Panama Digital Nomad Visa

In response to the growing trend of remote work and digital nomadism, Panama recently introduced its Digital Nomad Visa program.

This program allows remote workers and digital nomads to stay in Panama for up to 18 months while working remotely for companies located outside of the country.

The Panama Digital Nomad Visa is a program that was introduced in 2021 to allow remote workers and digital nomads to live and work in Panama for up to 18 months.

The program is designed for individuals who work remotely for companies located outside of Panama and do not engage in any local employment or commercial activity in Panama.

To be eligible for the Panama Digital Nomad Visa, applicants must provide evidence of their remote work, including a letter from their employer indicating their remote work status, and proof of a minimum income of $2,500 USD per month. Applicants must also have health insurance that covers them while in Panama.

Once approved, digital nomads can enter Panama on a tourist visa and then apply for the digital nomad visa while in the country. The visa is valid for up to 18 months and can be renewed for an additional 18 months.

Benefits of the Panama Digital Nomad Visa

Panama is a popular destination for digital nomads due to its favorable business environment, beautiful scenery, affordable cost of living, and great infrastructure. Here are some of the benefits of living and working in Panama as a digital nomad:

1. Low cost of living: Panama has a lower cost of living compared to many other digital nomad destinations in North America, Europe, and Asia. This makes it an attractive option for digital nomads who want to save money while still enjoying a high quality of life.
2. Great weather: Panama has a tropical climate with plenty of sunshine and warm temperatures year-round. This means that digital nomads can enjoy the great outdoors and take advantage of the many outdoor activities available in Panama.
3. Favorable tax environment: Panama has a territorial tax system, which means that digital nomads who work for companies outside of Panama are not subject to income tax in Panama. This can result in significant tax savings for digital nomads.
4. Good infrastructure: Panama has a well-developed infrastructure, including high-speed internet, modern transportation, and reliable utilities. This makes it easy for digital nomads to work remotely and stay connected with their colleagues and clients.
5. Beautiful scenery: Panama is known for its stunning natural beauty, including its beaches, rainforests, and mountains. This provides digital nomads with plenty of opportunities to explore and enjoy the country's natural wonders during their free time.
6. Safe and stable: Panama is a safe and stable country, which is important for digital nomads who may be traveling alone or with their families. The country has a low crime rate, and the government is committed to promoting foreign investment and economic growth.
7. Health care options: Panama has a good healthcare system, with modern hospitals and clinics located throughout the country. This means that digital nomads can access high-quality healthcare if they need it.

Eligibility requirements

The Panama Digital Nomad Visa is a new visa program that was introduced in 2021 to attract remote workers and digital nomads to live and work in Panama. Here are the eligibility requirements for the Panama Digital Nomad Visa:

1. Proof of remote work: To be eligible for the Panama Digital Nomad Visa, you must be able to demonstrate that you work remotely for a company or clients outside of Panama. You will need to provide documentation such as employment contracts, invoices, or proof of income to show that you are a remote worker.
2. Health insurance coverage: You must have health insurance coverage that is valid in Panama for the duration of your stay. This can be either an international health insurance policy or a local policy purchased in Panama.
3. Financial solvency: You must be able to demonstrate that you have sufficient financial means to support yourself while living in Panama. This can include providing bank statements, proof of income, or other financial documentation.
4. Clean criminal record: You must have a clean criminal record and provide a police clearance certificate or similar documentation to demonstrate this.
5. Application fee: You will need to pay a non-refundable application fee of $250 when applying for the Panama Digital Nomad Visa.
6. Age requirement: There is no age requirement for the Panama Digital Nomad Visa, but applicants must be at least 18 years old.
7. Valid passport: You must have a valid passport with at least six months of validity remaining from the date of entry into Panama.

It's important to note that the eligibility requirements for the Panama Digital Nomad Visa may change over time, so it's always a good idea to check with the Panamanian government or a reputable immigration lawyer for the most up-to-date information before applying.

