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Panama — services for living and doing business

An official digital nomad visa and 0% tax on foreign income

Population:
~4.6m
Capital:
Panama City
Currency:
Balboa / US dollar (PAB/USD)
Time zone:
UTC−5 (no daylight saving)
Languages:
Spanish; English widely used in business and Panama City
Panama on the map

Services in Panama

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About the country

Panama is a dollarised Central American economy with the Panama Canal and a large banking sector. Since May 2021 it has run a digital nomad visa (Trabajador Remoto) for remote employees and freelancers with foreign income from $36,000/year. Territorial taxation exempts any income earned abroad from Panamanian tax.

Worth knowing

  • !The digital nomad visa is capped at 18 months (9+9, no further extensions) and leads to no permanent residence
  • !Panama remains on the EU tax blacklist (confirmed by the list update of 17.02.2026), although it left the FATF grey list in October 2023
  • !The application can only be filed in person after entering the country, through a Panamanian lawyer under a notarised power of attorney

Panama: scores by area

6.9/ 10 — average scorecompare with all →

An expert estimate to get you oriented — we'll go through the details on the consultation.

Taxes (how favourable)9/10
Cost of living6/10
Safety6/10
Passport strength7/10
Infrastructure7/10
Business prospects6/10
Investment appeal6/10
Healthcare7/10
Environment8/10

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