Panama offers a short-stay visa for foreigners who work remotely for a company or clients abroad. Commonly known as the Digital Nomad Visa, it allows you to stay in the country for up to nine months and to request an extension for another nine months. To qualify, the applicant must perform duties whose effects take place outside Panama and receive foreign-source income of at least B/.36,000 a year.
This visa can be an option for anyone who wants to spend a season in Panama while keeping their professional activity abroad. However, it is not permanent residency, and it does not authorize you to work for Panamanian employers, clients or companies. The official category is the Short-Stay Visa for Remote Workers, created by Executive Decree No. 198 of May 7, 2021.
Who can apply for the Digital Nomad Visa?
A foreign national who works remotely for a foreign company, or who is self-employed with clients abroad, can apply. The activity must be carried out remotely, its effects must take place outside Panama, and the income must come from a foreign source.
The minimum income requirement is B/.36,000 a year, equivalent to B/.3,000 a month, or the equivalent in another currency. Showing that you receive that amount is not enough: the documentation must make it possible to verify the employment or business relationship, the origin of the funds and how often payments are made.
An employee of a foreign company must have a letter from that company detailing their position, duties, salary, remote work arrangement and payment frequency. A self-employed applicant must show that their company is registered abroad and describe their relationships with clients and the services they provide. The activity and income must comply with the conditions of the visa.
How long does the visa last?
The visa is granted for a maximum of nine months and can be extended only once for the same period. The maximum stay under this category is therefore eighteen months, provided the extension is requested and approved under the applicable rules.
This is a non-resident immigration category. Obtaining it does not automatically grant permanent residency, nor does it change your immigration category by itself after the eighteen months. If you wish to remain in Panama after that period, you will have to leave the country or assess whether you meet the requirements of another immigration category and file the corresponding application.
What activities does it allow, and which are excluded?
Once approved, the visa allows you to work remotely from Panama for a foreign company or provide services to clients abroad, as long as the conditions that justified the application are maintained. The regulation provides that the holder may carry out this remote activity without obtaining an additional work permit for that arrangement.
The permit does not authorize you to accept a job offer or provide services in the Panamanian market. During the application, the applicant must sign a sworn statement declaring that they will not accept job offers or services in Panama in order to do business in the national territory. For that reason, this visa should not be used to join a Panamanian company as an employee or to serve local clients through an activity that generates Panamanian-source income.
What documents are required?
The application usually includes personal, immigration, employment and financial documents. The exact list should be confirmed before filing, since Immigration may update its forms or request additional documentation depending on each case.
The documents provided for include:
- Notarized power of attorney and an application filed by a legal representative.
- Three passport-size photographs and a duly certified copy of the passport.
- Criminal record certificate legalized by apostille or through the relevant consular channel.
- Health certificate and sworn declaration form on personal background.
- Application form, which includes the commitment to cover return or repatriation costs if necessary.
- Medical insurance policy covering Panama for the length of the stay.
- Bank records showing that the income comes from abroad and is linked to the declared work or activity.
- Sworn declaration of not accepting job offers or services in Panama.
If the applicant is an employee of a foreign company, they must provide a certificate of existence of the company and a letter on company letterhead signed by its legal representative. The letter must identify the applicant, describe their position and duties, confirm that they work remotely, state their income and payment frequency, and declare that the income comes from abroad. The company must also assume return or repatriation costs where applicable.
If the applicant is self-employed, they must provide proof that their own company is registered abroad. They must also provide a notarized sworn statement describing their business relationship with clients, the services they provide, the fees they receive, the origin of the funds and the frequency of payments. Documents issued outside Panama must meet the applicable authentication formalities and, if they are not in Spanish, must be translated according to current requirements.
How is the application filed?
The applicant must have entered Panama to start this procedure. The application is filed with the Special Procedures Window of the National Immigration Service through a legal representative. If the applicant’s nationality requires an authorized visa to enter the country, they must obtain it before traveling and then apply for this category.
Preparing the file is an important part of the process. Make sure the letters, certificates and bank statements match in terms of employer or clients, activity, income and payment frequency. A discrepancy between documents can lead to requests for correction or delays in the evaluation.
The Executive Decree provides for a payment of B/.250 to the National Immigration Service and a cost of B/.50 for the corresponding ID card. There may also be legal fees and costs for authentication, translation and obtaining documents. Before starting, confirm the applicable costs and current payment method with your legal representative.
Does the visa mean foreign income is automatically tax-free?
The visa should not be presented as an automatic tax exemption. Panama applies territorial rules to determine whether income is Panamanian-source or foreign-source, and the immigration category does not replace that analysis. The visa requires that the work produce effects outside Panama and that the income come from abroad; tax treatment depends on the nature of the activity and where its effects occur.
The Tax Authority (Dirección General de Ingresos) recognizes foreign-source income in its forms and tax materials. Even so, if you have doubts about your tax situation, review your contracts, where the services are used and how you receive payments with a tax advisor.
Does the visa let me stay longer than a tourist visa?
The permitted tourist stay can depend on your nationality, the category of entry and the authorization granted by immigration authorities. For that reason, it is not accurate to state in general that all European citizens can stay three months and all Canadians six. Panamá Digital states that tourist visas can be granted for up to ninety days, subject to international agreements and reciprocity rules. Before traveling, confirm the period that applies to your passport and check the authorized date of stay when you enter.
The Digital Nomad Visa is a separate category for remote workers who meet its requirements. You should not assume that you can stay in Panama as a tourist and start working remotely without reviewing the applicable immigration conditions. The application for this visa is processed after entering the country, but it should be prepared in advance and filed according to the established procedure.
Thinking of working remotely from Panama?
Book a video call with us to learn the current conditions of the Short-Stay Visa for Remote Workers and review the documents you would need for your application: schedule an appointment with Panama Contact Services. You can also explore our immigration and relocation services in Panama.
