This is how Digital Nomads are taking advantage of the opportunities offered by the so-called “Nomadic Residency” that several countries such as Bermuda, Australia, Antigua and Barbuda and now Panama (new visa for remote workers) are offering.

Panama, historically a nomadic country.

Panama is a multicultural country that has historically opened its doors to thousands of foreign migrants, since according to Panama’s immigration statistics, from 2010 to 2020 more than 108,000 permanent and temporary immigration permits have been granted. In 2025 from the permits granted, the countries of Colombia Venezuela and Nicaragua together occupy 59% and approximately 6.55% came from countries considered by Panama as friendly nations or with treaties with Panama, where countries such as the United States, Spain, Italy, Mexico, Brazil, Canada, France, Chile, Argentina, Costa Rica have been the most representatives.

The reasons for relocating in Panama have been varied, since there is a large colony of mostly North American pensioners located in cities such as Boquete, Panama and its surroundings.

Panama is considered the first retirement destination in the world according to the annual global index published by International Living for 2025.  These indicators compare and quantify people’s experiences in terms of quality of life and cost of living, governance, benefits, development, entertainment, access to health, visa programs, among others. Panama obtained highest scores due to their benefits and discounts that retirees enjoy and the ease of the legal visa process through its Pensionado Visa.

Another reason for getting Panama residence has been work, since the tax, immigration and logistical benefits of this jurisdiction attracts multinationals and companies that have operations abroad, in addition to its international air mobility allows movement within the region with little difficulty.

The Forbes magazine for 2021 has considered Panama among the first destinations of high value and security to relocate and live for working nomads, among its characteristics highlights its privileged location between two oceans, the warmth of its temperature, free of hurricanes and economic stability.

How do I obtain my Digital Nomad Residency in Panama?

First of all, let’s categorize the types of Digital Nomads that exist.  We find the remote workers, freelancers and entrepreneurs. It is necessary to understand there are several immigration programs that are best suited according to the circumstances and needs, here below we review the most useful.

Remote Workers

Remote workers are employees or managers of companies that following the new Covid 19 corporate culture rues, do not need to reside at their headquarters, although they usually locate in a place of easy mobility in case they need to participate in face-to-face meetings. Normally the period of overseas residence is a year or more.

The following Panama programs are recommended for those type of workers:

• When the worker’s citizenship is within the friendly nations countries, the friendly nations visa can be applied as well. The permit new regulations provides temporary residence for 2 years and afterwards a permanent status.
• Panama-Italy Treaty, in case the applicant is has an Italian citizenship.
• New digital nomal short stay Visa as a Remote worker.  it grants temporary residency for nine months, renewable only one time for the same period.

Freelancer

Freelancers are independent professionals who provide their online services to third parties. Here we usually find software developers, stockbrokers, writers, copywriters, consultants, data analysts, language professionals, etc.

For those workers we recommend the following programs:

• New digital nomal short stay Visa as a Remote worker.  it grants temporary residency for nine months, renewable only one time for the same period.
• When the worker’s citizenship is within the friendly nations countries, the friendly nations visa can be applied as well. The permit new regulations provides temporary residence for 2 years and afterwards a permanent status.
• Panama-Italy Treaty, in case the applicant is has an Italian citizenship.

Entrepreneurs or Start-up

They are entrepreneurs with their own digital business and manage it from any city they are in. Here we find Bloggers, Youtubers, affiliate marketers, dropshipping companies, etc.

For entrepreneurs we recommend the following programs:

• New short stay permit as a Remote worker. Temporary Residence for nine months, renewable once for the same period.
• When the worker’s citizenship is within the friendly nations countries, the friendly nations visa can be applied as well. The permit new regulations provides temporary residence for 2 years and afterwards a permanent status.
• New digital nomal short stay Visa as a Remote worker.  it grants temporary residency for nine months, renewable only one time for the same period.

How to apply for the new Short Stay Permit as a Remote Worker?

With the executive decree 198 of May 7 2021, as a result of the COVID-19 situation,  the Digital Nomad Short Stay Visa as a Remote Worker was created under the migratory category of Non-Resident and applies under the following conditions:

• Have a contract as an employee of a foreign company of transnational character or be a self-employed worker, in the modality of telework.
• Perform functions that take effect abroad.
• Receive income from a foreign source and with an annual amount not less than thirty-six thousand U.S. dollars USD 36,000 or its equivalent in foreign currency.

Under contract with a foreign company.