How to apply for the Panama Digital Nomad Visa

If you're interested in applying for the Panama Digital Nomad Visa, here are the steps you'll need to follow:

1. Gather the necessary documents: Before you apply for the Panama Digital Nomad Visa, you'll need to gather the required documents, including proof of remote work, health insurance coverage, financial solvency, a police clearance certificate, and a valid passport.
2. Complete the online application form: The application for the Panama Digital Nomad Visa can be completed online through the Panamanian government's immigration website. You'll need to provide personal information, details about your remote work, and information about your travel plans to Panama.
3. Pay the application fee: You'll need to pay a non-refundable application fee of $250 when you submit your application.
4. Wait for approval: Once you've submitted your application, it will be reviewed by immigration officials in Panama. You may be asked to provide additional documentation or to attend an interview if necessary. It typically takes around 15 business days to receive a decision on your application.
5. Travel to Panama: If your application is approved, you'll receive a temporary visa that is valid for nine months. You'll need to travel to Panama within 90 days of receiving your visa.
6. Complete the registration process: Once you arrive in Panama, you'll need to complete the registration process for the Panama Digital Nomad Visa. This includes providing your fingerprints and a photo, as well as paying a registration fee.
7. Renew your visa: The Panama Digital Nomad Visa is valid for up to 18 months. If you wish to stay in Panama beyond this period, you'll need to apply for a visa renewal and provide updated documentation to demonstrate that you still meet the eligibility requirements.

It's important to note that the application process for the Panama Digital Nomad Visa may change over time, so it's always a good idea to check with the Panamanian government or a reputable immigration lawyer for the most up-to-date information before applying.

Cost of living in Panama

The cost of living in Panama can vary depending on the city and neighborhood where you choose to live.

However, in general, Panama is considered to be a more affordable option compared to other popular digital nomad destinations such as San Francisco, New York, or London. Here are some examples of the cost of living in Panama compared to other digital nomad hotspots:

1. Housing: The cost of housing in Panama can vary depending on the city and neighborhood. In Panama City, for example, a one-bedroom apartment in the city center can cost between $600-$1,200 per month, while a similar apartment in San Francisco can cost between $2,000-$3,000 per month.
2. Food: The cost of food in Panama is generally lower than in other digital nomad hotspots. A meal in an inexpensive restaurant in Panama City can cost around $5-$10, while a similar meal in San Francisco can cost $15-$20.
3. Transportation: Public transportation in Panama is generally affordable, with a one-way ticket on the metro costing around $0.35. Taxis are also relatively cheap, with a typical ride within Panama City costing around $3-$5.
4. Entertainment: The cost of entertainment in Panama can vary, but generally, it's less expensive than in other digital nomad hotspots. A movie ticket in Panama City can cost around $5, while a similar ticket in New York can cost $15.

Overall, Panama is considered to be a more affordable option for digital nomads compared to other popular destinations. While the cost of living can vary depending on the city and neighborhood, in general, you can expect to save money on housing, food, transportation, and entertainment by living in Panama.

Healthcare options for digital nomads in Panama

Healthcare options for digital nomads in Panama are generally good, and the country has a well-developed healthcare system. Here are some healthcare options available for digital nomads in Panama:

1. Public healthcare: Panama has a universal healthcare system, and all residents are entitled to receive medical care through the public system.

The quality of care can vary, but the cost is generally very low or free for citizens and permanent residents.

However, for digital nomads who are not permanent residents, accessing public healthcare may not be possible, as it typically requires enrollment in the Panamanian social security system.

2. Private healthcare: Private healthcare in Panama is generally of high quality, and there are many private hospitals and clinics throughout the country.

Private healthcare can be more expensive than public healthcare, but it's often more accessible for digital nomads who are not permanent residents.

Many private healthcare providers offer international health insurance plans that can provide coverage for digital nomads.

3. Medical tourism: Panama is becoming an increasingly popular destination for medical tourism, and many private healthcare providers offer medical services specifically for international patients.

This can be a good option for digital nomads who need medical treatment or procedures that may not be covered by their insurance in their home country.

4. Telemedicine: Many private healthcare providers in Panama offer telemedicine services, which allow digital nomads to consult with doctors and healthcare providers remotely. This can be a convenient option for minor health issues or for follow-up consultations.

Overall, digital nomads in Panama have a range of healthcare options available to them, including public healthcare (for permanent residents), private healthcare, medical tourism, and telemedicine.

