Strata Six Guide to Panama
Play and Productivity in Panama City
A cosmopolitan city that combines the rural with the urban, Panama City has everything you could want from a productive city escape.
Conveniently located at the Panama Canal entrance, the capital city is a thriving commerce hub that invites freelancers and entrepreneurs to mingle over a coffee while checking out the sites. The tropical climate adds an air of the exotic to the city, so you can bathe in year-round sunshine as you go about your business.
The city has a prominent skyline that is best admired from the nearby Ancon hill, after a leisurely hike. While the city’s economic activities largely revolve around shipping and trade, there are also lively banking and tourism scenes, which opens up a lot of job opportunities. Panama City is so well off, in fact, that it makes up around 55% of the entire country’s GDP.
The main reason many entrepreneurs and freelancers flock to Panama City – aside from the favorable tax situation – is the high level of walkability in the city and abundance of places to work from. Panama City embraces digital nomads with open arms, creating a warm atmosphere for anyone who sets foot in the urban metropolis.
How to Use This Guide
If you’re reading this guide, the chances are you’re tired of trawling through endless Panama City search results and drawing up next to no useful nuggets of information.
Trust us, we understand.
It can be difficult to know where to look when planning out your next trip, and even more so if you plan on being productive in your destination. Not all cities and countries welcome digital nomads and global citizens, and even if they do, it’s tough to find the right work setup in many accommodation options.
We’re here to relieve you of the heavy burden of searching so you can focus on what really matters to you. Panama City is an incredible destination, and we know exactly where to stay if you want to maintain your momentum with work.
At StrataSix, we know that the tools you need for success are hard to come by while abroad. That’s why we’ve scoured the globe and sourced the very best locations to build our residences. We looked for cities that align with your goals as a digital nomad or remote worker, so you can pour your energy into work and find new connections.
Does that sound interesting?
Great, here are some of the standards we uphold at StrataSix…
Only the Best Residences Made for Remote Work.
Here at StrataSix, we have a policy: only the best will do.
We’ve all stayed in hotels or in apartments that just don’t cater to the working professional. That’s fine if you’re on vacation, but if you can’t afford to take days off and you’re desperate to get some work done, then it can be a real source of frustration. You don’t want to have to rely on loud coffee shops with unreliable WiFi to make a living. You also don’t want to have to make do with an awkward kitchen work setup in your apartment.
The good news is: it doesn’t have to be this way.
StrataSix believes that working while abroad should feel like you’re at home. We handpick our residences and destinations, putting your needs, as a digital nomad, remote worker, or global citizen, first.
We don’t compromise, and neither should you.
StrataSix Standards for Traveling in Panama City
When you join StrataSix in Panama City, you can expect the very best remote-work-ready residences. Wherever you end up staying in the city, you can expect the following in our residences:
- Residences: comfortable accommodation fitted with smart technology and security systems
- Community: networking opportunities and coworking spaces
- Work: access to ergonomic workstations and fast, reliable WiFi
- Convenience and Safety: contactless check-in, regular cleaning, and security features
- Health: enjoy healthy prepared meals, comfortable bedding, and access to fitness centers
Why do we uphold such high standards?
Because we know what’s necessary for a productive life. We know how even the smallest of distractions can harm a day’s work.
When you stay at one of our residences, you won’t have to worry about setting up your workspace just how you like it. We’ve taken care of everything for you. You’ll have everything you need to work comfortably, and more.
Now that you’re up to speed with our standards here at StrataSix, let’s take a closer look at what Panama City has to offer the remote worker…
Who Panama City is Good For
Panama City is a StrataSix selected location for productive remote living for:
- Entrepreneurs
- Solopreneurs
- Remote workers
- Freelancers
- Investors
The capital of Panama is a hotspot for global citizens as it’s full of coworking spaces, cool cafes, and lively nightlife for winding down after a busy work week. The tropical climate can make you feel like you’re living the true nomad dream, and the tax situation doesn’t hurt either.
There’s a lively expat community in the area, too, so you shouldn’t find it hard to get stuck into the laidback Panama lifestyle.
Panama City’s Remote Work Opportunities
Are you interested in expanding your network and making new connections during your stay in Panama City?
