: The 183-Day Rule
Panama's tax residency is determined by the 183-day rule, where spending over 183 days in the country annually or establishing Panama as a primary residence can trigger tax residency. Panama employs a territorial taxation system, taxing only income sourced within Panama, meaning tax residents generally avoid Panamanian taxes on foreign income.