Yes, Panama has an official digital nomad visa. Its formal name is the Short-Stay Visa for Remote Workers (in Spanish, Visa de Corta Estancia como Trabajador Remoto), created by Executive Decree No. 198 of May 7, 2021 and issued by Panama’s National Migration Service (Servicio Nacional de Migración). It lets remote employees and self-employed professionals who earn at least US$3,000 a month from outside Panama live and work legally in the country for up to 18 months.
This guide, prepared by the immigration attorneys at NDM Law Firm & Associates, walks a US-based remote worker through exactly who qualifies, what it costs, how taxes work, and how to apply in 2026.
If you have been comparing places to base yourself while you keep your US job or freelance clients, Panama is one of the few that pairs a dedicated remote-worker visa with a US-dollar economy, direct flights to most major US cities, and no local tax on income you earn from abroad. You do not have to gamble on a tourist-visa workaround or guess at the rules. Below is the complete, current picture.
What Is the Panama Digital Nomad Visa? Official Name and Legal Basis
The Panama Digital Nomad Visa is a Non-Resident immigration category designed for people who earn their living online from employers or clients located outside Panama. Rather than tying you to a Panamanian employer, it recognizes that your work and your income already exist abroad and simply gives you a legal basis to live in Panama while you continue it.
- Official name: Short-Stay Visa for Remote Workers (Visa de Corta Estancia como Trabajador Remoto)
- Legal basis: Executive Decree No. 198 of May 7, 2021 (issued under Decree Law 3 of 2008 and Executive Decree No. 320 of August 8, 2008)
- Issuing authority: National Migration Service (Servicio Nacional de Migracion), Ministry of Public Security
- Immigration category: Non-Resident
- Maximum stay: 9 months, extendable once for another 9 months (18 months total)
Is Panama’s Digital Nomad Visa an Official Government Visa?
Yes. This is a genuine, government-issued visa category, not an informal arrangement or a repurposed tourist permit. It was created by executive decree in 2021 specifically for remote workers, and once granted it authorizes you to work remotely from within Panama with no additional permit from any other government body. That distinction matters: entering on a tourist visa and working remotely is not the correct legal path, and it can create immigration problems. The digital nomad visa is the compliant option.
When Did Panama Launch Its Digital Nomad Visa?
Panama introduced the Short-Stay Visa for Remote Workers through Executive Decree No. 198, signed on May 7, 2021, in response to the global rise of remote work. It remains active and open to applications in 2026, with the same core requirements it launched with.
Who Qualifies for the Panama Digital Nomad Visa? Eligibility Requirements
To be eligible, a foreign applicant must meet three core conditions set out in the decree:
- Work relationship abroad. You either hold a contract as an operative of a foreign, transnational company, or you are a self-employed or independent worker in a telework (remote) arrangement.
- Work that takes effect abroad. The functions you perform must have their effects outside Panama, not in the local market.
- Foreign-source income. You receive income from a foreign source of no less than US$36,000 per year, or its equivalent in another currency.
There is no nationality restriction and no points or skills test. If you meet the income and remote-work conditions, you can apply.
Always keep in mind that there are several routes to be in Panama legally so you work remotely, Check if you are a citizen of one of the friendly countries of Panama or if you are an Italian citizen you have a special Panama-Italy treaty that makes your immigration process much easier, allowing your stay in the country with shorter waiting times to obtain residence!
Panama Digital Nomad Visa Income Requirement: $3,000 per Month
The headline requirement is income. You must show at least US$3,000 per month, which works out to US$36,000 per year, and that money must come from outside Panama. You typically prove it with recent bank statements plus either an employment letter or your freelance contracts. The income must be clearly tied to the remote-work condition you are declaring.
Remote Employees vs. Freelancers and Self-Employed Applicants
The decree recognizes two applicant profiles, and the supporting documents differ slightly:
- Remote employees work under contract for a foreign, transnational company and telework for that employer.
- Freelancers and self-employed applicants run their own business, registered abroad, and serve clients located outside Panama.
Both must prove foreign-source income. Freelancers provide additional documentation about their company and client relationships, detailed below.
Panama Digital Nomad Visa Requirements: Full Documents Checklist
Applying requires a specific set of documents. Foreign documents must generally be apostilled or legalized and translated into Spanish (see below). The core file for all applicants includes the following.
Documents Required for All Applicants
- A notarized power of attorney and application. The power of attorney must state the name and nationality of the applicant’s parents.
- Three passport-size photographs.
- A properly certified copy of your passport (notarized or authenticated). Your passport should be valid for at least six months.
