🇵🇦 Panama vs 🇵🇷 Puerto Rico
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇵🇷 Puerto Rico |
|---|---|---|
| Tax System | Territorial | Act 60 Incentives |
| Income Tax (Foreign) | 0% (foreign income) | 0% (export services) |
| Capital Gains Tax | 0-10% | 0% (post-move gains) |
| Corporate Tax | 25% | 4% (export services) |
| Residency Requirement | Friendly Nations Visa ($5,000) | US citizens only |
| Minimum Stay | None required | 183 days |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($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
🇵🇷 Puerto Rico
Highlights
- ✅US territory - no FEIE needed
- ✅Act 60 tax incentives
- ✅Zero capital gains post-move
- ✅4% corporate tax
- ✅Beach lifestyle
Considerations
- ⚠️Only for US citizens
- ⚠️Must meet presence tests
- ⚠️Hurricane risk
Best For
- 👤US citizens
- 👤Crypto investors
- 👤Export service businesses
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Puerto Rico if: You prioritize us territory - no feie needed and act 60 tax incentives. Ideal for us citizens, crypto investors, export service businesses.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.