🇵🇦 Panama vs 🇮🇹 Italy
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇮🇹 Italy |
|---|---|---|
| Tax System | Territorial | Flat Tax Regime |
| Income Tax (Foreign) | 0% (foreign income) | €100k flat (foreign income) |
| Capital Gains Tax | 0-10% | 0% (foreign) |
| Corporate Tax | 25% | 24% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Elective Residency Visa |
| Minimum Stay | None required | 183 days |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate-High ($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
🇮🇹 Italy
Highlights
- ✅€100k flat tax on foreign income
- ✅World-class culture
- ✅Amazing food
- ✅EU membership
- ✅Beautiful country
Considerations
- ⚠️Bureaucracy
- ⚠️Language barrier
- ⚠️Regime has time limits
Best For
- 👤Wealthy individuals
- 👤Culture lovers
- 👤EU access 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 Italy if: You prioritize €100k flat tax on foreign income and world-class culture. Ideal for wealthy individuals, culture lovers, eu access seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.