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Denmark vs Panama: tax rates compared
Denmark has an income tax rate of 55.9%, 30.9pp above Panama's 25%. The 200-country average is 28%: Denmark sits above it, Panama sits below it. Denmark's figure is dated 2025-01-01 and Panama's 2026-01-18, so the two rates come from different data vintages.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | DK | PA | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 25% | DK +30.9 pp |
| Corporate Tax | 22% | 25% | PA +3 pp |
| VAT | 25% | 7% | DK +18 pp |
| Capital Gains Tax | 42% | 10% | DK +32 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Difference | +30.9 pp | Denmark higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 22% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −3 pp | Panama higher |
Panama has a corporate tax rate of 25%, 3pp above Denmark's 22%. The 201-country average is 22.6%: Denmark sits below it, Panama sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Denmark | 25% | Source: PWC Worldwide Tax Summaries — Denmark (Corporate, Other taxes) · as of 2026-02-25 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | +18 pp | Denmark higher |
Denmark has a VAT rate of 25%, 18pp above Panama's 7%. The 181-country average is 15%: Denmark sits above it, Panama sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 42% | Source: PwC Worldwide Tax Summaries — Denmark, Individual - Taxes on personal income · as of 2026-06-25 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | +32 pp | Denmark higher |
Denmark has a capital gains tax rate of 42%, 32pp above Panama's 10%. The 175-country average is 10.3%: Denmark sits above it, Panama sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Denmark | 0% | Source: PWC Worldwide Tax Summaries — Denmark (Individual, Other taxes) · as of 2026-06-25 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
Denmark and Panama share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.