Panama is known as the crossroads of the Americas, because it’s the southernmost country in Central America. If you go any further south, you hit Colombia. Panama is quickly growing as one of the most popular destinations for immigrants and digital nomads in Central America, even more so since they launched the Panama digital nomad visa.
Known for its stunning beaches, modern infrastructure and surprisingly stable economy with a currency that is tied to the US Dollar, Panama provides an ideal location for digital nomads looking for a tropical adventure that still has some home comforts.
Here’s everything you need to know about being a digital nomad in Panama.
Contents
- Why Choose Panama?
- How to Get a Panama Digital Nomad Visa
- The Best Cities for Digital Nomads in Panama
- Cost of Living in Panama
- Internet Speeds in Panama
- Coworking Spaces in Panama
- Housing Options in Panama
- Healthcare in Panama
- FAQs About Being a Digital Nomad in Panama
- Conclusion
Why Choose Panama?
Panama’s allure lies in its diversity. You can work from a high-rise in Panama City, unwind on the deserted beaches of Bocas del Toro, or go hiking in the lush greenery of Boquete. Thanks to its stable economy, affordable cost of living, and excellent connectivity, Panama is an ideal base for remote workers and digital nomads.
With the introduction of the Panama digital nomad visa, it’s easier than ever to settle here legally and enjoy the best of what this Central American gem has to offer.
🇵🇦 Read more: Is it safe to travel alone in Panama?
How to Get a Panama Digital Nomad Visa
Panama’s digital nomad visa, officially called the Short Stay Visa for Remote Workers, was designed to attract global professionals. It allows remote workers to live and work in Panama for up to 18 months.
Eligibility for the Panama Digital Nomad Visa
To qualify, applicants must meet the following requirements:
- Be employed by a company outside Panama or work as a freelancer serving international clients.
- Earn a minimum monthly income of $3,000 USD or $4,000 USD for families.
- Provide proof of income through bank statements or pay stubs.
The Application Process
- Gather Documentation: This includes your passport, proof of income, work contracts, and health insurance.
- Submit Your Application: Applications are handled through Panama’s immigration services or consulates.
- Pay the Fees: The visa application fee is approximately $250 USD.
- Await Approval: Processing times are typically a few weeks.
Panama Digital Nomad Visa Taxes
If you live and work remotely in Panama without earning income from Panamanian sources, you’re generally exempt from paying local taxes. However, tax laws can be complex, so consulting a professional is advisable to fully understand your obligations.
The Best Cities for Digital Nomads in Panama
Panama City
Panama City is the beating heart of the country and a favourite for digital nomads. Known for its gleaming skyscrapers and vibrant neighbourhoods, it offers:
- Reliable internet with speeds averaging 50–100 Mbps.
- A bustling social scene with international dining, nightlife, and cultural attractions.
- A cost of living around $1,500–$2,500 USD per month, depending on lifestyle.
🇵🇦 Read more: The best areas & places to stay in Panama City
Boquete
Nestled in the highlands, Boquete is perfect for nomads seeking a slower pace of life surrounded by nature. Highlights include:
- A cool, spring-like climate year-round.
- Affordable living, with monthly costs around $1,200–$1,800 USD.
- A thriving expat community and cozy cafes for remote work.
Bocas del Toro
If island life is your dream, Bocas del Toro delivers. This laid-back Caribbean archipelago offers:
- Stunning beaches and opportunities for outdoor activities like snorkeling and kayaking.
- Fewer coworking spaces but plenty of beachside cafes with decent Wi-Fi.
- A cost of living similar to Boquete, though island logistics can add expenses.
🇵🇦 Read more: The best things to do in Bocas del Toro
David
David, Panama’s third-largest city, offers an affordable alternative to Panama City while still providing solid infrastructure. For more off-the-grid options, consider Pedasí or Santa Catalina, known for their quiet charm and surfing spots.
