Panama, in a nutshell, is all about sun, sand, and serenity; hence, it attracts thousands of tourists or even urges them to relocate here. Truth be told, the ambiance of the place and the pleasant sand beaches are indeed fascinating. With that said, if you are considering getting to Panama, the answer lies in getting a Panama digital nomad visa.
It’s time to turn your home office into a tropical experience. The digital nomad visa was only recently launched in Panama. Picture yourself working from a café situated directly on the sand or operating from a co-working space surrounded by a Caribbean feel.
Applicants can spend a maximum of 18 months here, meaning that will always be enough time if you want to sample this live nation. On the same note, one must also consider the form of taxation that one stands to benefit from or otherwise when one opts to take up residency.
But let us not lose sight of the fact that this visa is for an individual only. Yep – no friends and family allowed!
If you are a city person who enjoys the tempo of the metropolis, and the look and feel of a city like Panama City, this visa is for you. Ready to start your digital nomad adventure?
What is the Panama Digital Nomad Visa?
Panama expects a gradual influx of visitors, now commonly known as ‘digital nomads.’ First, their recent product, the Short-Stay Visa for Remote Workers, is perfect. It was initiated in 2021, and it is a simple means of changing your home office life for up to nine months in the tropical climate of Panama, with the likelihood of continuing for an extra nine months.
There is one vital condition that needs to be met: to prove that you have a sufficient income from a foreign employer or a self-employment activity as a freelancer. Well, come to think of it, it’s a mutually beneficial relationship, right? So Panama gets all the monetization benefits from your cash spending, and you can live the dream.
Book A ConsultationPanama Digital Nomad Visa Options for US Remote Workers
Of course, Panama, with its warm climate and opportunities to make good money, has received many freelancing professionals. The country has various visa types to accommodate the various purposes and lengths of visits the foreigners may have.
Here, we look at the two most common types of American remote employees.
Short-Stay Visa for Remote Workers: Your temporary tropical office
If you do not wish to get a permanent residence permit in Panama but want to try the country without investing in a long-term living arrangement, then the Short-Stay Visa for Remote Workers will be perfect. Known commonly as the ‘digital nomad’ visa, this one allows you to live and work in the country for nine months with the chance of another nine months on renewal.
You qualify if your income is at least 36000 USD per annum and, if you can demonstrate that you work for a foreign employer or are a freelancer. It is an excellent way to enjoy Panama at its best, but it cannot be used to get a permanent residency.
Friendly Nations Visa: A step closer to permanent paradise
In contrast, the Friendly Nations Visa will be more suitable for those who prefer the idea of a longer stay or even becoming a resident with the possibility of employment. This visa is available to people of America. To qualify:
- The minimum investment required to establish Real estate investment in the Republic of Panama is $200,000.
- Obtain a legal work contract with one of the companies in Panama.
It is more flexible than the Short-Stay Visa, which allows you to look for a job and create a longer life in Panama.
Benefits of the Panama Digital Nomad Visa Reasons to Live the Digital Nomad Lifestyle in Panama!
Living and working as a digital nomad in Panama offers a host of advantages: Living and working as a digital nomad in Panama offers a host of advantages:
- Tax Efficiency: Like most developing countries, Panama has adopted a territorial system where you are taxed only on income earned within that country. This can lead to tax-wise savings for the digital nomads who are earning their income in another country.
- Cost of Living: Panama City has a relatively modern and, in many ways, luxurious feel to it, but overall, the cost of living is lower than in most developed countries of the West. This gives digital nomads a higher quality of life and more value for their money.
- Lifestyle: Panama’s geography is versatile, with the light of the urban life of Panama City and the relaxing atmosphere of the Bocas del Toro islands. Panama has a warm climate, stunning coastlines, and an exciting history, which provide digital nomads with a high quality of life.
- Robust Infrastructure: As we previously stated, Panama has heavily invested in infrastructure, communication, transport, and healthcare. As such, the place is perfect for remote jobs.
- Visa Extensions: Allowing the visa extension for the next nine months gives the freedom and opportunity to roam around the country and learn more about the culture.
Book A ConsultationEach country has its pros and cons and the goal of our business is to help people to access the best aspects of what different countries have to offer, from the lifestyle, business and tax benefits, to the power of a countries passport.
