🇵🇦 Panama vs 🇧🇭 Bahrain
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇧🇭 Bahrain |
|---|---|---|
| Tax System | Territorial | Zero Tax |
| Income Tax (Foreign) | 0% (foreign income) | 0% |
| Capital Gains Tax | 0-10% | 0% |
| Corporate Tax | 25% | 0% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Self-sponsorship available |
| Minimum Stay | None required | None required |
| 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
🇧🇭 Bahrain
Highlights
- ✅Zero taxes across the board
- ✅Lower cost than Dubai
- ✅Good banking sector
- ✅Business-friendly
- ✅Alcohol permitted
Considerations
- ⚠️Smaller market than UAE
- ⚠️Hot climate
- ⚠️Less glamorous than Dubai
Best For
- 👤Cost-conscious Gulf seekers
- 👤Finance professionals
- 👤Regional business
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Bahrain if: You prioritize zero taxes across the board and lower cost than dubai. Ideal for cost-conscious gulf seekers, finance professionals, regional business.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.