Citizeo
Pathway

Panama Short-Stay Visa for Remote Workers

Panama Residency
Pathway overview

At a glance

Panama's Short-Stay Visa as a Remote Worker is a non-resident visa for an employee of a qualifying foreign company or a self-employed person whose work, clients and income remain outside Panama. It requires at least PAB 36,000 a year in foreign-source income, medical insurance valid in Panama, and a commitment not to take local work or services.

Type
Short-stay non-resident visa
Work setup
Remote workers whose job or clients stay abroad
Core requirements
Remote work, foreign income, insurance, and funds
Local work
Not allowed; applicant must swear not to accept local work or services
Duration
Initial stay is 9 months.
Renewal / path
Renewable once for another 9 months, 18 months total.

Summary

Panama's remote-worker route is formally a Short-Stay Visa as a Remote Worker in the non-resident category. It is for a person who performs remote work whose effects remain abroad and receives the work income from outside Panama. It is not a residence permit.

Executive Decree 198 of 2021 created the route. The initial visa lasts nine months and may be extended once for another nine months if the applicant again meets the requirements. The maximum under this visa is therefore 18 months.

The published minimum income is PAB 36,000 per year, equivalent to PAB 3,000 per month. The applicant also needs medical insurance covering Panama for the stay and must sign a declaration that they will not accept a local job or service offer involving Panamanian nationals, residents, tourists or companies.

Pathway fit check

Eligibility

The official requirements cover two work arrangements.

Foreign-company employee

The applicant must work remotely for a foreign company of the kind described in the decree, and the work functions must have their effect abroad. The application calls for proof that the foreign company exists and an employer letter stating the applicant's details, role, duties, monthly income, payment schedule, foreign source of the income, remote-work arrangement and return or repatriation commitment.

Self-employed or independent worker

The applicant must work through their own business registered abroad. Instead of the foreign-employer documents, the official checklist asks for proof of the foreign business and a notarized sworn statement describing the applicant's clients, services, earnings, source of funds and payment schedule.

In either arrangement, the applicant must show at least PAB 36,000 in annual foreign-source income. Bank certification or statements must show that the payments come from abroad and are connected to the declared work. A large savings balance does not replace the income requirement.

Other published requirements include:

Foreign documents must meet Panama's authentication rules. Documents not in Spanish generally need an accepted Spanish translation.

What This Route Allows

An approved holder may remain in Panama for nine months and perform the specific foreign-facing remote work described in the application. The decree says no additional Panamanian work or residence authorization is required for that approved remote activity.

One extension for another nine months is possible. The official checklist says the applicant must meet the original requirements again and provide current proof connecting the income to the declared work. Renewal is not an automatic extra nine months simply because the first visa was granted.

The route can be useful for a temporary stay while continuing a foreign employment or independent-business arrangement. It gives the holder lawful permission for that defined purpose, but it does not change the route into permanent residence.

What This Route Is Not

This route is not:

Tax residence and income-source analysis are separate from immigration permission. The official visa checklist does not promise that all remote income is outside Panama's tax system, nor does it guarantee that a Panamanian bank will open an account. Obtain tax and banking advice based on the real work pattern.

Family members are not automatically covered by the principal applicant's visa. Confirm whether each accompanying person needs their own immigration permission before travel or filing.

Next Steps

  1. Map the work arrangement. Identify the legal employer or foreign business, where it is registered, where the work has its effect, who the clients are and where every payment originates.
  2. Calculate documented annual income from the qualifying work. Use actual contracts, employer records and bank transactions rather than projected income or unrelated transfers.
  3. Ask the employer to prepare the detailed official letter. A self-employed applicant should prepare the foreign-business proof and the client-and-income sworn statement described in the checklist.
  4. Obtain a medical-insurance policy that expressly covers Panama for the intended stay. Confirm that the insurer will issue a policy document suitable for the application.
  5. Review the no-local-work declaration carefully. If the planned activity includes Panamanian clients, local contracts or a Panamanian employer, stop and identify a different route.
  6. Coordinate the passport, criminal-record, health and foreign-company documents so they are current at filing. Apostille or legalize and translate them as required.
  7. File using the current National Migration Service process and retain a full copy. Before the first nine months end, decide whether to leave, apply once for the extension, or qualify independently for another status.
Compare your options

Similar digital nomad pathways in other destinations.

Sources