IS · EuropePA · Americas
Iceland vs Panama: tax rates compared
Iceland has an income tax rate of 46.3%, 21.3pp above Panama's 25%. The 200-country average is 28%: Iceland sits above it, Panama sits below it. Iceland'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 | IS | PA | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 25% | IS +21.3 pplargest gap |
| Corporate Tax | 20% | 25% | PA +5 pp |
| VAT | 24% | 7% | IS +17 pp |
| Capital Gains Tax | 22% | 10% | IS +12 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 46.3% | 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 | +21.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | 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 | −5 pp | Panama higher |
Panama has a corporate tax rate of 25%, 5pp above Iceland's 20%. The 201-country average is 22.6%: Iceland sits below it, Panama sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | +17 pp | Iceland higher |
Iceland has a VAT rate of 24%, 17pp above Panama's 7%. The 181-country average is 15%: Iceland sits above it, Panama sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | +12 pp | Iceland higher |
Iceland has a capital gains tax rate of 22%, 12pp above Panama's 10%. The 175-country average is 10.3%: Iceland sits above it, Panama sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
Iceland 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.