Working Remotely

Remote Work in Panama

Panama has become a top destination for digital nomads and remote workers, offering fast internet, modern infrastructure, USD currency, and favorable tax treatment.

Digital Nomad Visa

Panama's Short-Stay Visa for Remote Workers:

• Launched specifically for remote workers
• Valid 9 months, renewable once (18 months total)
• Requires $36,000 annual income ($3,000/month)
• Must work for foreign company (not Panama-based)
• Processing: ~30 days
• Cost: $250 application + $50 visa card + attorney fees

Key benefit: Territorial tax system = zero Panama income tax on foreign earnings

Internet Quality

Panama City:

• Fiber internet widely available
• Speeds: 100-300 Mbps common
• Cost: $40-60/month
• Reliability: Excellent
• Providers: CWP, Tigo, Digicel

Boquete:

• Fiber available in most areas
• Speeds: 50-200 Mbps
• Slightly less reliable than capital
• Good enough for remote work

Beach areas:

• Improving rapidly
• Fiber expanding to Coronado, Bocas
• Can be variable in remote areas
• Check before committing to location

Backup options:

• Mobile hotspots work well (4G widely available)
• Coworking spaces have redundant connections
• Most expats use dual provider setup for critical work

Coworking Spaces

Panama City:

• Selina Hub - Casco Viejo, $150-300/month
• WeWork - Multiple locations, $200-400/month
• Spaces - Obarrio, modern facility
• Hashtag - Local coworking, budget-friendly
• Hub CoWork - San Francisco

Boquete:

• Boquete Garden Inn - Coworking space
• Coffee shops with good WiFi
• More limited than Panama City

Benefits:

• Networking with other remote workers
• Backup internet
• Professional environment
• Events and community

Time Zones

Panama is EST (UTC-5) year-round:

• Perfect for East Coast US - same time zone
• Good for US generally - 3 hours ahead of West Coast
• Challenging for Europe - 5-6 hours behind
• Difficult for Asia - nearly opposite

No daylight saving time makes scheduling consistent.

Visa Options for Remote Workers

Digital Nomad Visa (18 months max):

• Best for: Testing Panama before committing
• Cannot convert to permanent residency

Friendly Nations Visa (permanent path):

• Form Panama company, "employ" yourself
• Work remotely for foreign clients through Panama company
• Leads to permanent residency

Pensionado (if you qualify):

• $1,000/month passive income
• Can work remotely
• Immediate permanent residency

Tax Advantages

Territorial Tax System:

• Foreign-sourced income: 0% Panama tax
• Only Panama-sourced income taxed
• Remote work for foreign company = foreign income
• Massive advantage over most countries

Important: Consult tax professional for your specific situation, especially regarding home country obligations.

Banking for Remote Workers

Advantages:

• Uses US Dollar (no conversion)
• Easy international transfers
• Stable banking system
• Can maintain US bank accounts

Receiving payments:

• Wire transfers: Standard, $25-50 fee
• Wise (TransferWise): Lower fees
• PayPal: Works but limited merchant adoption
• Cryptocurrency: Growing adoption

Cost of Working Remotely

Monthly budget for remote worker:

• Apartment: $800-1,500
• Fast internet: $40-60
• Coworking (optional): $0-300
• Coffee shops: $50-100
• Utilities: $100-150
• Total overhead: $1,000-2,100

Much cheaper than major US cities or European capitals.

Best Areas for Remote Workers

Panama City:

• Best internet infrastructure
• Most coworking spaces
• Vibrant digital nomad community
• Great for networking
• Close to airport for travel

Boquete:

• Growing remote worker community
• Cooler weather (productivity advantage)
• Lower costs
• Nature for work-life balance
• More quiet, focused environment

Casco Viejo (Panama City):

• Historic district
• Trendy cafes and coworking
• Walkable
• Strong digital nomad scene
• Higher rent but great atmosphere

Challenges

Distance from clients:

• Far from Europe/Asia (time zones)
• Video calls may require early/late hours
• Flight costs for in-person meetings

Internet reliability:

• Generally good but not Japan/Singapore level
• Power outages occasional (get UPS battery backup)
• Rural areas can be challenging

Community:

• Growing but smaller than Thailand/Portugal
• Less established than traditional nomad hubs
• Improving rapidly

Why Remote Workers Choose Panama

✅ US Dollar - No currency risk

✅ Fast internet - Fiber widely available

✅ Low cost - 40-60% cheaper than US

✅ Tax benefits - Territorial system

✅ Easy visa - Digital Nomad or Friendly Nations

✅ Good flights - Copa hub to Americas

✅ Modern infrastructure - First-world amenities

✅ English spoken - In expat/business areas

✅ Safe - By Latin American standards