Latin America
Nomad Score
7/10
Avg Monthly Cost
$2,000
Internet Speed
40 Mbps
Safety
Moderate
Panama uses a territorial tax system. Only Panamanian-source income is taxed. Foreign income is completely exempt. USD is the official currency alongside the balboa.
Income Tax
0-25%
Capital Gains
10%
VAT / Sales Tax
7%
Tax Year
calendar
Special Tax Regimes
dn_visa
The official Panama Digital Nomad Visa allows remote workers, freelancers, and employees of foreign companies to live and work in Panama for up to 18 months while earning income from abroad.
tourist
Citizens of over 100 countries can enter Panama visa-free for tourism. US and Canadian citizens receive 180 days, while most other nationalities receive 90 days.
special
A popular residency program for citizens of 50+ friendly nations. Grants 2-year provisional residency leading to permanent residency, with the right to work in Panama.
special
One of the world's best retirement visas. Grants immediate permanent residency to anyone with a lifetime pension of $1,000/month, plus exclusive discounts of up to 50% on many services.
tourist
Nationals who normally require a visa can enter Panama visa-free for 30 days if they hold a valid multiple-entry visa or permanent residency from US, UK, Canada, Australia, EU, Japan, Singapore, or South Korea.
work
For qualified professionals with job offers from Panamanian companies. Requires employer sponsorship and approval from the Ministry of Labor (MITRADEL).
$2,000/month
Average for a comfortable nomad lifestyle
Panama City has good hospitals (Punta Pacifica affiliated with Johns Hopkins). Private healthcare is affordable. Quality drops outside the capital.
Reference letter from current bank needed. Multibank and Banistmo are foreigner-friendly. Dollar economy simplifies finances.
Panama City is generally safe in main areas. Some neighborhoods require caution. Darien province near Colombia border should be avoided.