🇵🇦 Panama vs 🇳🇮 Nicaragua
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇳🇮 Nicaragua |
|---|---|---|
| Tax System | Territorial | Territorial |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0-10% | 0% (foreign) |
| Corporate Tax | 25% | 30% |
| Residency Requirement | Friendly Nations Visa ($5,000) | $750/mo income proof |
| Minimum Stay | None required | None required |
| Cost of Living | Moderate ($1,500-2,500/mo) | Very Low ($600-1,200/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
🇳🇮 Nicaragua
Highlights
- ✅Lowest cost in Americas
- ✅Beautiful beaches
- ✅Easy residency
- ✅Territorial taxation
- ✅Growing expat community
Considerations
- ⚠️Political concerns
- ⚠️Basic infrastructure
- ⚠️Limited banking
Best For
- 👤Budget nomads
- 👤Beach lovers
- 👤Adventurous types
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Nicaragua if: You prioritize lowest cost in americas and beautiful beaches. Ideal for budget nomads, beach lovers, adventurous types.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.