Bahamas vs Panama
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ง๐ธ Bahamas โ Local Government Rates & Fees
The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax โ making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.
๐ต๐ฆ Panama โ Municipal & Corregimiento Taxes
Panama's 10 provinces and 81 districts have municipalities that levy commercial licence fees (Tasa Unica), property tax (impuesto de inmuebles at 0%โ2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system โ income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The Colรณn Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.
Bahamas vs Panama: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐ฆ Panama has a higher top income tax rate (0% vs 0โ25%). ๐ง๐ธ Bahamas is more favourable for high earners.
๐ VAT/Sales Tax: Bahamas has a higher consumption tax (10% vs 7%).
๐ข Corporate Tax: ๐ง๐ธ Bahamas offers a lower corporate rate (0% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ง๐ธ Bahamas taxes investment gains at a lower rate (0% vs 10%), benefiting investors.