New working regulations caused by the pandemic are redefining the corporate culture in conjunction with the physical spaces. Teleworking has opened a whole range of global possibilities for the labor offer and with the entry of digitization the future of the spaces has no borders.

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, of which Colombia and Venezuela together occupy 40% and approximately 37% 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 second best retirement destination in the world according to the annual global index published by International Living for 2021. 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 its economic stability, about Covid 19 at the date of this article, it is in a controlled and stable phase.

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:

Application form.
Three passport size pictures
Copy of the medical insurance policy with coverage in Panama with validity period of your term of stay.
Certification or proof of the existence of the foreign company in the place where it is registered.
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.
Payment of two hundred and fifty dollars (USD 250.00) to the National Immigration Service account.
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:

Application form.
Three passport size pictures
Copy of the medical insurance policy with coverage in Panama with validity period of your term of stay.
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.
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:

Bank certification stating that the received income comes from overseas and is related to the declared working contract.
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.