For your application you must include the following documents:

1. Application form.
2. Three passport size pictures
3. Copy of the medical insurance policy with coverage in Panama with validity period of your term of stay.
4. Certification or proof of the existence of the foreign company in the place where it is registered.
5. Affidavit of not to engage in another work offers or service in Panama, with nationals, residents, tourists or companies to carry out business in Panama.
6. Payment of two hundred and fifty dollars (USD 250.00) to the National Immigration Service account.
7. Letter from the company with letterhead, signed by the legal representative, stating:

• • The general data of the applicant.
  • The position and functions performed.
  • Salary, which cannot be less than three thousand dollars USD.3,000 or its equivalent in foreign currency; periodicity of payments and that the same comes from a foreign source.
  • The work modality (remote work).
  • The written commitment to bear the return or repatriation expenses to their country of origin or destination, if necessary

As an independent or self-employed worker.

Requirements:

• Certification or proof of company ownership, duly registered abroad, through which you will carry out your business.
• Affidavit before public notary, describing the commercial relationship with the clients to whom it renders services, which must include the following data: complete name, general information of the applicant and clients, which are the services provided, how much it earns for those services, the origin of the funds and the periodicity of the payments received in attention to the performed services.

For the application, the following documents are mandatory:

1. Application form.
2. Three passport size pictures
3. Copy of the medical insurance policy with coverage in Panama with validity period of your term of stay.
4. Affidavit of not to engage in another offers of work or service in the national territory, with nationals, residents, tourists or companies to carry out business in Panama.
5. Payment of two hundred and fifty dollars (USD 250.00) to the National Immigration Service account.

In both cases under contract or as independent worker, the foreigners who request the Short Stay Visa as a Remote Worker must prove that their income comes from overseas, providing any of the following documents:

1. Bank certification stating that the received income comes from overseas and is related to the declared working contract.
2. Certified bank statement from the overseas bank or from local bank, proving the remittance of the funds related to the declared working contract.

All documents issued abroad must comply with the provisions of Article 247 of Executive Decree No. 320 of August 8, 2008.

To request the extension of the Short Stay Visa as a Remote Worker, the interested party must comply with the same requirements at the time of filing the application for the first time.

Things to consider

All allowed nationalities may apply for this permit, in the case of stamped entry visa countries, first should apply to the corresponding entry visa at the nearest Panama embassy or consulate and consequently apply for a Short Stay Visa as a Remote Worker once in Panama.

It is forbidden to conduct activities or engage on business with effect within Panama territory.

The validity period of this visa is for 9 months, extendable for the same term only once.

This permit is an individual permit, dependents can’t apply under this program.

In the case of foreigners whose purpose is to provide non-profit social services, covered by agreements with the government, trusts or non-governmental organizations recognized by the Ministry of Economy and Finance, those who participate in student exchanges and those who provide these services under the modality of remote worker, this visa may be extended once for the same term, and they will be exempted from the payment of expenses for migratory services.

As of August 7, 2021, all Peruvian citizens will be able to access the Permanent Residency Program ¨ Friendly Nations Visa ¨ as well as their South American counterparts from Brazil, Uruguay, Paraguay and Argentina. This subcategory has been one of the most requested since its creation in 2012.

How to access the new Friendly Nations Visa program?

Applicants must meet the following requirements (main applicant):

1. Apostilled Police Record.
2. Second identification.
3. Health Certificate.
4. Certified check in favor of the National Treasury USD 250.
5. Certified check in favor of the National Immigration Service USD 850.
6. Three passport size photographs
7. Documentation that demonstrates the purpose of requiring your residence according to the economic or professional activity to be carried out, demonstrable for any of the following reasons:

• • Labor Reasons: in which the applicant must provide a working letter from a local company that employs him/her in Panama, indicating his/her position, salary and the commitment to assume his/her repatriation expenses. He/she must also provide the certificate of public registry of the company that employs him/her and the notice of operations. For the approval of the Residence Permit, the working permit must be processed on the Ministry of Labor and Labor Development.

• • Investing on real estate: demonstrating the ownership of a real estate property in Panama with a minimum value of USD 200,000 in a personal capacity, or under the name of a Panamanian corporation where the natural person is the final beneficiary of the shares or under a Panamanian foundation where the natural person is the founder and beneficiary of the same. The acquisition of the property may also be financed through a local bank.

• • Fixed term deposit with a certification issued  by a general license bank in Panama for the deposit of USD 200.000 on 3 years fixed term into personal capacity, or under the name of a Panamanian corporation where the natural person is the final beneficiary of the shares or with a Panamanian foundation where the natural person is founder and beneficiary of the same one.

In case of dependents, the dependents of the main applicant are allowed, such as spouse/husband, children up to 25 years of age, parents of the main applicant, relatives with disabilities, whom should provide with a proof of kindship apostilled (marriage certificate, birth certificate), also with the payment of fees in favor of the national treasury and the immigration service, police record, health certificate, passport size photos and proof of domicile in Panama.