If so, you’ve come to the right place!
Panama City is known to be very hospitable to foreigners, and there’s a growing community of remote workers, digital nomads and global citizens living in the urban metropolis.
One of the best ways to reach out and find new people in Panama City is to set up shop in one of the many coworking shared office spaces in the city. Between the coffee shops and coworking spots, you shouldn’t have any trouble meeting locals and expats alike. You’re also well-connected to many other top destinations in the Americas from Panama City, so weekends away and long business trips are definitely on the cards.
If you’re especially interested in creating high-quality network opportunities with entrepreneurs and investors, then we’ve got you covered on that front.
The StrataSix Community grants you access to an established network the moment you arrive in Panama City, or wherever else you find yourself on your travels. With this network you can mingle with motivated entrepreneurs and shrewd investors, taking your business ventures to new heights or securing the funding you need to expand your operations.
Panama Visas
If you’re just visiting Panama, you can do so without a visa for up to 180 days if you’re from one of the following regions or countries:
- European Union
- United Kingdom
- United States
For more information, you take a look at a list of the 118 countries that don’t require a visa to visit Panama.
If you’re not from one of the countries above, you’ll need to apply for a visa.
There is an exception to this rule, though, and that is if you’re from a country that would normally need a visa to visit Panama but you have a multiple-entry visa valid for a minimum of six months before time of entry.
You also won’t need a visa to enter Panama if you can prove with documents that you’re a permanent resident of one of the following places:
- Australia
- Canada
- The European Union
- Japan
- Singapore
- South Korea
- United Kingdom
- United States
For long term stays, there are nine different visa options you can pursue to secure residency in Panama.
Staying in Panama Long Term
Business Investor Visa
If you have $160,000 spare, and you’re desperate for permanent residency in Panama, then you can qualify for the business investor visa by making a capital stock investment of that amount in a Panamanian corporation.
Friendly Nations Visa
The government first introduced the Friendly Nations Visa in 2012. If your country has a positive diplomatic or economic relationship with Panama, then you can visit without a visa provided you can show professional or economic ties to Panama. If you can prove ties, then you’ll be made eligible for permanent residency and a work permit, and after three to five years, you can even apply for citizenship in Panama.
Pensioner Visa
Despite what it might sound like, the pensioner visa isn’t reserved for those who’ve retired. If you are over the age of 18, and you have a lifetime pension or annuity which pays out at least $1,000 a month, then you can qualify for this visa. There are also various discounts associated with this type of visa.
Professional Employment Visa
The professional employment visa requires you to work for a Panama-based company, and pay social security taxes. After two years as a temporary resident, you’ll be able to become a permanent resident.
Qualified Investor Program
If you want to expedite the permanent resident process, and you have the funds, there are three ways you can live in Panama under the Qualified Investor Program.
- Invest a sum of $300,000 or more in a property in Panama without a mortgage.
- Invest in securities in the Panama Stock Market through a licensed brokerage firm for a term of at least five years.
- Invest $750,000 as a time deposit in a Panamanian bank for a term of five years.
Reforestation Investor Visa
If you want to help the country’s reforestation efforts, and secure permanent residency, then the reforestation investor visa is tailor made for you. There are three ways to gain residency while helping replant trees in the country. Depending on how much you invest, you’ll qualify for temporary or permanent residency:
- Invest at least $80,000 in a government-certified reforestation project for five years of temporary residency.
- Invest at least $100,000 in a government-certified reforestation project for two years of temporary residency, which can then lead to an application for permanent residency.
- Invest at least $350,000 in a government-certified reforestation project for permanent residency within 30 days.
Self Economic Solvency Visa
If you have the resources and looking to call Panama your new home, then there’s the self economic solvency visa to consider which you can qualify for in three ways:
- Invest at least $300,000 in Panama real estate equity.
- Invest at least $300,000 in a Panama bank CD for a three year term.
- Split a $300,000 investment between real estate equity and a Panama bank CD.
Marriage or Parentage
If you’re married to a Panama citizen, then you can apply for permanent residency. Likewise, if you’re a parent of a child who was born in Panama and older than five, then you can apply for permanent residency.
