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PANAMA CITY REMOTE WORK GUIDE · 2026

Can a US Citizen
Work Remotely in Panama City?

Visa rules, tax triggers and the real cost of working from Panama City — distilled into one practical guide.

● Reviewed 21 August 202620 data points4 key sources
THE QUICK ANSWER
Dedicated remote-worker visa

Yes — Panama provides a short-stay remote-work route.

US tourists may stay in Panama for up to 180 days without a visa, but tourism status is separate from work permission. Panama's Short-Stay Visa as a Remote Worker covers qualifying foreign-paid remote work for nine months and can be extended once for another nine months.

Bottom lineExecutive Decree 198 created a non-resident short-stay visa specifically for foreign remote work. It runs for nine months and can be extended once; the holder may not accept local work or offer services in Panama.
AT A GLANCE

Panama City remote-work facts

Legal rules are separated from indicative market estimates. Use the source links below to verify the official position.

Entry & visa

NationalityUnited States🇺🇸
DestinationPanama City, Panama🇵🇦
Visa requiredNo for US tourist stays under 180 days; visa for remote workNo
Digital nomad visa availableYes — dedicated short-stay remote-worker visaYes
Max stay (tourist)Up to 180 days for US tourists180d
Max stay (nomad visa)9 months; extendable once for 9 more270d

Money & tax

Tax residency thresholdMore than 183 days in the fiscal year or immediately preceding yearTax
Minimum incomeAt least US$36,000 annual foreign incomeIncome
Application feeB/.250 application plus B/.50 immigration-card chargeFee
Processing timeCase-dependent; allow several weeks through a Panamanian lawyerTime
Health insurance requiredYes — health insurance covering the authorised periodCover
Local tax rateTerritorial system; resident individual rates on taxable Panama-source income up to 25%Varies

Remote-work life

Average rent~US$1,200/month — indicative one-bedroomRent
Average coworking cost~US$200/month — indicativeDesk
Average internet speed~200 Mbps fixed — indicativeSpeed
Average monthly budget~US$2,400/month — indicativeBudget
Safety score62 / 100 — indicative; district-sensitiveSafety
English proficiencyModerate to high in international business areasEnglish
Internet reliabilityExcellent in central business districtsWeb
Time zone differenceVaries by US time zone — compare with your home cityTZ

* Tax residence is rarely determined by days alone. Homes, ties, income source and treaty rules may change the result.

Market figures are indicative planning estimates for 2026, not quotes or guarantees.

STAY PLANNER

How long are you thinking?

Move the slider to compare your intended stay against the headline visitor and remote-work route limits.

60days in Panama City
1 week135 days270 days
Visitor limit120 days left
Remote-work route210 days left

Calendar estimate only — entry permission and tax analysis are separate questions.

IN THIS GUIDE01 · Visa position02 · Tax watch-outs03 · Cost of living04 · Related cities05 · Sources
01 · VISA POSITION

Short-Stay Visa as a Remote Worker

Executive Decree 198 created a non-resident short-stay visa specifically for foreign remote work. It runs for nine months and can be extended once; the holder may not accept local work or offer services in Panama.

Key checks
  • Work for a foreign business or foreign clients
  • Perform duties remotely using telecommunications
  • Show at least US$36,000 annual foreign income
  • Do not accept Panamanian employment or local clients
  • Maintain health insurance
  • Apply through a licensed Panamanian lawyer
  • Continue US tax filing
02 · TAX WATCH-OUTS

Visa permission and tax residence are separate.

Panama taxes mainly on a territorial basis, but classifying remote services and source is fact-sensitive. Tax residence can arise after more than 183 days. US citizens generally continue filing on worldwide income; the foreign earned income exclusion or foreign tax credit may help only when their separate conditions are met and the required US return is filed.

03 · COST OF LIVING

Plan on ~us$2,400/month — indicative.

Panama City's listed rent, coworking, connectivity and US$2,400 monthly budget figures are indicative 2026 planning estimates and vary materially by neighbourhood and building amenities.

SOURCE LED

Check the source material

Official rules beat summaries. Open these references before applying or travelling.

Panama Migration ServiceOfficial immigration-permit directory↗Panama Official GazetteExecutive Decree 198 remote-worker framework↗US Department of StateOfficial US tourist entry limit of 180 days↗US Internal Revenue ServiceOfficial worldwide-income filing and foreign earned income guidance↗
Important

This is general information, not immigration, legal or tax advice. Rules and personal outcomes vary. Confirm your position with the relevant authorities and a qualified adviser before working abroad.