Introduction
Panama has long been a popular destination for expats, retirees, and entrepreneurs thanks to its strategic location, thriving economy, and welcoming visa policies. With its world-famous Panama Canal, modern capital city, lush rainforests, and stunning Caribbean and Pacific coastlines, the country offers a unique blend of business and leisure opportunities.
For remote workers and digital nomads, Panama has stepped into the spotlight with its Short Stay Visa for Remote Workers, often referred to as the Panama Digital Nomad Visa. This program was launched to attract foreign professionals who want to live in Panama while working online for employers or clients abroad.
In recent years, Panama has positioned itself as one of the most accessible and affordable digital nomad destinations in Latin America. With strong internet infrastructure, a dollarized economy, a large international community, and world-class banking, the country offers everything a remote worker needs to live comfortably and work productively.
What Is the Panama Digital Nomad Visa?
The Panama Digital Nomad Visa (officially known as the Short Stay Visa for Remote Workers) allows foreign nationals to live in Panama for up to 9 months, with the option to extend for another 9 months, for a maximum stay of 18 months.
The program was introduced in 2021 as part of Panama’s strategy to attract remote professionals who can contribute to the local economy without competing with the local job market.
Unlike other residence permits, this visa is specifically designed for digital nomads, freelancers, and remote employees. It’s straightforward, affordable, and much faster to obtain compared to traditional residency programs.
Key Features of the Panama Digital Nomad Visa
Here’s a quick breakdown of the most important details:
| Feature | Details |
|---|---|
| Visa Name | Short Stay Visa for Remote Workers (Panama Digital Nomad Visa) |
| Purpose | Allows foreign remote workers to live in Panama while working online for foreign clients or employers |
| Duration | 9 months, renewable once for another 9 months (max 18 months) |
| Income Requirement | Minimum USD 36,000 annually (or USD 3,000 monthly) |
| Application Fee | USD 250 government fee + USD 50 visa card fee |
| Health Insurance | Mandatory for the entire stay |
| Eligible Applicants | Remote employees, freelancers, business owners working with foreign clients |
| Family Members | Spouse and dependents can be included, subject to requirements |
| Processing Time | Typically 30–45 days |
| Work Rules | No employment with Panamanian companies allowed |
Why Panama Introduced the Digital Nomad Visa
Panama’s economy is heavily based on trade, logistics, finance, and services, with its strategic role as a global shipping hub. By introducing the Digital Nomad Visa, the government aimed to:
- Attract foreign currency into the local economy.
- Support tourism recovery by turning short-term visitors into long-term residents.
- Promote Panama as a business-friendly hub for global entrepreneurs and remote workers.
- Strengthen the international community within Panama City and coastal areas.
Why Choose Panama as a Digital Nomad Destination?
Panama stands out among digital nomad hotspots for several reasons:
- 🌎 Strategic Location – Easy access to North America, South America, and the Caribbean.
- 💻 Strong Infrastructure – High-speed internet, modern coworking spaces, and excellent banking.
- 💸 Affordable Lifestyle – Lower costs than the U.S. or Europe while maintaining high living standards.
- 🏖 Diverse Living Options – From the bustling city of Panama City to beach towns like Bocas del Toro.
- 🛡 Safe & Stable – Politically stable and relatively safe compared to other Latin American countries.
- 🏦 Dollarized Economy – Uses the U.S. dollar, making international transactions simple.
- 🛫 Connectivity – Tocumen International Airport is a major hub with direct flights to dozens of countries.
Eligibility Criteria
To qualify for the Panama Digital Nomad Visa, you must meet specific requirements set by the government.
1. Income Requirement
- Must earn a minimum annual income of USD 36,000 (or USD 3,000 per month).
- Income must come from foreign sources (employers, clients, or business abroad).
2. Remote Work Requirement
- You must be:
- An employee of a company located outside Panama, OR
- A freelancer/consultant with international clients, OR
- A business owner with operations abroad.
3. Health Insurance Requirement
- Must have valid health insurance coverage for your entire stay in Panama.
4. Nationality Requirement
- Open to most nationalities worldwide (except restricted countries under Panamanian law).
5. Clean Background
- Applicants must have a clear criminal record.