However, if I was forced to pick just one country to spend my time in, I would have to choose Brazil. In my humble opinion, No where in the world can make you feel so alive – Brazil is the most vibrant country on earth – David Lincoln
Not sure how this fits your strategy?
A focused consultation to assess your objectives and shortlist the right options.
How do I Qualify for a Digital Nomad Visa in Panama in 2024? A Step-by-Step Guide to Becoming a Digital Nomad in Panama
Are you thinking about starting your digital nomad journey and choosing a country? Panama is inspiring. However, there are some things to consider. This section will assist you in applying for the Short-Stay Visa for Remote Workers, also frequently called the digital nomad visa.
Are You the Right Fit? Checking Your Application Eligibility
To qualify for the Panama digital nomad visa, you must meet the following criteria: To qualify for the Panama digital nomad visa, you must meet the following criteria:
- Minimum Income: Their average annual income in the last three years before filing this petition exceeded USD 36,000. This income should come from countries other than Panama to meet the requirements of the free trade zone.
- Remote Work: You need to show that a foreign company employs you or you are a freelancer working from another location (Panama, in this case). This means you must have a contract of employment or be able to prove that you are a self-employed person with clients or customers from other countries apart from Panama.
- Valid Passport: Have a machine-readable passport with enough blank pages and valid up to the period you intend to stay in Panama.
Am I Allowed to Work as a Digital Nomad in Panama?
Permitted Activities and Work Restrictions
While the digital nomad visa allows you to reside and work remotely in Panama, there are specific limitations:
- No Local Employment: You cannot practice any form of employment with a company in Panama. This means no self-employment, consulting, or employment where the individual or company is doing business with a Panamanian company.
- No Business Ownership: Business formation and business operation is prohibited in Panama while staying on a digital nomad visa.
- Temporary Stay: The Visa, therefore, makes provisions for a temporary vacation in the country. This visa does not give one a direct chance for immigration or permanent residence.
How to Get a Digital Nomad Visa for Panama? Application Process
Another common question that applicants lay their eyes on is, What is the Application Process Like?
The application process typically involves the following steps:
- Appointment Scheduling: Contact the nearest Panamanian embassy or consulate to schedule an appointment for visa application submission.
- Document Preparation: Gather all required documents and ensure they are complete and accurate.
- Application Submission: Attend your appointment at the embassy or consulate, submit your application, and pay the necessary fees.
- Biometric Data: As required, provide biometric information, such as fingerprints and photographs.
- Pay the fee: Pay $250 to the National Immigration Agency and $50 for the visa card fee.
- Please wait for Approval: The visa processing time can vary, but it usually takes several weeks.
Visa duration
The Short-Stay Visa is initially granted for nine months. You can extend it for an additional nine months.
Panama Digital Nomad Visa Required Documentation
Documents needed to apply for Panama’s digital nomad visa:
- Valid Passport: A photocopy of your passport should include information page(s) and visa stamped page(s).
- Passport-Sized Photos: Normally, three pictures taken within the last six months with the size of a passport photograph are needed.
- Completed Visa Application Form: There should be no attempt to alter or omit after completing the application form, and all data required should be completed.
- Background Check: You must bring no suspicion to authorities or as they call it, have a clean slate. The recommended procedure is to get some criminal record from your home country and then apostilled to be valid.
- Health Certificate: A health certificate from a licensed health care provider advising of your fitness to work and not more than thirty days before the date of travel is usually necessary.
- Health Insurance: Original copy of medical Insurance to cover their stay in Panama. Ensure that illnesses or accidents during the holiday are taken care of by Insurance and that you can be flown back home in case of a mishap.
- Proof of Employment or Self-Employment: If applicable, mention a letter from your employer verifying the company’s position on your employment, the salary you earn, and whether you work from home. If the applicant is self-employed, provide business licenses, contracts, and proof of income.
- Proof of Income: A copy of bank statements, tax returns, or any other relevant documents would show you have the required annual income above $ 36,000.
- Work Declaration: An affidavit of the signer stating that you will not undertake any employment or business in the Republic of Panama.
- Legal Representation: You must nominate a legal representative to deal with the visa application procedure.
- Fees: You must pay $300, $250 for the application, and $50 for the visa issuance.
All documents must be submitted alongside their respective sworn translations and duly legalised.
Where to Live in Panama as a Digital Nomad?