Panama Tax
It’s common knowledge that Panama isn’t just a tax haven that offers favorable taxes for both individuals and businesses.
No, Panama is in fact a pure tax haven, which means there are no income, corporate, capital gains, or estate taxes to think about for offshore business.
Taxes are an inevitability wherever you work, so we know how stressful they can be for global citizens.
Having said that, Panama’s status as a pure tax haven means that taxes are actually one of the main reasons many people want to go and work there.
There are also very strict laws in place for banks based in Panama, that means funds are well hidden and the identity of the bankholders well protected. Of course, this has led to some nefarious activities over the years such as money-laundering and tax evasion, which is a stigma often associated with Panama.
Who is Subject to Tax in Panama?
The only people subject to tax in Panama are those who earn money from sources based in the country. That means exactly what you think it does: if your business or work generates all their income outside of Panama, then you can work in Panama without paying taxes to their government.
Of course, if you generate income in Panama, then you’ll have to pay taxes even if you’re a non-resident.
Is Foreign Income Taxed in Panama?
No, as we’ve mentioned, one of the biggest financial perks of living in Panama is that you’re exempt from paying taxes on any foreign income you earn.
US Taxes When Living In Panama
Unfortunately, while you may not have to pay taxes to Panama during your stay, you’ll still have to file your US taxes every year.
You’ll have to include worldwide income for your US tax return, so that means anything you make inside and outside of Panama is included.
You can avoid being taxed twice on the same income in various ways, though.
For example, the Bona Fide Residence test allows you to exclude $108,700 of your 2021 foreign earnings, and the Foreign Housing Exclusion also lets you enjoy some deductions to your tax bill.
General Tax Thresholds For Panama Residents
In Panama, there are just two tax thresholds for residents.
- Fiscal residents making less than $11,000 are exempt from taxes
- Fiscal residents earning between $11,000-50,000 are subject to a tax rate of 15%
- Fiscal residents earning over $50,000 are subject to a tax rate of 25%
Money, Banking & Cryptocurrency
Currency
The US Dollar (USD) and the Panamanian Balboa (PAB).
Bank Accounts
You can open a bank account in Panama even as a foreigner, but there is a lot of documentation required to start the process. As you can imagine, given how popular Panama banks are for non-residents, it won’t be easy to set up an account unless you have your paperwork and finances in order.
If you can provide the following, then you can open a bank account in Panama:
- Passport photo
- Copy of passport information page with a Panama immigration stamp
- A second ID such as a driving license
- One or more bank reference letters
- Proof of income
- A professional reference letter
- Proof of address
All of the documents must be recent, which means they need to be dated within the past three months. They must also be officially translated into Spanish, which is an expense to factor into the process.
It’s also entirely possible that you may be asked to supply more information, too, such as an immigration visa or income tax returns.
Debit Cards
Most, if not all, bank accounts in Panama will offer you a debit card when you first sign up.
Credit Cards
The same goes for credit cards: many Panama banks will supply you with a credit card upon request. However, some credit cards will require a sizable initial deposit.
Best Bank For Expats
As an expat living in Panama, you’ll want to make sure you find the right bank. There are plenty of options in the country, but not all of them cater to a global or nomad lifestyle. Many expats would recommend Banco General, as it has relatively low wire fees and an abundance of bank branches.
Another frequently mentioned option is Banistmo which has an easy-to-use online system, so even if you can’t make it to a branch you can manage your finances easily enough.
Making Purchases
When you’re in Panama, you’ll find that the most popular method of payment is credit and debit cards, specifically those that are MasterCard or VISA.
Credit cards are widely accepted, and American Express is another commonly used type of card. However, be aware, smaller businesses may only accept one type of card, so you might want to have several types of cards on hand for transactions.
Cash Withdrawals
In Panama, you can withdraw up to $500 from an ATM per day. There is typically a $5.25 fee for cash withdrawals.
Fortunately, ATMs in Panama dispense cash as USD, since it’s one of the official currencies of the country so you don’t have to worry about currency conversion fees.
The Best Way To Pay In Panama
Cash is Best
While you can pay using debit and credit cards in Panama, like many countries in the Americas, it’s best to carry cash around with you.
