Panama is a top destination for digital nomads and retirees, offering a dedicated Remote Worker Visa, the famous Pensionado retiree program with exceptional discounts, and the Friendly Nations Visa for 50+ countries. The country uses the US dollar, has modern infrastructure, and offers a territorial tax system where foreign-sourced income is not taxed. Panama City features world-class connectivity and amenities, while beach towns and mountain retreats like Boquete offer affordable alternatives.
6
Visa Types
111
Nationalities visa-free
🪪Your Passport:
Visa requirements vary by nationality
🎫 Available Visa Types
⭐Recommended for Digital Nomads
Special Program
Digital Nomad Visa (Short-Stay Remote Worker)
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.
9 months
Duration
$300
— fee
+$1,700 additional
💰 Income Requirement
Minimum $36,000/per_year
Alternative: Income must be proven through bank statements, employment contract, or business documentation. The minimum is $3,000 per month or $36,000 annually from foreign sources.
✅ Key Benefits
✓Live and work remotely in Panama for up to 18 months
✓No Panamanian income tax on foreign-sourced income (territorial tax system)
✓Open local bank accounts
✓Rent housing and access essential services
✓No additional work permit required for remote work
✓Freedom to travel throughout Panama
✓Access to modern infrastructure and high-speed internet
📋 Requirements (9)
•Valid passport with at least 6 months validity
•Proof of employment with foreign company OR proof of freelance/business activity abroad
•Minimum annual income of $36,000 USD (or equivalent) from foreign sources
•Bank statements proving income comes from abroad
•Criminal background certificate from country of residence (apostilled)
•Health insurance valid in Panama for duration of stay
•Affidavit declaring you will not work for Panamanian companies
•Three passport-sized photographs
•Completed application form
📝 Application Process
Embassy Required⏱ 30-45 business days
1Gather all required documents and have foreign documents apostilled
2Translate all documents into Spanish by a certified translator
3Complete the application form from the immigration office
4Submit application to Servicio Nacional de Migración in Panama (in person or through licensed attorney)
5Pay the $250 government fee and $50 card fee
6Wait for processing (approximately 30-45 business days)
7Receive your temporary residence card upon approval
Process: Extension requires the same documentation as the original application. Must be submitted before current visa expires. Total stay cannot exceed 18 months.
Renewal: After 18 months, you must leave Panama or apply for a different visa category such as Friendly Nations Visa or Pensionado if eligible.
💡 Pro Tips
•Using an immigration lawyer is highly recommended as it simplifies the process significantly
•Panama City offers the best internet infrastructure and coworking spaces
•Boquete and Bocas del Toro are popular alternative locations with lower costs
•Start gathering apostilled documents 2-3 months before planned application
•Keep all bank statements and proof of income organized for the application
⭐Recommended for Digital Nomads
Special Program
Friendly Nations Visa (Permanent Residency)
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.
2 years
Duration
$1,050
— fee
+$9,000 additional
✅ Key Benefits
✓Path to permanent residency in Panama
✓Right to obtain work permit and work in Panama
✓Include dependents (spouse, children up to 25, parents)
✓Can open local bank accounts easily
✓No minimum stay requirements
✓Can be absent up to 2 years without losing residency
✓Path to citizenship after 5 years of permanent residency
✓Obtain Panamanian ID card (Cédula)
📋 Requirements (8)
•Citizenship of one of the 50+ Friendly Nations countries
•Valid passport with at least 6 months validity
•Criminal background certificate from last 2-5 years of residence (apostilled)
•Health certificate from licensed Panamanian doctor
•Proof of economic or professional ties to Panama
•Power of attorney for immigration lawyer
•Six passport-sized photographs
•Affidavit of personal background
📝 Application Process
Embassy Required⏱ 3-6 months for provisional residency approval
1Verify your country is on the Friendly Nations list
2Gather and apostille all required documents in your home country
3Hire a licensed Panamanian immigration lawyer (mandatory)
4Travel to Panama to submit application in person
5Complete health examination at authorized Panamanian clinic
6Submit application to Servicio Nacional de Migración
7Pay government fees ($250 + $800)
8Receive temporary residency card (valid 6 months while processing)
9Wait for provisional residency approval (3-6 months)
10After 2 years of provisional residency, apply for permanent residency
•A Panamanian lawyer is mandatory for this application
•Real estate investment is the most popular option
•The $200,000 real estate can be financed through a Panamanian bank
•Employment option requires a work permit application simultaneously
•Process both applications at once if including dependents to save time and money
⭐Recommended for Digital Nomads
Special Program
Pensionado Visa (Retiree/Pensioner)
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.