- A national criminal record certificate (police clearance), apostilled or authenticated.
- A health certificate.
- A sworn declaration of personal background.
- The completed application form, including your commitment to cover the costs of return or repatriation if necessary.
- A copy of your medical insurance policy, valid in Panama for the entire duration of your stay.
- A sworn declaration that you will not accept job or service offers within Panama.
- Payment of US$250 to the National Migration Service, plus the US$50 residence-card fee.
Additional Documents for Remote Employees
- Certification or proof that the foreign company exists, from the place where it is registered.
- A letter from the company, on official letterhead, signed by its legal representative, stating your general details; your position and duties; your monthly income (not less than US$3,000, or the foreign-currency equivalent), the payment frequency, and that the income comes from a foreign source; the remote-work arrangement; and the company’s commitment to cover repatriation costs if necessary.
Additional Documents for Freelancers and Self-Employed Applicants
Self-employed applicants are exempt from the two company items above and instead provide:
- Certification or proof of their own company, registered abroad, through which they conduct business.
- A notarized sworn declaration describing the commercial relationship with the clients they serve, including full name and general details of the applicant and clients, the services provided, how much is earned, the source of funds, and the payment frequency.
To prove foreign-source income, applicants also provide a bank certification or bank statement (from a foreign or local bank, with the issuing bank’s authentication) showing the transfer of funds and confirming the income is tied to the declared remote-work condition.
Health Insurance Requirement (Travel Insurance Is Not Enough)
MOST COMMON MISTAKE
You must hold private international health insurance that is valid in Panama and covers your entire stay. A short-term travel-insurance policy does not satisfy the rule. Plan for a policy that covers the full nine-month period, or the full eighteen months if you intend to extend.
Apostille and Spanish Translation
Documents issued outside Panama must meet the authentication requirements of Panamanian immigration law (Article 247 of the Executive Decree), typically an apostille or consular legalization, and be translated into Spanish by an authorized public translator. Because apostille and translation add several weeks, start gathering documents well before your intended move date.
How Much Does the Panama Digital Nomad Visa Cost?
Government Fees
The decree sets two government charges: US$250 payable to the National Migration Service with the application, and US$50 for the residence card once approved. Depending on your case, additional official charges may apply; your attorney will confirm the exact government total for your file.
Professional and Legal Fees
A Panamanian immigration attorney is required to file your application (more on this below), so professional fees are separate from the government fees above. At NDM Law Firm & Associates we quote a transparent, all-inclusive fee for the digital nomad visa that covers preparation and review of your file, filing before the National Migration Service, and case follow-through.
| Main | |
| Legal Fees | From US$1500 |
| Gov. fees | US$300 |
| Total | US$1800 |
If you want to come with a dependent, we recommend looking for other routes to permanent residence since in this one it is not possible to apply with a dependent.
How Long Is the Panama Digital Nomad Visa Valid? Duration and Extension
The visa grants an initial stay of nine months. You can extend it once, for another nine months, bringing your maximum stay to 18 months. To extend, you meet the same requirements as the first application. Certain applicants, such as those providing non-profit social services under recognized agreements, participating in student exchanges, or working remotely, may qualify for the one-time extension with the migration-service fee waived.
One point to plan around: the 18-month ceiling is firm. The digital nomad visa does not convert into permanent residency, so if you decide you want to stay longer, you will need to move to a different visa category before your time runs out (see long-term options below).
Panama Digital Nomad Visa Taxes: Do Remote Workers Pay Tax in Panama?
No, as a general rule, Panama does not tax foreign-source income. Panama uses a territorial tax system, which means income you earn from employers or clients outside the country is not subject to Panamanian income tax. For a remote worker whose salary or invoices come entirely from abroad, this is one of the visa’s biggest advantages.
The 183-Day Rule and Tax Residency
Spending more than 183 days in Panama within a tax year can make you a Panamanian tax resident. Even then, Panama’s territorial system generally still exempts genuinely foreign-source income, but your day count can matter for how you are treated, so it is worth tracking and discussing with a tax professional, especially if you plan to use most of the 18 months.
Tax Notes for U.S. Citizens
If you are a US citizen or green-card holder, Panama’s rules do not change your US obligations: you must still file a US federal return and report your worldwide income to the IRS. Many remote workers abroad use the Foreign Earned Income Exclusion (FEIE) to reduce or eliminate US tax on earned income, subject to the qualifying tests. This is general information, not tax advice. Confirm your specific situation with a qualified cross-border tax advisor before you rely on it.
What the Panama Digital Nomad Visa Does and Doesn’t Allow
What it allows:
- Live in Panama and work remotely for foreign employers or clients.
