Emigrating from Netherlands to Panama: tax and cost of living

Compared by dimension

On an average Netherlands income of €54,000 gross per year, you keep €46,276 net in Panama: a difference of €5,154 per year compared with Netherlands.

• Tax: on this income Panama lands at an effective rate of about 14%, against 24% in Netherlands.
• Passport and mobility: from Panama you travel visa-free to 140 countries.
• Residency: on our accessibility scale Panama scores 87 out of 100 for obtaining residency.
• Living environment: banking, internet, safety and healthcare together give Panama a living-environment score of 58 out of 100.

The tax regime in Panama

Panama taxes only income derived from Panamanian sources. Foreign-sourced income is fully exempt regardless of amount. The top rate on local income is 25%. There is no wealth tax and no inheritance tax. VAT (ITBMS) is 7%.

Residency and visas in Panama

Panama offers several popular residency programs: the Friendly Nations Visa (for 50+ countries), Pensionado visa, and Qualified Investor Visa. Permanent residency is relatively straightforward to obtain. No minimum physical presence requirement for most visa categories.

• Friendly Nations Visa
• Pensionado Visa · €1,000/year
• Qualified Investor Visa · €160,000
• Short Stay Visa / Remote Worker Visa (Nómada Digital) · €3,000/year
• Self-Economic Solvency Visa · €300,000

Frequently asked questions

What is the financial difference between Netherlands and Panama?

On an average Netherlands income it differs by roughly €5,154 net per year. Your own figure depends on your income and situation; calculate it with the free freedom check.

Is this tax advice?

No. Libaros compares on the basis of primary government sources and provides information. For personal decisions, consult a qualified adviser.

What sources is this based on?

The Freedom Score uses the OECD Tax Database, IATA Timatic, the Henley Visa Index and Eurostat, with direct links to primary government sources.