This permit grants a temporary residence for two years, after which Permanent Residence may be requested, fulfilling the same requirements with the exception of the payment of checks to the National Treasury and the National Immigration Service.

The procedure comprises two stages, the first one where you will have to visit Panama twice, once for filing your application, the second one 3 months later to pick up your temporary card.  The second stage, two years later, you will also have to visit us twice, first for the submission of the requested documentation for the permanent card issuing and over the next 3 months a nsecond visit in order to have your photo taken for your permanent residency card.

What are the advantages of the new Friendly Nations Visa Program?

The requirements are more flexible than other permanent residency programs such as Spain, Portugal, Malta, Greece, Bulgaria or Canada.

You can bring your entire family on one application (parents, children, dependents).

Investment amounts are with a minimum of USD 200,000

It is also possible to obtain this visa without investing by obtaining a labor contract with an operating company in Panama. That is to say, you can also relocate your company from Peru to Panama, creating a new Panamanian company and making an employment contract with the applicant.

There is also a Free Trade Agreement signed between the Republic of Panama and the Republic of Peru signed in Panama on May 25, 2011, and approved by Law No. 82 of December 22, 2011. It establishes the preferences granted to goods originating from both Parties, Public Contracting, Investments, Financial Services, Maritime Services, telecommunications, among others.

This treaty between Panama and Peru establishes that 93.1% of Peruvian exports have zero tariff access, which also applies to 99.2% of Panama’s sales to the Andean country.

In other words, you can operate your company from Panama, receive your payments here and even send raw materials purchased through Panama or goods and send them to Peru or vice versa, taking advantage of the tariffs benefits of this FTA.

What is Peru’s Scenario for 2021-2022?

Experts such as the president of the Peruvian Central Bank, Mr. Julio Velarde, maintains a positive attitude, indicating that Peruvian monetary policy will accompany the recovery and will allow the access to cheap international financing.  Peruvian fiscal policy is expected to have international stimulus. He also trusts that vaccines will continue to be distributed, although the vaccination process in Peru has not been satisfactory to date, he also considers that the ¨commodities¨ will go favorably in general terms of a 10% increase, such as copper.

Currently, Peru still maintains social and political controversy created by the last elections with the victory of the left leaning Pedro Castillo, the economic uncertainty has increased and is still looking for ways to overcome the 50% fall of formal and private jobs on affected sectors such as tourism, hospitality and construction.

According to Mr.Velarde, tax changes are expected, such as Wealth Tax, although it was considered non constitutional, but the courts may change their criteria on future.

According to The Economist magazine, Big Mac index, the Peruvian currency devaluation reached 42.2%, the second currency most devalued in Latin America so far this year 2021. Mexico has the highest devaluation currency rate with 43.7%.

How to invest in Panama´s Real Estate (house, apartment, commercial property, farm or land) ?

It is necessary to take into account several verifications such as:

1. Verify the legal status of the property (ANATI, Public Registry), that is, titling in the case of land and farms and that do not have any legal disputes of inheritance or disposition of assets over the property.
2. Property good standing with the tax authority (DGI), on property tax and improvement´s tax.
3. Seller should have full sale capacity (legal and health capacity) or in such case through a legally authorized proxy. To avoid unsuccessful transfers that can lead to frauds and the loss of your money.
4. In the case of properties with several years of construction and with a valid occupancy permit,  checking the number of remaining years which tax exemption for improvements. ( new regulations for newly constructed buildings).
5. If your objective is to lease the property, first need to check the market situation of the area, in order to know the expected monthly income you will generate with the acquired property.
6. Determine if you will make the purchase as a natural person, corporation or you will use a Panamanian foundation.

Do not hesitate to ask any questions or contact us to discuss any of the above mentioned points.

Steps for the purchase of Real Estate in Panama:

1. Having undergone the above verification points. (1-6)
2. Make a promise of sale agreement with the property owner or developer for the downpayment if required.
3. Draft of the purchase and sale agreement for the transfer of funds to Panama indicating the payment terms. Depending on the developer, partial payments can be done in Peruvian Soles or a complete payment in American dollars or other currency may be accepted (call us for more information). On the agreement all the conditions for the purchase sale and the responsibility of each party on the payment of taxes, registry rights must be clearly stipulated.
4. The tax forms corresponding to 2% (ITBI) and 3% (profit gain) will be filed, and a payment certificate is issued.
5. Any mortgage over the property must be lifted, the process can take around 30 days.
6. The deed and minutes of the Purchase-Sale agreement are drawn up before a Notary Public between the buyer and seller (or by power of attorney of the buyer and seller).
7. Payment of registration fees and when the deed is duly registered, the Public Registry Certificate is issued under the name of the new owner,  ANATI and DGI information shall be updated as well.

