Panama digital nomad visa & residency (2026)

Executive Decree No. 198 (7 May 2021, published Gaceta Oficial 20 May 2021) creates the 'Visa de Corta Estancia como Trabajador Remoto.' It targets employees of foreign companies, freelancers, and self-employed persons in telework mode whose work and income originate entirely outside Panama.

Initial validity is 9 months; may be extended once for a further 9 months, giving a maximum stay of 18 months. The visa falls under the non-resident category and cannot be converted directly into permanent residency.

Applicants must demonstrate a minimum annual foreign income of USD 36,000 (USD 3,000/month). Required documents include a valid passport (6+ months remaining), criminal record certificate, proof of employment/business activity abroad, and international health insurance valid in Panama. The government fee is USD 250 plus a USD 50 card issuance fee; applications must be submitted in person by a legal representative at SNM headquarters.

Panama taxes only income sourced within Panama. Digital nomads earning exclusively from foreign clients or employers owe no Panamanian income tax on that income. A stay exceeding six months can establish tax residency under this territorial system.

Citizens of 50+ designated friendly nations (including the US, Canada, UK, EU states, Australia, Japan, and others) can obtain provisional then permanent residency via a USD 200,000 real-estate purchase or fixed-term bank deposit. The 2021 modifications changed it from direct permanent to a two-year provisional stage first. After five years of permanent residency, naturalization may be pursued.

A separate Qualified Investor Visa requires a minimum USD 300,000 real-estate investment (current threshold, with reports that it may rise to USD 500,000 after October 2026). It grants permanent residency and is open to all nationalities, not restricted to friendly-nation citizens.