Required Documents
Here’s the checklist of documents you’ll need to apply:
| Document | Purpose |
|---|---|
| Valid Passport | Proof of identity (must be valid for at least 6 months) |
| Passport Photos | Recent, standard-sized photos |
| Completed Application Form | Official visa application form |
| Proof of Employment/Business | Employment contract, freelance agreements, or company incorporation docs |
| Proof of Income | Bank statements, payslips, or tax returns showing $36,000+ annual income |
| Health Insurance Policy | Proof of international health insurance covering Panama |
| Criminal Record Certificate | Police clearance from your country of residence |
| Flight/Travel Details | Proof of entry into Panama (sometimes requested) |
| Family Documents (if applicable) | Marriage certificate, children’s birth certificates |
| Consular Fees Receipt | Proof of payment ($250 visa fee + $50 card fee) |
📌 Note: Documents must often be notarized and apostilled for legal use in Panama.
Application Process
The application process is relatively straightforward compared to other digital nomad visas, but it does require attention to detail.
Step 1: Prepare Documents
- Gather all required documents.
- Ensure income proofs are clear and officially certified.
- Obtain an apostille for legal documents (criminal record, marriage certificates, etc.).
Step 2: Submit Application
- Applications must be submitted through a licensed Panamanian immigration attorney.
- You cannot submit the application yourself directly to immigration.
Step 3: Pay Fees
- Government visa fee: USD 250
- Visa card issuance fee: USD 50
- Attorney/legal fees: Usually USD 1,000–1,500 depending on the firm.
Step 4: Processing
- Immigration authorities review your application.
- Processing time: 30–45 business days on average.
Step 5: Approval
- Once approved, you will receive a short-stay visa stamp valid for 9 months.
Step 6: Arrival & Stay
- Travel to Panama and register your stay.
- You can then legally live and work remotely from Panama.
Application Timeline
| Stage | Estimated Duration |
|---|---|
| Document Preparation | 1–3 weeks (depends on apostilles) |
| Submission via Attorney | 1 day |
| Government Processing | 30–45 business days |
| Approval & Visa Issuance | 1 week |
Total time: ~6–8 weeks from preparation to approval.
Family Members
The visa allows you to include your spouse and dependent children in your application.
- You must show an additional income of USD 500 per dependent per month.
- Each dependent must also have valid health insurance.
- Family members receive dependent visas linked to the main applicant’s status.
Cost Summary
| Cost Item | Amount |
|---|---|
| Government Visa Fee | $250 |
| Visa Card Fee | $50 |
| Legal/Attorney Fees | $1,000–$1,500 (varies) |
| Apostille & Document Costs | $100–$300 |
| Health Insurance | $50–$150 per month |
Benefits of the Panama Digital Nomad Visa
1. Easy Application Process
- Straightforward requirements compared to other countries.
- Applications processed in 30–45 days with clear income thresholds.
2. Affordable Fees
- Government fees total only $300, much lower than other digital nomad visas.
- Legal fees are an extra cost, but the overall process is still affordable.
3. Medium-Term Stay
- Stay up to 9 months, renewable once for another 9 months.
- Offers nearly 18 months of legal residency without long-term commitments.
4. Tax Advantages
- Foreign income is not taxed in Panama if it comes from overseas sources.
- Panama’s territorial tax system makes it attractive for digital nomads and entrepreneurs.
5. Family Inclusion
- Spouses and dependent children can be included in the same application.
- Affordable cost of living makes it family-friendly.
6. Strategic Location
- Positioned between North and South America with direct flights worldwide.
- Tocumen International Airport in Panama City is a major hub.
7. Expat-Friendly Environment
- Large international community, especially in Panama City, Coronado, and Boquete.
- English is widely spoken in business and tourist areas.
8. High Quality of Life
- Tropical climate, modern infrastructure, good healthcare, and diverse lifestyle choices.
- Options for beach life, city living, and mountain retreats.
Cost of Living in Panama
Panama offers a comfortable lifestyle at moderate costs, especially compared to the U.S. and Europe. Costs vary by location—city life in Panama City is pricier than rural or coastal areas.
Housing
- Panama City (Central): $1,000–$2,500/month (modern apartments).
