Panama
AmericasCosta Rica
AmericasPanama vs Costa Rica Tax Comparison
Summary
6
🇵🇦 Panama
1
Ties
0
🇨🇷 Costa Rica
🇵🇦 Panama has lower tax rates in more categories
Tax Rates Comparison
| Category | 🇵🇦Panama | 🇨🇷Costa Rica |
|---|---|---|
| Top Income Tax Rate | 25% | 25% |
| Corporate Tax Rate | 25%Lower | 30% |
| VAT / Sales Tax | 7%Lower | 13% |
| Capital Gains Tax | 10%Lower | 15% |
| Employee Social Security | 9.75%Lower | 10.5% |
| Employer Social Security | 12.25%Lower | 26.5% |
| Self-Employed Social Security | 9.75%Lower | 10.5% |
Living Indicators
| Category | 🇵🇦Panama | 🇨🇷Costa Rica |
|---|---|---|
| Cost of Living Index | 38Lower | 40 |
| Quality of Life Index | 54Lower | 62 |
| Tax Treaties | 19 | 6Lower |
Income Tax Brackets
Panama
Territorial taxation. Only Panama-source income taxed. Foreign-source income exempt.
Costa Rica
CRC annual amounts. Territorial taxation - only Costa Rican-source income taxed.
Special Tax Regimes
Panama
Friendly Nations Visa
Fast-track permanent residency for citizens of 50+ 'friendly' nations.
Multinational Headquarters (SEM)
Tax incentives for regional headquarters including exemptions on foreign-source income.
Costa Rica
Free Trade Zone Regime
Various tax incentives including 0% corporate tax for qualifying companies for up to 12 years.
Digital Nomad Visa
Remote Worker Visa. Must earn at least USD 3,000/month from foreign employer. Valid 9 months, renewable up to 18 months.
Digital Nomad Visa. Must earn at least USD 3,000/month (or USD 5,000 for families). Valid 1 year, renewable once.
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.
Data last updated: Panama (2024-01) · Costa Rica (2024-01)