Working, Opening a Business, or Becoming A Digital Nomad in Panama

Last Updated on August 16, 2025 by Retire in Panama

This topic comes up a lot from people thinking of Panama as a future destination for their lives. It comes from young people looking to move here and find a job, entrepreneurs looking to move and open a business, and even retirees looking to subsidize their income while living in Panama. The biggest group, though, are the digital nomads, people who earn money online; Panama’s favorable tax system and beautiful weather can be a perfect fit for them.

I moved here Over 11 years ago as a digital nomad. I have been working online with retail sales, affiliate marketing, drop shipping, and managing online advertising programs since 1999. By 2009 I had created a sizable online business. Since I could operate it from anywhere worldwide, I moved to Panama. And now, I am a co-owner of a company that helps many people move to Panama.

 

Finding A Job in Panama

Let’s first discuss finding a job in Panama. I have never had a “job” in Panama (working for someone else). Still, I have hired many Panamanians and foreigners through my different business activities. Finding a job is not easy, and I get people calling and emailing me with plans to move to Panama and find a job waitressing, delivery driver, or other regular jobs. You must remember that Panama is a Spanish-speaking country. Without fluent Spanish, a job like this would not be possible.

Then you have to deal with the government restrictions; the government only allows 1 out of 10 jobs in a company to be held by a foreigner. And remember, Panama’s minimum wage is about $3.50/hour. Panama is also dealing with COVID, as the rest of the world is, and we have higher unemployment here, so all jobs are scarce.

If you do not speak Spanish, you will have to be looking at one of the foreign companies doing business here, and remember, Panama has protected professions that Panamanians can only hold. (Information on job searching and protected professions can be found in the link below this section.) If you have some specialty or a degree in something, your possibilities improve, as Panama is looking for talent.

Before holding any job, you must apply for residency and a work permit. This will cost between 8 and 10 thousand dollars if going through the Friendly Nations Visa and will take about two years for permanent residency. You must have a job offer from an existing Panamanian company to start the process. You will be given temporary residency and a work permit to begin your employment.

Read more detail about Finding a job in Panama HERE.

 

Opening a Business in Panama

Panama is very business-friendly. The Friendly Nations Visa was designed just for that. Expats have been moving to Panama for over ten years, using the Friendly Nations Visa to create jobs by starting a small business. With the new friendly nations Visa, this is more complex now. I have seen many great expat businesses, from restaurants to hotels, manufacturing, vehicle repair, solar systems, etc., started by expats living in Panama.

In Panama, to start a business, you must have a corporation and usually a work permit. There are many other regulations you must follow and government departments you must register with, so make sure you have a good immigration lawyer and accountant to walk you through that process. Yes, Panama has a lot of red tape, but North America is the same.

If you do not speak Spanish and are planning to serve the Panamanian community with your business, ensure your first hire is a bi-lingual Panamanian manager for your company that you can communicate with. They can help your Spanish-speaking customers.

Check out the link below for some great examples of Expat-owned businesses in Panama.

For more information on opening a business in Panama, click HERE.

 

The Digital Nomad Life and the Gig Economy in Panama

I get asked a lot, what is a “digital nomad”? It is someone that earns their income from online sources, which allows them to work anywhere in the world where they have a computer and internet connection. Also, remote workers fall into this category. 

Examples of this are people who have online stores that use drop shipping services to fulfill products or are involved in the affiliated marketing business, where they earn commissions from the company that sells the product they are promoting. Content creation is another excellent example of a digital nomad. These people write articles, contact other companies, and get paid to do it. People who run online advertising and social media management are also becoming very popular as an income stream for a digital nomad. Online stock and crypto traders are also digital nomads. There are many more examples.

The pandemic also created many remote jobs; some companies allow employees to work from anywhere. In the last few years, many remote workers have moved to Panama.

Why is Panama an excellent place for digital nomads? Panama is one of twelve countries in the world that have what is called a territorial tax system. If you are a permanent resident of Panama, you only pay income tax on Panama-sourced income. So if sales to foreign customers generate your income and your work is for a foreign company, you pay no tax to Panama on this income. See the link below for a more detailed explanation of a territorial tax system.

The gig economy is also popular in Panama. This is doing work like dog sitting, house sitting, dog walking, Airbnb, and handyman. You do have to be careful here, as to work in Panama for locals, you must have a work visa and declare income and pay tax.

For more information about becoming a digital nomad and the gig economy in Panama, click HERE.

There is lots of information about working and starting a business in Panama. 

 

Rod Larrivee
Retire in Panama Tours
It’s more than a tour . . it’s an experience.