Digital Nomad Visa vs. Friendly Nations Visa 2025 for Italians in Panama

La Digital Nomad Visa in Panama was created to attract independent professionals or foreign employees who work for companies outside the country, but wish to reside legally in Panamanian territory. With this measure, Panama joins the growing global trend of International teleworking, offering a modern alternative for those who choose to move without leaving their jobs or remote clients.

In 2025, this visa remains one of the most accessible for those seeking Do you temporarily reside in Panama as digital workers. It's ideal for Italians who already work online and want to explore a new life in Central America with a tropical climate, economic stability and good digital connectivity.

Who can apply for the Digital Nomad Visa?

This visa is aimed at individuals who meet the following main criteria:

• Be a foreigner (not Panamanian) and work remotely for a company outside of Panama or have clients outside the country.
• Demonstrate minimum monthly income of at least $3,000 (or $4,000 if applicable to the household).
• Not offering professional services to local clients in Panama.

It also applies to freelancers, consultants and digital experts who provide services from your computer — whether in design, programming, writing, digital marketing, coaching, among others.

What are the requirements for 2025?

By 2025, the Panama 2025 digital nomad visa requirements they continue to focus on showing that you can support yourself financially from foreign sources. Some key documents include:

- Passport valid for at least 6 months
- Work letter or contract sheet with companies/clients outside Panama
- Bank voucher showing the minimum income requested
- Proof of international health insurance
- Payment of the corresponding migration fees

The visa has an initial duration of 9 months, with the option to renew for another 9 months, totaling 18 months as Temporary Residence. Although it does not give direct access to permanent residence, it has become a flexible alternative for those who try to live in the country before making a long-term decision.

Why an attractive option for Italians?

For many Italian workers and freelancers, it represents an opportunity to experience life in Latin America without having to give up their projects or jobs in Europe. In addition, Panama shares similar time zones with Italy, has a good quality of life, excellent air connectivity and lower living costs than many European countries.

In short, this option is ideal if you're looking for a Legal way to work remotely from Panama, with low initial commitment, easy access to local financial services and no need to set up a company or seek a local sponsor.

La Friendly Nations Visa It is one of the most popular ways to obtain legal residence in Panama, and has been available for more than a decade. Although it underwent significant changes in recent years, it is still an excellent option for Italians who want to settle in the country with a more permanent intention than that of Digital Nomad.

This visa was originally designed to strengthen ties with citizens of allied countries, including Italy, allowing a more direct path of legal migration to work, invest or reside in Panama.

What does it mean for Italian citizens in 2025?

Italy is still included in the group of countries eligible for this program, so the Can Italian citizens apply for the Friendly Nations Visa in 2025 under specific conditions. Unlike the Digital Nomad Visa, this option can lead to permanent residence, which is attractive for those who plan to stay for the long term.

To access this visa, the applicant must demonstrate that they have a Professional, Economic or Employment Relationship with Panama. This can be achieved by:

• An employment offer from a Panamanian company
• The Constitution of a Panamanian Legal Corporation
• Acquisition of real estate in your personal name or that of your own company

In all cases, it is required to demonstrate Sufficient Economic Resources, usually through a local bank account with at least USD $5,000.

Duration and Key Benefits

In its updated version, the visa is first granted by a Two-Year Term as Temporary Residence. Then, the applicant can apply for permanent residence in Panama.

Key benefits include:

- Possibility to apply to the permanent residence after 2 years
- Access to health services, migratory stability and the Panamanian financial system
- Easier for family support (couple, children)

Although it involves a greater investment or commitment than a visa for remote workers, it is still one of the Stronger Visa Options for Italians in Panama.

Is it recommended for Italian freelancers or freelancers?

It depends on your goals and the type of work you do. If you have the possibility to set up a company or create local links in Panama, it can be highly advantageous. In addition, by obtaining permanent residence, you can more easily take advantage of the benefits of Tax Residency in Panama, including greater tax benefits compared to European schemes.

In short, if you are Italian and are considering a Stable Living Project in Panama, open to economic and legal integration, this option may be to temporary visas.

One of the first questions that arise when comparing options of Panamanian residency in 2025 en: what are the specific requirements for each visa and how accessible are they for an Italian citizen? So much the Panama digital nomad visa Like the Visa friendly nations Panama are aimed at foreigners, but are designed for different profiles.

Digital Nomad Visa: Designed for remote workers

This is an ideal alternative for freelancers, programmers, designers, consultants or employees working remotely for foreign companies. The process is simpler than a traditional permanent residence, but requires specific requirements:

• Active foreign employment contract or proof of activity as a digital freelancer.
• Verifiable monthly income greater than $3,000.
• Current international health insurance.
• Valid passport and certification of criminal records from the last 5 years.

In addition, it is not required to have clients in Panama or to establish a local company, which makes it an attractive option for Panama 2025 residence permit for those who want to avoid tax or corporate legal complications.

Friendly Nations Visa: More oriented to economic roots

Instead, this visa historically offered a faster path to obtaining legal permanent residence in Panama, but in recent years it has been modified. It is now more demanding, although it is still viable for Italian citizens, since Italy is on the list of eligible countries.

