🇵🇦 Panama vs 🇨🇷 Costa Rica
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇨🇷 Costa Rica |
|---|---|---|
| Tax System | Territorial | Territorial |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0-10% | 0% (foreign) |
| Corporate Tax | 25% | 30% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Rentista ($2,500/mo income) |
| Minimum Stay | None required | None required |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($1,800-3,000/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
🇨🇷 Costa Rica
Highlights
- ✅Stable democracy
- ✅No army, peaceful
- ✅Beautiful nature
- ✅Good healthcare
- ✅Large expat community
Considerations
- ⚠️Higher cost than neighbors
- ⚠️Bureaucratic processes
- ⚠️Some areas touristy
Best For
- 👤Retirees
- 👤Nature lovers
- 👤Families
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Costa Rica if: You prioritize stable democracy and no army, peaceful. Ideal for retirees, nature lovers, families.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.