- Digital nomad visa
- Yes
Overall8/10Easier visas than about 90% of cities
Good to know
Good to Know
- US and Canadian passport holders get a notably longer visa-free stay (up to 180 days) than almost everyone else (90 days) — a real advantage for slow-travel nomads from those countries.
- Bring evidence of onward travel and roughly $500 in accessible funds; immigration officers do sometimes ask for this at Tocumen airport, and not having it can cause delays.
- If you're not from one of the exempt countries but hold a valid US, UK, Canadian, Australian, Japanese, South Korean, Singaporean, or EU visa/residence permit, you may still be able to enter visa-free for 30 days under the third-country waiver — check current requirements before booking.
- Overstaying is taken seriously and can result in fines or complications at exit; if you want to stay longer than your granted period, apply for an extension in advance rather than assuming you can just leave and re-enter.
- Panama uses the US dollar as its currency, so there's no exchange-rate risk or conversion hassle for nomads on this visa.
- This visa is capped at a firm 18 months total — it is explicitly not a stepping stone to permanent residency, so plan an exit strategy (e.g. Friendly Nations Visa) if you want to stay longer.
- You cannot submit this application yourself online or walk into immigration directly — a licensed Panamanian immigration lawyer is required to file on your behalf, so budget for legal fees beyond the $250+$50 government fees.
- Travel insurance does NOT satisfy the health insurance requirement — you need a genuine long-term international health policy valid for your full stay.
- Even though foreign income isn't taxed in Panama, crossing 183 days here can trigger Panamanian tax residency status, which brings its own registration/filing obligations even at $0 tax owed — worth tracking your day count if you go back and forth.
- US citizens remain fully on the hook for IRS filing on worldwide income no matter what Panama's territorial system says — this visa route doesn't unlock the same US Foreign Tax Credit benefits as the Friendly Nations Visa.
Visa Free Entry
- Process
- No advance application is required for visa-exempt nationalities — entry is granted on arrival at immigration (air or land border) provided the above documents can be shown if asked. There is no pre-registration/ETA system for the standard visa-exempt list as of this writing.
- Baseline Rule
- Panama does not use a single unified 'Schengen-style' waiver, but the large majority of nomads entering as tourists fall under nationality-based visa exemptions administered by Panama's National Immigration Service (Servicio Nacional de Migración).
- Who Qualifies
- Citizens of most of the EU/Schengen states, the UK, most of Latin America, and a range of other countries (e.g. Japan, South Korea, Singapore, Australia) can enter Panama as tourists without a visa.
- Standard Duration Days
- 90
- Extended Duration Days US Canada
- 180
- Official Source Note
- Governed by Panama's Executive Decree 521 (2018) as modified by Executive Decree 196 (October 28, 2024), and by resolutions of the Servicio Nacional de Migración.
- Extension Or Overstay Note
- Border runs are not an official or reliable way to reset the tourist clock. Anyone wanting to stay longer than their granted tourist period must apply for an extension through the National Immigration Service before the original period expires.
Details
- Most visa-exempt nationalities receive up to 90 days on entry as tourists.
- US and Canadian citizens are a special case: they are exempt from the standard rule and receive up to 180 days as tourists.
- A separate 'third-country' visa waiver lets nationals of countries that would otherwise need a Panamanian visa enter anyway for up to 30 days if they already hold a valid, currently-valid multiple-entry visa or residence permit issued by the US, Canada, UK, Australia, Japan, South Korea, Singapore, or an EU member state.
Requirements On Entry
- Passport valid for a minimum of three months from date of entry (some official guidance references six months, so travelers should check their specific consulate's current wording before flying).
- Proof of onward or return travel (a return/onward ticket).
- Proof of economic solvency of at least USD 500 (or equivalent), which can be shown via bank/credit card statements, a certified check, or similar documentation; immigration officers may request this at the port of entry.
- Third-country visa waiver applicants must show the qualifying visa/residence permit is valid at the time of entry (recent Decree 196 removed the older requirement that it be pre-used or have 6+ months remaining validity).
