Work & Business

No. Panama's territorial tax system exempts all income earned from outside Panama. If your employer is US-based and your work serves non-Panamanian clients, your entire income is tax-free in Panama. US citizens still owe US federal taxes, but FEIE can exempt up to $126,500 (2024 limit) of foreign-earned income.

No. Working for a Panamanian company requires a formal work permit and is subject to Panama's 10% foreign worker quota system. The Digital Nomad Visa specifically permits work for foreign (non-Panamanian) employers only. Violating this can jeopardize your visa status.

Panama's Short Stay Visa for Remote Workers requires income of at least $3,000/month (or $5,000 for families) from a foreign employer or clients, plus valid health insurance covering Panama. Apply through Panama's National Migration Service (SNM). Grants a 9-month stay renewable once. All foreign-sourced income is completely exempt from Panamanian income tax.

Working locally for a Panamanian employer requires a Permiso de Trabajo (work permit), which the employer applies for on your behalf. Panama law limits foreign workers to 10% of a company's workforce (15% in technical roles). Professional licenses (medicine, law, engineering) require local accreditation. Most expats work remotely for foreign clients or operate their own businesses to avoid these restrictions.

Panama City hosts Latin American HQs of Maersk, Caterpillar, P&G, and Dell at Ciudad del Saber. Finance and banking (HSBC, Citibank, Balboa Bank) regularly hire English-speaking professionals. Salary range: $2,000-$5,000/month for professional roles; $5,000-$15,000+ for executives. English teaching earns $1,000-$1,800/month. Many expats register as freelancers to work with global clients at international rates.