🇵🇦 Panama vs 🇮🇩 Indonesia
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇮🇩 Indonesia |
|---|---|---|
| Tax System | Territorial | New Tax Holiday |
| Income Tax (Foreign) | 0% (foreign income) | 0% (5 years, new residents) |
| Capital Gains Tax | 0-10% | 0% (foreign) |
| Corporate Tax | 25% | 22% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Second Home Visa |
| Minimum Stay | None required | None required |
| Cost of Living | Moderate ($1,500-2,500/mo) | Very Low ($1,000-2,000/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
🇮🇩 Indonesia
Highlights
- ✅New tax holiday for new residents
- ✅Beautiful islands (Bali)
- ✅Very low cost of living
- ✅Large expat community
- ✅Digital nomad visa
Considerations
- ⚠️Rules still evolving
- ⚠️Infrastructure varies
- ⚠️Visa complexity
Best For
- 👤Digital nomads
- 👤Bali lovers
- 👤Budget-conscious
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Indonesia if: You prioritize new tax holiday for new residents and beautiful islands (bali). Ideal for digital nomads, bali lovers, budget-conscious.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.