🇵🇦 Panama vs 🇩🇲 Dominica
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇩🇲 Dominica |
|---|---|---|
| Tax System | Territorial | Zero Tax (non-residents) |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0-10% | 0% |
| Corporate Tax | 25% | 25% |
| Residency Requirement | Friendly Nations Visa ($5,000) | CBI ($100k donation) |
| Minimum Stay | None required | None |
| Cost of Living | Moderate ($1,500-2,500/mo) | Low ($1,500-2,500/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
🇩🇲 Dominica
Highlights
- ✅Cheapest CBI program
- ✅Zero tax on foreign income
- ✅Nature island
- ✅Low cost of living
- ✅Second passport
Considerations
- ⚠️Limited infrastructure
- ⚠️Small economy
- ⚠️Hurricane risk
Best For
- 👤Budget CBI
- 👤Nature lovers
- 👤Second passport
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Dominica if: You prioritize cheapest cbi program and zero tax on foreign income. Ideal for budget cbi, nature lovers, second passport.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.