Panama Digital Nomad Visa
The short-term visa for remote workers or digital nomads was created by Executive Decree 198 on May 7, 2021. The main purpose of this visa, of the Non-Resident category, is to encourage tourism for telecommuting travelers.
To access this visa the person must comply with the following requirements:
- To have a contract with a foreign company of transnational character. That is to say, to be a self-employed worker in telework modality.
- To perform functions that affect abroad.
- To have income from abroad with an annual amount of at least 36,000 balboas or its equivalent in another currency.
Once granted, this short-term visa as a remote worker is valid for 9 months, extendable for the same period. It will also allow the person to work in teleworking mode within Panama and not require additional paperwork or obtaining a permit from another state entity.
Residing in Panama as a digital nomad imparts a remarkable journey. This country, boasting a robust economy within the Central American region, provides a unique landscape where an affordable cost of living converges with ample avenues for economic progress.
The geniality and hospitable disposition of the local populace further enhance this enthralling experience. Manifesting an embrace of digital nomads and expats, Panama endows one with a perpetual stream of heartfelt smiles and invaluable recommendations, forging a sense of belonging and camaraderie that reverberates throughout one’s sojourn.
Requirements for the digital nomad visa in Panama
In addition to meeting the above requirements, the following must be met in order to apply for this visa:
- Valid passport for at least 6 months from application date.
- 5 passport size photos (2inch x 2inch)
- National criminal background certificate, recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- Copy of health insurance policy with coverage in Panama during your stay. If is an international policy recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- Proof of foreign company existence in the country its registered (certificate of incumbency and good standing) recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- Job letter signed by the legal representative stating name, id, post, job, annual income (at least $36,000.00 per year) or its equivalent in foreign currency, remote work modality and the clear statement to assume repatriation cost if necessary. recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- Signed declaration of No Job Offer Acceptance or provide service in and while in Panama under the visa.
- Proof that the income comes from abroad, must present one of the following:
- Bank certification letter, stating the income is received from abroad and the job condition under which the income is received, recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- OR, Last two months bank statements form a foreign bank, stamped/seal by the bank that show the receival of the funds and that show the funds are tied to the declared job, recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- Power of Attorney and application forms (provided by K&K)
Requirements for self-employed applicants
- Certification or proof that the company is registered in a foreign country or that the company you are working for is located outside of Panama. Recently issued, apostilled/ authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
- A signed declaration stating the general information of the applicant, list of clients, service provided to the client, regularity of payment, where the funds paid to the applicant come from, and number of payments. recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country– valid for 6 months
Process and timeline
The process takes 40 business days, after the file is submitted.
Prior to your trip:
- Obtain the required paperwork, keeping in mind the validity of each document
- Email copies to Kraemer & Kraemer team for review before step 4. Plan your trip.
- Receive the approval of documents by your Kraemer & Kraemer case manager.
- Apostille/authentication required documents and email copies to our team.
- Initiate Kraemer & Kraemer services (order can be placed online)
At least 4 weeks prior to your trip:
- Kraemer & Kraemer will conduct a final review of your paperwork
- Confirm your stay and complete required forms.
- FedEx or DHL any authenticated documents for 2nd authentication
- Kraemer & Kraemer will translate documentation, including apostilles for your residency application if the documents are in the previously mentioned languages.
If we have not received documents 1 weeks prior to your arrival, we cannot guarantee that we will be able to complete the process in the proposed timeline outlined below.
Taxes for holders of this visa
The process takes 40 business days, after the file is submitted.
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.
Benefits of Working as a Digital Nomad in Panama
This 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.
Direct Application: You can apply for this arrangement directly at the immigration office, streamlining the process and avoiding complex application procedures.
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.
Add to your order now
The Kraemer & Kraemer team can help you process your digital nomad visa in Panama. Send us an email to firstname.lastname@example.org for more details about the process and cost.