Why?
Well, because though you may be able to pay for most things with a card in the large cities and big businesses, many smaller businesses and towns still only accept cash.
As such, most people pay for almost everything in cash. There are few restaurants that take cards outside the city, and still many taxis won’t accept card payments either. ‘Fondas’ which are small Panamanian restaurants encompassing everything from food stands to cafeterias notoriously only accept cash, as do corner stores and street vendors.
While this may be changing in recent years due to the global trend towards contactless payment – in no small part accelerated by the COVID-19 pandemic – it’s still advisable to use cash when possible in Panama.
Card Payments
In the urban areas of the country, such as the capital Panama City, you’ll find that card payments are widely accepted. MasterCard, VISA, and American Express are the most commonly used types of cards.
Cryptocurrency
The use of cryptocurrency in Panama is legal, and a local congressman recently presented a bill to regulate the virtual currency in the country.
What Gabriel Silva, the congressman who proposed the bill, is suggesting, is that the Panamanian government oversee the use of cryptocurrency in both civil and commercial transactions. The bill aims to bring Panama up to speed with the digital economy, which includes blockchain and crypto assets.
Under this bill, should it go ahead, residents would be able to buy products and services, and even pay taxes, using cryptocurrency.
The idea is that there would be a contract between the interested parties, which would make it viable to use virtual currency at every level including in-store transactions. If this bill were to be introduced into legislation, then Panama would reaffirm its title as a favorable destination for managing finances.
Buying and Trading Cryptocurrency in Panama
Since cryptocurrency is becoming commonplace in Panama, and could potentially be accepted as a new official currency soon, it’s no surprise that buying and trading virtual currency is relatively straightforward.
You have plenty of options for buying and trading cryptocurrency in Panama, with Coinmama and PTYCoin both being very popular options. Coinmama is a trading platform that works in every country, but charges fees of between 4.9-5.9% per transaction. PTYcoin has a series of bitcoin brokers in Panama, charging a flat 1% fee.
Healthcare & Access To Medical Care
In Panama, there are both government-funded and private healthcare options.
There are several large public hospitals in the bigger cities in Panama, but just four large private hospitals. If you’re outside of Panama City, you’ll have a hard time finding a major hospital nearby.
Generally speaking, healthcare in Panama is considerably cheaper than it is in the United States and other developed countries.
In 2018, Panama’s healthcare system experienced a significant boon with an improvement of infrastructure and efficiency.
In Panama, everyone from citizens to expats can access free healthcare in emergency situations. Private health care plans are recommended for those visiting the country, though universal health care is available to residents.
There are many bilingual doctors in the Panamanian healthcare system, and many claim that the service continues to improve as more and more international remote workers start to call the country home.
Investing in Panama
Real Estate
Since property is relatively inexpensive in Panama, it’s much easier to enter the real estate market than it would be in the United States.
Plus, when you buy property in the country, you’ll enjoy the same rights as the locals.
There are several laws in place, in fact, that are designed to attract foreign investment so you know your money is welcome in Panama. It’s not all penthouse suites and luxurious apartments, either, as there are all kinds of property available in the country.
To buy property in Panama, here are some of the steps you’ll need to take:
- Consult with a local attorney to take care of the title search for the property, and so you can gather all of the necessary documents.
- Have your attorney draw up a contract for the purchase of the property with terms that both you and the seller agree to. At this point, you may have to pay a deposit to the seller.
- Once the title has been cleared up, you’ll go through a closing process which involves you and the seller signing one last contract.
- You’ll then make payment, and pay 2% in tax to the Panamanian government as a fee for the transfer of property title.
- The seller will typically pay the property transfer tax, and each party pays their own closing fees.
Stocks
The stock market in Panama is known locally as the ‘Bolsa de Valores de Panama’ and the exchange trades stocks, corporate debt, and government securities.
There are several online brokers and trading platforms you can use to buy and sell stocks in Panama, though not all are available to foreign customers.
- TradeStation
- Saxo Bank
- Interactive Brokers
These online brokers offer quality research tools, and broad product portfolios. However, there are fees to factor in such as stock fees, Forex fees, and bond fees. You may also be hit with non-trading fees for anything from account inactivity to depositing or withdrawing money.
