🇵🇦 Panama vs 🇪🇨 Ecuador
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇪🇨 Ecuador |
|---|---|---|
| Tax System | Territorial | Territorial (improving) |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign pension) |
| Capital Gains Tax | 0-10% | 0% (foreign) |
| Corporate Tax | 25% | 25% |
| Residency Requirement | Friendly Nations Visa ($5,000) | $1,400/mo pension |
| Minimum Stay | None required | None required |
| Cost of Living | Moderate ($1,500-2,500/mo) | Very Low ($1,000-1,800/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
🇪🇨 Ecuador
Highlights
- ✅Dollar-based economy
- ✅Very low cost of living
- ✅Great climate options
- ✅Excellent retiree benefits
- ✅Beautiful landscapes
Considerations
- ⚠️Political instability
- ⚠️Limited banking
- ⚠️Infrastructure varies
Best For
- 👤Retirees
- 👤Budget-conscious
- 👤Nature lovers
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Ecuador if: You prioritize dollar-based economy and very low cost of living. Ideal for retirees, budget-conscious, nature lovers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.