🇵🇦 Panama vs 🇲🇾 Malaysia
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇲🇾 Malaysia |
|---|---|---|
| Tax System | Territorial | Territorial |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0-10% | 0% |
| Corporate Tax | 25% | 24% |
| Residency Requirement | Friendly Nations Visa ($5,000) | MM2H (complex) |
| Minimum Stay | None required | None for tax benefits |
| Cost of Living | Moderate ($1,500-2,500/mo) | Low ($1,500-2,500/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
🇲🇾 Malaysia
Highlights
- ✅Zero tax on foreign income
- ✅English widely spoken
- ✅Modern infrastructure
- ✅Multicultural society
- ✅Great food
Considerations
- ⚠️MM2H requirements tightened
- ⚠️Hot and humid climate
- ⚠️Some restrictions on activities
Best For
- 👤Families
- 👤Retirees
- 👤Asia-based professionals
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Malaysia if: You prioritize zero tax on foreign income and english widely spoken. Ideal for families, retirees, asia-based professionals.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.