Can You Get Panama Citizenship by Investment? Answer and Alternatives

Panama’s status as Latin America’s main financial hub, favorable tax policies for income earned abroad, and an affordable, high-quality lifestyle make it one of the premier destinations for high-net-worth individuals. While the country offers multiple residency-by-investment programs, a common question is whether there’s a direct way to invest and become a citizen.

In this article, we’ll explain whether such a program exists and if you can get Panama citizenship by investment. We’ll show you various paths to securing a long-term stay in the country, covering topics such as:

• Panama’s residency-by-investment programs
• The path to citizenship for investors
• Naturalization requirements and the process

Does Panama Offer Citizenship by Investment?

At the time of writing, Panama doesn’t offer a direct citizenship-by-investment program. Instead, the country provides various residency programs to attract investors, along with a naturalization procedure. However, there’s no single program that provides a direct pathway to citizenship for foreign investors.

While it’s possible to invest in Panama and ultimately become a citizen through naturalization, the process is more complicated than a typical citizenship-by-investment program and includes multiple stages and requirements. 

The pathway to citizenship for investors generally involves obtaining permanent residence, maintaining the status for the full length of residency, and then applying for citizenship through the naturalization process.

Panama Residency by Investment Programs

The two main residency-by-investment programs in Panama are: 

1. Friendly Nations Visa
2. Qualified Investor Visa

Other programs that allow you to become a resident by investing in businesses, Panama’s reforestation efforts, and real estate, are also available. 

Friendly Nations Visa

The Friendly Nations Visa program allows you to live and work in Panama if you meet two types of requirements:

1. Being a national of a country that Panama has deemed as friendly
2. Being able to present strong economic ties to Panama, typically in the form of an investment 

The list of countries Panama sees as friendly for the purposes of this program includes:

Region	Countries
Europe	Andorra, Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, San Marino, Serbia, Slovakia, Spain, Sweden, Switzerland, United Kingdom
North and Central America	Canada, United States of America, Mexico, Costa Rica
South America	Argentina, Brazil, Chile, Paraguay, Peru, Uruguay
Asia-Pacific	Australia, Hong Kong, Israel, Japan, New Zealand, Singapore, South Korea
Africa	South Africa

To meet the second requirement, you must complete one of the following:

• Purchase a property in Panama with a minimal registered value of USD 200,000 with financing from a local bank
• Place a deposit of at least USD 200,000 in a national bank for a three-year term, plus an additional USD 5,000 in a personal account with a local bank
• Incorporate a company in Panama specifically for visa qualification 

The program awards you a two-year Provisional Residence Permit, with the option to apply for permanent residency after this period.

Qualified Investor Visa

Panama’s Qualified Investor Visa, also known as the Red Carpet Visa, allows you to apply directly for permanent residence, without needing to receive a Provisional Residence Permit first. To be eligible, you can either: 

• Invest USD 300,000 in Panamanian real estate, with the option to fund any additional value of the property through a local mortgage
• Invest USD 500,000 in securities through a licensed broker, with a minimum five-year holding period
• Place at least USD 750,000 in a fixed-term deposit in a local bank, with a five-year term

After holding a visa for five years, you will become eligible to apply for naturalization as a citizen of Panama. 

Other Investor Visa Programs

Panama’s Investor Visa programs that typically provide a two-year Provisional Permit with the option to apply for permanent residence include:

Visa Program	Investment Requirement
Reforestation Visa	USD 100,000 in forestry for a Temporary Permit, or a USD 350,000 for automatic permanent residence
Macro-Business Investor Visa	USD 160,000 in a company in Panama that employs at least five locals
Fixed-Term Deposit Economic Solvency Visa	USD 300,000 fixed-term deposit with any bank in Panama with a three-year term
Real Estate Economic Solvency Visa	USD 300,000 investment in property in Panama, either in the applicant’s name, through a company, or via a private interest foundation
Mixed Investment Economic Solvency Visa	USD 300,000 investment total between real estate and a bank deposit

If you decide to apply under any of these programs, you should add USD 2,000 to the required investment amount for each dependent you’d like to become a Panamanian resident.

How To Apply for Residency by Investment in Panama

When applying for residency in Panama, you should take the following steps:

1. Find legal representation in Panama
2. Gather personal and dependents’ documents
3. Gather supporting documents for your investment
4. Submit the permanent residency application

Find Legal Representation in Panama

In Panama, residency applications have to be submitted by local immigration lawyers. There is no option to do it online on your own. 

Additionally, the lawyer might also be able to clarify requirements, ensure your application follows current best practices, and help you gather the necessary supporting documents. That’s why hiring one should typically be your first step in the process. 

