🇵🇦 Panama vs 🇦🇩 Andorra
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇦🇩 Andorra |
|---|---|---|
| Tax System | Territorial | Low Tax |
| Income Tax (Foreign) | 0% (foreign income) | 0-10% |
| Capital Gains Tax | 0-10% | 0-10% |
| Corporate Tax | 25% | 10% |
| Residency Requirement | Friendly Nations Visa ($5,000) | €50k deposit + €400k investment |
| Minimum Stay | None required | 90 days |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($2,000-3,500/mo) |
🇵🇦 Panama
Highlights
- ✅Dollar-based economy
- ✅Strong banking sector
- ✅No forex controls
- ✅Good infrastructure
- ✅English widely spoken
Considerations
- ⚠️Higher cost of living than Paraguay
- ⚠️More bureaucracy
- ⚠️CRS reporting to some countries
Best For
- 👤Entrepreneurs
- 👤International traders
- 👤Banking needs
🇦🇩 Andorra
Highlights
- ✅Very low taxes
- ✅Safe country
- ✅Mountain lifestyle
- ✅Near Spain/France
- ✅Growing crypto scene
Considerations
- ⚠️Not EU member
- ⚠️Small country
- ⚠️Limited services
Best For
- 👤Skiers
- 👤Low-tax EU access
- 👤Crypto
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Andorra if: You prioritize very low taxes and safe country. Ideal for skiers, low-tax eu access, crypto.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.