🇵🇦 Panama vs 🇯🇵 Japan
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇯🇵 Japan |
|---|---|---|
| Tax System | Territorial | Non-Permanent Resident |
| Income Tax (Foreign) | 0% (foreign income) | 5-45% |
| Capital Gains Tax | 0-10% | 0% (foreign, NPR) |
| Corporate Tax | 25% | 23-30% |
| Residency Requirement | Friendly Nations Visa ($5,000) | Various visas |
| Minimum Stay | None required | NPR status first 5 years |
| Cost of Living | Moderate ($1,500-2,500/mo) | High ($2,500-4,500/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
🇯🇵 Japan
Highlights
- ✅NPR regime excludes foreign gains
- ✅Amazing culture
- ✅Safe country
- ✅Great infrastructure
- ✅Digital nomad visa coming
Considerations
- ⚠️High taxes after NPR ends
- ⚠️Language barrier
- ⚠️Complex bureaucracy
Best For
- 👤Culture enthusiasts
- 👤First 5 years tax planning
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Japan if: You prioritize npr regime excludes foreign gains and amazing culture. Ideal for culture enthusiasts, first 5 years tax planning.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.