It's important to research healthcare options in advance and to make sure that you have adequate health insurance coverage before traveling to Panama or any other country as a digital nomad.

Top places to live in Panama for digital nomads

Panama has many great cities and regions that are ideal for digital nomads. Here are some of the top places to live in Panama for digital nomads:

1. Panama City: Panama City is the capital of Panama and is the largest city in the country. It has a modern skyline and a diverse cultural scene, making it an exciting place to live for digital nomads. Panama City has many co-working spaces, cafes, and other amenities that are perfect for remote workers. It's also home to many expat communities, so it's easy to meet other digital nomads and make new friends.
2. Bocas del Toro: Bocas del Toro is a group of islands located in the Caribbean Sea off the northern coast of Panama. It's a popular destination for tourists and expats and is known for its beautiful beaches and laid-back lifestyle. Bocas del Toro has many co-working spaces and other amenities for digital nomads, as well as a thriving expat community.
3. Boquete: Boquete is a mountain town located in the western highlands of Panama. It's known for its cooler climate, beautiful scenery, and outdoor recreation opportunities. Boquete has a growing expat community and many amenities for digital nomads, including co-working spaces and cafes.
4. Santa Catalina: Santa Catalina is a small fishing village located on the Pacific coast of Panama. It's known for its beautiful beaches and world-class surfing. Santa Catalina has a small but growing community of expats and digital nomads, and there are a few co-working spaces and cafes in the area.
5. Pedasi: Pedasi is a small town located on the Azuero Peninsula in southern Panama. It's known for its colonial architecture, beautiful beaches, and laid-back lifestyle. Pedasi has a small but growing community of expats and digital nomads, and there are a few co-working spaces and cafes in the area.

Overall, Panama has many great cities and regions that are ideal for digital nomads. Whether you prefer a big city or a small town, a beach or a mountain, Panama has something to offer for everyone.

Cultural experiences and activities for digital nomads in Panama

Panama offers a rich cultural experience with a mix of indigenous, African, and Spanish influences. As a digital nomad in Panama, you can take advantage of a wide range of cultural experiences and activities, including the following:

1. Explore the historic Casco Viejo neighborhood in Panama City: This charming district features beautiful colonial architecture, lively street markets, and a variety of cafes and restaurants. It's a great place to wander around, take photos, and soak up the local culture.
2. Attend a traditional festival or celebration: Panama has a rich calendar of festivals and celebrations throughout the year, including Carnival, the Pollera Parade, and the Corpus Christi festival. These events offer a unique glimpse into Panamanian culture and traditions.
3. Learn about the indigenous cultures of Panama: Panama is home to several indigenous groups, including the Ngäbe, Embera, and Kuna people. You can learn about their customs and traditions by visiting their communities, attending cultural events, or even taking a guided tour.
4. Visit a museum or art gallery: Panama has many museums and art galleries that showcase the country's history and culture. Some notable options include the Panama Canal Museum, the Museum of Contemporary Art, and the Biomuseo.
5. Sample local cuisine: Panama has a diverse culinary scene that blends indigenous, African, and Spanish influences. Some must-try dishes include sancocho (a hearty soup), ceviche (raw fish marinated in lime juice), and arroz con pollo (chicken with rice). You can find these dishes and more at local restaurants and street vendors throughout the country.
6. Explore Panama's natural beauty: Panama is home to an incredible array of natural wonders, including tropical rainforests, beautiful beaches, and volcanic landscapes.
7. As a digital nomad in Panama, you can take advantage of opportunities for hiking, surfing, snorkeling, and other outdoor activities.

Overall, there are many cultural experiences and activities for digital nomads in Panama. Whether you're interested in history, art, food, or the great outdoors, Panama has something to offer for everyone.

