Head-to-head · tax residents 2026
Portugal or Panama: which should you move to?
Two of Europe's top relocation targets, both with newcomer regimes. Here is how they compare on the taxes that move the needle.
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| Factor |  Portugal ↗ |  Panama ↗ |
|---|---|---|
| Top personal income tax | 48% | 25% |
| Corporate tax | 19%* | 25%* |
| Capital gains tax | Taxed | Taxed |
| Dividend tax | 28% | 10% |
| VAT / sales tax | 23% | 7% |
| Wealth tax | No | No |
| Inheritance tax | No | No |
| Foreign income | Worldwide | Territorial |
| Headline expat regime | IFICI (ex-NHR) | Territorial taxation |
| Cost of living (vs your country) | 60 | 45 |
| Population | 10,804,871 | 4,571,189 |
| Area | 92,391 km² | 78,200 km² |
| Population density | 117/km² | 58/km² |
| Airports (large + medium) | 31 | 8 |
| Annual tourists | 28,970,000 | 1,488,000 |
| Flight time from your country | · | · |
| Direct flight likely? | · | · |
| Life expectancy | 82.5 yrs | 79.8 yrs |
| Safety (homicides/100k) | 0.7 | 11.7 |
| Happiness (0-10) | 5.91 | 6.3 |
| Corruption index (higher = cleaner) | 61/100 | 35/100 |
| Double-tax treaties (approx) | ~79 | ~17 |
| Internet speed (median fixed) | 244 Mbps | 219 Mbps |
| Healthcare spend / person | $2,971 | $1,558 |
| Air quality (PM2.5, lower=better) | 8.77 | 15.12 |
| Time zone (approx) | UTC-1 | UTC-5 |
| Digital nomad visa | Yes | Yes |
| Official languages | 1 (Portuguese) | 1 (Spanish) |
Green = more favourable. Cost of living shown as a percentage of your home country (under 100% = cheaper than home). Tax data: compiled by us, being re-verified; cost of living: World Bank PPP; area & population: GeoNames; life expectancy & homicide rate: World Bank.
* Portugal: Reduced to 19% (mainland) from 2026 (was 20% in 2025). SMEs/Small Mid-Caps: 15% on first EUR 50,000 of taxable income; inland-territory SMEs 12.5%. Madeira/Azores: 13% standard. Start-ups access the SME reduced rates. · Panama: Territorial: only Panamanian-source income taxed. Companies with taxable income over USD 1.5M face CAIR alternative minimum tax (greater of normal base or 4.67% of gross taxable income).
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