Freelance and Digital Nomads in Panama

Panama has increasingly become an attractive destination for freelancers and digital nomads. There are several reasons why this Central American country stands out, from its strategic geographical location to its strong internet infrastructure. Panama’s tropical climate is another appealing factor, offering almost year-round sunshine.

Visa and Residency Options

For Remote Employees

• Proof that the employment functions are performed abroad
• Annual minimum income from a foreign source of $36,000
• Authenticated bank statements as proof of income
• Health insurance with coverage in Panama for the duration of the visa
• Sworn declaration that no job offers within Panama will be accepted
• Additional documentation detailing the position held

For Freelancers and Self-Employed Individuals

• Certificate of existence of the foreign company
• Authenticated bank statements as proof of income
• Health insurance with coverage in Panama for the visa’s duration
• Apostilled certificate of the company registered abroad
• Sworn declaration about business relationships with clients, services provided, revenue generated, and business objectives

1. Both visas require a form from the National Migration Service agreeing to cover any repatriation costs.

Cost of Living

Sample Cost Breakdown

• Rent (1-bedroom apartment): $600 – $1,200 in Panama City; $400 – $800 outside the city
• Utilities and Internet: $100 – $150
• Dining Out: $5 – $20 per meal
• Public Transport: $0.35 per bus trip; $0.60 per metro trip
• Health Insurance: $50 – $100 per month

Connectivity

Internet connectivity is essential for digital nomads, and Panama excels in this area. The country offers high-speed internet, particularly in urban areas, backed by a robust infrastructure. This ensures that remote work requiring reliable online access can be continued without interruptions.

Coworking Spaces in Panama City

Tax Benefits

Panama’s tax system is another pull factor for freelancers and digital nomads. The country employs a territorial tax system, meaning residents and non-residents are only taxed on Panama-sourced income. Foreign-source income remains untaxed. This tax structure benefits expatriates and multinational corporations generating income outside Panama.

Expat Communities

Popular Expat Locations

• Panama City: Offers urban amenities and a modern lifestyle
• Coronado: Known for its beaches and relaxed lifestyle
• Boquete: Favorable climate, particularly for retirees
• Pedasi: Small town charm with a growing expat community

Social Activities

Participating in social activities can greatly enhance your stay in Panama. From sports like golf and tennis to local clubs such as book clubs and cooking classes, the opportunities for networking are plentiful. Attending local events, including concerts, festivals, and shows, also provides avenues to meet new people and immerse yourself in Panamanian culture.

Conclusion

In summary, Panama offers a compelling package for freelancers and digital nomads. With favorable visa and residency options, affordable living costs, reliable internet connectivity, and a supportive expat community, it’s no wonder the country is becoming a hotspot for remote workers. Additionally, attractive tax benefits and ample coworking spaces enhance its appeal.

References

1. Digital Nomad Visa in a Nutshell
2. New Visa for Remote Workers & Digital Nomads in Panama – 2021
3. Digital Nomad Visa in Panama
4. Workings
5. My Office

This article delivers updated and accurate information for those considering relocating to Panama as freelancers or digital nomads.