- Coastal towns (Coronado, Pedasí): $700–$1,500/month.
- Mountain towns (Boquete, El Valle): $500–$1,200/month.
Food
- Local restaurant meal: $6–$10.
- Mid-range dining for two: $30–$50.
- Monthly groceries: $250–$400 depending on lifestyle.
Transportation
- Public bus/metro: $0.35–$0.50 per ride.
- Taxi: $2–$5 short trips in Panama City.
- Car rental: $500–$700/month.
Internet & Utilities
- High-speed internet: $40–$70/month.
- Utilities (electricity, water, gas): $100–$200/month depending on air conditioning use.
Coworking Spaces
- Panama City: $150–$300/month for coworking memberships.
- Smaller towns: Limited coworking, but strong Wi-Fi in many cafés.
Estimated Monthly Budget
| Lifestyle | Solo Nomad | Couple | Family (3–4) |
|---|---|---|---|
| Budget | $1,200–$1,800 | $2,000–$2,800 | $2,800–$3,800 |
| Mid-Range | $2,000–$3,000 | $3,200–$4,500 | $4,500–$6,000 |
| Luxury | $4,000+ | $6,000+ | $8,000+ |
Best Cities & Towns in Panama for Digital Nomads
1. Panama City
- 🏙 Best for: Professionals who enjoy city life.
- ✅ Pros: Cosmopolitan, modern amenities, coworking hubs, international community.
- ❌ Cons: Higher costs, busy lifestyle.
2. Boquete
- 🌳 Best for: Nature lovers and retirees.
- ✅ Pros: Cool mountain climate, coffee farms, strong expat community.
- ❌ Cons: Smaller town feel, limited nightlife.
3. Coronado
- 🏖 Best for: Beach life near the city.
- ✅ Pros: Gated communities, expat-friendly, just 1.5 hours from Panama City.
- ❌ Cons: Limited cultural activities compared to the capital.
4. Bocas del Toro
- 🌊 Best for: Island life and backpacker vibe.
- ✅ Pros: Caribbean beaches, laid-back lifestyle, affordable.
- ❌ Cons: Less reliable infrastructure, slower internet in some areas.
5. Pedasí
- 🐠 Best for: Surfers and ocean lovers.
- ✅ Pros: Peaceful fishing town, affordable housing, strong expat base.
- ❌ Cons: Fewer services and limited healthcare.
Quick Comparison
| City/Town | Lifestyle | Internet | Expat Scene | Cost |
|---|---|---|---|---|
| Panama City | Urban, fast-paced | Excellent | Large | $$$ |
| Boquete | Mountain, cool | Good | Medium | $$ |
| Coronado | Beach, relaxed | Excellent | Large | $$ |
| Bocas del Toro | Island, rustic | Variable | Small-medium | $–$$ |
| Pedasí | Surf & fishing | Good | Small | $ |
Taxes for Digital Nomads in Panama
Panama operates under a territorial tax system, which is one of the most attractive features for remote workers.
1. Foreign-Sourced Income
- Income earned outside Panama is generally not taxed in Panama.
- As long as your clients or employer are based abroad, your earnings are exempt.
2. Local-Sourced Income
- If you work for or sell services to a Panamanian company or client, that income becomes taxable.
- Standard personal income tax rates range from 0% to 25%, depending on earnings.
3. Residency Considerations
- The Digital Nomad Visa is a short-stay visa, so it does not automatically make you a tax resident.
- To be considered a tax resident, you must:
- Spend 183+ days in Panama within a tax year, OR
- Establish a permanent home in Panama.
📌 Key takeaway: Most digital nomads will not pay tax in Panama if their income remains foreign-sourced.
Family Rules
The Panama Digital Nomad Visa is family-inclusive, making it ideal for couples and parents with children.
Who Can You Bring?
- Spouse or partner
- Dependent children
Family Requirements
- Must show extra income of at least USD 500 per month per dependent.
- Dependents must have health insurance coverage.
- Each dependent must provide civil documents (marriage or birth certificates), duly apostilled.
Education & Healthcare for Families
- International schools in Panama City and Coronado are popular among expats, with tuition ranging $4,000–$12,000 annually.
- Panama has a two-tier healthcare system—public care is low-cost, while private clinics are affordable compared to the U.S. or Europe.
