Panama, Spain, Cyprus: Tax Rates & Startup Funding Compared

Side-by-side breakdown of tax rates, startup funding, personal tax, and 6 more dimensions for founders choosing where to incorporate in 2026.

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3 selectedClear all
🇪🇸Spain
69
Worldwide
🇵🇦Panama
76
Territorial
🇨🇾Cyprus
81
Worldwide

Dimension Profile

Shape = jurisdiction fingerprint. Gap = your decision.

Tax Regime Comparison4
🇪🇸SpainWorldwide47%
🇵🇦PanamaTerritorial25%
🇨🇾CyprusWorldwide35%
Tax system mismatchCritical

Spain and Cyprus tax all worldwide income once you become a tax resident (top rate: 47%). Panama does not - only locally-sourced income is taxed. This is a fundamental structural difference that affects your total effective tax burden.

Exit tax applies in one jurisdictionCritical

Spain has an exit tax. If you establish residency and later wish to leave, you may owe tax on unrealized gains or assets at departure. The other countries in this comparison do not have an exit tax.

12pp personal tax rate spreadNote

Both countries tax worldwide income, but the top personal income tax rates differ materially. Spain: 47% vs Cyprus: 35%. Both apply to all global earnings once you establish residency.

CFC rules apply in one jurisdictionReview

Spain has Controlled Foreign Corporation (CFC) rules. Owning a foreign company as a resident may trigger local tax on undistributed profits - even if the company pays no dividends. The other countries in this comparison do not have CFC rules.

Not tax advice. Tax laws change frequently. Verify with a qualified professional before making residency decisions.

Field-by-Field Breakdown

Green = best value per row
Metric
🇪🇸Spain69
🇵🇦Panama76
🇨🇾Cyprus81
Dimension Scores
Corporate Tax
32
100
83
Funding
100
60
85
Visa
90
90
90
Residency
43
73
65
Tax Res.
45
80
70
Practical
96
81
86
Remote Work
64
88
64
Family
95
80
100
Ecosystem
60
40
65
Corporate Tax Details
Corporate Tax Rate25%25%12.5%
Capital Gains Tax28%10%0%
Tax Treaties961765
Territorial SystemNoYesNo
Funding Details
Active VCs1001220
Government GrantsYesYesYes
EU Funding EligibleYesNoYes
Visa Details
Has Startup VisaYesYesYes
Processing Time453060
Min Investment-$200K$30K
E-ResidencyNoNoNo
Digital Nomad VisaYesYesYes
Residency Details
Visa Programs Available233
Citizenship Timeline1057
Dual CitizenshipNoYesYes
Immigration Score787
Tax Res. Details
Tax Residency Days183183183
Personal Tax Top Rate472535
Territorial TaxationNoYesNo
Special Tax RegimeYesNoYes
Exit TaxYesNoNo
Practical Details
Banking Difficultyeasymoderatemoderate
100% Foreign OwnershipYesYesYes
Company Formation755
Virtual Office OKYesYesYes
Remote Work Details
Nomad VisaYesYesYes
Tourist Workgray_areatoleratedgray_area
Tourist Visa Days9018090
PE Risk Levelmoderatelowmoderate
Days Before Tax Res.18318360
Internet Speed2205065
Coworking/mo$250$200$180
Family Details
Safety Index725580
Int'l SchoolsYesYesYes
Homeschoolinglegal_with_restrictionslegallegal_with_restrictions
Healthcare Quality826875
Cost of Living556570
Ecosystem Details
Unicorns501
English Business EnvNoNoYes
Talent Pool Quality704860

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