Freelance/Digital Nomads in Panama

Introduction

Panama during the last few years has become an appealing destination for freelancers and digital nomads due to its strategic location, robust internet infrastructure, and favorable climate.

Visa and Residency Options

Panama offers various visa options that may be attractive to digital nomads, for a complete guide about the possible Visa, you can read our article here. Aside from all the various types of visas, Panama has recently issued, decree No. 198 of March 7, 2021, that creates a short-term remote worker visa specifically designed for digital nomads wanting to live and work in Panama temporarily. For this kind of Visa, every applicant (employee or self-employed) must fill out a form issued by the National Migration Service, where the applicant agrees to pay any repatriation costs.

Digital entrepreneurs and Remote employers

This Visa is designed for remote employers working for foreign companies. It is quite easy to apply for this kind of Visa, in particular, you must meet the following requirements:

• Demonstrate that the functions of your employment are performed abroad.
• An annual minimum income from a foreign source of $36,000.
• Proof of their income by bank statements, properly authenticated.
• You must fill out a form issued by the National Immigration Service, where the applicant will agree to assume the costs of repatriation if necessary.
• Health Insurance with coverage within Panama and for a time that covers at least the duration of the visa.
• A sworn declaration that the applicant will not accept any job offers in Panama.
• Any further documentation demonstrating details on the position held in the company.

Freelance workers - Self-employed

This Visa is designed for self-employed workers working for foreign companies. Requirements:

• Certificate of existence of the foreign company must establish the place where it is located.
• Proof of their income by bank statements, properly authenticated.
• Health Insurance with a coverage within Panama and for a time that covers at least the duration of the visa.
• Certificate of the company registered abroad duly apostilled.
• A sworn declaration executed before a notary public detailing the company's commercial relationships with clients, the services provided, the revenue generated from these services, and a description of the company's business activities and objectives.
• Any further documentation demonstrating details on the position held in the company.

Cost of Living

The cost of living in Panama is relatively affordable compared to many Western countries, especially outside of Panama City. This makes it easier for digital nomads to maintain a comfortable lifestyle while managing their expenses.

Connectivity

Panama boasts a high level of internet connectivity, crucial for freelancers and digital nomads whose work depends on reliable online access. The country's infrastructure supports high-speed internet in most urban areas.

Coworking Spaces in Panama City

Panama City is being heralded as a hotspot for digital nomads in Central America. With a slew of co-working spaces popping up including Workings, My Office and Panamacoworking.

Tax Benefits

Panama applies the territorial tax system where Citizens, residents, and non-residents are taxed only on Panama-sourced income. Foreign-source income is not subject to tax in Panama. This has made Panama an attractive destination for expatriates seeking favorable tax conditions. The Territorial Tax System also applies to corporations, making it a significant advantage for multinational corporations that have income earned outside of Panama.

Expat Communities

Panama has a thriving expat community, particularly in places like Panama City, Coronado, Boquete, and Pedasi. This community provides a support network for newcomers, making it easier to take your first steps into this new country.

Social Activities

Joining clubs and activities such as golf, football, tennis, and sailing could be an effective way to make new friends. Expats usually also attend local language classes, book clubs, and cooking classes. You can also meet new people by attending local events such as concerts, festivals, and shows.

Sources & Foot Notes

[1] Digital Nomad Visa in a Nutshell
[2] New Visa for Remote Workers & Digital Nomads in Panama - 2021
[3] Digital Nomad Visa in Panama