Panama
Short-Stay Remote Worker Visa · Panama City
Dollar-denominated and purely territorial, Panama is a banking-grade base where foreign income stays untaxed — with the Friendly Nations route as a residency upgrade.
$3,000/mo
20–40 days
9 months
62/100
110 Mbps
Moderate
Tropical
UTC-5
Model your move to Panama
Set who's coming and what you earn. We'll handle eligibility, taxes, contributions, living costs and what you'd have left — and compare it to home.
Staying more than ~183 days?
Affects tax residency for territorial & exempt regimes.
Your monthly life in Panama
Pre-filled with typical costs in Panama City. Drag or type to match your life.
A nice place in a popular area
Power, water, gas
Home fibre + data
Food at home
Transit, rideshare, fuel
Private cover nomads usually need
Eating out, coffee, going out
Shopping, gym, subscriptions, misc.
You meet the income requirement
Needs $3,000/mo.
Your qualifying income
$6,000
$6,000
$2,206
$3,794
Tax in Panama
Effective rate
0.0%
- Income tax / mo
- $0
- Social security / mo
- Not charged
- Total deductions / mo
- $0
- Take-home / mo
- $6,000
Under 183 days you stay outside the local system; your home country keeps covering you.
Private health insurance isn't required for this visa, but most nomads carry it — it's already counted in your living costs above.
Panama is purely territorial — foreign income is never taxed, even for residents.
vs. United States
Tax
22.8% at home → 0.0% here
Same lifestyle costs
$4,242 at home → $2,206 here
Money left over
$391 at home → $3,794 here
Estimates for planning only — actual tax depends on treaties, your residency and personal circumstances. Confirm with official sources and a qualified advisor before you move.
What it takes to qualify
Income & savings
- Monthly income (single)
- $3,000
- Basis
- $36,000 per year
- Combine two incomes?
- No — main applicant only
Show $36,000 annual income from foreign sources.
The visa
- Program
- Short-Stay Remote Worker Visa
- Introduced
- 2021
- Duration
- 9 months, renewable
- Max total stay
- 1y 6m
- Fees
- $550 (approx)
- Who can apply
- Employees, Freelancers, Business owners
- Bring family?
- Yes
Government and card fees total ~$550. Nine months, renewable once. Many nomads instead use the Friendly Nations Visa for a PR route.
What you'll actually pay
Income tax
- Treatment
- Foreign income not taxed for nomads
- Headline rate
- 25%
- Tax residency at
- 183 days
- Employee social
- Usually home-covered
Panama is purely territorial — foreign income is never taxed, even for residents.
Good news
There's effectively no local income tax to worry about on your foreign earnings here.
Reviewed Source: Panama Migración
Path to residency & citizenship
This is a lifestyle visa: great for living here now, but time on it doesn't count toward permanent residency or a passport.
The remote-worker visa never leads to residency. Panama's separate Friendly Nations Visa grants PR after ~2 years and citizenship eligibility ~5 years later.
Reviewed Source: Panama Migración
Typical costs in Panama City
Rent (1-bed)
$1,100
Rent (family)
$1,700
Groceries / person
$320
Utilities
$120
Internet
$50
Transport / person
$30
Health insurance
$90
Dining / person
$260
Cost index 52/100 vs New York · prices are about 55% of US levels (PPP). Monthly figures shown in USD.
Highlights & watch-outs
What makes it great
- Territorial tax means foreign income is never taxed.
- Uses the US dollar — no currency risk.
- A major air hub with first-world banking.
What to watch
- The DNV itself is short-stay.
- Humidity and city traffic.
Reviewed Source: Panama Migración
Compare Panama
Head-to-head with similar destinations.
Moving to Panama from…
See the tax & cost picture for your home country.