🇵🇦 Panama vs 🇻🇬 British Virgin Islands
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇻🇬 British Virgin Islands |
|---|---|---|
| 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) | Work permit or investor |
| Minimum Stay | None required | None |
| Cost of Living | Moderate ($1,500-2,500/mo) | High ($4,000-6,000/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
🇻🇬 British Virgin Islands
Highlights
- ✅Zero taxes
- ✅Corporate haven
- ✅British legal system
- ✅Caribbean lifestyle
- ✅Sailing paradise
Considerations
- ⚠️Expensive
- ⚠️Small community
- ⚠️Hurricane risk
Best For
- 👤Corporate structuring
- 👤Yachting
- 👤Privacy seekers
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose British Virgin Islands if: You prioritize zero taxes and corporate haven. Ideal for corporate structuring, yachting, privacy seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.