Panama City
Overview
Panama City’s principal attraction is the entrance to the Panama Canal, which is one of the main sources of income for the city that produces most of the country’s GDP.
One of the main draws for entrepreneurs and remote workers is just how inexpensive it is to set up base in Panama City. Given that it has a booming economy and acts as a financial hub in Central America, it’s surprising how affordable it is to live in the Panamanian capital, and that’s not even considering its status as a pure tax haven!
There are hundreds of banks and global businesses with branches in Panama City, so you can handle all of your affairs without needing to hop on a plane or rely on doing everything online. When you do want to travel, though, you can get to a wide variety of exotic American destinations easily enough as the city is very well-connected.
Panama City is a StrataSix destination not just for its wonderful climate and affordable cost of living, but because of the fast WiFi and internet speeds. As someone who works remotely, we know you need reliable internet to be as productive as possible without interruption. That’s one of the reasons we picked Panama City as a destination for our residences.
You should have no trouble making new connections while you’re in the city, either, though if you do then the StrataSix community is a great resource for tapping into the local networking opportunities.
Getting to/from Panama City
There are non-stop flights to Panama City from most cities in North and South America, and it’s also possible to fly into the city from some destinations in Europe and the UK. You can of course arrive by boat, too, if you want to show up in style.
Best Panama City Neighborhoods
Casco Viejo
If you want to live in the heart of the city and have your finger on the pulse of this thriving metropolis, then the ‘Casco Viejo’ is your best bet. The historic district of Panama City has been granted the title of UNESCO World Heritage Site, which tells you everything you need to know about its charm. There are all kinds of vibrant cafes, restaurants, and craft markets here to keep you busy at all hours.
El Cangrejo
‘El Cangrejo’ is a curiously-named neighborhood in the city – it translates to ‘crab’ – that features very few skyscrapers which is great for those who prefer their views to remain intact. This is a family-friendly area that has some of the best restaurants in the city, and all the peace and quiet you need to get your work done on tight deadlines.
Punta Pacifica
If you like your neighborhoods to have views over the Pacific Ocean, then ‘Punta Pacifica’ should suit you well. This is where some of the prime real estate in the city resides, home to the rich and famous. There’s a large mall nearby and it’s one of the most sought-after areas to live – or own real estate – in the city.
Panama Accommodation
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Panama Temperature
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Transport
- Public Bus – In Panama City, there’s nowhere you can’t get to using the extensive public bus system. While the roads may not always be paved, you’re guaranteed a path to your destination when you hop on a bus in Panama City.
- Panama Canal Railway – The Panama Canal Railway is a railway line that not only transports goods, but passengers, too. If you want to get around the city or country quickly, then it’s a good option. The line is 76km and runs from the Atlantic Coast to the Pacific Coast.
- Panama Metro – The metro provides another fast way to get around the city. It currently has two operational lines, though there are plans to add more.
Safety
Very safe.
English Proficiency
Phones & Connectivity
- Best Local Sim Cards: +Móvil and Digistar.
- Best Option for U.S. Residents: +Móvil is widely considered to be the top mobile operator in the whole country, though Digistar isn’t far behind and is considered the fastest mobile network.
- Local Internet Speeds: 21.57mbps download/7.96mbps upload
Coworking
Health & Fitness
Popular Tourist Locations
Panama Viejo
Biomuseo
Metropolitan Natural Park
Ancon Hill
Miraflores
Calzada de Amador Islands
Stratasix + Panama
The low cost of living and vibrant community for global citizens make Panama city an excellent location to live your most productive life.
There are excellent investment opportunities and plenty of work connections to be made, given the entrepreneurial spirit of the financial hub. There’s affordable housing, tax incentives, and much more on offer in Panama City to quench your thirst for something new.
If your main goal in life is to carve out a convenient remote work lifestyle, then let us help you get started.
From work-ready residences to top-tier networking opportunities, StrataSix’s global network will ensure you brush shoulders with like-minded entrepreneurs as you travel.
So there’s only one thing left to decide – are you ready to embark on the adventure of a lifetime while crushing your work-related goals with StrataSix?
