While both offer virtually the same type of tax residency, Paraguay has some advantages in:

  • Weak currency and therefore very low cost of living for those who move there.
  • There are still few laws against money laundering, which allows people to open accounts easily and set up companies without delay.
  • It allows you to travel to the country once every three years to maintain your active residency. But after three years, you apply directly for citizenship.
  • It grants the passport after only 3 years compared to 5 in Panama.
  • Panama, for its part, offers the advantage of being in the best possible location, making it a logistics and airport hub. Tocumen Airport is the hub of the Americas.
  • Panama has the dollar, which, although it makes it much more expensive to live in, also guarantees reduced inflation and goods valued in hard currency, as well as a liberal economic policy.
  • It has the largest financial center in the Americas, with the largest concentration of offshore banks in the Americas.
  • It has a thriving offshore corporate industry. It's very easy to move money and do business both offshore and onshore.
  • For Italians, there's no expiration date on permanent residency, so unlike visas from other friendly countries, there's no obligation to return every two years. Be wary of anyone who claims otherwise.
  • Moving to live in Paraguay for Italians and Swiss is exceptionally easy, due to the strong historical and cultural ties between the three countries
  • Incomparable and certified cultural similarity considering that Paraguay has 73% and more of its population of European descent
  • Living and working in Paraguay once you have taken up residency in Paraguay is not at all complicated and does not require work permits like in Panama
  • Taking up residence in Paraguay allows you to obtain a Certificate of Fiscal Residency, while in Panama this is not possible for Italians. In fact, read the page relating to the certificate of fiscal residency and to which countries it applies to Panama.
  • In both countries it is easy to register with AIRE, therefore saying goodbye to the Italian tax authorities if you spend more than 183 days outside Italy.

For more information:  Secondary site for residency in Paraguay, always our own, How to take up residency in Paraguay , Reddit difference between residency in Panama and residency in Paraguay

!▶︎ ATTENTION : As of February 2023, some conditions for residency in Paraguay have changed. Applications are now even easier, and the requirement to open a bank account has been eliminated; it is now optional if you wish. Blood tests are no longer required for almost all visa categories.