🇵🇦 Panama vs 🇯🇪 Channel Islands
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇯🇪 Channel Islands |
|---|---|---|
| Tax System | Territorial | Low Tax |
| Income Tax (Foreign) | 0% (foreign income) | 20% flat |
| Capital Gains Tax | 0-10% | 0% |
| Corporate Tax | 25% | 0-10% |
| Residency Requirement | Friendly Nations Visa ($5,000) | High-value resident status |
| Minimum Stay | None required | Varies by island |
| Cost of Living | Moderate ($1,500-2,500/mo) | High ($3,000-5,000/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
🇯🇪 Channel Islands
Highlights
- ✅Low flat tax rate
- ✅Zero capital gains
- ✅British legal system
- ✅Near UK/France
- ✅Financial services hub
Considerations
- ⚠️Expensive property
- ⚠️Small islands
- ⚠️Weather
Best For
- 👤Finance professionals
- 👤UK alternatives
- 👤Offshore planning
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Channel Islands if: You prioritize low flat tax rate and zero capital gains. Ideal for finance professionals, uk alternatives, offshore planning.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.