- No separate work permit needed. The visa itself authorizes remote work.
- Freedom to base yourself anywhere in the country, from Panama City to the beaches and highlands.
What it does not allow:
- Working for Panamanian companies or providing paid services to local clients. Your income must stay foreign-source.
- A direct path to permanent residency or citizenship. It is a medium-term stay, not a settlement route.
Living in Panama as a Digital Nomad: Cost of Living and Connectivity
You can begin the process from inside or outside Panama, provided you appoint a Panamanian legal representative to file on your behalf. Applications are typically expected to take 3 to 6 months (roughly 60 to 120 business days) once submitted.
- Engage a Panamanian immigration attorney. Immigration filings in Panama are made through a licensed attorney acting under your notarized power of attorney. You cannot submit directly to immigration yourself.
- Gather and authenticate your documents. Collect the items in the checklist above and have foreign documents apostilled or legalized.
- Translate documents into Spanish. Use an authorized public translator for any document not originally in Spanish.
- File with the National Migration Service. Your attorney submits the complete package to the National Migration Service.
- Review and approval. Authorities review your eligibility, remote-work status, and supporting documents.
- Collect your residence card in Panama. Once approved, you receive your card for the nine-month period, renewable once.
Do You Need a Lawyer to Apply?
Yes. A Panamanian immigration attorney must file the application under a power of attorney. Working with a firm that handles the entire process, from document review and translation coordination to filing and follow-up, is the difference between a smooth approval and avoidable delays or a rejection.
From Digital Nomad to Panama Resident: Long-Term Options
Because the digital nomad visa caps at 18 months and does not lead to residency, many people treat it as a first chapter, a way to test whether Panama fits their life before committing. If you decide to stay, Panama offers several established residency routes, and our team can move you from one to the next:
Friendly Nations
A popular permanent-residency path for citizens of certain countries, including the United States. Read
Pensionado Visa
For applicants with a qualifying lifetime pension, with well-known discounts and benefits. Read
Panama Golden Visa
Permanent residency through a qualifying investment. Read
How to Apply for the Panama Digital Nomad Visa: Step by Step
Beyond the paperwork, the day-to-day is the real draw. Panama uses the US dollar, so there is no exchange-rate guesswork, and Panama City sits within easy reach of both North and South America. Internet is fast and reliable in the cities, and an active community of remote workers and expats makes it easy to settle in.
Where you base yourself depends on the lifestyle you want:
- Panama City: high-rise living, coworking, banking, and international flights.
- Boquete: cool green highlands near Volcan Baru, a slower pace, and a large established expat community, where NDM also has an office.
- Bocas del Toro: Caribbean island life and a laid-back beach scene.
- Pedasi and Venao: surf and beach towns on the Pacific coast, another area where NDM has a presence.
A practical tip: line up your accommodation and a local SIM card before you arrive so you can start working from day one.
Panama vs. Other Digital Nomad Visas: Costa Rica, Mexico, and Colombia
Panama is often compared with its neighbors. Here is how the main Latin American options line up in 2026:
Panama
Min. monthly income: US$3,000
Max. stay: 18 months
Local tax on foreign income: None (territorial)
Currency: US dollar
Costa Rica
Min. monthly income: US$3,000 (US$4,000 with family)
Max. stay: 2 years
Local tax on foreign income: None (territorial)
Currency: Costa Rican colon
Mexico
Min. monthly income: From US$1,600
Max. stay: 1 to 4 years
Local tax on foreign income: Generally untaxed if non-resident
Currency: Mexican peso
Colombia
Min. monthly income: About US$1,400 to US$1,600
Max. stay: 2 years
Local tax on foreign income: May apply if tax resident
Currency: Colombian peso
Panama’s edge for a US-based remote worker is the combination of a US-dollar economy, no local tax on foreign income, an 18-month runway, and short direct flights home. Colombia and Mexico are cheaper on paper but run on local currency and different tax exposure; Costa Rica matches Panama on tax treatment but uses the colon and asks for a heavier income-history file. Thresholds and rules change often, so confirm current figures for any country before you decide.
How to find a trusfull lawyer for Your Digital Nomad Visa
NDM Law Firm & Associates is a Panama-based international law firm with immigration attorneys and offices in Panama City, Boquete, and Venao. We handle the digital nomad visa end to end: eligibility review, document and apostille coordination, Spanish translation, filing before the National Migration Service, and follow-up until your card is issued. Our team works in English and Spanish, so nothing gets lost between you, the paperwork, and the authorities.
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