Renewal of the Digital Nomad Visa
The Digital Nomad Visa is valid for 9 months, with the possibility of a one-time renewal for another 9 months (maximum 18 months total).
Renewal Requirements
- Must still meet the minimum annual income requirement of $36,000.
- Must maintain valid health insurance.
- Must continue to work remotely for foreign clients/employers.
- Renewal application should be submitted before the current visa expires.
What Happens After 18 Months?
- This visa does not lead directly to permanent residency.
- If you want to stay longer, you must transition into another residency program, such as:
- Friendly Nations Visa – One of the most popular residency permits for foreigners.
- Investor Visas – For those who make real estate or business investments.
- Pensionado Visa – For retirees with a steady pension income.
Legal Considerations for Digital Nomads
✔️ No Local Employment – You cannot legally take a job with a Panamanian company.
✔️ Attorney Requirement – Applications must be filed through a licensed Panamanian immigration lawyer.
✔️ Document Apostille – Criminal records, marriage, and birth certificates must be apostilled for use in Panama.
✔️ Overstay Risks – Overstaying your visa may lead to fines or bans on re-entry.
✔️ Banking Access – The Digital Nomad Visa allows you to open a local bank account, making it easier to manage funds.
Quick Checklist for Nomads in Panama
Before You Apply:
- ✅ Passport valid at least 6 months
- ✅ Proof of $36,000 annual income
- ✅ Apostilled criminal record certificate
- ✅ Health insurance covering Panama
- ✅ Employment or freelance contracts
After Arrival:
- ✅ Register with your immigration attorney
- ✅ Get a Panamanian SIM card for connectivity
- ✅ Explore banking options for easier transactions
- ✅ Avoid local work contracts to stay compliant
Frequently Asked Questions (FAQs)
1. How long is the Panama Digital Nomad Visa valid for?
The visa is valid for 9 months, with the option to renew once for another 9 months (maximum stay: 18 months).
2. How much income do I need to qualify?
You must prove at least USD 36,000 per year (or USD 3,000 per month) in foreign income.
3. Can I work for a Panamanian company on this visa?
No. The visa is strictly for remote work with foreign employers or clients.
4. How much does the visa cost?
- Government fees: USD 300 (Visa + Card issuance).
- Attorney/legal fees: Typically USD 1,000–1,500.
- Other costs: Apostilles, insurance, and translations.
5. Do I need an attorney to apply?
Yes. Applications must be submitted through a licensed Panamanian immigration lawyer.
6. Can I bring my family?
Yes. Spouses and dependent children can be included. You must show USD 500 extra monthly income per dependent.
7. Is my foreign income taxed in Panama?
No. Panama’s territorial tax system exempts income earned abroad. Only Panama-sourced income is taxable.
8. Does this visa lead to permanent residency?
Not directly. However, after your stay you can switch to other permits such as the Friendly Nations Visa, Investor Visa, or Pensionado Visa.
9. How long does the application take?
Typically 30–45 business days after submission.
10. Can I open a bank account in Panama with this visa?
Yes, you can open a local bank account, which is useful for everyday expenses.
Conclusion
The Panama Digital Nomad Visa is one of the most practical and affordable options for remote workers looking to experience Latin America. With a low government fee, straightforward income requirement, tax-friendly rules, and family-friendly policies, Panama offers an attractive package for digital nomads.
From the bustling modern skyline of Panama City to the beaches of Bocas del Toro and the mountain town of Boquete, digital nomads can choose from diverse living environments that balance productivity and lifestyle.
While the visa is short-term (up to 18 months), it can be a stepping stone to longer-term residency programs, making it an excellent choice for those considering Panama as a base.
For freelancers, remote employees, and entrepreneurs seeking a safe, connected, and affordable hub in the Americas, Panama is one of the strongest digital nomad destinations today.
Final Checklist for Applicants
- ✅ Minimum annual income of $36,000
- ✅ Remote job, freelance contracts, or proof of foreign business ownership
- ✅ Valid passport & apostilled police clearance
- ✅ Health insurance covering Panama
- ✅ Apostilled family documents if bringing dependents
- ✅ Work with a licensed Panamanian immigration attorney
