Best Way to Earn Income in Panama

“No Work Permit Needed”

Want to earn some extra income while living in Panama?

Do you need to bridge the gap between early retirement and when your pension kicks in?

Are you dreaming of living in Panama but don’t have enough cash tucked away to retire fully?

You’re not alone.

The good news is that many foreigners who move to Panama find ways to earn a living. And the increasing shift toward remote work is creating opportunities for geographic freedom. An online job may be the best solution!

Why NOT get a job in Panama?

Finding a job in Panama is not impossible. But you’ll have to clear some hurdles:

You need a work permit to get a local job or start a business catering to people within the country. But first, you must have a permanent visa to work in Panama. This entire process could take up to a year! And if you hold a Retirement Visa (Visa Pensionado), you don’t qualify for a work permit.

Companies in Panama must maintain a 90% Panamanian workforce, making it harder for foreigners to get jobs. However, some multinational companies have permission to hire more foreigners. To learn more about getting a job in Panama, read my article: Getting a Job in Panama.

Next, remember that Panama’s wages are generally lower than in the U.S. or Canada. The average annual salary is around USD$25,000, but the minimum wage is less than $3 an hour! While people get jobs with much higher salaries, including six-figure incomes, it isn’t the norm. And most jobs will expect Spanish fluency.

So, the most convenient way to earn a living is to get an online job or start an online business. You don’t need a work permit for either option unless your business sells to people in Panama. This is especially ideal if you want to retire in Panama on a Visa Pensionado. You also won’t need to pay income taxes in Panama if you have an online job or online business that sells products or services outside of Panama.

Benefits of working online in Panama

You can avoid the expense of getting a work permit and the time constraints. Let’s look at some other advantages:

Location independence

As a online worker, you can work from anywhere in Panama and move around freely. If you’re freelancing, you can also choose your hours. You can also work from anywhere in the world with an internet connection.

This flexibility allows you to work while enjoying everything Panama offers, whether you’re an adventure enthusiast, a nature lover, or want a relaxed lifestyle.

Here’s what I love about living in Panama.

Good infrastructure for digital workers

Panama offers great connectivity to remote work from different areas. You usually get Fiber Optic internet with a 100-600 Mbps download speed. I have 500 Mbps speed at my house in Boquete , a small town in a valley with just 25,000 people.

If you’re a fan of coworking spaces, there’s plenty to choose from, although most are in Panama City. Coworking spaces are opening up in other towns, too. Coworking is popular among digital nomads and remote workers who prefer not to work at home.

The country has an efficient and reliable banking and financial system. So, you can usually handle money matters smoothly.

Foreign income is tax-free

Disclaimer: I’m not an accountant. Always get professional tax advice because each person’s situation is unique.

Panama has a territorial taxing system, meaning you only pay taxes in Panama if you sell products or services to people in Panama. If you select an online job that does not have clients in Panama, you will owe no taxes in Panama.

If you’re a United States citizen living in Panama, you could take advantage of the Foreign Earned Income Exclusion, which is approximately $126,500 a year for an individual as of 2024. You will only pay taxes on earned income over $126,500 if you qualify. But you may still pay U.S. state taxes unless you’ve established residency in a state without state taxes.

Your earnings might be entirely tax-free if you’re from a country without paying taxes after establishing residency overseas. Make sure to check with your accountant.

Lower cost of living

The cost of living in Panama is cheaper than in the U.S., Canada, and many other countries. But it’s also not the cheapest place to live. See my article about the Realistic Cost of Living in Panama to understand how much you’ll typically need for day-to-day expenses. Some places in Panama are much more affordable than others.

If you earn U.S. or Canadian wages in Panama, you’ll have the advantage of earning more and spending less. So, you can save more and fast-track your journey to fully retiring in Panama.

How to get an online job to work in Panama?

First, ask yourself these questions:

• Do you prefer to work full-time, part-time, or as a freelancer?
• What are your ideal jobs based on your skills?
• What training and learning do you need? This is a given when starting any new job or career.

Consider the following options to get an online job:

Work remotely for your current employer

Don’t write off speaking to your employer about remote working from Panama. Many companies are open to letting their employees work from home or even another country.

The time zone in Panama makes it easier for you to work for companies in the U.S. or Canada during their regular business hours. By working for the same employer, you can enjoy your home country’s wages and skip the job search.

If your employer won’t let you remote work from Panama, here are some ways to look for online jobs:

Check job boards and freelance websites

See the Online job opportunities in the FREE REPORT, “Fund Your Freedom Overseas

A Google search will show you many platforms to look for jobs and freelance gigs. Some examples are: Indeed, Monster, Upwork, and Toptal. Certain platforms like We Work Remotely, and focus on remote opportunities.

Shortlist the platforms based on the jobs you’re after (E.g., finance, writing, data entry, etc.) and sign-up. Next, spend some time every day searching and applying for ideal jobs.

Keep in mind that some jobs and freelance gigs may offer low rates. But don’t get discouraged. Once you have more experience with remote work, you can earn more.

Get active on LinkedIn and social platforms

Many companies post their job vacancies on LinkedIn. You can also reach out to recruiters through the platform.

The first step is to create a complete profile. Remember to ask for recommendations from your former employers.

Creating regular content on LinkedIn is a great way to showcase your skills and attract the attention of potential employers and clients. Once you build a presence on the platform, you may also start receiving inquiries about your services.

Spend time connecting with your target employers and clients and expanding your network.

Check other social media platforms. For example, find Facebook groups relevant to your job or industry and join them. Some groups can provide valuable information.

Approach potential employers or clients

Reach out to them via email or through other platforms. This will put your resume and profile in front of them.

Sometimes, your ideal employers and clients may be within your existing network. So, keep your eyes open!

You’ll need to adjust to remote work while living in Panama, but that’s a small price to pay for living in paradise!

Get our Complete Panama Relocation Guide to learn all about relocating to Panama and make a smooth transition to your new life!

Jackie Lange

Jackie Lange is the founder of Panama Relocation Tours and lives in the highlands of Boquete Panama. She has helped thousands of people relocate to Panama.

Reader Interactions


  1. H Michael (Mike) Mogil says

    Jackie. My wife and I have been following your posts for many months…but this one may tip the scales.

    I consult with attorneys and insurance companies in the U.S. on weather-related cases. Thanks to COVID, nearly all of my work, report writing, etc. seems to be done via Zoom.

    Seems that I fit into this mode.

    My wife works with me (although in a support role). Presume we would both be eligible for some form of tax haven status.

    Many more questions, but we’ll withhold for now. We are coming to Panama at the end of the month, just to scope out things. I may be contacting you while we are within the country.

    Cheers…and thanks for what you are doing.

    Mike Mogil
    Naples, FL

    • Jackie Lange says

      Hi Mike, Your business would be ideal to run from Panama! If you live overseas full time, you and your wife (each) would qualify for the Foreign Earned Income Exclusion! That means you can earn $224,000 and not have to pay federal taxes. If you establish residency in a state with no income tax, (see out South Dakota live stream about how to do that in 1 day) you would have no state taxes either. And no taxes would be due in Panama. You really can LIVE BETTER for LESS in Panama — and keep most of the money you earn instead of paying taxes.

  2. Dianna Hollinger says

    Hello I’m interested on a job and Panama I’m leaving in Panama please send me a respond ty very much appreciated

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