Germany vs Panama
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π©πͺ Germany β Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7β17% effective. Church tax (Kirchensteuer) of 8β9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
π΅π¦ Panama β 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%β2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system β income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The ColΓ³n Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.
Germany vs Panama: Key Tax Differences (2026)
π° Income Tax: π©πͺ Germany has a higher top income tax rate (14β45% vs 0β25%). π΅π¦ Panama is more favourable for high earners.
π VAT/Sales Tax: Germany has a higher consumption tax (7β19% vs 7%).
π’ Corporate Tax: π΅π¦ Panama offers a lower corporate rate (25% vs 29%), which can influence business location decisions.
π Capital Gains: π΅π¦ Panama taxes investment gains at a lower rate (10% vs 25%), benefiting investors.