Nomad Visa Requirements, Costs & How to Apply
The Panama digital nomad visa — officially the Short-Stay Visa for Remote Workers — allows freelancers, remote employees, and self-employed professionals to live and work legally in Panama for up to 18 months. Created by Executive Decree 198 in May 2021, it requires a minimum income of $3,000 USD/month from foreign sources and has a government application fee of just $300 USD. There are no nationality restrictions.
Our licensed immigration attorneys at International Relocation Firm handle digital nomad visa applications from consultation through approval and can guide you into a permanent residency pathway if you decide to stay longer.
Key Takeaways
- Yes, Panama has a digital nomad visa. Executive Decree 198 (May 2021) created a legal pathway specifically for remote workers.
- Valid for 9 months, extendable once for a total of up to 18 months.
- Income requirement: $3,000 USD/month ($36,000/year) from foreign sources.
- Government fees total $300 USD ($250 application + $50 visa card).
- No local income tax on foreign earnings under Panama’s territorial tax system.
- A Panama immigration lawyer is required to file the application on your behalf.
Panama Digital Nomad Visa Requirements
To qualify for Panama’s digital nomad visa, you must be a remote worker whose income is earned entirely from sources outside of Panama. There is no age restriction and no nationality limitation.
- Remote employment or self-employment: An active contract with a foreign (non-Panamanian) company, or self-employed freelance/business income from clients located outside Panama.
- Minimum income of $3,000 USD per month ($36,000 annually) from foreign sources, verifiable through bank statements, employment letters, or client contracts.
- Valid health insurance with coverage in Panama for the full duration of your stay. Travel insurance is generally not accepted.
- Clean criminal record from your country of residence, issued within the last 6 months.
- Valid passport with at least 6 months of remaining validity.
Important: You must not work for Panamanian companies, accept local employment, or provide paid services to clients in Panama while on this visa. You will sign a sworn declaration confirming this as part of the application.
Required Documents
The following documents must be submitted with your application:
- Completed application form (Short-Stay Visa for Remote Worker)
- Notarized power of attorney authorizing your Panama immigration lawyer to file on your behalf
- Valid passport copy (minimum 6 months remaining validity)
- Three passport-sized photographs
- Criminal background check — recently issued, apostilled or authenticated by a Panama consulate
- Health certificate confirming good health
- Proof of employment or self-employment:
- Employed: official letter on company letterhead confirming remote work for a foreign company
- Freelance/self-employed: notarized affidavit describing your business, clients, services, income, and payment cycle
- Proof of income — bank statements showing at least $3,000/month in foreign income
- Health insurance policy copy covering your full stay in Panama (apostilled if issued internationally)
- Sworn declaration of non-acceptance of local employment or services in Panama
- Payment receipts for government fees ($250 + $50)
All documents in a language other than Spanish must be translated by a certified Panamanian translator. Foreign documents must be apostilled or authenticated.
How to Apply: Step-by-Step
The application must be filed through a licensed Panama immigration lawyer — this is a legal requirement, not optional. Here is how the process works:
- Consult with a Panama immigration attorney. An eligibility review ensures your income, employment, and documents meet all requirements before you invest time in preparation.
- Gather and prepare documents. Obtain your criminal background check, health certificate, and employment/income proof. Have foreign documents apostilled and translated into Spanish.
- Your attorney files the application with the Servicio Nacional de Migración, along with all supporting documents and government fees.
- Application review. Processing typically takes 30–60 days.
- Visa and residence card issued. You receive a Short-Stay Visa for Remote Workers valid for 9 months, plus a temporary residence card allowing free entry and exit during the visa period.
You can apply from inside or outside Panama, as long as you have a legal representative in Panama handling the filing.
Costs and Fees
Panama’s digital nomad visa is one of the most affordable remote worker visas in the world.
Government Fees
- Application fee: $250 USD (National Immigration Service)
- Visa card fee: $50 USD
- Total: $300 USD
Additional Costs
- Legal fees: Typically $750–$1,500 USD for attorney representation and filing
- Document apostille and translation: $100–$300 USD
- Health insurance: $50–$150 USD/month depending on coverage
Most applicants can expect total costs between $1,0000 and $2,000 USD. Our firm provides transparent pricing before you begin — see our fee schedule.
Tax Benefits for Digital Nomads in Panama
Panama operates a territorial tax system — only income earned within Panama is subject to local income tax. Since digital nomad visa holders earn exclusively from foreign sources, your remote work income is not taxed by Panama.
If you reside in Panama for more than 183 days in a calendar year, you may qualify for Panamanian tax residency, which can provide additional tax planning opportunities depending on your home country’s treaty arrangements.
US citizens: The United States taxes citizens on worldwide income regardless of residence. US digital nomads may benefit from the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit. Consult a US tax professional familiar with expat taxation.
Restrictions and Limitations
- No local employment. You cannot work for Panamanian companies or provide paid services to Panama-based clients.
- No dependents. The visa is individual only — no spouse or children. Families should consider the Friendly Nations Visa instead.
- Maximum 18 months. Valid for 9 months with one 9-month extension. No second renewal.
- No direct path to permanent residency. This is a temporary, non-resident category. However, you can apply for a separate residency visa during or after your stay.
