Panama’s Nomad Visa: Small Requirements, Large Payoffs!

Summary

In this video, the Tax Terminator explores the vibrant neighborhood of Casco Viejo in Panama City, highlighting its historical charm, Spanish architecture, and thriving digital nomad community. He discusses the benefits of Panama's digital nomad visa, detailing its requirements, including private health insurance and proof of remote income. The video also touches on the affordability and tax advantages of living in Panama, particularly for remote workers. Whether for business, arts, or leisure, Casco Viejo offers a unique blend of history and modern living, making it an attractive destination for global nomads.

Takeaways

• 😀 Casco Viejo is a historic neighborhood in Panama City, offering a blend of Spanish architecture, vibrant culture, and historical significance.
• 😀 The neighborhood is popular with digital nomads, providing a unique mix of affordable living and a thriving remote work scene.
• 😀 Panama offers a Digital Nomad Visa that requires applicants to have private health insurance and a remote income of at least $36,000 annually.
• 😀 The Digital Nomad Visa in Panama is valid for 9 months and can be renewed once for an additional 9 months, providing a total of 18 months.
• 😀 After 18 months on the Digital Nomad Visa, residents may switch to other residence permits, such as real estate investment or starting a business.
• 😀 Panama's tax system is highly favorable for digital nomads, with foreign-source income remaining untaxed under the country's territorial tax system.
• 😀 Casco Viejo is an appealing location for those seeking a lively atmosphere, with many parties and a social scene that attracts digital nomads from around the world.
• 😀 The history of Casco Viejo dates back to the rebuilding of Panama City after the British pirate Henry Morgan destroyed the original settlement in the 1600s.
• 😀 Panama provides flexibility in switching residence permits, making it easy for digital nomads to extend their stay or transition to a different type of visa.
• 😀 Whether you're into business, law, or the arts, Panama offers a variety of experiences, from business-focused environments to bohemian, artsy vibes.

Q & A

What is Casco Viejo, and why is it significant in Panama City?

Casco Viejo is the historical town of Panama City, originally the second settlement built by the Spanish after the original city was destroyed by the British pirate Henry Morgan. It is significant for its rich history, Spanish architecture, and cultural importance, making it a prime destination for tourists and digital nomads alike.

Why is Casco Viejo a popular spot for digital nomads?

Casco Viejo is attractive to digital nomads because it offers a blend of historical charm, modern amenities, and a lively community of remote workers. The area also provides a lower cost of living compared to many other cities, which makes it a great place for people working remotely while enjoying a vibrant social scene.

What is the Digital Nomad Visa in Panama, and how does it work?

The Digital Nomad Visa in Panama allows remote workers to live in Panama for up to 18 months. To qualify, applicants must prove they have a remote source of income (either from employment or self-employment) and provide evidence of private health insurance. The visa lasts for 9 months, with the option to renew for another 9 months.

What is the income requirement for the Digital Nomad Visa in Panama?

To qualify for the Digital Nomad Visa in Panama, applicants must have an income of at least $36,000 per year. This income must come from foreign sources, such as working for a company based outside Panama or being self-employed with international clients.

How long is the Digital Nomad Visa valid, and can it be renewed?

The Digital Nomad Visa in Panama is valid for 9 months, with the possibility of renewing it for an additional 9 months. After the 18-month period, applicants may need to transition to another type of residence permit or leave the country.

Can someone apply for a new Digital Nomad Visa after their initial 18 months?

Yes, there is no law prohibiting someone from leaving Panama after their initial 18-month Digital Nomad Visa period and then applying for a new visa, potentially after a few months or even a few years.

What are the benefits of Panama's tax system for digital nomads?

Panama's tax system is advantageous for digital nomads because of its territorial tax system, which means that foreign-source income is not taxed in Panama. Even if someone becomes a tax resident in Panama, their foreign income will remain untaxed, providing significant financial benefits.

What other types of residence permits can one transition to after the Digital Nomad Visa?

After the Digital Nomad Visa period ends, individuals can transition to other types of residence permits in Panama, such as those based on real estate investment, starting a business, or opening a bank account with a term deposit. The country offers flexibility in transitioning from one type of permit to another.

Why does Casco Viejo attract both business-oriented individuals and more artsy, bohemian types?

Casco Viejo appeals to both business-oriented individuals and artsy types because of its unique atmosphere. Business professionals can enjoy the tax-friendly environment and investment opportunities, while those who appreciate European-style living, theater, cinema, and arts find the area’s vibe ideal for a more relaxed, cultural lifestyle.

How does the cost of living in Panama compare to North America?

The cost of living in Panama is much lower than in many North American cities. This affordability makes Panama an attractive destination for digital nomads and investors, offering a higher standard of living for a fraction of the cost found in places like the United States or Canada.