Panama Digital Nomad Visa

Nadia Dardón

Immigration Content Writer

Last update 20 October, 2025

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Panama Rating from Citizen Remote

Overall 4.2

Internet Infrastructure 5.0

Country Stability 3.0

Cost of Living 4.0

Ease of Obtaining Visa 4.0

Taxes 5.0

Quick Visa Facts

Visa length 9 months initially

Possible to extend? Yes, one-time extension for an additional 9 months (maximum stay 18 months)

Who can apply? Remote workers, freelancers, and entrepreneurs earning income from foreign sources

Minimum Income Requirements USD 36,000 per year

Time for visa applications Typically 30–45 business days for processing

Want to know if you can apply?

Complete a visa quiz and see if you qualify!

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Imagine working from a tropical paradise where the Caribbean meets the Pacific, your Wi-Fi signal is strong, and your coffee is world-class. That’s exactly what Panama offers remote workers through its Digital Nomad Visa, officially known as the Short-Stay Visa for Remote Worker.

Designed for freelancers, entrepreneurs, and employees of foreign companies, this visa allows you to live and work remotely from Panama for up to nine months, with the option to extend your stay once for a total of 18 months.

Panama stands out among digital nomad destinations thanks to its modern infrastructure, stable economy, affordable cost of living, and world-class connectivity. Whether you’re taking calls from a beachfront café in Bocas del Toro or sending reports from a high-rise in Panama City, this visa makes it easy to blend productivity with adventure.

Panama Digital Nomad Visa Overview

Panama officially introduced its Digital Nomad Visa, formally known as the Short-Stay Visa for Remote Workers, through Executive Decree No. 198 on May 7, 2021.

This visa was created to attract remote professionals and freelancers who earn income from companies or clients outside of Panama, giving them the chance to live and work legally in the country without the need for a local work permit.

It forms part of Panama’s broader strategy to promote itself as a hub for global talent and innovation, leveraging its advanced digital infrastructure, stable economy, and enviable lifestyle.

Who Is It For?

The Panama digital nomad visa is designed for:

Remote employees working for companies registered abroad.
Freelancers or independent contractors who provide services to clients outside of Panama.
Entrepreneurs or business owners who manage foreign-based operations remotely.

Applicants must be able to prove a minimum annual income of USD 36,000, which confirms financial self-sufficiency and compliance with the visa’s foreign income requirement.

What Does It Allow You to Do?

Holders of the digital nomad visa can:

Live in Panama legally for an initial period of nine months, with the option to extend once for a total of up to 18 months.
Work remotely for a foreign employer or manage a business located outside Panama.
Open local bank accounts, rent housing, and access essential services during their stay.
Enjoy tax advantages, since income earned from foreign sources is generally exempt from Panamanian income tax under the country’s territorial tax system.

However, visa holders cannot work for Panamanian companies or provide services to local clients while residing in the country.

Visa Requirements

To apply for Panama’s Digital Nomad Visa (Short-Stay Visa for Remote Workers), applicants must submit several official documents that prove their identity, financial stability, and eligibility to work remotely.

Basic documents needed:

Completed visa application form (signed by the applicant)
Copy of your valid passport, with at least six months of validity remaining.
Three recent passport-size photos.
Proof of your current employment or business activity.
Certificate of a clean criminal record (issued by your country of residence)
Proof of payment of the visa application fee (USD 250 government fee + USD 50 card fee for the National Immigration Service)
Copy of health insurance policy covering the applicant for the entire stay in Panama.
Affidavit declaring non-employment with Panamanian companies.

Proof of Financial Self-Sufficiency

Applicants must demonstrate they have sufficient and stable income derived from sources outside Panama.

To qualify, you must show:

A minimum annual income of USD 36,000 (or its equivalent in another currency).
Supporting documentation such as:
- Bank statements covering the last three months, or
- Payslips or proof of regular payments from a foreign employer or clients.

This requirement ensures applicants can support themselves during their stay without seeking local employment.

Proof of Employment or Professional Activity

You must provide documentation confirming your remote employment or business relationship with a company or clients located abroad. Acceptable evidence includes:

A letter from your employer stating your position, monthly income, and confirmation that your work is performed remotely.
If self-employed: proof of business registration abroad, plus client contracts or invoices verifying ongoing professional activity.

This confirms your economic ties remain outside Panama, a key condition of the visa.

Private Health Insurance

All applicants must show proof of private international health insurance valid in Panama for the full duration of their stay.

Your policy should include:

Coverage for medical emergencies and hospitalization within Panama
Policy documents or a certificate from the insurance provider clearly naming the applicant and stating the coverage period

Travel insurance is not accepted; it must be long-term residency health insurance. You can find our recommendations for the best health insurance plans for digital nomads here. This requirement ensures remote workers have adequate healthcare protection while residing in the country.

