Panama
“Panama is one of the most beautiful and fertile regions on earth, a land of sunshine and flowers and wonderful natural advantages.”
Teddy Roosevelt
Panama
Panama offers a unique blend of modern amenities and tropical beauty, making it an appealing destination for digital nomads and remote workers. Straddling Central and South America, the country features a diverse landscape, from the bustling Panama City to pristine Caribbean beaches and lush rainforests.
Under President Laurentino Cortizo, Panama has introduced a digital nomad visa program that allows remote workers to stay for up to 18 months. This initiative, combined with the country’s strategic location and well developed infrastructure, positions Panama as an emerging hub for location independent professionals. The use of the U.S. dollar simplifies financial matters for many expatriates, while reliable internet connectivity and a growing number of coworking spaces support a thriving remote work community.
The cost of living in Panama is generally affordable compared to many Western countries, with a comfortable lifestyle achievable on $1,500-$3,00 monthly. While Spanish is the official language, English is widely spoken in business and tourist areas, easing integration for international workers. From the cosmopolitan atmosphere of Panama City to the laid back vibe of Bocas del Toro, Panama offers diverse experiences for those seeking a tropical lifestyle alongside remote work opportunities.
| 🌎 CONTINENT | NORTH AMERICA |
|---|---|
| 📌COUNTRY | PANAMA |
| 👫🏻POPULATION | 4,314,751 |
| 🙏RELIGION | CHRISTIANITY |
| 💵CURRENCY | BALBOA (PAB) US DOLLAR (USD) |
| 💉C19 VAX REQUIRED | NO |
| 🔌POWER | 120V - 60Hz |
| 💰GDP PER CAPITA | $18,600 PER YEAR |
| ✈️AIRPORT | TOCUMEN (PTY) |
|---|---|
| 🪪UK VISA FREE | 90 DAYS |
| 🏝️LAND OWNERSHIP | DIFFICULT |
| 🛜AVG INTERNET SPEED | 20 MBPS |
| 💧TAP WATER | GENERALLY SAFE |
| 🏧ATM LIMIT | VARIES BY BANK |
| 💳CASHLESS | WIDELY ACCEPTED |
| 💸TIPPING | 10 - 15 PERCENT |
TAX FRIENDLINESS
Digital Nomad Tax Friendliness: 95/100
-
- Panama offers a Digital Nomad Visa, officially called “Short-Stay Visa for Remote Workers.”
- Valid for 12 months, renewable for an additional 12 months.
- Digital nomads are exempt from taxes on foreign sourced income.
- Minimum income requirement of $3,000 USD per month.
Expat Tax Friendliness: 90/100
-
- Panama follows a territorial tax system, only taxing income from Panamanian sources.
- Foreign-sourced income is not taxed for residents or non-residents.
- Progressive tax rates from 0% to 25% on Panamanian-sourced income.
- Non-residents are taxed at a flat rate of 15% plus a 2.75% educational tax on Panama-sourced income.
Investor Tax Friendliness: 85/100
-
- No capital gains tax on stock trading on the Panamanian stock exchange.
- Various tax incentives for certain types of investments and industries.
- The Friendly Nations Visa offers a path to permanent residency with a $200,000 USD real estate investment.
Crypto Tax Friendliness: 90/100
-
- Cryptocurrencies are tax-free, enjoying a 0% rate.
- No specific regulations on crypto taxation, potentially allowing for tax free gains.
PANAMA PRICE REFERENCE
PANAMA HOLIDAY LETS
VISA REQUIREMENTS
Panama Tourist Visa
- Visa-Free Entry: Citizens from most countries, including the UK, the USA, Canada and the EU can enter Panama visa-free for up to 90 days. This is extendable to 180 days in certain cases.
- Requirements: Visitors need a passport valid for at least 3 months beyond their stay, proof of onward travel, and sufficient funds to cover their stay (around $500 or proof of credit card).
Important Links:
- Panama Embassy – for up to date visa regulations and entry requirements.
Panama Digital Nomad Visa
- Eligibility: Panama has launched a Short Stay Visa for Remote Workers in 2021 to attract digital nomads. Applicants must work for a company outside Panama or be self-employed, earning a minimum of $3,000 monthly.
- Duration: The visa is valid for 9 months, with a possible extension for another 9 months.
- Application: Applicants need to provide proof of income, a clean criminal record, health insurance, and valid identification.
Panama Retirement Visa (Pensionado Program)
- Eligibility: Panama’s Pensionado Visa is one of the most attractive retirement programs globally. Applicants must show proof of a lifetime pension of at least $1,000 per month ($1,250 if purchasing a property). Couples need to show a combined pension.
- Benefits: This visa comes with many perks, such as discounts on utilities, entertainment, healthcare, and travel. It also grants permanent residency.
- Healthcare: Retirees need to have private health insurance or show access to healthcare funds.
Important Links:
- Panama Immigration Authority – Retirement– for more details on the Pensionado Visa.
OTHER NOTES
ARE ID CARDS REQUIRED
Are ID Cards Required in Panama for Everyday Interactions and Transactions?
- ID Cards for Citizens and Residents: Panamanian citizens carry a Cédula as their national ID, which is used for nearly all transactions. Permanent residents are issued a Cédula de Residencia after receiving residency.
- For Foreigners: Visitors do not need to carry an ID card, but should carry their passport or a photocopy, especially when engaging in activities such as banking or renting property. Foreigners staying long-term should apply for a residency permit and may then be issued a residency ID.
Important Links:
- Panama Civil Registry – for information on the issuance of ID cards for residents.
ARE GM FOODS ALLOWED
Are GM Foods Allowed in Panama?
- GM Foods in Panama: Panama does allow the import and sale of genetically modified (GM) foods. However, the cultivation of GM crops within the country is regulated, and there is a growing movement towards organic and sustainable farming, particularly in rural areas.
- Labeling: GM food labeling is not mandatory in Panama, so consumers may not always know if the food they purchase contains GM ingredients.
TRESPASSING - RIGHT TO ROAM
Trespassing, Right to Roam, and Wild Camping in Panama
- Trespassing: Panama has strict laws against trespassing on private property. Landowners have the right to deny access, and trespassers may face fines or legal consequences.
- Right to Roam: There are no “right to roam” laws in Panama, and private land is clearly demarcated. Public lands, however, such as national parks, are open to visitors.
- Wild Camping: Wild camping is allowed in certain national parks and designated camping areas, but always check local regulations. It’s crucial to be mindful of Panama’s abundant wildlife and changing weather conditions.
420 FRIENDLY?
420 Friendly?
- Cannabis Laws: Cannabis is illegal in Panama. Possession, use, and sale of marijuana are strictly prohibited, and penalties can include fines or imprisonment, depending on the quantity.
- Medical Cannabis: Panama legalized medical cannabis in 2021. However, the law is still in its early implementation stage, and only registered patients with a medical prescription will be able to use cannabis-based products.
- Foreigners: Foreigners caught with drugs in Panama face harsh penalties, including immediate imprisonment and possible deportation.
Panama Journal