999 years
Duration
$400
— fee
+$2,000 additional
💰 Income Requirement
Minimum $1,000/per_month
Alternative: Minimum $1,000/month lifetime pension. If you purchase property in Panama worth at least $100,000, the requirement reduces to $750/month. Add $250/month per dependent.
✅ Key Benefits
✓Immediate permanent residency
✓No age requirement (anyone 18+ with qualifying pension)
✓Exceptional Jubilado discounts: 50% off entertainment and recreation
✓30% off public transportation
✓25% off airfare, restaurants, utilities (electricity, water, gas, internet)
✓20% off medical consultations
✓15% off hospital services and dental
✓10% off prescription medications
✓One-time import tax exemption on household goods up to $10,000
✓Import tax exemption on new car every 2 years
✓Include spouse and dependents
✓Foreign income not taxed (territorial system)
✓Can combine spouse pensions to meet minimum
✓No minimum stay requirement - only visit once every 2 years
✓Path to citizenship after 5 years
📋 Requirements (8)
•Proof of lifetime pension of at least $1,000/month (or $750 with $100k property)
•Pension must be from government, international organization, or recognized private company
•Valid passport with at least 6 months validity
•Criminal background certificate from last 5 years of residence (apostilled)
•Health certificate from licensed Panamanian doctor
•If married: marriage certificate (apostilled)
•Six passport-sized photographs
•Single status certificate if unmarried (apostilled)
📝 Application Process
Embassy Required⏱ 3-6 months for full approval
1Gather pension documentation proving lifetime income of $1,000+/month
2Apostille all foreign documents (criminal record, pension letter, marriage certificate)
3Hire a licensed Panamanian immigration lawyer
4Travel to Panama to begin application process
5Register passport at immigration office in Panama
6Complete health examination at authorized clinic
7Submit application through your lawyer
8Receive provisional processing card
9Wait for permanent residency approval (3-6 months typically)
•Social Security and military pensions from most countries qualify
•Private company pensions also accepted if verifiable as lifetime
•If pension letter does not say LIFETIME explicitly, you may need an affidavit
•Property purchase at $100k reduces pension requirement to $750/month
•Plan at least 2 trips to Panama: one to start process, one to collect documents
•This is considered one of the best retirement programs in the world
Tourist Visa-Free Entry
TouristPopular
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.
90d
Duration
$0
— fee
+$500 additional
📍Apply: On Arrival
⏱Immediate upon arrival
🔄No extension
View full details
💰 Cost Breakdown
USDUSD
Required
Entry feeNo visa fee for eligible nationalities
$0—
Additional (estimated)
Proof of economic solvencyMay be requested at immigration - cash, credit cards, or bank statements
$500—
Required Total
$0—
+ Additional (estimated)
$500—
Estimated Total
$500—
💡 Costs may vary. Additional costs are estimates and may not all apply to your situation. Always verify current fees with official sources.
📋 Requirements
•Valid passport with at least 3 months validity from entry date
•Return or onward ticket
•Proof of economic solvency (minimum $500 recommended)
•Hotel reservation or accommodation address (may be requested)
📝 Application Steps
1Arrive at any Panamanian port of entry
2Present your passport to immigration officer
3Show return/onward ticket if requested
4Demonstrate proof of funds if requested
5Receive entry stamp in passport
⚠️ Restrictions
•Cannot work legally - neither locally nor remotely
•No path to residency
•Must show return/onward ticket
•Overstaying results in fines and potential entry ban
💡 Tips
•Book a return or onward ticket before arriving
•Carry at least $500 in accessible funds or credit cards
•Keep your passport with you as ID may be requested
•Check entry stamp date carefully - overstaying has consequences
Third-Country Visa Exemption
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.