The updated requirements include:

• Demonstrate economic or professional ties with Panama: for example, setting up a company, offering local employment or investments.
• Panamanian bank account with funds deposited (a minimum is usually required).
• Approved and verified certificate of good conduct.
• Italian passport and recent photos.

In this case, the applicant is expected to generate a more “physical” connection with Panama, which may involve more corporate or banking documentation. However, it provides a direct path to permanent residence after an initial period of two years.

Which visa is best for your profile?

For a Italian digital nomad with international clients and with no immediate intention of opening a local business, the Digital Nomad Visa offers less friction and specific procedures adapted to International teleworking. But if your intention is to invest or develop a longer-term project in Panama, the Friendly Nations Visa can offer migratory stability and a more durable legal status.

One of the big reasons why digital professionals explore legal residency options for Italian digital nomads is Panama's attractive tax regime. But how does this affect each type of visa? Here we analyze how taxes work for each category and what are the most relevant tax benefits in 2025.

Digital Nomad Visa: You don't pay taxes if you don't generate income in Panama

Panama operates under a system of land rent, which means that taxes are only paid on income generated within the country. This feature makes the Panama digital nomad visa is especially attractive to those who work for employers or clients abroad.

If your income comes from Italy, Europe, or other countries outside of Panama, and you don't bill locally, you wouldn't be required to declare or pay taxes on that income in Panama. This is a direct advantage over the Italian tax system, where global revenues are subject to high taxation.

In addition, formal tax residency is not required depending on the length of stay, but many nomads choose to consolidate their Panama tax residency to simplify their global situation.

Friendly Nations Visa: Opportunity to Create Efficient Financial Structure

With this visa, the tax situation can be a little more complex, but also more flexible in the long term if you have a growing business. Many people use this route to open a company in Panama, allowing:

• Create an offshore company to operate internationally from a competitive tax environment.
• Take advantage of treaties and tax incentives if you develop products or services from Panama for abroad.
• Be considered a tax resident if you spend more than 183 days and establish a favorable tax regime.

However, when invoicing from a Panamanian company or working with local clients, a tax obligation does arise. This requires adequate financial planning and, at times, advice to comply with Panamanian laws without losing fiscal efficiency.

Which one is best for an Italian remote worker?

If your income is 100% digital, with no local economic activity, the Digital Nomad Visa offers immediate tax advantages: zero taxes in Panama and no need to establish a company. On the contrary, if your business model is growing or you want to formalize a startup or investment in the region, the Visa friendly nations can be a good first step in establishing a patrimonial structure solid.

In short, the best option depends on whether you want to keep your operation light as a remote freelancer or move towards a more structured base in Latin America.

And finally, before deciding, it's important to understand what happens after the first year or the first permit. This brings us to the next key point: renewal and length of stay.

One of the most common questions among Italian remote workers What do you consider moving to Panama is: which visa offers the most long-term stability? The answer depends on your personal and professional goals and your desire to establish fiscal or personal roots in the country. Next, we analyze how it works Renewal of the Digital Nomad Visa compared to the Friendly Nations Visa, as well as the conditions for staying legally for the long term.

Digital Nomad Visa: Temporary Permit, Limited Renewal

La Panama digital nomad visa Is designed as an alternative Temporary per International Teleworking Professionals. Its structure is not designed for permanent residence from the start:

• Initial validity: 9 months.
• Renewable once for the same period (9 additional months).
• Maximum total stay: 18 months.

After that time, if you want to continue living in Panama, you should consider Other Migratory Routes such as the Friendly Nations Visa, an investment visa, or even naturalization (if applicable in later cases).

In a nutshell, it's ideal for those who want to experience living in the country without making a long-term commitment or are still deciding whether to settle down on a fixed basis.

Friendly Nations Visa: Direct Path to Permanent Residency

On the other hand, the Panama Friendly Nations Visa offers a clear advantage in terms of permanence:

• First stage: Temporary residence for 2 years.
• Later: Possibility to apply for permanent residence.

This makes it a solid option for those looking for a Tax Residency in Panama in the medium and long term. In addition, if you are committed to the country and meet the requirements, you could even choose Panamanian nationality after several years of continuous legal residence.

Easy Renewal and Migration Procedures

With regard to procedures, the Renewal of the Friendly Nations Visa may be less restrictive if you already comply with a valid employment contract or economic basis (such as an active Panamanian company). This flexibility is especially attractive if you are a Italian freelancer operating under a Panamanian legal entity or if you decide to found a startup in the country.

On the other hand, the Digital Nomad Visa, since it has a short life cycle and is not renewable indefinitely, implies that you must re-apply from scratch for another type of visa after its expiration. This means new costs, updated documentation, and changes in your immigration status.

Which one is more convenient if you plan to stay in Panama?

If your plan is to set yourself up as Digital Nomad in Latin America Just for a sabbatical period or taking advantage of a season of remote work in the tropics, the Digital Nomad Visa is an excellent simple and lightweight entry. But if your goal is to make Panama your main residence, to tax locally or to develop a sustained venture, the Friendly Nations Visa allows you to build a More durable migratory and legal structure.

In short, for those who anticipate a Digital Migration from Italy with a vision of roots, business establishment or long-term life, the Friendly Nations Visa is clearly the most flexible and comprehensive in terms of duration and renewal.