The gap is driven by the headline tax structure — no special regime applied. Both countries are indicated in USD at the displayed FX.
Both Georgia and Panama operate on a territorial basis, though each country's bracket structure and available regimes produce materially different outcomes. Panama's top marginal rate of 25% is 5 percentage points above Georgia's 20%, making the statutory gap one of the largest variables in this comparison.
| Personal income tax progressive · top 20% | $20,000 |
| Social security 2.0% employee · uncapped | $2,000 |
| Total deductions | $22,000 |
| Gross income | $100,000 |
| Net take-home | $78,000 |
| Personal income tax progressive · top 25% | $18,350 |
| Social security 9.8% employee · uncapped | $9,750 |
| Total deductions | $28,100 |
| Gross income | $100,000 |
| Net take-home | $71,900 |
On a $100k single-resident employment profile under each country's default schedule, Georgia produces the lower effective burden at 22.0% versus 28.1% in Panama — a 6.1 percentage-point gap that compounds to roughly $6,100 of additional take-home annually. Social-security contributions also differ: Panama charges 9.8% versus 2.0% in Georgia, adding a second layer to the effective-rate spread that doesn't show in the income-tax brackets alone. The gap widens at higher incomes as marginal rates diverge further; remote workers earning above $150k or $200k should run the full engine scenario with their actual figures for a more precise read.
| Instrument | Georgia · USD | Panama · USD | Δ (PA − GE) |
|---|---|---|---|
I. Personal income tax | |||
Personal income tax GEprogressive · top 20%PAprogressive · top 25% | $20,000 | $18,350 | −$1,650 |
| subtotal · personal income tax | $20,000 | $18,350 | −$1,650 |
II. Mandatory social security & health | |||
Combined social contribution GE2.0% · uncappedPA— | $2,000 | — | −$2,000 |
~9.75%. GE—PA9.8% · uncapped | — | $9,750 | +$9,750 |
| subtotal · mandatory social security & health | $2,000 | $9,750 | +$7,750 |
| Total deductions | $22,000 | $28,100 | +$6,100 |
| Effective rate | 22.0% | 28.1% | 6.1 pp |
| Gross income | $100,000 | $100,000 | — |
| Net take-home | $78,000 | $71,900 | −$6,100 |
Table 1 · Statutory deductions, single-filer remote worker, FY2026 indicative. All amounts in USD. n/a where instrument does not apply. | |||
Georgia offers the Small Business Status (1% Turnover) (flat 1% on qualifying income) for qualifying incoming residents; Panama has no equivalent ICP-targeted regime currently modelled — new residents there enter the standard Panama schedule immediately. For movers who don't qualify for Georgia's Small Business Status (1% Turnover), both countries revert to their default progressive schedules, where Georgia's lower top rate still gives it a structural edge.
For a digital nomad or remote worker on a $100k income, Georgia edges Panama by 6.1 percentage points on the default schedule — a real but not overwhelming difference that other variables may offset.
Every line above can be traced to a primary instrument. We publish the model; you may toggle its parameters.
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