30d
Duration
$0
— fee
📍Apply: On Arrival
⏱Immediate upon arrival
🔄No extension
View full details
💰 Cost Breakdown
USDUSD
Required
Entry feeNo fee for eligible third-country visa holders
$0—
Required Total
$0—
💡 Costs may vary. Additional costs are estimates and may not all apply to your situation. Always verify current fees with official sources.
📋 Requirements
•Valid passport with at least 3 months validity
•Valid multiple-entry visa or permanent residency from qualifying country
•Visa must be valid for at least 6 months at time of entry (updated Oct 2024: only needs to be valid)
•Return or onward ticket
•Proof of economic solvency ($500 minimum)
📝 Application Steps
1Arrive at any Panamanian port of entry
2Present passport with qualifying third-country visa or residency
3Show return/onward ticket
4Receive 30-day entry stamp
⚠️ Restrictions
•Maximum 30 days only
•Third-country visa must be valid
•Cannot work in Panama
•No path to extension or residency
💡 Tips
•Qualifying countries: US, UK, Canada, Australia, EU members, Japan, Singapore, South Korea
•As of October 2024, the visa only needs to be valid (no longer requires 6 months remaining)
•Great option for citizens of countries that normally need Panamanian visa
•Check with airline before travel to confirm eligibility
Professional Work Visa
Work
For qualified professionals with job offers from Panamanian companies. Requires employer sponsorship and approval from the Ministry of Labor (MITRADEL).
2y
Duration
$1,150
— fee
+$2,500 additional
📍Apply: Embassy
⏱6-9 months for work permit approval
🔄Extendable +24y
View full details
💰 Cost Breakdown
USDUSD
Required
Immigration fees$250 National Treasury + $800 Immigration Service
$1,050—
Work permit applicationMinistry of Labor (MITRADEL) fees
$100—
Additional (estimated)
Immigration lawyer feesRange $2,000-4,000 depending on complexity
$2,500—
Required Total
$1,150—
+ Additional (estimated)
$2,500—
Estimated Total
$3,650—
💡 Costs may vary. Additional costs are estimates and may not all apply to your situation. Always verify current fees with official sources.
📋 Requirements
•Job offer from Panamanian company
•Valid passport with at least 6 months validity
•Professional degree or qualifications (apostilled)
•Criminal background certificate (apostilled)
•Health certificate from Panamanian doctor
•Employer must provide company registration documents
•Work permit application signed by employer
📝 Application Steps
1Receive formal job offer from Panamanian employer
2Employer submits work permit request to MITRADEL
3Gather and apostille personal documents
4Submit residency application with work permit request
5Complete health examination in Panama
6Wait for work permit approval (6-9 months)
7Receive provisional residency and begin working
⚠️ Restrictions
•Tied to specific employer
•Changing jobs requires new work permit
•Certain professions restricted to Panamanians only
•Lengthy processing time
💡 Tips
•Work permit process can take 6-9 months - plan accordingly
•Employer must demonstrate no qualified Panamanian was available
•Friendly Nations Visa may be faster option for eligible nationalities
Yes, Panama launched the Short-Stay Visa for Remote Workers (Digital Nomad Visa) through Executive Decree 198 in May 2021. This visa allows remote workers, freelancers, and employees of foreign companies to live and work remotely in Panama for 9 months, extendable once for a total of 18 months. Applicants must prove minimum annual income of $36,000 USD from foreign sources, have health insurance valid in Panama, and cannot work for Panamanian companies or local clients.
How long can US citizens stay in Panama without a visa?
US citizens can stay in Panama for up to 180 days (6 months) without a visa under Resolution 22706. This is reciprocal treatment, as Panama matches the stay duration that Panamanians receive in the US. Canadian citizens also receive 180 days. Most other visa-free nationalities receive 90 days.
