Panama
Working Remotely on a Tourist Stay
Last verified August 15, 2026
Written for U.S. passport holders
The Actual Legal Path: Remote Worker Visa
- Panama created a dedicated Short-Stay Remote Worker Visa via Executive Decree No. 198 of May 2021. It's for employees of a foreign (transnational) company or self-employed people working remotely, whose income is generated outside Panama.
- It requires proof of at least $36,000/year (about $3,000/month) in foreign-source income, health insurance valid in Panama for your full stay, and a $250 application fee paid to the National Migration Service.
- The visa is granted for 9 months and can be extended once for another 9 months, for a maximum stay of 18 months under this specific category.
Working on Ordinary Tourist Status
- The 180-day visa-free tourist entry (see the Visa & Immigration page for Panama) doesn't authorize employment of any kind. Quietly working remotely for a U.S. employer while on tourist status isn't specifically sanctioned the way it would be under the Remote Worker Visa.
Territorial Tax System
- Panama uses a territorial tax system: only Panama-sourced income is taxed, regardless of your residency status. Foreign-sourced income, including income from a U.S. employer or U.S.-based clients, generally isn't taxed by Panama at all, even once you become a Panamanian tax resident.
- You become a Panamanian tax resident if you're present in the country for more than 183 days, consecutive or not, in the same fiscal year or the immediately preceding one, though given the territorial system, hitting that threshold mainly affects things like eligibility for a Tax Residency Certificate rather than exposing your foreign income to Panamanian tax.
The Gotcha
Panama's territorial tax system means the usual 'don't become a tax resident by accident' anxiety that applies in most countries on this site is much lower-stakes here: even if you do cross 183 days and become a Panamanian tax resident, your foreign-sourced remote income generally still isn't taxed locally. The bigger practical issue is the Remote Worker Visa's 18-month hard cap (9 months plus one 9-month extension); unlike some countries' renewable-forever nomad visas, there's a real ceiling on how long this specific legal path lasts.
Sources
This page was drafted from the primary sources below. Rules change, so check the linked page directly before relying on any of this.
- Requisitos para Solicitar Visa de Corta Estancia como Trabajador Remoto (Servicio Nacional de Migración, Panamá)
- Certificado de Residencia Fiscal (Art. 762-N, Código Fiscal) (Dirección General de Ingresos (DGI), Ministerio de Economía y Finanzas, Panamá)