As Panama is an attractive destination to establish either as a temporary resident or as a permanent resident, it has become the preferred destination for Remote Digital workers and entrepreneurs who can carry out their economic activities from anywhere in the world.
Panama has emerged as a top destination for remote workers, early retirees, and international entrepreneurs seeking a flexible base with strong infrastructure, territorial taxation, and straightforward immigration options. Known for its dollarized economy and global connectivity, Panama now offers dedicated residency pathways — including a remote worker visa — designed for the post-pandemic digital age.
Remote Work in Panama: Fast Entry, Flexible Stay
Visa Type:
Short-Stay Remote Work Visa (Decree No. 198, 2021)
✅ Valid for 9 months, with a one-time extension for an additional 9 months
Who It’s For:
Digital nomads, freelancers, and remote entrepreneurs who work for foreign companies or clients and want to legally reside in Panama without local tax exposure.
Why Choose Panama?
✅ 0% Tax on Foreign Income
Panama uses a territorial tax system — only income earned inside the country is taxed.
✅ USD-Based Economy
The U.S. dollar is legal tender — no currency risk or conversion hassles.
✅ Strong Infrastructure
Reliable internet, healthcare, and banking in Panama City and other urban hubs.
✅ Central Location
Strategically positioned between North and South America — ideal for global travel.
✅ Natural Diversity
From Caribbean beaches and Pacific surf towns to lush jungles and cool mountain escapes.
✅ Simple Paperwork
Compared to many countries, Panama’s remote visa is relatively fast and clear, especially with legal support.
Things to Consider
⚠️ Bureaucratic Slowdowns
Processing can take weeks — professional help is recommended.
⚠️ Spanish Outside the Capital
Panama City is English-friendly, but rural zones require Spanish.
⚠️ Cost of Living in Panama City
Urban life is modern — but not cheap. Budget accordingly.
⚠️ Climate
Panama is humid year-round with a pronounced wet season.
⚠️ Limited Rural Healthcare
For advanced medical needs, stay close to major cities.
Best For:
Remote workers, founders, and early retirees who want legal tax residency, fast setup, and reliable infrastructure — without giving up global mobility or digital income. Ideal for those seeking a tropical base with First World essentials.
After the pandemic our way of doing work changed drastically and we discovered that we can do it from anywhere on the planet and that is why the government of Panama created decree No. 198 of March 7, 2021 that «Creates the Short stay visa as a remote worker.
This Visa or permit has a duration of 9 months and an extension or extension can be requested, for 9 more successive months.
Remote Work in Panama – Quick Overview
Visa:
- Short-Stay Remote Work Visa (Decree No. 198, 2021)
- Valid for 9 months, extendable once for another 9 months
ประโยชน์:
- No local tax on foreign income
- Uses the U.S. dollar
- Modern internet, healthcare, and banking
- Central location between North & South America
- Natural beauty: beaches, jungles, mountains
- Simple application process
ข้อเสีย:
- Bureaucracy and paperwork delays
- Spanish needed outside main cities
- Panama City can be pricey
- Humid, tropical climate
- Limited healthcare in rural areas
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