What is the Friendly Nations Visa and who can apply?
The Friendly Nations Visa is a residency program for citizens of approximately 50 countries with which Panama has strong diplomatic and economic ties. Eligible countries include the US, UK, Canada, most EU members, Australia, Japan, South Korea, and several Latin American nations. Applicants must demonstrate economic ties to Panama through employment with a local company, real estate investment of at least $200,000, or a $200,000 fixed-term bank deposit for 3 years. The visa grants 2-year provisional residency leading to permanent residency, with a path to citizenship after 5 years.
What is the Panama Pensionado visa and what are the benefits?
The Pensionado Visa is Panama's world-famous retirement program offering immediate permanent residency to anyone with a guaranteed lifetime pension of at least $1,000/month (or $750 with $100,000 property purchase). Benefits include exceptional Jubilado discounts: 50% off entertainment, 30% off public transport, 25% off airfare, restaurants and utilities, 20% off medical consultations, 15% off hospital services, 10% off prescriptions. Additional benefits include one-time import tax exemption on household goods up to $10,000 and tax-free import of a new car every 2 years.
Is foreign income taxed in Panama?
No, Panama operates on a territorial tax system, which means only income earned within Panama is subject to local taxes. Foreign-sourced income such as remote work salaries, freelance payments from foreign clients, pensions, investment returns, and rental income from properties outside Panama are not taxed in Panama. This makes Panama particularly attractive for digital nomads and retirees with foreign income sources.
Can I open a bank account in Panama as a foreigner?
Yes, foreigners can open bank accounts in Panama, though the process has become more stringent due to international compliance requirements. Having residency significantly simplifies the process. Non-residents may still open accounts at some banks (Multibank, Tower Bank, Global Bank) but will need extensive documentation including passport, proof of income, bank reference letters, and proof of economic ties to Panama. Some banks require initial deposits of $1,500 or more. An in-person visit is typically required.
What is the cost of living in Panama for digital nomads?
Panama offers a moderate cost of living compared to North America and Europe. In Panama City, expect to spend $1,500-2,500/month for a comfortable lifestyle including rent, food, transportation, and entertainment. A one-bedroom apartment in a central area costs $800-1,500/month. Smaller towns like Boquete or beach communities offer 30-50% lower costs. Panama uses the US dollar, eliminating currency conversion fees for dollar-earners. Fast internet is available throughout Panama City and popular expat areas.
What is the third-country visa exemption for Panama?
Under Executive Decree 521, citizens of countries that normally require a Panamanian visa can enter Panama visa-free for 30 days if they hold a valid visa or permanent residency from the US, UK, Canada, Australia, any EU member state, Japan, Singapore, or South Korea. As of October 2024, the qualifying visa only needs to be valid at time of entry (previously required 6 months validity). This exemption does NOT apply to Cuban or Haitian nationals.
Can I do border runs to extend my stay in Panama?
Yes, border runs are possible and commonly done via Costa Rica. The Paso Canoas border crossing to Costa Rica is the most popular option. After leaving Panama and re-entering, you receive a fresh entry stamp with the full tourist stay period (180 days for US/Canada, 90 days for most others). However, repeated border runs may raise questions with immigration officers. For longer stays, applying for the Digital Nomad Visa, Friendly Nations Visa, or Pensionado is recommended.
What are the best areas in Panama for digital nomads?
Panama City is the top choice for digital nomads, offering modern infrastructure, fast internet, numerous coworking spaces, international dining, and an active expat community. Popular neighborhoods include Casco Viejo (historic charm), El Cangrejo (central, affordable), and Costa del Este (modern, upscale). Boquete in the highlands offers cooler weather, nature, and a strong expat community at lower costs. Bocas del Toro provides Caribbean island vibes for those seeking beach lifestyle. All areas have reliable internet suitable for remote work.
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Important Disclaimer
Visa requirements can change frequently. This information is provided for general guidance only and should not be considered legal advice. Always verify current requirements with the official embassy or immigration authorities before making travel plans. Last updated: December 1, 2025