How to Apply for the Panama Digital Nomad Visa – Step-by-Step Instructions

Applying for Panama’s digital nomad visa is a straightforward process, but it requires careful preparation and proper documentation. Below is a step-by-step guide to help you submit a complete and successful application.

Step 1: Prepare Your Application Package

Once you have all the necessary documents ready, ensure that:

All foreign documents are apostilled or legalized according to international standards.
Any documents in another language are translated into Spanish by a certified public translator in Panama.

Having a complete and properly prepared application will save you time and prevent unnecessary delays during the review process.

Step 2: Submit Your Application

Applications are filed with the National Immigration Service (Servicio Nacional de Migración) in Panama. You can apply in person or through a licensed Panamanian immigration attorney, who can represent you throughout the process.

When submitting, you’ll need to present your full application package and proof of payment of the USD 250 government fee plus the USD 50 immigration card fee.

Step 3: Wait for the Review

After submission, the immigration authorities will review your application to confirm eligibility and documentation. Processing typically takes around 30 to 45 business days, though timelines may vary depending on volume and complexity.

During this stage, the authorities may request additional documents or clarifications, so it’s important to stay in contact and respond promptly.

Step 4: Receive Your Visa Approval

Once approved, you will be granted a Short-Stay Visa for Remote Workers valid for nine months. You’ll also receive a temporary residence card, which allows you to legally live and re-enter Panama during the visa’s validity period.

Step 5: Enjoy Remote Work from Panama

Once your visa and residence card are issued, you’re free to live and work remotely from anywhere in Panama, whether it’s the vibrant city life of Panama City or the laid-back beaches of Bocas del Toro.

The Digital Nomad Visa gives you the freedom to explore Panama’s culture, nature, and connectivity while maintaining your career abroad.

Panama Stay Requirements

Holders of Panama’s Digital Nomad Visa are allowed to reside in the country for an initial period of nine months, which can be extended once for an additional nine months, bringing the total stay to a maximum of 18 months. During this time, visa holders must maintain the conditions under which their visa was granted, meaning they must continue to work exclusively for a foreign employer or clients abroad and earn income from non-Panamanian sources. Engaging in local employment or providing paid services to Panamanian entities is strictly prohibited.

Digital nomads are expected to maintain valid private health insurance throughout their stay and keep their immigration card and passport up to date. If the visa holder leaves Panama temporarily, they are free to re-enter the country as long as their visa remains valid. However, extended absences that suggest the applicant no longer primarily resides in Panama could affect eligibility for renewal.

It’s also important that visitors comply with Panamanian laws and immigration regulations at all times. Any violation of visa conditions, including working locally or overstaying the permitted period, may result in visa cancellation or fines. To extend the visa, applicants must apply for renewal before their initial term expires, submitting updated documentation confirming ongoing remote work, income, and health coverage.

How Much Does the Panama Digital Nomad Visa Cost?

Applying for Panama’s Digital Nomad Visa involves several official fees and potential additional expenses depending on how you file your application. The government fees are fixed, while legal and translation costs may vary.

The official costs are as follows:

USD 250 — Government application fee paid to the National Immigration Service (Servicio Nacional de Migración)
USD 50 — Fee for issuing the immigration card (carné)

In addition to these mandatory charges, applicants should also budget for the following possible expenses:

Document legalization or apostille fees (depending on your country of origin)
Certified Spanish translations for foreign documents.
Private health insurance premium covering the duration of your stay.
Legal service fees, if you choose to apply through a Panamanian immigration lawyer (this is optional but often recommended for a smoother process)

Altogether, most applicants can expect the total cost to range between USD 400 and USD 800, depending on professional assistance and document preparation needs. All fees are non-refundable, even if the application is not approved, so it’s essential to ensure that every document meets Panama’s immigration requirements before submission.

Taxes for People With a Panama Digital Nomad Visa

One of the biggest advantages of the Panama Digital Nomad Visa is the country’s territorial tax system, which is highly favorable to remote workers. Under this system, only income generated within Panama is subject to local income tax. This means that as a digital nomad earning money from clients or employers outside of Panama, your foreign income is not taxable by the Panamanian government.

In other words, if you are approved under this visa and continue working remotely for a foreign company or managing a business registered abroad, your income remains exempt from Panamanian income tax. However, it’s important to note that visa holders must still comply with tax obligations in their home country or any country where they maintain tax residency. Panama’s visa does not automatically change your tax residence status unless you take specific steps to do so under Panamanian law.

While digital nomads generally benefit from this exemption, certain activities, such as earning income from Panamanian clients, establishing a local company, or conducting business within the country, may make you liable for Panamanian taxes. It’s recommended to consult with a qualified tax advisor familiar with both Panamanian and international tax rules before relocating, to ensure full compliance and optimal tax planning.