Gather Personal and Dependents’ Documents

Regardless of the specific program you’re applying to, you are required to provide the following personal documents: 

• Power of Attorney document containing the name and nationality of your parents
• An official request prepared by your lawyer
• A notarized copy of your passport
• Up to five passport-sized photographs
• A health certificate issued by a Panamanian doctor, not older than three months
• A criminal record certificate 
• A personal background affidavit form

For your dependents, you’ll have to include:

• Birth or marriage certificates
• Proof that you are living at the same address
• A Letter of Responsibility, guaranteeing that you’ll provide for them

Gather Supporting Documents for Your Investment 

Depending on the type of investment you made, the documents you need to submit with your residency application can include:

Type of Investment	Supporting Document
Property	Proof of ownership issued by the Public Registry of Panama A value assessment issued by the National Land Titling Authority
Securities	Certificate of investment issued by a licensed Securities House An authenticated copy of your Brokerage House’s license A certificate confirming that the securities are properly registered
Deposit	An authenticated copy of the fixed-term deposit certificate A bank statement showing the deposit exists, that it has no liens, and that the funds came from abroad
Company	Corporate and financial documentation, such as a Public Registry certificate, capital tax gain receipt, and payroll proof Three proofs of investment, including audited financials, authenticated deposit to the company, and proof of foreign funds transfer Three proofs of company existence, such as a utility bill, municipal tax receipts, and a lease agreement
Forestry	Bank certificate showing the investment was made Corporate and financial documentation (if you invested with a company) proving that the company exists, you own shares in it, and the investment was made

You may also be required to provide proof of the foreign origin of the funds from the original bank. 

Submit the Permanent Residency Application

Once your application for a temporary resident permit has been accepted, you should continue maintaining the eligibility criteria for the length of your temporary permit. 

This step is crucial if you plan to apply for permanent residence, as you must first hold temporary residency for two years before becoming eligible. During this period, you should maintain ties to Panama and make periodic visits to the country. 

When applying for permanent residency, you will have to go through a similar process. The required documentation is largely the same as for the temporary residency, except that you will have to submit proof that you’ve maintained the original investment. You also won’t be required to undergo another criminal background check.

How To Become a Naturalized Citizen of Panama

Two main conditions you have to meet to become a naturalized citizen of Panama are: 

1. Maintain the permanent resident status for five years
2. Live in Panama for at least three out of those five years 

The time you’ve spent holding a temporary permit doesn’t count towards the citizenship requirement. In total, you have to be a resident for seven years before applying for citizenship. 

If you meet the criteria, you can follow this process to apply: 

1. Gather the necessary documents
2. Swear allegiance to Panama
3. Pay the fees

Gather the Necessary Documents

The documents you’ll need for your naturalization application include:

• A notarized copy of your passport
• Two passport-sized pictures
• A health certificate
• Statement renouncing your previous country
• Proof of funds, such as a bank statement
• A Social Security Fund Record
• Five testimonials to the fact that you’ve lived in Panama for the required period

Keep in mind that renouncing your previous country doesn’t necessarily carry any effect. Panama’s enforcement of its rule against dual citizenship isn’t strict. 

Pay the Fees

During the naturalization process, you’ll have to pay the following fees:

• USD 300 to receive your Letter of Naturalization
• USD 200 for the official swearing-in ceremony
• USD 60 to get an ID card and register with the Electoral Tribunal

Swear Allegiance 

As part of the process, you must pass a Spanish language test, as well as an exam covering Panama’s history, geography, and civic rights.

Having passed the test and met all the other requirements, you’ll have to swear allegiance to the country’s Constitution, promising you’ll respect its laws. This will happen during an official ceremony in front of the Governor of the Province of Panama, after which you’ll officially become a citizen of Panama.

Challenges of Getting Panama Citizenship as an Investor

Obtaining Panamanian citizenship as an investor is a long process, with many potential challenges along the way. Some issues that might cause delays or additional expenses include:

• Inability to maintain the required investment amount due to an underperforming company or forestry investments
• Delayed fund transfers from abroad
• Unreliable legal representatives on site

Avoiding these potential issues is best achieved by working with a company that has experience guiding high-net-worth individuals through the process of obtaining a second passport. Rely on experts at Nomad Capitalist to help you clear these roadblocks.

Secure Your Panama Citizenship With Nomad Capitalist

Nomad Capitalist is a consultancy firm that offers investors and entrepreneurs tax optimization, wealth diversification, and second passport services. 

We’ve helped 1,500+ clients achieve their financial and lifestyle goals by creating and executing effective global strategies based on client-specific Action Plans. The strategies may include securing residency or citizenship abroad, consulting on the right investment opportunities, or advising the clients to relocate to jurisdictions better suited to their long-term plans.

Here’s what working with us looks like: 

1. You fill out a form to determine whether our services are a good match for your objectives
2. We have a 45-minute onboarding call to help us understand your specific circumstances
3. A team we assign to your case will create an Action Plan and present it to you
4. After your approval, we implement the Plan over the appropriate timeframe, typically up to 12 months
5. You receive lifelong support and adjustments to the Plan

We guide you every step of the way, helping you make all the right decisions for yourself, your family, and your business. For expert guidance on Panama’s legal, investment, and relocation requirements, contact Nomad Capitalist today.