Key Facts
- The Panama Digital Nomad Visa grants a short-term legal right to stay while you keep working for a foreign employer or clients.
- Granted for an initial 9 months, renewable once for another 9, for 18 months total.
- Minimum income requirement: $36,000 USD per year from outside Panama.
- Processing time: about 40 business days from a complete submission.
- Zero local tax on foreign-sourced income, thanks to Panama's territorial tax system.
At Kraemer & Kraemer, we guide remote workers and freelancers through every requirement of the Panama Digital Nomad Visa, from the initial paperwork to your final approval. To qualify, you need one of two work arrangements, plus standard personal documentation.
What Is the Panama Digital Nomad Visa?
The Panama Digital Nomad Visa, officially the Short-Stay Visa for Remote Workers, lets foreign employees and freelancers earning at least $36,000 a year from outside Panama live in the country while continuing to work for their foreign employer or clients. Issued by Panama’s National Immigration Service, it grants an initial 9-month stay that can be renewed once, for a combined total of 18 months.
To access this visa the person must comply with the following Panama Digital Nomad Visa requirements and conditions, as established in Executive Decree No. 198, dated May 7, 2021:
- Work remotely under a contract with a transnational foreign company, or as a self-employed remote worker
- Carry out work whose effects are outside Panama
- Earn foreign-source income of at least $36,000 a year, or its equivalent in another currency
Duration and Renewal
The Panama Digital Nomad Visa is granted for an initial 9 months and can be renewed once for another 9 months, for 18 months total. If you want to stay in Panama longer-term, you would need to separately qualify for a different residency program.
What are the Panama Digital Nomad Visa Requirements?
To qualify for this program, you must meet the Panama Digital Nomad Visa requirements with one of two work arrangements along with standard personal documentation. Anything issued outside Panama must be apostilled or authenticated by a Panamanian consulate in the issuing country, and we recommend it be no more than 6 months old when you file.
- Copy of your passport, notarized or authenticated. We recommend at least 6 months of remaining validity from your application date.
- 3 passport-size photographs
- National criminal background certificate
- Health certificate issued by a licensed physician, separate from your insurance policy
- Health insurance policy with coverage in Panama for your entire stay. If the policy was issued abroad, it must also be apostilled or authenticated.
- Employees only: proof that your foreign employer exists in the country where it’s registered, such as a certificate of incumbency and good standing
- Employees only: a letter on company letterhead, signed by the legal representative, with your personal details, position and duties, monthly income (at least $3,000 or its equivalent in foreign currency), payment frequency, confirmation that the income comes from abroad, remote work modality and the company’s commitment to cover repatriation costs if needed
- Sworn declaration, signed by you, that you won’t accept job offers or provide services in Panama while you hold the visa
- Proof that your income comes from abroad, through one of the following:
- A bank certification letter confirming that the income is received from abroad and is tied to your declared employment
- Statements from your foreign or local bank, bearing the issuing bank’s authentication stamps, that show the incoming transfers and their link to your declared employment. We usually ask for the last two months.
- Notarized power of attorney and application forms, prepared by Kraemer & Kraemer. The power of attorney must include your parents’ full names and nationalities, so have them ready when you send your documents.
If you work for your own clients instead of an employer, you don’t need the employer letter or proof of a foreign employer’s existence. You submit these two documents in their place:
- Certification of your own business, showing it’s registered outside Panama. This is the company you invoice your clients through.
- A sworn declaration signed before a notary that describes your relationship with your clients: your full name and personal details, each client’s details, the services you provide, how much you earn from them, where the funds come from and how often you’re paid.
What are the Benefits of Working as a Digital Nomad in Panama?
The Panama Digital Nomad Visa allows a seamless blend of professional pursuits and a fulfilling lifestyle. Consider the following advantages:
- Extended Stay: You’re allowed to stay in Panama for a period of 9 months, and this can be extended for an additional 9 months. This grants you substantial time to live and work in the country without frequent visa renewals.
- No Country Restriction: This setup has no country-specific restrictions, providing flexibility for digital nomads from various nationalities to enjoy this opportunity in Panama.
- Are you considering moving to Panama? Visit our Why Panama page for more information. The website has a wealth of information about the benefits of living in Panama, as well as tips on how to make the most of your time there.
What is not Allowed under Panama Digital Nomad Visa?
The Panama Digital Nomad Visa doesn’t let you work for a Panamanian company or take on Panama-based clients. Your income has to keep coming from outside the country for the full length of your stay, and the visa itself doesn’t lead directly to permanent residency.
How Do Digital Nomads in Panama Pay Taxes?
When it comes to taxes, by virtue of Panama’s territorial taxation system, digital nomads are exempt from taxation on income derived from sources outside the country. This provides a compelling opportunity to significantly alleviate the tax burden, particularly when establishing tax residency in Panama through a stay exceeding six months.
By taking advantage of these favorable tax regulations, digital nomads can optimize their financial situation and retain more of their hard-earned income.
How do People Apply for a Visa for Remote Workers?
A complete Panama Digital Nomad Visa application typically takes 40 business days from submission to resolution.
Prior to your trip:
- Step 1: Obtain the required paperwork, keeping in mind the validity of each document.
- Step 2: Email copies to Kraemer & Kraemer team for review before planning your trip.
- Step 3: Receive the approval of documents by your Kraemer & Kraemer case manager.
- Step 4: Apostille/authentication required documents and email copies to our team.
- Step 5: Initiate Kraemer & Kraemer services (order can be placed online).
At least 4 weeks prior to your trip:
- Step 6: Kraemer & Kraemer will conduct a final review of your paperwork.
- Step 7: Confirm your stay and complete required forms.
- Step 8: FedEx or DHL any authenticated documents for 2nd authentication.
- Step 9: Kraemer & Kraemer will translate documentation, including apostilles for your visa application if needed.
Please note: If we have not received documents 1 week prior to your arrival, we cannot guarantee that we will be able to complete the process in the proposed timeline outlined below.
What are the Associated Costs and Fees?
The breakdown below covers the government fees for the Panama Digital Nomad Visa. These are separate from Kraemer & Kraemer’s legal fees, your health insurance, and your medical certificate. These are the main government fees. Other fees not listed here, such as the Carné de Trámite, notarizations in Panama and registration fees, among others, may apply.
Government Fees
$250
Add to Order and Start your Process Now
At Kraemer & Kraemer, we offer an online platform to start your Panama Digital Nomad Visa process in a few simple steps. Review the fee breakdown and click “Add to Order” to get started. Our team of experts will contact you as soon as possible.
Nomad Visa
