Panama
Portugal
Panama vs Portugal
Complete comparison for your tax relocation
Taxation
| Top income tax bracket | 25% | 48% |
| Corporate tax | 25% | 19% |
| Capital gains | 10% | 0% |
| VAT | 7% | 23% |
| Tax treaty with France | No | Yes |
| Special regime | Taxation territoriale | Incentivo Fiscal à Investigação Científica e Inovação (IFICI) |
| Wealth tax | No | No |
| Territorial taxation | Yes | No |
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.
Incentivo Fiscal à Investigação Científica e Inovação (IFICI)
Duration: 10 ans
Successeur du NHR depuis 2024. Taux forfaitaire de 20 % sur les revenus portugais pour les nouveaux résidents fiscaux exerçant des activités à haute valeur ajoutée ou dans la recherche scientifique.
Cost of living
| Monthly cost (single) | 900 € | 1 200 € |
| Monthly cost (couple) | 1 400 € | 1 900 € |
| City center rent | 700 € | 950 € |
| Outside city rent | 400 € | 600 € |
| Private health insurance | 70 € | 80 € |
| Public healthcare | Accessible | Accessible |
Estimated total monthly budget (single, with city center rent)
Panama is approximately 550 € cheaper per month in total.
Quality of life
| Average temperature | 27°C | 17°C |
| Safety | 6/10 | 7/10 |
| Health index | 62/100 | 72/100 |
| Internet | 60 Mbps | 120 Mbps |
| Timezone vs Paris | -6h | -1h |
| French-speaking community | Very small | Medium |
| Languages | Espagnol, Anglais | Portugais |
| Currency | Balboa / Dollar US (PAB/USD) | Euro (EUR) |
| Corruption index | 36/100 | 61/100 |
| Democracy index | 7.05/10 | 7.95/10 |
Settling in
| Residence permit delay | 2 months | 6 months |
| Company creation | 6 days | 5 days |
| Bank account | Easy | Moderate |
| Political stability | 6/10 | 8/10 |
| Ease of business | 86th worldwide | 39th 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))
Portugal
- Top IT: 48% | Corp. tax: 19%
- Cost of living: 1 200 €/mo
- Safety: 7/10 | Health: 72/100
- Regime: Incentivo Fiscal à Investigação Científica e Inovação (IFICI) (10 ans)
Comparative analysis: Panama vs Portugal
Which country has lower taxes?
In terms of taxation, Panama is generally more advantageous. The top marginal income tax rate is 25% compared to 48% in Portugal. Corporate tax stands at 25% versus 19%. Capital gains are taxed at 0% in Portugal versus 10% in Panama.
Which country is cheaper to live in?
The cost of living is lower in Panama. A single person spends about 900 EUR/month excluding rent, compared to 1 200 EUR/month in Portugal. City center rent averages 700 EUR versus 950 EUR.
Which country is safer?
Portugal scores higher on safety (7/10 versus 6/10). In terms of healthcare, Portugal leads with an index of 72/100 compared to 62/100 for Panama.
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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.