🇵🇦 Panama vs 🇨🇾 Cyprus
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇨🇾 Cyprus |
|---|---|---|
| Tax System | Territorial | Non-Dom Regime |
| Income Tax (Foreign) | 0% (foreign income) | 0% on dividends |
| Capital Gains Tax | 0-10% | 0% (most cases) |
| Corporate Tax | 25% | 12.5% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Category F permit (€50k deposit) |
| Minimum Stay | None required | 60 days (special regime) |
| 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
🇨🇾 Cyprus
Highlights
- ✅EU membership
- ✅English widely spoken
- ✅60-day rule for tax residency
- ✅Non-dom dividend exemption
- ✅Good weather
Considerations
- ⚠️Divided island
- ⚠️Hot summers
- ⚠️Limited winter activities
Best For
- 👤Non-dom status seekers
- 👤Holding companies
- 👤Yacht owners
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Cyprus if: You prioritize eu membership and english widely spoken. Ideal for non-dom status seekers, holding companies, yacht owners.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.