- Conditions must be maintained. You must continue meeting all requirements (foreign employment, income, insurance) throughout your stay.
What Happens After 18 Months? Long-Term Residency Options
Many digital nomads arrive on the Short-Stay Visa and decide they want to stay in Panama permanently. Once the 18-month maximum is reached, several pathways are available:
Friendly Nations Visa
Citizens of the US, Canada, UK, Australia, and most EU countries can apply for permanent residency through the Friendly Nations Visa by establishing economic or professional ties — typically a bank account ($5,000 deposit) combined with real estate, a business, or local employment.
Qualified Investor Visa
If you’ve invested in Panama real estate or bank deposits during your stay, the Qualified Investor Visa provides a direct path to permanent residency.
Pensionado Visa
If you receive a qualifying lifetime pension of $1,000+/month, the Pensionado Visa grants permanent residency with extensive retiree discounts.
Start a Business
Some nomads formalize their operations in Panama. Our firm assists with Panama business formation, licensing, and banking introductions.
The ability to connect a short-term digital nomad stay to a permanent residency pathway is a key reason our clients work with a full-service Panama law firm from the start.
Living and Working in Panama as a Digital Nomad
Internet and Connectivity
Panama City offers reliable high-speed internet with fiber connections in most modern apartments and coworking spaces (50–100+ Mbps). Coworking options include Selina, WeWork, and independent spaces in El Cangrejo, Casco Viejo, and San Francisco. Outside the capital, Boquete and Coronado also have dependable connections. A local SIM card with a data plan provides effective backup connectivity.
Cost of Living
The cost of living in Panama is significantly lower than in the US, Canada, or Western Europe. A modern one-bedroom apartment in Panama City runs $800–$1,500/month; smaller cities like Boquete or Pedasí can be $400–$700/month. Dining out costs $10–$15 per person at a mid-range restaurant. Panama uses the US dollar, eliminating exchange rate issues for American workers.
Time Zone
Panama operates on EST (GMT-5) year-round with no daylight saving time — ideal for teams working US business hours.
Best Locations for Digital Nomads
- Panama City: Fast internet, coworking spaces, international dining, modern apartments. Best neighborhoods: El Cangrejo, San Francisco, Costa del Este, Casco Viejo.
- Boquete: Mountain town with a strong expat community, cooler climate, world-class coffee. Quieter pace for focused work.
- Bocas del Toro: Caribbean island lifestyle, surf culture, laid-back atmosphere. Internet reliability varies by island.
- Coronado: Pacific coast beach community, one hour from Panama City. Beach access with capital-city proximity.
Safety
Panama is considered one of the safest countries in Central America. Political stability, modern infrastructure, and established expat communities make it comfortable for solo travelers and families. English is widely spoken in Panama City’s business and tourism areas.
Frequently Asked Questions
Does Panama have a digital nomad visa?
Yes. Panama introduced the Short-Stay Visa for Remote Workers through Executive Decree 198 in May 2021. It allows remote workers to live legally in Panama for up to 9 months, extendable once for a total of 18 months.
What are the income requirements for the Panama digital nomad visa?
You must earn at least $3,000 USD per month ($36,000 annually) from a foreign employer or foreign-based freelance/business income, verifiable through bank statements or employment letters.
How much does the Panama digital nomad visa cost?
Government fees total $300 USD ($250 application + $50 visa card). Including legal fees and document preparation, most applicants spend $800–$2,000 total.
Can I bring my family on the digital nomad visa?
No. The visa is issued to individuals only and does not allow dependents. Families should consider the Friendly Nations Visa or another family-eligible residency program.
Do I need a lawyer to apply?
Yes. Panamanian immigration law requires the application to be filed through a licensed attorney. Our immigration lawyers handle the full process from document review through approval.
Can I work on a tourist visa instead?
No. A tourist entry does not authorize any form of work in Panama, including remote work for foreign companies. The digital nomad visa is the legal framework designed for remote workers.
Do I pay taxes in Panama on my remote income?
Generally, no. Panama’s territorial tax system exempts income earned from foreign sources. US citizens must still report worldwide income to the IRS but may qualify for the Foreign Earned Income Exclusion.
Can the digital nomad visa lead to permanent residency?
Not directly — it is a temporary, non-resident visa. However, many nomads use their time in Panama to establish the economic ties needed to apply for permanent residency through a separate program such as the Friendly Nations Visa or Qualified Investor Visa.
Work With Panama Digital Nomad Visa Experts
Our licensed attorneys provide full-service assistance for the Panama digital nomad visa, including:
- Eligibility evaluation and income documentation review
- Full application preparation and filing with Panama immigration
- Document apostille and translation coordination
- Long-term residency planning when you decide to stay
Whether you’re exploring a 9-month remote work stay or planning a permanent transition to Panama, International Relocation Firm can guide you from your first visa through long-term residency. Contact us for a free consultation.
This article is provided for informational purposes only and does not constitute legal advice. Immigration laws, visa requirements, and government fees in Panama are subject to change. For guidance specific to your situation, consult with a licensed Panama attorney. Contact International Relocation Firm for a personalized consultation.
Tax obligations vary based on your country of citizenship, residency status, and individual circumstances. This information is not tax advice. Consult with a qualified tax professional in your home country and in Panama before making financial decisions.