Tips for adjusting to life as a digital nomad in Panama

Adjusting to life as a digital nomad in a new country can be challenging, but with some preparation and an open mind, it can also be a rewarding experience. Here are some tips for adjusting to life as a digital nomad in Panama:

1. Learn some basic Spanish: While many Panamanians speak English, learning some basic Spanish can be helpful in communicating with locals and making new friends. You can take a language course before you arrive or use language-learning apps like Duolingo to practice.
2. Get to know the local culture: Panama has a rich cultural heritage, and taking the time to learn about it can make your experience as a digital nomad more rewarding. You can visit museums and historical sites, attend cultural events and festivals, and try local cuisine.
3. Take advantage of co-working spaces: Panama has a growing number of co-working spaces that cater to digital nomads. These spaces can provide a sense of community and make it easier to connect with other remote workers.
4. Stay connected with friends and family back home: Maintaining connections with loved ones back home can help you feel less isolated and more grounded in your new environment. You can use video chat apps like Skype or FaceTime to stay in touch.
5. Stay active and healthy: Panama's warm weather and beautiful natural scenery make it easy to stay active and healthy. You can take advantage of opportunities for hiking, surfing, swimming, and other outdoor activities to stay in shape and reduce stress.
6. Be open to new experiences: Finally, it's important to approach your experience as a digital nomad in Panama with an open mind. Try new foods, make new friends, and explore your surroundings to make the most of your time in this vibrant and diverse country.

Overall, adjusting to life as a digital nomad in Panama may take some time, but with these tips and a positive attitude, you can make the most of this unique opportunity.

Visa renewal process for the Panama Digital Nomad Visa

The Panama Digital Nomad Visa is valid for one year and can be renewed for up to two additional years. Here are the steps you need to follow to renew your visa:

1. Gather the necessary documents: To renew your Panama Digital Nomad Visa, you will need to provide a copy of your passport, a copy of your original visa, a police clearance certificate, and proof of income.
2. Submit your application: You can submit your renewal application online through the National Immigration Service's website. Make sure to complete the application form accurately and provide all required documents.
3. Pay the renewal fee: The fee for renewing the Panama Digital Nomad Visa is $250.
4. Wait for approval: Once you submit your renewal application, it may take several weeks to receive approval. You can check the status of your application on the National Immigration Service's website.
5. Obtain a new ID card: If your renewal application is approved, you will need to obtain a new ID card from the National Immigration Service. This card will serve as proof of your legal status in Panama.

It's important to start the renewal process well before your visa expiration date to ensure that you have enough time to gather all necessary documents and submit your application.

If your visa expires before you are able to renew it, you may need to leave the country and apply for a new visa from abroad.

Taxes for digital nomads in Panama and how they work

Digital nomads who are living and working in Panama are subject to Panama's tax laws. Here is an overview of the tax requirements for digital nomads in Panama:

1. Income tax: In Panama, income tax is assessed on a sliding scale based on income levels. For residents, income from all sources, both inside and outside Panama, is taxable. Digital nomads who are living and working in Panama are considered residents for tax purposes if they spend more than 183 days in the country in a calendar year. If you are a resident, you are required to file a tax return and pay taxes on your income.
2. Sales tax: Panama has a value-added tax (VAT) of 7%, which is applied to most goods and services. As a digital nomad, you may be required to pay VAT on any purchases you make in Panama.
3. Social security: As a digital nomad, you may be required to pay social security taxes in Panama if you are considered to be self-employed. The social security tax rate is currently 13.5% of your income, up to a certain limit.
4. Deductions: In Panama, some expenses are deductible from your taxable income. These may include expenses related to your work, such as office rent and equipment.

To comply with Panama's tax laws, it's important to keep accurate records of your income and expenses while living and working in the country.

You may want to consult with a tax professional to ensure that you are fulfilling your tax obligations and taking advantage of any available deductions.

Additionally, you may be able to take advantage of tax treaties between Panama and your home country to avoid double taxation.

Conclusion

The Panama Digital Nomad Visa provides an excellent opportunity for remote workers and digital nomads to live and work in Panama legally.

With a relatively low cost of living, beautiful natural surroundings, and a welcoming culture, Panama has become a popular destination for digital nomads from around the world.

To apply for the visa, digital nomads need to meet certain eligibility requirements and follow a straightforward application process.

Once approved, they can enjoy the benefits of living and working in Panama while experiencing a new culture and way of life.

However, it is important to be aware of the tax requirements and other considerations before relocating to Panama.

With careful planning and preparation, digital nomads can make the most of their time in Panama and enjoy a fulfilling and rewarding experience.