Panama Digital Nomad Visa

Panama's remote work visa is officially the Visa de Corta Estancia como Trabajador Remoto (short-stay visa as a remote worker). Executive Decree 198 of May 7, 2021 created it in the non-resident category, and the Servicio Nacional de Migracion (SNM) runs it.

It lets employees of foreign companies and self-employed remote workers live in Panama while working for employers or clients abroad, with no separate work permit. Applicants need foreign-source income of at least $36,000 a year.

The visa lasts 9 months and can be extended once, for a maximum of 18 months. It is a temporary status, not a route to residence.

The SNM requirements sheet sets three conditions:

• a contract with a foreign transnational company, or self-employment, carried out as telework
• work whose effects are felt outside Panama
• foreign-source income of at least $36,000 a year, or the equivalent in another currency

Employees also need an employer letter showing monthly pay of at least $3,000. The balboa (B/.) is at par with the U.S. dollar, which circulates as legal tender.

Applicants sign a sworn statement that they will not accept work or service offers in Panama from nationals, residents, tourists or local companies. Local work allowed: No.

The sheet sets no age limit or nationality list and does not mention dependents.

The SNM checklist asks every applicant for:

• a notarized power of attorney and application, naming the applicant's parents and their nationalities
• three photographs
• a certified copy of the passport
• a criminal record certificate and a health certificate
• the sworn personal background form
• the application form, which includes a commitment to pay return or repatriation costs if needed
• a health insurance policy that covers Panama for the whole stay
• the sworn statement of non-acceptance of local work
• payment of the $250 SNM fee

Employees

• proof that the foreign company exists where it is registered
• a letter on company letterhead, signed by its legal representative, giving the applicant's role, monthly pay of at least $3,000, payment frequency, foreign source of the income, remote work arrangement and a repatriation commitment

Self-employed applicants

• proof that the applicant's own company is registered abroad
• a sworn statement before a notary describing each client relationship, the services, the fees earned, where the money comes from and how often it is paid

Proof of foreign income

A bank certification, or statements from a foreign or local bank, showing that the income arrives from abroad and is tied to the declared work. Documents issued abroad must be legalized or apostilled and translated into Spanish where needed.

• SNM fee: $250
• Card fee on approval: $50

An extension costs the SNM fee again. Lawyer, notary, apostille, translation and health insurance costs come on top and are set by each provider, so no official total exists.

In Panama, at the Servicio Nacional de Migracion, filed with a notarized power of attorney and application (in practice through a Panamanian lawyer).

1. Collect the documents listed by the SNM, with apostilles and Spanish translations for anything issued abroad.
2. Sign a notarized power of attorney for a Panamanian lawyer, who files the application with the SNM.
3. Pay the $250 fee to the SNM.
4. Once the visa is granted, pay $50 for the card (carne).

The SNM publishes no processing time for this visa.

• First grant: 9 months
• Maximum stay on this visa: 18 months

Extendable once for another 9 months; the extension requires the same documents as the first application, including proof that income arrives from abroad.

Path to residence: No. It sits in the non-resident category and does not count toward permanent residence.

Staying longer means qualifying for a residence permit under a different category, such as the Friendly Nations permit for eligible nationalities.

Panama's income tax is territorial. Article 694 of the Fiscal Code taxes income produced within Panama's territory, wherever it is received. The DGI (tax authority) treats a person as tax resident after more than 183 days in the country in a fiscal year or the year before.

The visa itself carries no tax rule: the SNM sheet sets no special regime and says nothing about how holders are taxed. The visa requires income from abroad for work with effects outside Panama, but whether a holder's pay counts as foreign-source income is a question for the DGI, not the migration service.

A stay of up to 18 months can cross the day test, so holders should check their position with the DGI and with the tax authority at home.