Panama Digital Nomad Visa: Your 2025 Guide for Remote Work in Panama

Panama offers a Short-Term Remote Worker Visa under Executive Decree 198 (May 2021), aimed at digital nomads working for foreign employers or clients. The visa provides legal residence in Panama for nine months initially, with the option to extend for another nine months, giving a total stay of 18 months.

What Is the Panama Digital Nomad Visa?

This visa is a Non‑Resident category permit allowing remote professionals, freelancers, or entrepreneurs to live in Panama while earning income exclusively from abroad. It grants legal permission to telework within Panama without needing other work permits.

Who Can Apply?

You’re eligible if you:

• Hold a valid passport and are from any nationality allowed entry into Panama.

• Are employed by a foreign-based company, or self-employed/freelancer with international clients.

• Earn at least USD 36,000 per year (approx. USD 3,000/month) from foreign sources.

• Have valid health insurance covering Panama, a clean criminal record, and accommodation plans.

• Commit not to work for or earn income from Panamanian sources.

Income & Financial Requirements

Applicants must:

• Demonstrate stable foreign income of at least USD 3,000/month or USD 36,000/year via contracts, invoices, or bank statements.

• For self-employed individuals, show evidence of business registration abroad and client relationships.

• Maintain consistent earnings; falling below threshold at renewal may risk extension.

  
  

Required Documents

You're expected to submit:

• Signed visa application form.

• Valid passport with at least six months' validity.

• Three passport-style photos.

• Remote-work contract or freelance/client declaration.

• Bank statements showing required income or savings.

• Health insurance policy valid in Panama.

• Clean criminal record certificate (apostilled).

• Medical certificate confirming fitness and no contagious disease.

• Affidavit confirming remote work and no Panamanian activity.

• Proof of foreign company or client existence if self-employed.

• USD 250 non-refundable immigration fee paid in advance.

  
  

Application Process & Fees

• Complete the application and pay USD 250 to Panama’s National Immigration Service.

• Applications are submitted in person or via immigration lawyer, often needed for translation/legalization.

• Processing typically takes 3–8 weeks, depending on completeness and workload.

• Upon approval, you receive a 9-month short-stay remote worker visa, allowing legal residence and teleworking in Panama.

  
  

Duration & Renewal Terms

• The visa is valid for nine months per issuance.

• It can be renewed once for an additional nine months, totaling 18 months.

• Renewal requires updated proof of income, insurance, and continued adherence to requirements.

  
  

Tax Residency & Legal Notes

• You remain a non-resident unless you spend more than 183 days in a calendar year in Panama. In that case, you may become a tax resident.

• As a non-resident, your foreign income is not subject to Panamanian tax.

• If tax residency is triggered by extended stay, you may be liable to tax on global income.

  
  

Cost of Living & Lifestyle in Panama

Panama combines tropical climate with affordable costs:

• Rent for a 1BR city-centre apartment: USD 600–1,200/month.

• Utilities & internet: USD 80–150/month.

• Groceries & dining: USD 200–300/month.

• Coworking, transport, leisure: USD 150–250/month.

Popular hubs for nomads include Panama City, Boquete, and coastal or mountain towns with good infrastructure.

Frequently Asked Questions

How long can I stay in Panama with the digital nomad visa?

You can stay for nine months initially, and renew once for another nine months, allowing up to 18 months total stay.

What income do I need to qualify?

You need to earn at least USD 36,000 annually (about USD 3,000/month) from foreign sources. This must be proven via bank statements, contracts, or invoices.

Can I bring family members?

No. Dependents are not permitted under this visa category.

Will I pay income tax in Panama?

Not if you remain a non-resident (i.e. stay under 183 days/year). Foreign income is generally not taxed. However, if you exceed 183 days, you may become a tax resident and be subject to tax on global income.

Can I work for Panamanian companies?

No. You must commit not to engage in any paid activity within Panama or with Panamanian entities.

How long does processing take?

Processing typically takes 3 to 8 weeks, depending on document completeness and immigration workload.

Pros & Cons Summary

Pros:

• Simple legal framework for remote workers to reside in Panama for up to 18 months.

• Relatively moderate income threshold compared to other Latin-based schemes.

• Foreign income stays untaxed if non-resident.

• Tropical lifestyle with modern infrastructure and low cost of living.

  
  

Cons:

• Short duration compared to many other nomad programs—max 18 months.

• No dependent or family inclusion.

• Initial application may require legal assistance.

• Exceeding income threshold or improperly documenting can hinder renewal.

  
  

Is Panama Right for Your Digital Nomad Adventure?

If you’re earning at least USD 3,000/month from foreign sources, and seek a tropical, affordable base with legal status for remote work up to 18 months, Panama’s Short-Term Remote Worker Visa offers a solid opportunity—with access to Central American culture, nature, and convenience.

For another great option, look at our guide to the Philippines digital nomad visa.