Crypto Assets and Tax Impact in Panama

Ivelisse Bonilla Castillo, Tax Director at ARIAS Panama and an expert in Taxation, presents this article about how in Panama, there is still no specific regulation for crypto assets, so their tax treatment currently falls under the general fiscal regime. However, the National Assembly is reviewing Bill No. 247, which aims to establish a special regulatory and tax framework that includes incentives for tech companies and digital economic zones. Furthermore, the Municipality of Panama already allows the use of cryptocurrencies for the payment of local taxes, positioning itself as a pioneer in the public adoption of these assets.

The crypto-asset market is characterized by its innovative and disruptive nature compared to the traditional financial system. Unlike the latter, its operation is based on a distributed network of multiple computers. This decentralized structure eliminates the need for a central entity to control transactions, thereby transforming the way in which such transactions are executed, verified, and recorded.

Since the emergence of Bitcoin in 2008, this market has evolved to encompass not only digital assets themselves, but also the individuals, entities, and technologies involved in their operation and development.

Before proceeding with the analysis, it is useful to recall the definition of a "crypto asset.” According to the 2023 report issued by the Organization for Economic Co-operation and Development (OECD)—related to the new framework for the automatic exchange of tax-relevant information on crypto-assets—such assets are defined as a "digital representation of value that relies on a cryptographically secured distributed ledger or similar technology to validate and secure transactions.”

The report further clarifies that these assets may be transferred in a decentralized manner, without the involvement of traditional financial intermediaries such as banks. This new ecosystem has given rise to new types of intermediaries and service providers, including crypto-asset exchanges or "monetizers,” and digital wallet providers.

In recent years, the interaction between supply and demand—driven by growing confidence and the expansion of the use of these assets in the various markets where they are traded—resulted in a 45.7% increase in total market capitalization in 2024, reaching an approximate value of USD 3.9 trillion during the last quarter of the year, according to data published on the website of CoinGecko1, an independent platform that aggregates information from hundreds of cryptocurrency exchanges (e.g., Binance, Coinbase, OKX).
Similarly, CoinMarketCap2, another independent source of cryptocurrency statistics, reports that countries such as the United States, India, Brazil, and Germany show significant activity in the use of cryptocurrencies, with Bitcoin, Ethereum, and Solana being the most widely traded assets in these jurisdictions.

This rapidly expanding global market has also reached Panama, where, at present, there is no specific legal or tax framework governing the use or circulation of crypto assets. However, the absence of express regulation does not imply prohibition. Crypto-assets or cryptocurrencies may be purchased, sold, stored, transferred, and generally used in Panama. This is supported by Article 18 of the Political Constitution of Panama, which establishes that "everything that is not expressly prohibited by law is permitted.” Therefore, as there is no express prohibition on crypto assets, their use is allowed in our jurisdiction, and they may be freely acquired, transferred, or utilized without the existence of formal regulatory guidelines or supervisory authorities.

Consequently, in the absence of a specific tax regulation, crypto assets may be treated as intangible property subject to the general tax regime. In this regard, income derived from their use or disposal would be subject to income tax, either as ordinary or commercial income to be reported in the annual income tax return, or as capital gains, depending on the nature and circumstances of each transaction.

Over the past several years, the National Assembly of Panama has promoted various initiatives aimed at establishing a regulatory framework for the digital economy and the use of cryptocurrencies. At present, the most notable is Bill No. 247, introduced on March 20, 2025, which seeks to create a legal framework for crypto-asset transactions and to promote the development of the digital economy in the country.

Among its most relevant provisions from a tax perspective, the bill establishes that transactions involving crypto assets will be subject to a special tax regime, the regulation of which would fall under the authority of the General Directorate of Revenue (DGI) of the Ministry of Economy and Finance of Panama.

In line with this framework, the bill currently under discussion also introduces a series of incentives and measures intended to promote the use of blockchain technologies and crypto assets in the country. However, as the proposal remains under legislative review, its content may undergo significant changes.

In this context, it is worth noting that, at the governmental level, the Municipality of Panama has been a pioneer in the adoption of crypto assets. Pursuant to Municipal Agreement No. 94 of April 15, 2025, subsequently amended by Municipal Agreement No. 133 of May 29 of the same year, the use of cryptocurrencies was authorized as a method of payment for all taxes, fees, levies, rights, services, penalties, interest, or fines payable to the municipality.

Under this regulation, payments made in cryptocurrencies will be received in custody by a local financial institution, which will be responsible for converting the funds to U.S. dollars—Panama’s legal tender—and subsequently transferring them to the official municipal bank account designated for such purpose.

Finally, according to the official website of the National Assembly of Deputies, Bill No. 247 was referred to a subcommittee for further analysis on September 30, 2025.



The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.