🇵🇦 Panama vs 🇮🇲 Isle of Man
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇮🇲 Isle of Man |
|---|---|---|
| Tax System | Territorial | Low Tax |
| Income Tax (Foreign) | 0% (foreign income) | 20% (capped) |
| Capital Gains Tax | 0-10% | 0% |
| Corporate Tax | 25% | 0% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Work permit or investor |
| Minimum Stay | None required | 6 months |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($2,500-4,000/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
🇮🇲 Isle of Man
Highlights
- ✅Tax cap available
- ✅Zero corporate tax
- ✅Zero capital gains
- ✅British connection
- ✅Motorcycle TT races
Considerations
- ⚠️Remote location
- ⚠️Limited entertainment
- ⚠️Weather
Best For
- 👤eGaming
- 👤Crypto
- 👤British connection seekers
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Isle of Man if: You prioritize tax cap available and zero corporate tax. Ideal for egaming, crypto, british connection seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.