Cost of Living in Panama
Panama’s cost of living is relatively affordable compared to Western countries, although it’s one of the more expensive countries in Central America. While Panama City is the most expensive option, other regions provide excellent value for money.
| Category | Average Monthly Cost |
|---|---|
| Accommodation | $500–$1,500 USD |
| Groceries | $200–$300 USD |
| Dining Out | $10–$25 USD per meal |
| Transportation | $20–$50 USD |
| Leisure & Activities | $50–$150 USD |
Note: Costs vary based on location and lifestyle, with Panama City on the higher end.
Internet Speeds in Panama
Panama has solid internet infrastructure, especially in urban areas. Speeds in Panama City and larger towns like David average 50-100 Mbps, making it ideal for remote work. Rural and coastal areas may experience slower or less reliable connections, but coworking spaces and local providers often offer solutions.
Coworking Spaces in Panama
Coworking culture in Panama is growing, especially in Panama City. Top coworking spaces include:
- Workings: Modern facilities with fast Wi-Fi and meeting rooms.
- Selina Panama City: A favorite among digital nomads, offering a mix of coworking and socializing.
- My Office Panama: Affordable spaces with excellent amenities.
In smaller towns like Boquete, cafes often double as informal coworking spots, while dedicated spaces are emerging in areas like Bocas del Toro.
Housing Options in Panama
Panama offers a wide range of housing options to suit various budgets and lifestyles.
Short-Term Rentals
Platforms like Airbnb and VRBO are excellent for finding short-term accommodations. Expect to pay:
- $500–$800 USD/month for a basic studio or one-bedroom apartment in smaller towns.
- $1,000+ USD/month in Panama City.
Long-Term Rentals
For longer stays, local rental agencies or real estate platforms are your best bet. Monthly rents can be significantly cheaper for long-term contracts, but they often require a deposit and local guarantor.
Healthcare in Panama
Panama’s healthcare system is among the best in Central America, with both private and public options.
- Private Healthcare: High-quality and affordable, with many doctors trained in the U.S. or Europe. Costs are generally lower than in Western countries.
- Public Healthcare: Available but less commonly used by expats due to longer waiting times.
- Health Insurance: Local plans start at $50-$100 USD per month, though international coverage is also an option.
Pharmacies are abundant, and many medications are available without a prescription.
FAQs About Being a Digital Nomad in Panama
Is Panama City good for digital nomads?
Yes, Panama City is an excellent destination for digital nomads. It offers modern coworking spaces, reliable high-speed internet, a vibrant social scene, and plenty of international amenities.
Do digital nomads pay taxes in Panama?
Digital nomads who earn income from sources outside Panama are typically exempt from local taxes. However, consulting a tax professional is advised to understand your specific tax obligations.
Can you work remotely in Panama?
Yes, Panama is a fantastic place to work remotely. Its stable infrastructure, reliable internet, and the introduction of the Panama digital nomad visa make it easy for remote workers to live and work legally.
What are the Panama digital nomad visa requirements?
To qualify for the Short Stay Visa for Remote Workers, applicants must:
- Work for a company outside Panama or serve international clients as a freelancer.
- Earn a minimum monthly income of $3,000 USD ($4,000 USD for families).
- Provide proof of income, health insurance, and other documentation.
Does the Panama digital nomad visa include my family?
Yes, the Panama digital nomad visa can include your family. You’ll need to meet the higher income requirement of $4,000 USD per month and provide additional documentation for dependents.
Why is Panama a great destination for digital nomads?
Panama offers a mix of modern infrastructure, affordable living, reliable internet, and diverse lifestyles. Whether you prefer city living, lush mountains, or tropical islands, Panama has something for everyone.
Where can digital nomads work in Panama?
Panama features excellent coworking spaces in cities like Panama City (e.g., Workings and Selina) and casual, cafe-based workspaces in smaller towns like Boquete and Bocas del Toro.
Conclusion
Panama is an incredible destination for digital nomads, offering the perfect balance of modern conveniences, natural beauty, and affordability. Whether you’re networking in Panama City, hiking in Boquete, or relaxing on a beach in Bocas del Toro, the country has a unique charm that’s hard to resist, with the added benefit of the Panama digital nomad visa.