Living in Panama as a digital freelancer
After almost 4 years in paradise, I allow myself to write an article about life as a digital freelancer in Panama. With all the advantages and disadvantages, without compromise.
How did it happen that I immigrated to Panama?
Well, leaving my homeland indefinitely has long been on my list of things I wanted to achieve in life. Having had a pretty successful career as a rock musician and a good digital education job, my son was finally 18, so I tackled the goal.
After researching the internet, I got stuck with Panama relatively quickly. While other countries were also interesting, Panama had the most attributes that are perfect for my intended lifestyle:
- Lots of nature, fruits and clean air
- Sea, mountains, volcanoes, caves, waterfalls, tropical rainforests
- Political stability, no army
- Tax-free foreign income
First, I traveled to Panama with my girlfriend for two weeks. We rented a car and drove almost all over the country. We saw a lot on this trip and had a lot of great experiences. In the following 2 months we sold everything in Ebay in Germany, except for 2 suitcases and the dog. With the money we have earned, we have set out and started building a new home in Panama from one day to the next. Meanwhile, we have separated, but that does not matter much for this article.
Do I have a residence permit?
Yes of course. That's the first thing I ever organized here. For me, it was completely clear to live here completely, and not to make any so-called "border hops". So to leave the country all the time and then to be here for another 6 months as a tourist. Since founding a company can also help with the permanent visa permit through the Friendly Nation visa, I chose this path. All together cost less than 2000, - €. But you have to deposit $ 5000 into an account in Panama before you reach the status. If you want to know more about this procedure, contact me and I'll tell you how to do it.
What is it like to work as a freelancer in Panama?
My intended goal was originally to work only 4-6 hours a day, and spend the rest of the day on beautiful things like hiking, swimming in the sea, riding a motorcycle. In principle, this works in the meantime, but I work more, because it's just more fun to work here. There are far fewer things to worry about daily than in Germany.
- There is no mailbox
- No annoying tax office
- Almost no stressed people
- and other essential things
That's why I can take much more care of my actual business and optimize it a lot better. I wake up every morning in beautiful surroundings and hear monkeys roar in the jungle. Then I mash my coffee, which is grown only a few miles away, and make a super fresh highland coffee on the terrace. I mean THAT is the lifestyle I always wanted.
Photo by me on https://instagram.com/typo3freelancer
Do I offer my services cheaper than in Germany?
Often 2 wrong assumptions come into the conversation about Panama.
- Panama is a cheap country
- Everything that has anything to do with Panama is criminal
From the first point, it already shows. Panama is not a so-called "cheap country" like Thailand or Vietnam. The prices for rents are relatively high, and food in the supermarket often costs up to twice as much as in Europe or the US. Many things are cheaper, but the consumption is higher, e.g. while driving. It's not like I live here because it's so cheap. It's the whole lifestyle that fascinates me and somehow makes me happier.
I therefore offer no services cheaper than before. I offer better services than before.
Photo by me on https://instagram.com/typo3freelancer
Here I can work on 300%, but it took time!
Since I found my way here in Panama, I can work about 3 times as productive as before in Germany. I have much less stress and pressure, and more time for my actual expert work. That's why I would never want to go back. I made many mistakes in the beginning. And the biggest mistakes were the ones that others warned me about before. Meanwhile, I have learned from it and found a kind of "flow". After many rented houses, apartments in various areas in Panama, I have found a place that best suits my needs.
Little obstacles in Panama
Everything has its light and dark sides. Of course Panama, too. Here are a few obstacles that I just did not have before in Germany, which really annoy sometimes. Especially because you often have to pay a higher price.
It's basically loud where people are
The laws and habits are different here than in Europe or Germany. Latinos make more noise and on the other hand can tolerate more noise. It just does not matter to them if a jackhammer thunders next door. The problem is often, and especially as a programmer, that nobody will understand you if you just want to work in peace. In order not to be too drastic, one should be able to adapt to this culture a bit.
Electricity, water or internet are down
It is completely normal for electricity, water or the internet to fail. This can happen anytime of the day and every day. On holidays and during heavy storms all the more. Mostly the interruptions last only a few minutes. But it happens that you do not have internet or electricity for days. My solutions: backup batteries, candles, water filters, Internet via mobile hotspot.
Products are short lived
Many products available in Panama, especially electronics, are not of particularly high quality. Even branded goods with clear brand packaging sometimes does not even last 1-2 months. If you buy a cable at the "Chino" (Chinese shop), you can do it once a month, because there are hardly any products without loose contacts etc.
Internet providers are very "casual" with the safety of customers
Probably the largest Internet provider in Panama delivers its customers a modem for free home, on which the customer number is preset as a password. The password can not be reset or changed by inexperienced customers, so that in principle many vulnerabilities exist. If you rent a house or an apartment with integrated internet, you should only work with your own modem for stable security.
Photo by me on https://instagram.com/typo3freelancer
Back to the positive point of view ;-)
Despite these little "disadvantages" I can only say that Panama is a very attractive country. With very nice people whose culture you have to learn to understand. You can not do that right away, and that's normal, I think. Most things happen here via personal contact, unlike in Germany, where things are more "regulated".
What about the time difference?
Because I work with clients all over the world, I always have a time difference. That can also be advantageous. But in Europe, especially in Germany, there are customers who want to communicate in the morning. This is usually in Panama just after midnight. There are also cancellations for jobs, just because of the time difference, but usually customers find great when the freelancer is still fully motivated in the late evening.
Isn't it too hot in Panama?
Of course, Panama is warmer than Germany. It is also warmer than Spain, and above all, the humidity is very high. Whether it is "too hot" depends on each one. There are certainly Europeans or Americans who live in very hot areas with up to 35 degrees daily temperature and are satisfied with it. Personally, I find it more comfortable at about 1000-1200 meters altitude, where the temperatures are more likely to be 25-30 degrees. Panama has both mountain landscapes with temperatures of up to 10-12 degrees Celsius, as well as tropical beach paradise with a humidity of up to 95%. The highest mountain in Panama, and one of the largest classified as active volcanoes in the world, is the volcano Barú with 3474 meters.
Photo by me on https://instagram.com/boquete.de
Do you have any further questions about living in Panama as a Freelancer?
Do not hesitate to write your question as a comment or direct it to me. Thank you for reading and I hope you enjoyed the article!
My Websites
- https://simon-koehler.com/en
- https://instagram.com/typo3freelancer
- https://www.linkedin.com/in/typo3-freelancer/