Tax Atlas

Digital nomad taxes in Panama

What a digital nomad needs to know about Panama: the visa and its income test, when Panama starts taxing you, what you would pay if you become tax resident, and the regimes (or territorial rules) that can lower it — every figure sourced.

Verified September 19, 2026 by Henning Stanger, Authorized Accountant (Autorisert regnskapsfører) · income tax only, not tax advice

The Panama digital nomad visa

Nomad visa exists
Visa de Corta Estancia como Trabajador Remoto (Short Stay Visa for Remote Workers) (as of 2021)Servicio Nacional de Migración de Panamá“Decreto Ejecutivo No. 198 / Que crea la Visa de Corta Estancia como Trabajador Remoto, y se dictan otras disposiciones.”View source · accessed 2026-09-18 — Panama does have a dedicated remote-worker permit, created by Executive Decree No. 198 of May 7, 2021, officially called the Short Stay Visa for Remote Workers. It targets people who work remotely for a foreign employer or as self-employed freelancers whose clients and income are abroad, rather than people working for Panamanian companies.
Nomad visa income requirement
Applicants for Panama's remote worker visa must show foreign-source income of at least USD 36,000 per year, equivalent to USD 3,000 a month, verified through bank certifications and account statements. The income must originate abroad, consistent with the visa being aimed at people whose earnings are not Panama-sourced. [source]Galindo, Arias & López“un monto anual no menor a US$36,000.00 (US$3,000.00 mensuales), o su equivalente en moneda extranjera”View source · accessed 2026-09-18
Nomad visa duration
The remote worker permit is granted for an initial nine months and can be renewed once for another nine months, giving a maximum stay of eighteen months under this specific permit. After that, holders would need to pursue a different residency route to remain in Panama. [source]Galindo, Arias & López“una vigencia de 9 meses y podrá prorrogarse una sola vez por igual periodo”View source · accessed 2026-09-18
Nomad visa tax treatment
None of the official or law firm sources reviewed state that holding the remote worker visa itself confers Panamanian tax residency, and the visa's foreign-income requirement means the very income that qualifies someone for the permit is exempt from Panamanian tax under the territorial system either way. In practice this makes the remote worker visa tax-neutral for the income it is built around, though holders should still track their day count if they want to avoid any ambiguity about residency status. [source]PwC Worldwide Tax Summaries“Citizens and residents are taxed on income earned from Panamanian sources. Non-residents are taxed only on income from Panamanian sources”View source · accessed 2026-09-18

What you would actually pay

Panama taxes only Panama-source income. A remote worker paid by foreign clients is generally not taxed in Panama on that income: [source]PwC Worldwide Tax Summaries“Citizens and residents are taxed on income earned from Panamanian sources. Non-residents are taxed only on income from Panamanian sources”View source · accessed 2026-09-18 — Panama taxes individuals on a territorial basis, so only income earned from Panamanian sources is subject to tax, and this applies equally to citizens, residents, and non-residents. Foreign-source income is not taxed in Panama even for people who are full Panamanian tax residents. The scale below is the standard rate on Panama-source income, not what a foreign-earning nomad typically pays.

An effective-rate table for Panama isn’t available yet (its full bracket table is still being verified). The sourced rate and residency facts below still apply, and the interactive tool covers every modelled country.

If you do cross into tax residency, Panama’s income tax tops out at 25%PwC Worldwide Tax Summaries“Over 50,000 | Tax on column 1 (USD): 5,850 | Tax on excess (%): 25”View source · accessed 2026-09-18 — the top of the scale behind the figures above. The top marginal personal income tax rate in Panama is 25 percent, applied to taxable income exceeding USD 50,000. This top rate only bites on Panama-source income, since foreign-source income is exempt under the territorial system regardless of the taxpayer's residency.

When Panama starts taxing you

For a nomad the line that matters is when Panama flips you from visitor to tax resident: 183 daysPwC Worldwide Tax Summaries“A resident is a person who is physically located and has been generating income in Panama for more than 183 days during the year.”View source · accessed 2026-09-18. An individual becomes a Panamanian tax resident by spending more than 183 days in the country within a fiscal year or the year before it, and the days do not need to be consecutive. Panama also treats a person as resident if they have established a genuine permanent home in the country, which the tax authority assesses through evidence such as utility bills or children attending local schools. Stay under it and remain tax resident elsewhere, and you are usually taxed there, not here — but a home, family or economic centre can make you resident on fewer days.

Planning your days? The free 183 Days residency tracker checks your travel log against this exact threshold. Full test, ties and all: am I a tax resident of Panama?

Regimes that can lower your tax in Panama

If you do become tax resident, these are the regimes a relocating remote worker most often leans on to cut the bill — each with its own eligibility, so read the detail before counting on one:

No inheritance estate gift tax
None (as of 2026)PwC Worldwide Tax Summaries“There are no inheritance, estate, or gift taxes in Panama.”View source · accessed 2026-09-18 — Panama does not levy any inheritance, estate, or gift tax on individuals. This is a further consequence of Panama's light-touch, territorial approach to personal taxation.
Foreign source income exemption
Panama's carve-out for foreign income is not a special election but the default rule of its territorial tax system, meaning salary, business, or investment income earned outside Panama is simply outside the scope of Panamanian income tax for anyone, resident or not. This is the central reason Panama functions as a low-tax base for people whose income is generated abroad. [source]PwC Worldwide Tax Summaries“Citizens and residents are taxed on income earned from Panamanian sources. Non-residents are taxed only on income from Panamanian sources”View source · accessed 2026-09-18
Friendly nations visa
The Friendly Nations Visa is an immigration residency route open to nationals of around 50 listed countries who can show an economic or professional tie to Panama, either through a job with a Panamanian company, a real estate purchase of at least USD 200,000, or a three-year fixed bank deposit of at least USD 200,000. Getting this residency permit does not by itself make someone a Panamanian tax resident, that still depends separately on the ordinary day-count or permanent-home tests. [source]Kraemer & Kraemer“By Executive Decree 343 of May 16, 2012, the migratory subcategory of Permanent Residency for Friendly Nations was created”View source · accessed 2026-09-18

Frequently asked questions

Does Panama have a digital nomad visa?

Yes — the Visa de Corta Estancia como Trabajador Remoto (Short Stay Visa for Remote Workers).

Do I pay income tax in Panama as a remote worker?

Panama taxes only Panama-source income, so income from foreign clients is generally not taxed in Panama. Panama taxes individuals on a territorial basis, so only income earned from Panamanian sources is subject to tax, and this applies equally to citizens, residents, and non-residents. Foreign-source income is not taxed in Panama even for people who are full Panamanian tax residents. Becoming tax resident does not change that for genuinely foreign-source income — but confirm your own case with an adviser.

Sources

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When to talk to an advisor

This page maps Panama’s general rules for a remote worker. It cannot weigh your treaty position, your ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Panama (and in your home country) review your situation first.