🇵🇾 Paraguay vs 🇵🇦 Panama
Complete Tax Residency Comparison for Digital Nomads & Entrepreneurs
Quick Comparison
| Factor | 🇵🇾 Paraguay | 🇵🇦 Panama |
|---|---|---|
| Tax System | Territorial | Territorial |
| Income Tax (Foreign) | 0% (foreign income) | 0% (foreign income) |
| Capital Gains Tax | 0% (foreign assets) | 0-10% |
| Corporate Tax | 10% | 25% |
| Residency Requirement | $5,000 bank deposit | Friendly Nations Visa ($5,000) |
| Minimum Stay | None required | None required |
| Cost of Living | Very Low ($800-1,500/mo) | Moderate ($1,500-2,500/mo) |
🇵🇾 Paraguay
Highlights
- ✅Zero tax on foreign income
- ✅Easy permanent residency
- ✅No minimum stay requirement
- ✅Low cost of living
- ✅Path to citizenship in 3 years
Considerations
- ⚠️Limited international banking
- ⚠️Spanish language barrier
- ⚠️Developing infrastructure
Best For
- 👤Digital nomads
- 👤Remote workers
- 👤Crypto investors
- 👤Retirees
🇵🇦 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
Which Should You Choose?
Choose Paraguay if: You prioritize zero tax on foreign income and easy permanent residency. Ideal for digital nomads, remote workers, crypto investors, retirees.
Choose Panama if: You prioritize dollar-based economy and strong banking sector. Ideal for entrepreneurs, international traders, banking needs.
Not Sure Which is Right for You?
Take our free eligibility assessment to see which tax residency program fits your situation.