Panama has long been a popular destination for tourists and retirees. Its tropical weather, location outside the hurricane zone, and use of American currency make it particularly attractive to American expats. Panama has become a business hub for Central America within the last few years. Its tax climate and business-friendly environment attract companies both large and small. Panama is also entrepreneurial and a tech hub, making it the perfect place for digital nomads to live and work. A Panama Digital Nomad Visa is inexpensive and easy to acquire and could be very attractive to anyone living that lifestyle.
This post will explore the Short-Stay Visa for Remote Workers program and how it benefits digital nomads.
How Remote Workers Benefit from the Panama Digital Nomad Visa
As the name suggests, digital nomads are tech-savvy workers who frequently migrate to new places. More digital nomads are choosing Panama for its advantageous tax environment and low cost of living. They also like that the country has a flexible and easy visa program targeting foreign remote workers. Here are several advantages to having a Panama Digital Nomad Visa.
Panama’s Digital Nomad Visa is Flexible and Affordable
The application process is easy and affordable. Panama’s Digital Nomad Visa fees are lower than most countries offering similar visa programs. The combined fees ($250 for the National Immigration Agency and $50 for the card) only add up to $300. That makes it affordable for digital nomads.
The length of stay should be appealing. A Panama Digital Nomad Visa is good for nine months. That period fits well with a digital nomad’s wanderlust. However, if you enjoy living in Panama and want to stay longer, you can extend the visa for another nine months. And who knows? After eighteen months in Panama, even a digital nomad may want to settle down.
Tax Advantages and Cost of Living
Panama has an advantageous tax environment. As a digital nomad, any income you earn outside the country is tax-free. Not having to worry about double taxation is a significant advantage. Another advantage is applying for tax residency after living in Panama for six months. That allows you to avoid paying taxes in your home country simultaneously.
Panama’s low cost of living is excellent for getting the most from your income. It has many of the same comforts as living in the United States or any European country. However, the cost of living in Panama will allow your dollar to stretch much farther. A 1-bedroom apartment in the middle of Downtown Panama City only rents for $730 per month. The same apartment outside the city is even less expensive at $428 monthly. Utilities for that apartment will be under $100 per month. That’s for all utilities, including electricity, heat, water, and garbage removal. Everyday expenses like eating out and entertainment cost a fraction of what you would pay in the U.S.
Dining Out in Panama
Speaking of eating out, Panama has fantastic and diverse cuisine. If you want to eat it, you can find it in Panama. Panamanian food combines Panama’s indigenous people’s cuisine and Spanish influences. The cuisine is also heavily influenced by Afro-Caribbean ingredients that top off flavors unlike anything you will experience elsewhere. However, Panama City and many other cities around the country cater to a wide range of gastronomical delights. There are places to get French food, Italian food, American barbecue, Sushi, and so much more. The only limitations are your preferences.
Reliable Modern Infrastructure
Panama has world-class infrastructure, including great internet connectivity. Put aside any preconceived notions about Panama due to it being in Central America. It is as modern as any country, and its high-speed internet is an example of that. A key component of working in Panama as a digital nomad is access to high-speed internet. Mobile internet speeds across Panama reach 20.44 Mbps, and fixed internet speeds reach 168.86 Mbps. That makes it easy for digital nomads to conduct business while living and working in Panama.
How to Acquire a Panama Digital Nomad Visa
Now that we have discussed the benefits of acquiring a Panama Digital Nomad Visa let’s take a quick look at the process. There are five simple steps to obtaining one.
- Make an appointment with a Panamanian Embassy or consulate.
- Prepare the required documents (see below).
- Go to the appointment (this is where you will fill out the application and submit documents).
- Pay the fees.
- Wait 30 days for approval.
The process is straightforward, but you must meet several requirements to get your Panama Digital Nomad Visa.
In addition to filling out the application form at the embassy, you will need to provide additional documentation. Like any other foreign country, traveling to Panama requires a valid passport. You will also need three passport-size photos of yourself.
Necessary Documents
You’ll need the following documents when applying for your visa:
- A certificate of a clean criminal record. You can get that from your local police department.
- A certificate of good health. Contact a local physician or hospital for that.
- An affidavit of non-acceptance of any jobs in Panama. The government wants to ensure you’re working in a field outside Panama.
Applicants must also provide a copy of valid medical insurance and proof of annual income. The applicant’s annual income must be at least $36,000 per year or $3,000 per month. You must also provide proof with bank statements.
Self-Employed Digital Nomads
Presumably, many digital nomads come to Panama to work as independent contractors or simply as self-employed. For self-employed applicants, there are additional requirements. Applicants need to provide proof of the company’s existence outside of Panama. They must also make a sworn declaration concerning their business activities, the services they offer, and their client base. Self-employed applicants must also swear to how much money they’ve made and their projected future income.
Places for Digital Nomads to Live
Once you have acquired your Panama Digital Nomad Visa, the only thing left to do is decide where you want to live in Panama. It is a tropical country, but there is still much diversity in landscape and climate. Of course, there are beautiful coastlines and lush jungle environments. But there are also mountainous regions, rustic farmlands, and dynamic urban settings.
Panama City is the country’s urban pulse and a commercial and tech hub for Central and South America. It is a dynamic, modern city that provides benefits similar to those of living in New York, Miami, or Los Angeles.
Bocas del Toro is a Caribbean getaway popular with tourists and retirees. It’s a paradise that could be ideal for someone who wants to enjoy the benefits of living in the tropics while working their dream career.
Boquete is a destination for nature lovers. High in the mountains among the coffee plantations, it has a diverse climate and differs greatly from Panama City. For people who love to live quietly, Boquete is the ideal setting.
If none of those places suit your needs, there are plenty of other places to consider. Panama has miles of coastline on both the Pacific and Caribbean. It has cities large and small. You’ll also find wide-open rural areas that look the same as they did over a hundred years ago.
Digital nomadism is a growing trend among professionals. As of 2023, 35 million people worldwide were using that employment classification. As the world moves closer to a gig economy, the digital nomad is at the forefront of the movement. Panama is one of the more inviting countries for people living that lifestyle. With so many benefits, it’s little wonder that so many apply for Panama Digital Nomad Visas.
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