Panama
Paraguay
Panama vs Paraguay
Complete comparison for your tax relocation
Taxation
| Top income tax bracket | 25% | 10% |
| Corporate tax | 25% | 10% |
| Capital gains | 10% | 8% |
| VAT | 7% | 10% |
| Tax treaty with France | No | No |
| Special regime | Taxation territoriale | Taxation territoriale |
| Wealth tax | No | No |
| Territorial taxation | Yes | Yes |
Taxation territoriale
Duration: Illimitée (systeme fiscal national permanent)
Le Panama applique un systeme de taxation purement territoriale : seuls les revenus de source panaméenne sont imposés. Les revenus générés à l'étranger sont totalement exonérés, y compris les dividendes, intérets et plus-values d'origine étrangere.
Taxation territoriale
Duration: Permanente (systeme territorial par défaut)
Le Paraguay applique une imposition strictement territoriale. Seuls les revenus de source paraguayenne sont imposés. Les revenus étrangers, y compris dividendes, intérets et plus-values, sont totalement exonérés.
Cost of living
| Monthly cost (single) | 900 € | 600 € |
| Monthly cost (couple) | 1 400 € | 950 € |
| City center rent | 700 € | 350 € |
| Outside city rent | 400 € | 200 € |
| Private health insurance | 70 € | 35 € |
| Public healthcare | Accessible | Private only |
Estimated total monthly budget (single, with city center rent)
Paraguay is approximately 650 € cheaper per month in total.
Quality of life
| Average temperature | 27°C | 24°C |
| Safety | 6/10 | 5/10 |
| Health index | 62/100 | 55/100 |
| Internet | 60 Mbps | 30 Mbps |
| Timezone vs Paris | -6h | -5h |
| French-speaking community | Very small | Very small |
| Languages | Espagnol, Anglais | Espagnol, Guarani |
| Currency | Balboa / Dollar US (PAB/USD) | Guarani (PYG) |
| Corruption index | 36/100 | 28/100 |
| Democracy index | 7.05/10 | 6.18/10 |
Settling in
| Residence permit delay | 2 months | 3 months |
| Company creation | 6 days | 35 days |
| Bank account | Easy | Easy |
| Political stability | 6/10 | 5.5/10 |
| Ease of business | 86th worldwide | 125th worldwide |
Summary
Panama
- Top IT: 25% | Corp. tax: 25%
- Cost of living: 900 €/mo
- Safety: 6/10 | Health: 62/100
- Regime: Taxation territoriale (Illimitée (systeme fiscal national permanent))
Paraguay
- Top IT: 10% | Corp. tax: 10%
- Cost of living: 600 €/mo
- Safety: 5/10 | Health: 55/100
- Regime: Taxation territoriale (Permanente (systeme territorial par défaut))
Comparative analysis: Panama vs Paraguay
Which country has lower taxes?
In terms of taxation, Paraguay is generally more advantageous. The top marginal income tax rate is 10% compared to 25% in Panama. Corporate tax stands at 10% versus 25%. Capital gains are taxed at 8% in Paraguay versus 10% in Panama.
Which country is cheaper to live in?
The cost of living is lower in Paraguay. A single person spends about 600 EUR/month excluding rent, compared to 900 EUR/month in Panama. City center rent averages 350 EUR versus 700 EUR.
Which country is safer?
Panama scores higher on safety (6/10 versus 5/10). In terms of healthcare, Panama leads with an index of 62/100 compared to 55/100 for Paraguay.
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Disclaimer
The tax information presented is based on estimates from public sources (PwC, OECD, government sources). It does not constitute tax or legal advice. Tax rules change regularly and your personal situation may significantly affect the calculation. Consult a qualified professional before making any relocation decision.