Panama and Paraguay are the two residencies people most often weigh against each other: both tax foreign income at zero, both are open to Europeans, and both have been rewritten since 2021. This is where they actually stand today.
| Panama | Paraguay | |
|---|---|---|
| Who can apply | Friendly Nations Visa: nationals of around 50 listed countries (most of the EU, including Slovakia and Czechia, plus the UK, US, Canada and Australia) | Any nationality |
| What qualifies you | One of three ties (Executive Decree 226/2021): an employment contract with a Panamanian company plus a Ministry of Labour work permit, USD 200,000 in real estate, or a USD 200,000 fixed-term deposit held at least three years in a Panamanian bank | No investment and no minimum amount. You prove economic solvency under one of the twelve categories of DNM Resolution 407/2026 — employees, professionals, remote workers, property owners, retirees, students and so on |
| Route to permanent residency | Two years of provisional residency first, then permanent. Executive Decree 197/2021 ended the old instant-permanent route | Two years of temporary residency first, then a change of category to permanent under Law 6984/2022. The solvency proof is required at that conversion, not at the temporary stage |
| Local company or bank account | A Panamanian bank account is needed for the deposit route; the employment route needs a Panamanian employer | Neither is required |
| Keeping it valid | Residency can be cancelled if you stay outside Panama for more than two consecutive years | Temporary: no more than 365 days abroad. Permanent: no more than three years abroad (art. 55, Law 6984/2022). DNM Resolution 376/2026 now runs six-monthly sweeps to enforce this, and also lets permanent residents pre-authorise one extra year away |
| Personal income tax | Territorial — foreign income is not taxed | Territorial for natural persons — foreign income is not taxed |
| Automatic exchange of bank data | Participates in the CRS automatic exchange of financial account information | Not in the CRS automatic exchange. Information can still be exchanged on request under the OECD Convention on Mutual Administrative Assistance in Tax Matters, in force since 1 January 2022 |
| Citizenship | After five years of permanent residency | After three years of permanent residency, with proof of genuine ties (arraigo) |
| Travelling on the ID card | — | Paraguay is a Mercosur member: most of South America is reachable on the Paraguayan cédula, without a passport |
If you would rather buy your way past the waiting
Both countries have an investor route that skips the two-year stage and grants permanent residency directly. Panama’s Qualified Investor Visa asks for USD 300,000 in real estate — rising permanently to USD 500,000 after 15 October 2026 — or USD 500,000 in securities, or a USD 750,000 bank deposit, with the investment held for five years. Paraguay’s Investor Pass starts at USD 70,000.
Read further
- New conditions for permanent residency in Paraguay (from 6 July 2026) — the twelve solvency categories and the documents each one needs
- Up-to-date information on obtaining temporary and permanent residence in Paraguay
- 10 reasons to arrange your Paraguayan residency through Liberation.Travel
- Panama’s crypto services for Panamanian residents
Rules verified 13 August 2026. Immigration thresholds and fees change often — ask us before you plan around any single number here.