Panama offers a diverse range of living options for digital nomads. Here are three popular choices:
Panama City: The Urban Pulse
Panama City is an excellent choice for those seeking a vibrant city lifestyle. With modern amenities, a thriving cultural scene, and a dynamic business environment, it’s a great place to base yourself.
Bocas del Toro: The Caribbean Dream
If you prefer a laid-back island atmosphere, Bocas del Toro is a tropical paradise. Known for its stunning beaches, world-class diving, and relaxed vibe, it’s perfect for those who want to escape the hustle and bustle.
Boquete: The highland haven
Boquete is an ideal option for those seeking a cooler climate and a more nature-oriented lifestyle. Surrounded by mountains, coffee plantations, and cloud forests, it offers a peaceful escape while providing essential amenities.
Is Panama Good for Digital Nomads?
Life in Panama as an expat
Panama offers a rich cultural experience and a welcoming expat community. Here are some tips to make the most of your time:
Five things to do in Panama
- Visit the Panama Canal
- Explore Casco Viejo
- Relax on the San Blas Islands
- Hike to the Lost Waterfalls
- Encounter wildlife on Monkey Island
Expat community
Connect with other expats through co-living spaces, co-working spaces, social hostels, language exchanges, or online communities.
Do Digital Nomads Pay Taxes in Panama?
Panama established a territorial regime for taxes, so income obtained outside the Republic is not taxable. Nevertheless, it is always advisable to seek the services of a tax consultant to get a personal opinion, particularly where the person involved has other sources of income.
Panama also levies value-added tax (VAT) on goods and services at 3% to 7%.
US Taxes for Americans Living in Panama
Having a residency in a foreign country, whether as a U. S. citizen, attracts specific tax responsibilities. Here’s a breakdown of some key tax considerations for Americans in Panama:
Foreign Earned Income Exclusion (FEIE)
If you fulfill some mandatory days’ stay (330 days) or are within the bona fide resident test), you can exclude some foreign income from the U. S. taxation. The exclusion amount is inflation-adjusted on an annual basis. Also, there are special rules concerning the computation of allowable housing expenses where you may apply for a housing exclusion or deduction.
Foreign Tax Credit (FTC)
If you are subjected to the income taxes of Panama, then you may be placed for the Foreign Tax Credit. This can enable you to offset your U. S. tax credit by the amount of taxes that have been paid to Panama. This benefit, however, is extended only to one of the visas – the Friendly Nations visa and not the short-stay digital nomad visa.
Foreign Bank Account Report (FBAR)
If you have a financial account outside the United States that was valued at more than $10000 at some point during the year, you must declare the foreign account to the government using a given form.
Important Note: Tax laws can be rather complicated, and this is just an introduction to the general information. However, it is advisable to seek the advice of a competent tax lawyer on the best course of action to undertake in that situation.
Panama Digital Nomad Visa Final Thoughts
The Panama digital nomad visa has been a boon for people who want to make a tropical country their base of remote work operations. Due to Panama’s breathtaking scenery, employment privileges, and Liberal immigration policies, the country has attracted nomadic workers from all over the world.
Apply for the Panama Digital Nomad Visa with Lincoln Global Partners
Lincoln Global Partners, an international investment migration firm is ready to assist you every step of the way with your Investor Visa application in Panama.
Panama Digital Nomad Visa : Frequently asked Questions
Checkout our FAQ's or reach out to us directly via the contact form at the bottom of the page with further questions.What is the Panama Digital Nomad Visa?The Panama Digital Nomad Visa allows remote workers and freelancers to live in Panama while working for companies or clients outside the country. It offers a temporary stay of up to 18 months, with the option to extend.
Who is eligible for the Panama Digital Nomad Visa?Applicants must work remotely for a company outside Panama or be self-employed with clients based abroad. A minimum monthly income of $3,000 (or $4,000 if applying with dependents) is required.
How long is the visa valid, and can it be renewed?The visa is initially valid for 9 months, with the possibility of renewal for an additional 9 months, giving digital nomads up to 18 months in Panama.
Do I need to pay taxes in Panama under the Digital Nomad Visa?Under the Panama Digital Nomad Visa, remote workers are not required to pay income taxes on earnings from foreign sources. However, it is important to comply with tax laws in your home country.
Is Panama a good place for digital nomads?Yes! Panama offers a high quality of life with modern infrastructure, affordable living costs, a robust healthcare system, and a tropical climate. Its central location and connectivity also make it an attractive hub for international travel.