Check the offer of finished projects with different payment facilities in Panama here.

The Friendly Nations visa was created 9 years ago  to promote Panama’s economic and commercial development with countries under this decree and the acquisition or creation of new companies in order to boost local employment generation.

In the last decade the countries that made the most applications for these migration programs according to statistics of the Immigration Department of Panama have been (in order of number of approved applications): Spain, Mexico, Brazil, Costa Rica, Argentina, France, Canada, Portugal, Chile, Germany, United Kingdom, Switzerland, South Korea, Japan, Israel, Uruguay, Holland, South Africa, Belgium, Australia, Taiwan, Denmark, Greece, Sweden, Hungary, New Zealand and Singapore.

The benefits of the so-called “Friendly Nations Visa” program are recognized worldwide, not only because is among the cheapest permanent residences in the region but also has a short processing time period of 3 to 4 months.

What are the changes enacted in May 7th 2021 and how do they affect my application?

On May 7, 2021 the new Executive Decree 197 amends the Decree 416 of June 13, 2012 that creates the ¨Friendly Nations Visa¨, adding new conditions and requirements for this migratory subcategory as we summarize below:

1. The countries that may opt for this permit are:

United Kingdom, Germany, Argentina, Australia, Korea, Austria, Brazil, Belgium, Canada, Spain, Finland, Netherlands, Ireland, Japan, Norway, Czech Republic, Switzerland, Singapore, Uruguay, United States, Chile, Sweden, Poland, Hungary, Greece, Portugal, Croatia, Estonia, Lithuania, Latvia, Cyprus, Malta, Serbia, Montenegro, Israel, Denmark, South Africa, New Zealand, Hong Kong, Luxembourg, Liechtenstein, Monaco, Andorra, San Marino, Costa Rica, Paraguay, Mexico and Peru.

The Republic of Taiwan has been removed from the list of friendly countries, we can assume that the decision may have been marked by the breakup of diplomatic relations on June 13, 2017 with Panama.

2. Article 3^rd on the Decree 416 of 13 June 2012 was also amended by including a new provisional permit card to be hold by the ¨Friendly Nations Visa¨ applicants for a two years period, thereafter applicant should file another request to receive the permanent residence card.

Formerly this was not considered in this subcategory, although a similar legal basis is found as foreground on the Permanent Resident permits for economic reasons. As a result, the processing time of this permit is extended from 3 months to 2 years.

3. Another major change to Article 3^rd, is the fork of the proof of economic solvency requirement through a bank certification or bank statement into two new economic solvency reasons that new applicants may opt on this new regulation as follows:

• For Labor Reasons.
• For real estate investment reasons

For both cases, applicants must present the below requirements such as:

• Power of attorney and request letter (notarized)
• Three (3) card-sized photographs
• Notarized copy of passport (in Panama)
• Certificate of Criminal Background with apostille (country of origin).
• Health Certificate (in Panama)
• 250 USD Certified Check addressed to National Treasury (to be done in Panama)
• 800 USD Certified Check addressed to National Immigration Service (to be done in Panama)
• Personal History Affidavit Form
• Document demonstrating the purpose of establishing your residence (Investment or professional activity to be carried out)*
• Copy of second ID , as ID or card or driving license of your country.

For labor reasons

* Purpose of establishing residency through professional activity

1. Working letter on company letterhead, signed by the employer’s legal representative, certifying the position, salary, commitment to bear repatriation costs, as the case may be.
2. Panama company Public Registration Certificate from the employer.
3. Company operational permit. In the event that the employer is not required to maintain an operational permit, support to the same shall be provided.

Is mandatory for the Residence Permit to be granted, the applicant and his/her employer shall be obliged to process the working permit authorization before the Ministry of Labor in Panama.

For Real Estate Investment reasons

Additionally, presenting the following requirements:

1. To verify property ownership, applicant must present the property certificate from the Panama public registry under applicant’s name, with a minimum value of two hundred thousand dollars (200,000 USD). Purchase could also be financed through a local bank.

In case of dependents:

• Letter of Responsibility
• Proof of kinship, birth certificate or marriage certificate apostilled or legalized by Panamanian consulate.
• Children over 18 years of age, should present a non-marriage certificate and studying enrollment certificate.

We invite you to contact us and get further information and find out what program suit best for you and your family. info@panamataxlawyers.com