Panama
Capital Panama City · Median age 30
What it actually costs to live here
Directional monthly estimates by city and lifestyle (USD). Not gospel — your numbers will vary.
| Category | Panama City |
|---|---|
| Rent (1BR) | $946.42 |
| Groceries | $439 |
| Transport | $100.09 |
| Total | $1,485.51 |
What the indicators say
Normalized cost-of-living, tax burden, property rights, and economic freedom (0–100, higher is better).
- Crypto Currency Status
- Legal to use/Undefined
- Currency
- Panamanian Balboa (PAB), USD
- Economy
- Services, logistics, banking
What you owe, and to whom
US tax-treaty status, residency triggers, and state-exit considerations.
Panama has no income tax treaty and no totalization agreement with the US — Americans rely entirely on the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit to avoid double taxation, and self-employed movers owe full US self-employment tax with no offset. Panama's territorial system taxes only Panama-sourced income, so foreign-sourced earnings (remote work for US clients, US investments) are generally untaxed locally. US filing — including FBAR and FATCA — always continues.
No Income Tax Treaty
No Treaty ProtectionPanama has no income tax treaty with the US. Americans rely entirely on the FEIE and Foreign Tax Credit to avoid double taxation — there is no treaty-rate relief on dividends, interest, or pensions.
No Totalization Agreement
Double SS Tax RiskPanama has no Social Security totalization agreement with the US. Self-employed Americans owe the full 15.3% US self-employment tax on top of any local contribution, and the FEIE does not cover it.
Territorial Tax System
Only Local Income TaxedPanama taxes only Panama-sourced income. Foreign-sourced earnings — remote work for US clients, US investments — are generally not taxed locally, which is the core of Panama's appeal for USD earners.
US Filing Never Stops
FBAR / FATCAUS citizens file annually regardless of residence. Panamanian accounts over $10K trigger FBAR, and FATCA reporting applies. The FEIE and FTC remain the primary relief mechanisms.
Americans should know
- You file US taxes every year regardless — Panamanian residency doesn't change that
- No US–Panama tax treaty or totalization agreement — the FEIE and FTC are your only relief
- Self-employed Americans owe the full 15.3% US self-employment tax with no offset
- Panama taxes only local income, but Panamanian accounts over $10K still trigger US FBAR/FATCA
Every live figure above traces to the catalog’s source registry — 22 named sources for Panama. Nothing here is inferred or fabricated.
View the 22-source registryShowHide
- CATO Instituteunverified
- Center for Reproductive Rightsunverified
- CitizensOS Destination Facts — Country DB (Primary workbook)unverified
- EF Setunverified
- Equaldexunverified
- Freedom Houseunverified
- Gallupunverified
- Germanwatchunverified
- Heritage Foundationunverified
- Legatumunverified
- Numbeounverified
- Ooklaunverified
- Our World in Dataunverified
- StartUp Blinkunverified
- The Lancetunverified
- Transparency Internationalunverified
- US Newsunverified
- World Bankunverified
- World Happiness Reportunverified
- World Intellectual Property Organization (WIPO)unverified
- World Justice Reportunverified
- World Population Reviewunverified
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