Panama Friendly Nations Visa
Panama PAN
Panama's Friendly Nations Visa grants immediate permanent residency to nationals of approximately 50 designated countries who can establish economic ties to Panama through investment or employment. Panama's territorial tax system, the use of the US dollar, and its strategic location make it a popular choice for retirees and location-independent professionals.
Program Details
- Category
- Passive Income
- Processing Time
- 3 months
- Application Fee
- $800
- Minimum Income
- —
- Minimum Investment
- $200,000
- Family Included
- Spouse and dependents can be included on the same application at minimal additional cost
- Path to PR
- Yes — 0 years
- Path to Citizenship
- Yes — 5 years
- Physical Presence
- Must visit Panama at least once every 2 years to maintain permanent residency
- Dual Citizenship
- Allowed
- Tax Impact
- Panama uses a territorial tax system; only Panama-sourced income is taxed. Foreign income — including remote work earnings, investments, pensions, and business income from abroad — is completely exempt from Panamanian income tax.
No minimum income for the standard Friendly Nations Visa, but applicants must demonstrate economic ties to Panama through either professional employment with a Panamanian company OR a real estate investment of at least $200,000, OR a time deposit (CD) at a Panamanian bank of at least $200,000.
Application Timeline
Apply
3mo processing
Visa Granted
Initial permit
Permanent Residency
After 0 years
Citizenship
After 5 years
Key Requirements
- ✓Must be a national of one of Panama's ~50 designated 'friendly nations'
- ✓Establish economic ties: real estate investment of $200,000+, OR time deposit (CD) of $200,000+ in a Panamanian bank, OR confirmed employment with a Panamanian company
- ✓Clean criminal record (apostilled from home country and all countries of recent residence)
- ✓Valid passport
- ✓Health certificate
- ✓4 passport photos
- ✓Application through a Panamanian immigration attorney (strongly recommended)
Am I eligible for Panama Friendly Nations Visa?
Quick self-check based on the published criteria. Not legal advice. No data leaves your browser.
Nationality eligibility
Select your nationality to check.
Minimum investment / capital
Programme requires $200,000.
Fill in the fields above to see a verdict.
This is a heuristic, not a determination. Final eligibility depends on full documentation and immigration-officer discretion.
Nationality Restrictions
This program restricts applications from nationals of: Program is limited to nationals of 50 specifically designated 'friendly nations' including the USA, UK, Canada, most EU countries, Australia, and others; check current list with Panamanian Immigration
Application Process — Step by Step
- 01
Verify nationality on friendly list
home countryAvailable to 50+ countries (US, Canada, most EU, UK, Australia, Japan, Argentina, Brazil, etc.). Since Aug 2021, requires one of: professional contract, real estate purchase $200k+, or fixed deposit $200k+.
Typical duration: 2 weekssource ↗
- 02
Choose qualifying economic activity
home countryEmployment contract with Panama employer, real estate purchase ($200k+), OR bank deposit ($200k+ for 3 years) at Panama bank.
Typical duration: 4-12 weeks
- 03
Apply through Panama immigration lawyer
destinationPanamanian lawyer must submit application; direct applications not accepted. Initial 2-year permit granted.
Typical duration: 8-16 weeks
- 04
Convert to Permanent Resident after 2 years
destinationApply for PR after initial 2-year temporary period. Minimal physical presence.
Typical duration: 4-12 weeks
Documents Required
| Document | Issued By | Apostille | Translate to | Validity (days) |
|---|---|---|---|---|
| Valid passport | Home country | No | — | 180 |
| Proof of economic activity | Panama employer/bank/notary | No | es | 90 |
| Police clearance | Home country | Yes | es | 180 |
| HIV test + medical | Panama clinic | No | — | 90 |
| Panama bank reference letter | Panama bank | No | — | 30 |
Realistic Costs
Some figures below are industry estimates rather than officially verified: lawyer_fee_low, lawyer_fee_high, translations, apostilles, health_insurance_first_year, relocation_misc, total_first_year_low, total_first_year_high, total_5_year_low, total_5_year_high.
Panama requires Panamanian lawyer — fixed fees typical. Excludes any real estate / deposit investment.
Realistic Timeline
- Consulate wait0–0 weeks
- Residence card issuance12 weeks
- Total to residence card16–28 weeks
SNM (Servicio Nacional de Migración) processing stabilised post-2021 reforms.
Renewal
- First renewal after
- 24 months
- Subsequent cycle
- 0 months
- Renewal fee
- $1,000
- Requirements
- After 2 years convert to PR.
Path to Permanent Residency — Details
- Years required
- 2
- Integration test
- Not required
Path to Citizenship — Details
- Years required
- 5
- Language test
- Yes (A2)
- Civic test
- Required
- Oath
- Required
- Dual citizenship
- Not allowed
Tax Residency
- Trigger
- 183 days/year of presence
- Taxation scope
- Territorial (in-country only)
- Exit-tax country
- No
Health Insurance
- Mandatory
- Yes
Examples: Pan-American Life, MAPFRE Panama, Cigna
Family Specifics
- Spouse work rights
- Spouse on dependent residence cannot work without separate permit
- Child school enrolment
- Public + international schools available
- Parent inclusion
- Eligible
- Sibling inclusion
- Not eligible
Gotchas — Things to Watch For
- ⚠August 2021 reform tightened rules — prior version allowed "any professional activity" proof
- ⚠Panama does not allow dual citizenship in most cases — citizenship path means renouncing original
- ⚠Territorial tax only applies to Panama-source income — worldwide income outside Panama remains untaxed locally
- ⚠Bank account opening became harder post-2021 due to global AML scrutiny
What This Visa Does NOT Allow
- ×Work without work permit (separate from residence permit)
- ×Activities outside the declared economic activity
Common Rejection Reasons
- •Nationality not on friendly list
- •Insufficient economic activity proof
- •AML/source of funds concerns
Recent Legislative Changes
2021-08-21
Executive Decree 197 tightened Friendly Nations — replaced "professional activity" proof with fixed options: employment contract, $200k+ real estate, or $200k+ bank deposit.source ↗
Frequently Asked Questions
Do I still just need a "professional activity"?+
No — since August 2021, you need: employment contract with Panama employer, $200k+ real estate purchase, or $200k+ 3-year bank deposit. The old loose "professional activity" standard is gone.
What about territorial taxation?+
Panama taxes only Panama-source income. Income earned abroad (even while you reside in Panama) is not subject to Panamanian income tax. This makes Panama attractive for remote workers and retirees with foreign pensions.
Good Fit For
Applying from a specific country? Your home-country tax rules, banking access, and dual-citizenship options affect every programme differently. Browse nationality guides → for tax obligations, renunciation rules, and second-passport routes.
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