Choosing where to base your company is one of the most important decisions you’ll make. In this three-part series, we’ve explored global hubs for Web3 companies, weighing regulatory clarity and tax incentives. In the first and second parts, we highlighted Switzerland, Bermuda, and Dubai, UAE, as leading jurisdictions for fintech and blockchain businesses. This final part looks at Panama.
Panama has long been known as a regional financial and logistics hub. Its dollarized economy, established corporate law framework, and territorial tax system make it an attractive base for fintech, blockchain, and digital asset companies.
Regulation
Unlike other jurisdictions, Panama does not yet have a dedicated digital assets law. Digital assets in Panama are mainly governed under existing commercial, financial, and anti-money laundering (AML) laws. Even without a standalone cryptocurrency statute, the current legal framework allows companies to own, manage, and transfer digital assets within traditional corporate structures, such as corporations and private interest foundations. This makes it possible to handle treasury operations, establish token governance, and manage crypto holdings in a legally recognized way.
Companies providing services related to virtual assets must comply with Panama’s AML and counter-terrorism financing requirements. This includes customer due diligence, verifying sources of funds, and maintaining ongoing compliance. Banks are becoming more familiar with blockchain-based business models, and companies with strong compliance programs can access both fiat and crypto banking services.
Recent legislative proposals also suggest Panama is moving toward broader adoption of digital identity, tokenization, and electronic records in its commercial code. While these efforts are still evolving, they demonstrate a clear interest in reducing legal uncertainty for Web3 businesses.
Taxation and Digital Nomad Visa
Panama’s territorial tax system is one of its biggest draws for international businesses. Income earned from activities outside the country is generally not subject to local income tax, which can be advantageous for Web3 companies with global users or operations.
Corporate entities in Panama can hold digital assets, intellectual property, and tokenized rights. Profits from the sale of foreign-sourced digital assets are not taxed, and dividends from foreign income are usually exempt. Combined with straightforward incorporation processes and a strong professional services sector, Panama offers a compelling mix of tax efficiency and administrative simplicity.
The country also offers a digital nomad visa that allows remote workers with foreign-sourced income to live and work in Panama for up to nine months, with the possibility of extension, without needing additional work permits. Holders of this visa are exempt from Panamanian income tax on earnings derived from sources outside Panama, meaning that as long as your income comes from abroad, it will not be subject to local taxation. This makes Panama an attractive destination for telecommuting professionals seeking both lifestyle and economic benefits.
With its favorable tax environment, growing regulatory clarity, strategic location, and programs like the digital nomad visa, Panama is increasingly worth considering for Web3 companies and remote professionals planning long-term growth.
Ready to make Panama the home for your Web3 company?
Contact me at gloria@campbellteague.com.
