Ease of doing business5 / 5 | - With the ability to import into Panama without registering your business, it is easy to do business in Panama. |
Landed cost fairness5 / 5 | - The VAT rate is low, which is favorable for landed cost. |
Population | 4.38 million (2021) |
GDP | $52.94 billion USD (2020) |
GDP per capita | $12,269 USD (2020) |
Internet penetration | 64.8% of the population uses the internet. (2021) |
Ecommerce users | 45% of the population shop online. (2020) |
Leading product categories | Technology, fashion, beauty, and home products |
Preferred online payment method(s) | Credit and debit cards and online payment gateways, e.g. PayPal or Stripe |
Languages | Spanish |
Currency | - Panamanian Balboa/PAB/B/ |
- United States Dollar/USD/$ |
The landed cost for a cross-border transaction includes all duties, taxes, and fees associated with the purchase. This includes:
CIF: CIF (cost, insurance, freight) is a method for calculating import taxes or duties where the tax is calculated on the cost of the order plus the cost of freight and insurance.
Further explanation of de minimis, tax, and duty provided below the table
Duty and tax de minimis | Value-added tax | Average duty rate |
| - Duty de minimis: $100.00 USD
Duty and tax will be charged only on imports into Panama where the total CIF value of the import exceeds Panama’s minimum value threshold (de minimis), which is $100 USD. Anything under the tax de minimis value will be considered a tax-free import, and anything under the duty de minimis value will be considered a duty-free import.
All imports into Panama are subject to 7% VAT where the CIF value of the order exceeds $100 USD.
Imports into Panama may be subject to duty when the CIF value of the order exceeds $100 USD. Due to Panama-United States (U.S.) Trade Promotion Agreement (TPA), 87% of U.S. imports are exempt from duty to Panama. Panama’s average duty rate for other countries, however, is 12%.
Below are sample landed cost breakdowns for Panama calculated using Zonos Quoter:
Landed cost for a shipment to Panama below the de minimis value:
Landed cost for a shipment to Panama above the de minimis value:
Panama has at least 19 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries.
As a member of the World Trade Organization (WTO), Panama must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction from the country that initially granted it.
Panama National Customs Authority
Talk to your carrier about customs refunds.
Depending on the courier, additional shipping fees may include:
Always needed:
Sometimes needed:
Commercial or industrial license
Phytosanitary permits
Other special import permits
Many government agencies may be involved in regulating imports.
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license. Controlled goods have military or national security significance.
Prohibited items:
Restricted items:
What are the most popular online stores in Panama?
The top five most popular online stores in Panama are as follows: 1. Amazon 2. Ebay 3. Aliexpress 4. Panafoto 5. Doitcenter.
A cross-border guide to Panamanian ecommerce, shipping, and importing goods
If you are looking to grow your ecommerce business into Panama, you’ve come to the right place. In our guide, created by Zonos' cross-border experts, you will find the following: