Panama's Digital Nomad Visa: A Legal Instrument for Remote Work in a Global Destination

Panama has recently been recognized as one of the 25 best countries to visit in 2025, according to the BBC, thanks to its natural and cultural wealth and its commitment to sustainable tourism. However, this country is not only attractive for occasional travelers, but also for those looking to settle temporarily for work purposes. Since 2021, Panama has been offering a specific legal framework for remote workers through the Short Stay Visa as Remote Worker, also known as the Digital Nomad Visa. Este instrumento jurídico responde a las tendencias globales de trabajo remoto y coloca a Panamá como un país competitivo en la atracción de talento internacional, ofreciendo estabilidad legal y beneficios claros para quienes buscan operar desde un destino estratégico.

Legal Aspects of the Digital Nomad Visa in Panama that you should take into account

The Short Stay Visa as a Remote Worker, created through the Executive Decree No. 198 of May 7, 2021, establishes an immigration subcategory within the Non-Resident category. This legal framework allows foreigners to work remotely from Panama, as long as they comply with certain specific requirements:

1. Duration: The visa has an initial validity of nine months, extendable once for the same period, allowing up to 18 months of temporary residence in the country.
2. Permitted activities:
   • The applicant must be employed by a foreign company of transnational character or be a self-employed worker under the telework modality.
   • Labor activities should only have effects outside Panamanian territory, ensuring that the local labor market is not affected.
3. Income and financial solvency: It is required to demonstrate annual income of at least $36,000 from foreign sources.
4. Medical insurance: The applicant must have a valid medical insurance policy that includes coverage in Panama.

The application process is relatively streamlined, designed to respond to the mobile dynamics of digital nomads, who seek to flexibility and speed in immigration procedures.

Legal and Economic Impact of the Visa

Desde la perspectiva legal, esta visa constituye un mecanismo innovador que equilibra la apertura a la inversión humana y la protección del mercado laboral panameño. Al delimitar claramente que las funciones laborales de los nómadas digitales deben generar efectos fuera de Panamá, el país asegura que los trabajadores remotos no compitan con la fuerza laboral local, sino que complementen la economía mediante su consumo de bienes y servicios. Además, este marco legal promueve la inversión extranjera indirecta, ya que los beneficiarios de esta visa suelen contribuir significativamente al sector inmobiliario, turístico y de servicios locales.

Why Panama?

Beyond the legal security provided by this visa, Panama is an ideal destination for digital nomads for several reasons:

• Modern infrastructure: International air connectivity and advanced technological services.
• Economic and political stability: Panama has a sound legal framework that protects both investors and foreign workers.
• Quality of life: From its vibrant urban life in Panama City to its natural landscapes in El Valle de Anton or the beaches of Bocas del Toro, the country offers a balanced living experience between work and recreation.

Legal Perspective for Companies and Applicants

Es fundamental que los interesados cumplan con los requisitos legales y estructuren adecuadamente sus solicitudes para evitar contratiempos. Adicionalmente, las empresas que contratan trabajadores remotos pueden beneficiarse al contar con personal operando desde Panamá, un país con husos horarios estratégicos para coordinar actividades con América del Norte y del Sur. En resumen, la Digital Nomad Visa not only positions Panama as an attractive destination for remote work, but also stands out as an exemplary case of how the law can adapt to global labor dynamics. If you are interested in exploring this option, having the right legal advice will be key to make the most of this opportunity. Interested in learning more about the legal benefits of setting up as a remote worker in Panama? Our team of lawyers can help you navigate this process successfully.