The 21-year-old will join the Italian double winners on a five-year contract.
Dybala was linked with Chelsea, Manchester United and Arsenal having enjoyed a successful season in Italy, where he scored 13 league goals in 35 games.
"Juventus are the side who wanted me the most," Dybala told Italian TV. "They made a real effort to sign me and this is why I made my decision,"Dybala joined Palermo in August 2012 from Argentine club Instituto for a reported fee of 12m euros.
Juventus say the deal could rise to 40m euros with add-ons.
Speaking before the deal was announced, Dybala added: "It will be impossible for me to forget everything I've experienced in three years at Palermo.Credit: BBC Sport
"I was happy from the very first day. I know that to play for Juve, I have to do much more and I'm sure I can improve a great deal."
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