🇵🇦 Panama vs 🇺🇾 Uruguay
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇦 Panama | 🇺🇾 Uruguay |
|---|---|---|
| Tax System | Territorial | Territorial (with tax holiday) |
| Income Tax (Foreign) | 0% (foreign income) | 0% foreign (10 years) |
| Capital Gains Tax | 0-10% | 0% foreign (10 years) |
| Corporate Tax | 25% | 25% |
| Residency Requirement | Friendly Nations Visa ($5,000) | $520k property OR income proof |
| Minimum Stay | None required | 183 days to activate |
| Cost of Living | Moderate ($1,500-2,500/mo) | Moderate ($2,000-3,500/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
🇺🇾 Uruguay
Highlights
- ✅10-year tax holiday on foreign income
- ✅Stable banking system
- ✅High quality of life
- ✅Safe country
- ✅Good infrastructure
Considerations
- ⚠️Higher residency requirements
- ⚠️Cold winters
- ⚠️Small market
Best For
- 👤Wealthy individuals
- 👤Argentines
- 👤Quality of life seekers
Which Should You Choose?
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Choose Uruguay if: You prioritize 10-year tax holiday on foreign income and stable banking system. Ideal for wealthy individuals, argentines, quality of life seekers.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.