Overall, Panama’s territorial tax framework, combined with the flexibility of the Digital Nomad Visa, makes it one of the most tax-efficient options for remote professionals seeking a legal and low-tax base in Latin America.

Living in Panama with the Digital Nomad Visa

Living in Panama with the Digital Nomad Visa offers a unique blend of comfort, connectivity, and adventure. The country is known for its modern infrastructure, excellent internet coverage, and vibrant urban lifestyle, especially in Panama City, where international businesses, coworking spaces, and cultural experiences come together. Beyond the capital, remote workers can enjoy diverse destinations like Boquete’s mountain retreats, Bocas del Toro’s island life, and the serene beaches of the Pacific coast. English is widely spoken in business and tourism areas, making daily life easy for foreigners, while the cost of living remains competitive compared to many Western countries.

Panama also offers a welcoming environment for international residents. With reliable healthcare, a stable economy, and year-round warm weather, it’s an appealing base for those seeking a healthy work-life balance. Digital nomads can access most local services, rent long-term housing, open bank accounts, and explore the country freely during their stay. Whether you prefer city living or tropical escapes, Panama provides the perfect setup for remote professionals who want productivity without sacrificing lifestyle.

Best Cities to Live in Panama

Panama offers a variety of destinations that cater to different lifestyles, from bustling urban centers to tranquil coastal towns. Here are three of the best cities for digital nomads living in Panama with the Digital Nomad Visa:

Panama City

As the capital and largest city, Panama City is the economic and cultural hub of the country. It offers world-class coworking spaces, reliable high-speed internet, international restaurants, and vibrant nightlife. Expats can enjoy modern housing, shopping malls, and easy access to healthcare. Panama City also provides a central base for exploring the rest of the country, with flights and bus routes connecting to beaches, mountains, and smaller towns.

Boquete

Nestled in the highlands of Chiriquí Province, Boquete is famous for its cool climate, lush landscapes, and outdoor lifestyle. Known as a haven for retirees and nature-loving expats, Boquete offers hiking trails, coffee plantations, and a close-knit community. Internet and coworking options are improving steadily, making it a peaceful yet practical location for remote work. The town’s small size fosters a slower pace of life, ideal for those who want to escape the hustle of the city.

Bocas del Toro

Bocas del Toro is an archipelago on the Caribbean coast, famous for its stunning beaches, turquoise waters, and laid-back island vibe. It’s perfect for digital nomads who prioritize lifestyle over urban conveniences. The islands offer a mix of coworking spaces, local cafes, and opportunities for surfing, snorkeling, and exploring nature. While living costs can be higher due to its tourist-driven economy, the lifestyle and natural beauty make it a highly desirable location for remote workers seeking adventure and relaxation.

Cost of Living

The official currency of Panama is the Panamanian Balboa (PAB). 1 PAB = 1 USD.

The average net monthly salary in Panama is around $734 USD, which equates to approximately 734 PAB.

Here’s a rundown of what you should expect to pay in different cities:

Panama City

Rent (1 bedroom in city center): $850–$1,200 per month
Rent (3 bedrooms outside city center): $1,400–$2,500 per month
Basic Utilities: $80–$120 per month
Wi-Fi: $25–$30 per month
Public Transport: $0.35–$0.50 per one-way trip
Groceries (2 people): $300–$400 per month

Boquete

Rent (1 bedroom in city center): $500–$700 per month
Rent (3 bedrooms outside city center): $800–$1,200 per month
Basic Utilities: $50–$100 per month
Wi-Fi: $25–$30 per month
Public Transport: Local buses are about $1.75 USD per ride.
Groceries (2 people): $250–$350 per month

Bocas del Toro

Rent (1 bedroom in city center): $500–$700 per month
Rent (3 bedrooms outside city center): $700–$900 per month
Basic Utilities: $50–$100 per month
Wi-Fi: $25–$40 per month
Public Transport: $0.50–$1.00 per one-way trip
Groceries (2 people): $300–$400 per month

FAQs

How long is the Panama Digital Nomad Visa valid?

The visa is valid for an initial period of nine months and can be extended once for an additional nine months, allowing a maximum stay of 18 months in Panama.

Can I work for a Panamanian company with this visa?

No. The Digital Nomad Visa is specifically for remote work for foreign clients or employers. Working for Panamanian companies or earning local income is not allowed under this visa.

What is the minimum income requirement for the Panama Digital Nomad Visa?

Applicants must demonstrate a minimum annual income of USD 36,000 from sources outside of Panama, either through employment, freelancing, or running a business abroad.

Do I need health insurance to get the visa?

Yes. All applicants must provide proof of private health insurance valid in Panama for the entire duration of their stay, covering medical emergencies and hospitalization.

Can I extend my stay beyond 18 months?

No. The visa allows a one-time extension, meaning the maximum legal stay is 18 months. After this period, you must either leave Panama or apply for another type of visa or residence permit.

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