🇵🇦 Panama vs 🇵🇹 Portugal
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇵🇹 Portugal |
|---|---|---|
| Tax System | Territorial | NHR (Non-Habitual Resident) |
| Income Tax (Foreign) | 0% (foreign income) | 20% flat (qualifying income) |
| Capital Gains Tax | 0-10% | 0% (foreign gains) |
| Corporate Tax | 25% | 21% |
| Residency Requirement | Friendly Nations Visa ($5,000) | D7 Visa (passive income proof) |
| Minimum Stay | None required | 183 days/year |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($2,000-3,000/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
🇵🇹 Portugal
Highlights
- ✅EU membership & passport path
- ✅NHR tax regime benefits
- ✅High quality of life
- ✅English widely spoken
- ✅Great weather
Considerations
- ⚠️NHR being phased out for new applicants
- ⚠️183-day stay requirement
- ⚠️Higher taxes after NHR ends
Best For
- 👤EU access seekers
- 👤Retirees
- 👤Quality of life focus
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Portugal if: You prioritize eu membership & passport path and nhr tax regime benefits. Ideal for eu access seekers, retirees, quality of life focus.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.