Panama is a top destination for digital nomads seeking a tropical lifestyle and modern amenities. The Panama Digital Nomad Visa, also known as the Short Stay Visa for Remote Workers, allows freelancers, remote employees, and entrepreneurs to live in Panama for up to 18 months while maintaining their income from abroad.
With its attractive tax policies, affordable cost of living, and diverse culture, Panama is quickly becoming one of the most sought-after locations for remote workers. Here’s everything you need to know about the visa, eligibility, and life as a digital nomad in Panama.
What is the Panama Digital Nomad Visa?
Panama’s Digital Nomad Visa, introduced in 2021, offers digital nomads the opportunity to live and work remotely from Panama for up to 18 months. Initially granted for nine months, this visa can be renewed for another nine months. Whether you’re employed by a company abroad or running your own online business, this visa provides a seamless way to experience Panama while continuing your career.
Eligibility Requirements
To qualify for Panama’s Digital Nomad Visa, you must meet the following criteria:
- Remote work: You must work for an employer or business located outside of Panama.
- Income requirement: Provide proof of earning at least $36,000 USD annually through bank statements, contracts, or pay stubs.
- Valid passport: Your passport must be valid for at least six months from the date of entry into Panama.
- Medical insurance: Proof of health insurance that covers you during your stay in Panama is required.
- Clean criminal record: A certificate proving you have no criminal record is necessary, and all foreign-issued documents must be notarized and apostilled.
How to Apply
The application process for Panama’s Digital Nomad Visa is straightforward:
- Prepare the required documents, including your passport, proof of income, work documentation, health insurance, and a clean criminal record.
- Submit your application either online or at the nearest Panamanian consulate.
- Pay the required fees: The total includes a $250 fee for the National Immigration Agency and a $50 Visa Card fee.
- Wait for approval, which usually takes around 30 days.
Costs and Duration
The visa is initially valid for nine months, with an option to renew for an additional nine months, giving you a total stay of 18 months. After this period, if you want to remain in Panama, you’ll need to explore other visa or residency options.
Taxes for Digital Nomads in Panama
Panama’s territorial tax system means that as long as your income is generated outside the country, you won’t be liable for local taxes. This makes Panama highly appealing for digital nomads looking to optimize their tax situation. If you stay for more than six months, you may be able to apply for tax residency, which could offer further tax advantages depending on international treaties.
Benefits of Living in Panama as a Digital Nomad
Panama is not just about great weather and beaches—it offers several other benefits that make it ideal for digital nomads:
- Affordable cost of living: Living in Panama is much cheaper compared to many Western countries. A single person can live comfortably on around $664 USD per month (excluding rent), while a family of four may spend around $2,400 USD.
- Tropical lifestyle: Panama’s lush rainforests, beautiful beaches, and islands like Bocas del Toro offer plenty of opportunities for exploration and relaxation.
- Strategic location: As a travel hub, Panama offers easy access to both North and South America, making it convenient for those who love to travel.
- Excellent infrastructure: Panama has modern amenities, including reliable internet, world-class healthcare, and efficient transportation systems.
Cost of Living Comparison
Panama’s cost of living is relatively low compared to other popular digital nomad destinations such as Costa Rica, Portugal, and Bali. For example:
- Rent: Rent in Panama City averages around $1,000 USD for a one-bedroom apartment, while smaller cities like Boquete or David offer even cheaper options.
- Utilities and internet: High-speed internet and basic utilities in Panama City may cost around $150 USD per month.
- Groceries: Expect to spend around $200 to $300 USD per month on groceries, depending on your eating habits.
In contrast, cities like Lisbon or San Jose tend to have higher rent and overall costs, making Panama an appealing, budget-friendly option.
Top Digital Nomad Destinations in Panama
- Panama City: The bustling capital offers modern skyscrapers, excellent coworking spaces, and vibrant expat communities. It’s ideal for digital nomads who enjoy urban living.
- Bocas del Toro: A tropical paradise with laid-back vibes, perfect for those who want a slower pace of life. Bocas is known for its beautiful beaches and strong digital nomad community.
- Boquete: Located in the mountains, Boquete offers cooler weather, lush greenery, and a quieter lifestyle. It’s a popular spot for outdoor enthusiasts and those who enjoy nature.
Best Coworking Spaces in Panama
- Workings: Located in Panama City, this coworking space offers modern facilities, high-speed internet, and a vibrant community of professionals.
- Selina Cowork: With branches in both Panama City and Bocas del Toro, Selina is a popular option for digital nomads looking for a mix of work and social experiences.
- Casco Station: This trendy coworking space in the heart of the historic district offers great facilities and a fantastic atmosphere for creativity.
Visa Renewal Tips
- Apply early: Start the renewal process well in advance of your visa’s expiration date to avoid any issues with overstaying.
- Check document validity: Ensure that your income proof, medical insurance, and passport remain valid at the time of your renewal.
- Stay organized: Keep all important documents related to your visa application and renewal in one place for easy reference during the process.
Healthcare and Insurance
Panama offers top-notch healthcare, particularly in private hospitals in cities like Panama City. Many expats and digital nomads choose to take out international health insurance to cover healthcare costs and ensure access to private medical facilities. Make sure your insurance covers emergencies and medical care for the entire duration of your stay.
Digital Nomad Communities
Panama is home to a growing number of digital nomads, especially in places like Panama City, Bocas del Toro, and Boquete. You can connect with fellow remote workers through online forums, Facebook groups, and coworking spaces, creating a supportive environment for work and social life. These communities often organize meetups, networking events, and social gatherings, making it easy to build connections.
Local Culture and Lifestyle
Panama is rich in cultural experiences. The country hosts vibrant festivals such as Carnival and Fiestas Patrias, showcasing traditional music, dance, and food. Panamanian cuisine is a delightful mix of Afro-Caribbean, Spanish, and indigenous influences. For digital nomads, engaging with local culture can provide a deeper connection to the country, making their stay even more rewarding.
In conclusion, Panama’s Digital Nomad Visa is an excellent option for remote workers looking for a tropical paradise with modern amenities. From its affordable cost of living to its favorable tax system, Panama is an attractive destination for digital nomads. Whether you prefer the bustling life of Panama City or the laid-back vibes of Bocas del Toro, Panama offers something for every type of remote worker. Ready to explore this exciting destination? Start your visa application today and discover everything Panama has to offer.