WorldTax Compareโ† All Comparisons

Panama vs Netherlands
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ต๐Ÿ‡ฆ Panama
vs
๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“25%
Territorial system; no plans to change
No change
9.32โ€“49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7%
7% maintained
No change
9โ€“21%
Reduced 9% rate under review
No change
Corporate Tax Rate
Corporate Tax Rate
25%
25% standard; Panama removed from grey lists
No change
19โ€“25.8%
Stable; Pillar Two global minimum tax applies
No change
Capital Gains Tax
Capital Gains Tax
10%
10% CGT maintained
No change
~38%
Box 3 new regime: actual return basis
No change
Social Security & Payroll
Social Security / Payroll
~22.1%
CSS pension reform implementation
No change
~28%
AOW/WW/WIA contributions ceiling raised
โ–ฒ +0.4pp vs 2025
State, Regional & Local Taxes

๐Ÿ‡ต๐Ÿ‡ฆ 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%โ€“2.1%), 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.

๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands โ€” Municipal & Water Board Taxes

The Netherlands is a unitary state โ€” income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Panama vs Netherlands: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands has a higher top income tax rate (0โ€“25% vs 9.32โ€“49.5%). ๐Ÿ‡ต๐Ÿ‡ฆ Panama is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Netherlands has a higher consumption tax (7% vs 9โ€“21%).

๐Ÿข Corporate Tax: ๐Ÿ‡ต๐Ÿ‡ฆ Panama offers a lower corporate rate (25% vs 25.8%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฆ Panama taxes investment gains at a lower rate (10% vs 38%), benefiting investors.

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