PA · AmericasGB · Europe
Panama vs United Kingdom: tax rates compared
United Kingdom's income tax rate is 20pp higher than Panama's (45% vs 25%). The 200-country average is 28%: Panama sits below it, United Kingdom sits above it. Panama's figure is dated 2026-01-18 and United Kingdom's 2025-01-01, 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 | PA | GB | Difference |
|---|---|---|---|
| Income Tax | 25% | 45% | GB +20 pplargest gap |
| Corporate Tax | 25% | 25% | match |
| VAT | 7% | 20% | GB +13 pp |
| Capital Gains Tax | 10% | 24% | GB +14 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| United Kingdom | 45% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −20 pp | United Kingdom higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| United Kingdom | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | 0 pp | displayed rates match |
Panama's corporate tax rate is identical to United Kingdom's — both sit at 25%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| United Kingdom | 20% | Source: PWC Worldwide Tax Summaries — United Kingdom (Corporate, Other taxes) · as of 2025-12-24 |
| Difference | −13 pp | United Kingdom higher |
United Kingdom's VAT rate is 13pp higher than Panama's (20% vs 7%). The 181-country average is 15%: Panama sits below it, United Kingdom sits above it. Panama's figure is dated 2026-01-18 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Capital Gains Tax: rates · as of 2024-10-30 |
| Difference | −14 pp | United Kingdom higher |
United Kingdom's capital gains tax rate is 14pp higher than Panama's (24% vs 10%). The 175-country average is 10.3%: Panama sits below it, United Kingdom sits above it. Panama's figure is dated 2026-01-18 and United Kingdom's 2024-10-30, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| United Kingdom | 0% | Source: PWC Worldwide Tax Summaries — United Kingdom (Individual, Other taxes) · as of 2025-12-24 |
| Difference | 0 pp | displayed rates match |
Panama's wealth tax rate is identical to United Kingdom's — both sit at 0%. The 193-country average is 0.1%: both sit below it. Panama's figure is dated 2026-01-18 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax.