Explore the burgeoning landscape of remote work in Panama, where pristine beaches and vibrant cities beckon digital nomads. In this article, we delve into the remote work culture, pinpointing the reasons why Panama is increasingly favored by remote workers. Discover the top spots across Panama, tailored for digital nomads seeking both productivity and adventure. Curious about visa options? We’ve got you covered. Join us as we unravel Panama’s appeal as the emerging hotspot for digital nomads.
Remote Work Culture
Panama provides an exceptional environment for remote work, boasting a vibrant culture and robust infrastructure tailored to digital nomads. The landscape features an array of laptop-friendly cafes, coworking spaces, and thriving digital nomad communities. Among the dedicated coworking hubs are Panama Coworking Center, My Office Coworking, and Spaces. However, it’s common for nomads to opt for working from cafes/restaurants or apartments due to the affordability of rental prices.
Panama boasts excellent internet connectivity, ranking 116th globally for mobile speeds and 29th for fixed broadband speeds as of February 2024. Remote workers can anticipate average download speeds of 110 Mbps and upload speeds of 14 Mbps for fixed broadband. However, mobile internet speeds are comparatively lower, with average download speeds of 14 Mbps and upload speeds of 11 Mbps.
Why do Digital Nomads Choose Panama for Remote Work?
Panama is favored by digital nomads, especially those aiming for long-term residency or adventure. Explore why pursuing remote work and travel in Panama might suit your needs as well:
- Quality of Life
Many digital nomads pursue remote work to indulge in outdoor activities. In Panama, opportunities abound for fishing, sailing, boating, scuba diving, hiking, birdwatching, snorkeling, indigenous tours, and extreme sports.
- Quick Visa Processing and Extended Stay
The digital nomad visa application can be conveniently completed online. Furthermore, the digital nomad visa grants a stay of up to 18 months, with the possibility of extending it for an additional nine months.
- Business-Friendly Tax Regime
Panama offers a favorable tax environment, exempting remote workers from taxation on income earned from foreign sources outside the country. Moreover, individuals residing in Panama for nine months or longer can pursue tax residency status, relieving them of tax obligations to their home country. However, the applicability of this benefit depends on the individual’s country of origin and the tax regulations governing expatriates.
- Currency
US dollars (USD) are the currency of Panama, which makes their economy unlikely to experience the hyper-inflation that other countries have suffered from in Latin America. This economic stability helps digital nomads budget their living expenses, ensuring that the cost of living won’t fluctuate wildly.
- Safe Environment
Panama stands out as the most secure nation in Latin America, with its modest population and robust governance. The presence of a favorable tax regime and the strategic significance of the Panama Canal’s trade routes have garnered global attention, fostering a commitment to maintaining a secure environment conducive to investment throughout the country.
Top Areas in Panama for Digital Nomads
Panama, often overshadowed in Latin America, emerges as a prime spot for digital nomads. Its strong internet infrastructure, growing coworking spaces, and thriving digital nomad community make it a top pick for remote work. Here’s a glimpse of Panama’s top spots for remote workers that you might want to consider when moving to Panama.
Panama City
Panama City offers remote workers a diverse expatriate community, trendy social spots, and stunning oceanfront workspaces. Its dependable internet connectivity and contemporary infrastructure are essential for remote professionals. Co-working hubs and cafes like Café Unido and Benissimo provide internet access, fostering an ideal setting for remote work and networking opportunities. If you think about moving here, you may want to explore apartments in Panama City.
Bocas del Toro
For digital nomads who love surfing or diving, Bocas del Toro is the perfect destination. It’s becoming a haven for remote workers, offering various accommodations with Wi-Fi and expanding co-working options like Tres Palmas Cafe and Selina CoWorking Space. Bocas del Toro offer various types of real estate, so feel free to browse through our real estate listings in Bocas del Toro.
Pedasi
Pedasi, nestled on the southeastern tip of Panama’s Azuero Peninsula, is a hidden gem for remote workers seeking a tranquil retreat. Known for its rich cultural heritage, pristine beaches, and vibrant local community, Pedasi offers a serene environment away from the hustle and bustle. With reliable internet services gradually expanding in the area, remote professionals can enjoy the peace of small-town living while staying connected. The town is surrounded by nature, offering outdoor activities like surfing, fishing, and hiking, perfect for work-life balance.
Visa for Digital Nomads in Panama
What Is the Panama Digital Nomad Visa?
Executive Decree 198, issued on May 7, 2021, established the short-term visa tailored for remote workers and digital nomads. This visa falls under the Non-Resident category and aims primarily to promote tourism among telecommuting travelers.
In order to obtain this visa, individuals must meet the following criteria:
- Establishing a contractual agreement with a multinational foreign entity, signifying engagement as an independent contractor operating under telecommuting arrangements.
- Undertaking responsibilities that impact operations beyond national borders.
- Receiving earnings from overseas sources, totaling a minimum annual sum of 36,000 balboas or its equivalent in alternative currencies.
Upon approval, this temporary visa for remote employment remains valid for 9 months, with the option for extension for an equivalent duration. It enables individuals to engage in telecommuting activities within Panama without the need for supplementary documentation or acquiring permits from other governmental bodies.
What are the Requirements For the Panama Digital Nomad Visa?
To apply for this visa, applicants must fulfill the following criteria, in addition to meeting the aforementioned requirements:
- Passport must be valid for a minimum of 6 months from the date of application.
- Provide 5 passport-sized photos measuring 2 inches by 2 inches.
- Obtain a national criminal background certificate, which must be recently issued and apostilled/authenticated by a Panamanian Consulate in the country where it was issued. This certificate is valid for 6 months.
- A copy of your health insurance policy is required for your stay in Panama. If it’s an international policy issued recently, it must be apostilled/authenticated by a Panamanian Consulate in the issuing country and valid for 6 months.
- Proof of foreign company’s registration in its home country (certificate of incumbency and good standing) must be recently issued, apostilled/authenticated by a Panamanian Consulate – valid for 6 months.
- Signed job letter stating name, ID, post, job, annual income (≥ $36,000/year or equivalent), remote work, and commitment to repatriation cost. Recently issued, apostilled/authenticated by Panamanian Consulate, valid 6 months.
- Signed declaration of no job accepted or services provided while in Panama under the visa.
- Proof of foreign-sourced income required. Choose from the following options:
- Recent bank certification: confirms income from abroad, along with job conditions of income reception. Must be apostilled/authenticated by Panamanian Consulate in issuing country; valid for 6 months.
- Last two months’ foreign bank statements stamped/sealed by the bank indicating fund receipt tied to declared job, recently issued, apostilled/authenticated by Panamanian Consulate – valid 6 months.
- Application forms and Power of Attorney.
Requirements for self-employed applicants
- Recent certification of foreign company registration or non-Panamanian employment. Apostilled/authenticated by the Panamanian Consulate. Valid 6 months.
- Signed declaration with applicant’s details, client list, services, and payment details. Apostilled/authenticated by the Panamanian Consulate. Valid 6 months.
How to apply for Panama Digital Nomad Visa
- Step 1: Gather all necessary documents as the initial step in the application process.
- Step 2: After gathering required documents, remote workers can schedule a visa appointment at their local Panamanian embassy or consulate. Appointments may be arranged in a nearby country depending on nationality. Complete forms and present documents at appointment.
- Step 3: After the visa appointment, applicants must pay $250 USD for the National Immigration Agency and an additional $50 USD for the visa card. Total: $300 USD.
- Step 4: Digital nomads must await visa application verdict, possibly taking 30 days from start to finish.
Conclusion
In conclusion, Panama emerges as a haven for digital nomads, offering a blend of work-life balance and adventure. From its thriving remote work culture to its picturesque locales, Panama captivates remote workers seeking a new experience. As we explored the reasons behind Panama’s appeal and uncovered its top spots, it’s evident why this Central American gem is on the radar of digital nomads worldwide. With flexible visa options adding to its allure, Panama solidifies its position as the go-to destination for those seeking a dynamic work environment amidst stunning landscapes. Embrace the opportunities Panama presents for your next remote work adventure.
