LLC × residence calculator · Edition 2026.09
If you lived in Panama: how much tax you would pay on your LLC profit
Territorial system: only income produced in Panama is taxed. If you render the service from Panama, the DGI treats it as Panamanian-source and applies the personal income tax scale (0%, 15% and 25%).
Isaac Cubero · Checked on 14 September 2026 · territorial
At $100,000 of profit
On $100,000 of LLC profit, living in Panama, you would pay $0 income tax (territorial regime), with conditions.
territorial
| Income tax on foreign-source income | $0 |
| Estimated total | $0 |
Sources: Panama Fiscal Code, arts. 694 (territoriality), 699, 700 and 733 (dividends) · Panama DGI, personal income tax rates · Fixed exchange rate 1 USD/USD.
Rank 1 of 38 residences by effective rate at this profit.
- Work rendered outside Panama. No social security: not mandatory for the self-employed.
- The local company is modelled with Panamanian-source income so the comparison is honest.
- 'Panamanian-source' is a matter of fact: if your work is performed from Panama, it is local income even if the client is abroad.
- Residence programmes give immigration residence; tax residence requires 183 days or a centre of interests.
- Panama Fiscal Code, arts. 694 (territoriality), 699, 700 and 733 (dividends)
- Panama DGI, personal income tax rates
- Fixed exchange rate 1 USD/USD.
At three profit levels
What you would pay in Panama depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $0 | 0% | $50,000 |
| $100,000 | $0 | 0% | $100,000 |
| $250,000 | $0 | 0% | $250,000 |
And if it were not an LLC
The five cheapest structures from Panama, distributing all the profit.
| Structure | Corporate | Withholding | You, in Panama | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $0 | 0%$0 |
| UAE free zone | $0 | $0 | $0 | 0%$0 |
| Hong Kong Ltd | $8,250 | $0 | $0 | 8.3%$8,250 |
| Bulgarian EOOD | $10,000 | $4,500 | $0 | 14.5%$14,500 |
| Cyprus Ltd | $15,000 | $0 | $0 | 15%$15,000 |
Frequently asked questions
Does a US LLC pay tax if I live in Panama?
The LLC pays no US federal tax if it has no US activity. Territorial system: only income produced in Panama is taxed. If you render the service from Panama, the DGI treats it as Panamanian-source and applies the personal income tax scale (0%, 15% and 25%).
How much would I pay in Panama on $100,000 of profit?
On $100,000 of LLC profit, living in Panama, you would pay $0 income tax (territorial regime), with conditions. 'Panamanian-source' is a matter of fact: if your work is performed from Panama, it is local income even if the client is abroad.
Is Panama a territorial country?
Yes: it only taxes local-source income. The profit of an LLC operated from abroad is not taxed, provided the work is rendered outside Panama.
Next
The figure is the start. The structure is the decision.
How an LLC is formed and run from Panama, step by step: the US LLC from Panama guide. And to see your country against the other 37: the full ladder.