Digital Nomad Visa And Tax
- Visa Name
- Short-Stay Visa for Remote Workers (Visa de Corta Estancia como Trabajador Remoto) — commonly called Panama's Digital Nomad Visa
- Legal Basis
- Created by Executive Decree No. 198 on May 7, 2021
- Restrictions
- Holders cannot work for Panamanian companies or provide paid services to local clients; the visa is for individuals only (no dependents included, per some sources) and work must affect the market abroad rather than the local market.
- Visa Category
- Non-resident, short-stay permit — not a path to permanent residency on its own
- Visa Ease Tier
- high
- Visa Ease Tier Rationale
- Panama offers generous baseline tourist stays (90-180 days) plus a genuine digital-nomad visa with clear, moderate income requirements and a territorial tax system, though mandatory lawyer filing and multi-step documentation add some friction.
Tax Regime
- VAT
- A 7% value-added tax (ITBMS) applies to most goods and services, with higher rates on items like alcohol/hotel stays (10%) and tobacco (15%).
- System
- Territorial taxation — Panama taxes only income sourced within Panama, regardless of citizenship or where the person is paid
- Important Nuance
- Holding the visa does not automatically make someone a Panamanian tax resident, and being a tax resident does not automatically create a Panama tax bill if all income remains foreign-source — but residents may still need to register with the DGI, obtain a Panamanian tax ID (RUC), and file annual returns declaring foreign-source income even if no tax is owed.
- Tax Residency Trigger
- General tests used by the tax authority (DGI) include spending at least 183 days in Panama within a calendar year, and/or having a 'center of vital interests' (permanent home, family, or main economic ties) in Panama
- Foreign Income Treatment
- Foreign-sourced income earned by remote workers/freelancers serving clients or employers outside Panama is not subject to Panamanian income tax
- Home Country Obligations
- Panama's territorial system does not exempt nomads from tax obligations in their home country. US citizens in particular must still file a federal return on worldwide income (Form 1040) regardless of Panama residency, and the short-stay remote worker visa route does not qualify for the US Foreign Tax Credit (that only applies under the Friendly Nations Visa).
- Tax Residence Certificate
- Available from the Dirección General de Ingresos (DGI) for those who spend 183+ days or otherwise establish tax residency; processing often takes 2-6 weeks and requires proof of physical presence, tax registration and filing status.
Who Qualifies
- Remote employees working for a foreign company registered abroad
- Freelancers/independent contractors serving clients outside Panama
- Entrepreneurs or business owners managing foreign-based operations remotely
Documents Required
- Valid passport with at least 6 months validity remaining
- Three passport-sized photos
- Completed Short Stay Visa application form
- Apostilled criminal background check from home country (valid 6 months)
- Proof of income: recent bank statements (often last 2-6 months, apostilled/stamped) plus either an employer letter confirming role, remote status and salary, or freelance contracts/invoices and business registration proof for self-employed applicants
- Private international health insurance policy valid in Panama for the entire stay (short travel-insurance policies are not accepted)
- Health certificate from a doctor in some cases
- Affidavit of Non-Acceptance of Jobs in Panama (a sworn declaration not to take local employment)
- Notarized power of attorney, since a licensed Panamanian immigration lawyer must file the application on the applicant's behalf
Income Requirement
- Source Rule
- Income must come entirely from outside Panama, verified via bank statements plus an employer letter (employees) or freelance contracts/client invoices (self-employed).
- Minimum Annual
- $36,000
- Minimum Monthly
- $3,000
Application Process
- Where To Apply
- Filed in Panama through a licensed Panamanian immigration lawyer — applicants cannot submit directly to immigration or fully online
- Processing Time
- Roughly 30-45 business days, depending on volume and completeness of documentation
Fees
- Government Fee
- $250
- Visa Issuance Card Fee
- $50
- Note On Total Cost
- These are government fees only; separate lawyer fees and document apostille/translation costs apply on top and vary by provider.
Duration And Renewal
- Renewal
- Can be extended once for another 9 months
- After Expiry
- Once the 18-month ceiling is reached, holders cannot reapply for another cycle of the same visa and must switch to a different visa category (e.g. Friendly Nations Visa or Pensionado Visa) or leave/return to tourist status to continue staying long-term.
- Initial Stay
- 9 months
- Maximum Total Stay
- 18 months
AI-generated estimateData refreshed July 2026
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Data last updated July 2026 · Verify anything important.