Panama

Panama offers a Short-Stay Visa for Remote Workers (Digital Nomad Visa) valid for 9 months, renewable once for an additional 9 months (18 months total). It requires a remote work contract with a foreign company (or proof of self-employment) and a minimum annual foreign-sourced income of $36,000 ($3,000/month). Government fees are $250 for the application and $50 for visa issuance, but you must hire a Panamanian lawyer to file it, which adds $1,000+ in legal fees, and it does not allow dependents.

A realistic monthly budget for a comfortable single-person lifestyle in Panama is between $1,600 and $2,500 (with a typical expat baseline around $1,800–$2,200 in Panama City), while living in the interior (like Boquete or Coronado) can reduce this to $1,500–$2,000. This budget covers a furnished 1-bedroom apartment, utilities, groceries, private healthcare, and moderate dining out.

Panama is designated as a Level 2 (Exercise Increased Caution) destination by the US State Department due to crime and potential for civil unrest. The advisory warns of Level 4 (Do Not Travel) risks in the remote Darién Region and parts of the Mosquito Gulf due to drug trafficking and criminal activity, but these are far from typical resident areas.

Foreign residents can access the public Ministry of Health (MINSA) clinics on a pay-as-you-go basis for very low fees, while the Social Security (CSS) system is accessible to those employed or paying voluntary contributions (starting around $110/month). However, most middle-class expats rely on highly accessible and affordable private healthcare and local private insurance plans to avoid long public wait times.

While English is widely spoken in professional sectors, medical services, and major expat hubs like Panama City, Boquete, and Coronado, Spanish remains the primary language for daily life. Outside of these international bubbles, navigating local shops, landlords, and neighbors requires a basic to moderate grasp of Spanish. Consequently, while you can function with effort in major areas, learning Spanish is essential for seamless daily living.

Panama operates under a strict territorial tax system, meaning only income generated within the borders of Panama is subject to local income tax. Foreign-sourced income, including remote wages from a foreign employer or freelance revenue from foreign clients, is completely exempt from Panamanian income tax, even if the individual is a tax resident. While Law 526 of 2026 introduced economic substance rules for foreign-source passive income, this applies only to entities of multinational groups, leaving individual remote workers unaffected.