Tax Residency

Tax residency in Panama is regulated in Article 762-N of the Panamanian Tax Code and Executive Decree No. 958 of August 7, 2013. To obtain it, the applicant must remain in Panama for more than 183 consecutive or alternate days in a fiscal year or the immediately preceding year and establish his/her residence in Panama.

At the moment of applying to the Tax residence the interested party will have to sustain and support its application describing the economic activity that he or she carries out and that fulfills the following:

1. Has at entire disposal permanently a dwelling place in Panama, whether it is a house, apartment, or room; 

2. Has a center of economic interests in Panama, and;

3. Has a center of family interest in Panama.

The General Directorate of Revenue at the time of accepting applications for tax residency carries out an exhaustive analysis especially concerning the permanent dwelling place of the interested party, since the sole fact of having a house at his or her disposal as owner or tenant does not make him or her eligible as a tax resident, unless he or she demonstrates a personal and genuine link with the same.

Finally, although the law allows the interested party to file his or her application personally, it is always advisable to rely on our firm as experts in the matter to obtain the appropriate advice.