Panama Relocation Guide for Expats: Your Step-by-Step Moving Plan

Panama is home to more than 470,000 migrants, who constitute over 10% of the country’s population. While a large number are refugees from the more troubled parts of South America, Panama also attracts many people from Western countries who move for its low cost of living, favorable tax rates, and natural beauty. 

In this Panama relocation guide, we’ll cover the essential information you need to move to Panama successfully. You’ll learn how to: 

• Decide whether Panama is the right fit for you 
• Choose the right immigration pathway to secure a lawful stay
• Submit your residence application correctly and efficiently

Panama: A Country Snapshot

Located on the southeast end of the landbridge connecting North and South America, Panama is often seen as the region’s most stable country. Its dollarized economy and currency (the balboa) tied to the American dollar at the exchange rate of 1:1 reflects the country’s status. Panama’s passport is considered one of the best in the world, offering visa-free entry to over 140 countries.

Panama has a territorial tax system that generally taxes income earned within its borders. The personal income tax rate goes as high as 25%, with no wealth or inheritance taxes. Gains from interest on government securities, savings accounts, and fixed-term bank deposits are also exempt from taxes. The property tax in Panama is 0.9%. 

Panama maintains a very robust Pensionado program, offering various benefits to pensioners that include:

• Import tax exemption on household goods
• 25% discount on utility bills
• 25% discount on airline tickets
• Up to 20% on healthcare services

The climate in Panama is tropical and warm, with little seasonal temperature variation. The country experiences two seasons: the rainy season from May to January, and the dry season from January to May. The coastal areas are marked for their high humidity, while the inner, mountainous areas offer a more temperate climate.

Getting To Know Panama

Before relocating to Panama, it’s advisable to visit the country first, and you can do so on a 90-day tourist visa. While a short visit might give you a quick impression of the country, spending more time there allows you to explore other aspects of Panamanian life.

Some general advice for your exploratory visit includes:

• Spend time in Panama during the rainy season: Panama’s high humidity can be challenging, so it’s best to determine early if it’s a deal breaker for you
• Go to multiple towns and cities: Panama offers a variety of lifestyles. Sampling a few and giving yourself enough time to do it (a week or so) can reduce the chances of having to move soon after relocating
• Familiarize yourself with the basics in each area: Examine proximity to healthcare services, access to communication services, access to stores, quality and reliability of infrastructure and utilities, walkability, and safety
• Connect with other expats: You can find expat groups on social media and specialized expat forums, or you can meet expats in Panama to get some first-hand advice
• Live a day as a local: Spend one day doing the regular things local people do, like going to the store, using public transportation, or running errands

Places in Panama With Large Expat Communities 

Relocating to a place with an established expat population has several advantages. It can provide you with reliable sources of local information, enable easier integration, and allow access to expat-centered infrastructure like international schools. 

While Panama has plenty of towns and cities with sizeable expat communities, visiting these four can help you experience the most popular aspects of living in Panama:

1. Panama City: The country’s capital city will give you the best access to high-quality services and infrastructure, with specific areas in the city offering a wide variety of lifestyles
2. Coronado: The resort town allows you to experience the beach life in Panama, with gated communities and golf courses
3. Bouquete: The mountain town is one of the most popular retreats from the coastal areas’ humidity
4. Bocas del Toro: The archipelago offers a relaxed island lifestyle and diverse natural features

Finding the Right Way To Relocate to Panama: 4 Programs Explained

Panama offers various pathways to secure temporary or permanent residence. You can select between highly specialized programs for investors in specific industries and those catering to broad categories of applicants.

To choose the right program, carefully consider what your primary activity will be once you settle in Panama and how long you intend to stay. Each program has specific eligibility criteria and documentation requirements that must be met. 

Based on the circumstances, you can explore programs for:

1. Investors
2. Workers
3. Digital nomads
4. Retirees

1. Investor Programs

Panama’s flagship investor program is the Qualified Investor Visa, informally known as the Red Carpet Visa. The program was designed for investors looking for the quickest path to obtaining residence. Applying for a visa under this program also shortens the time to citizenship eligibility by two years. 

The Red Carpet Visa program requires you to make one of the following investments in Panama:

Type of Investment	Value
Real estate investment	B/.300,000
Investment in Panamanian securities	B/.500,000
A fixed-term deposit in a Panamanian bank	B/.750,000

The benefits of the program include:

• Direct permanent residence, without the usual two-year provisional permit that most other programs have
• Expedited application processing (30 business days)
• Eligibility for a special Panamanian passport 

The other programs that allow you to invest in Panama and become a resident include:

• Friendly Nations Visa: Available only to citizens of select countries. It awards a two-year provisional permit followed by permanent residence if you invest B/.200,000 in real estate or place the same amount as a fixed-term deposit in a local bank
• Macro-Business Visa (Active Business Investor Visa): Requires a B/.160,000 investment in a Panamanian company with at least five locals on the payroll, and grants a two-year provisional permit before awarding permanent residence
• Self-Solvency Visa: Awards a two-year provisional permit before permanent residence. It requires a B/.300,000 investment in real estate, a bank deposit, or a combination of both totaling at least B/.300,000
• Forestry Investor Visa: Requires a B/.100,000 investment in an approved reforestation program for a provisional permit, or a B/.350,000 investment for direct permanent residence

2. Worker Programs

Relocating to Panama for work typically requires a work permit, as well as a temporary or permanent residence permit.

As a general rule, it is your employer’s responsibility to arrange the work permit. They will also provide you with a letter of employment, which you will need when applying for residence. 

Some of the residence programs you can apply to as a foreign worker in Panama include:

Program	Requirement
Friendly Nations Visa	Letter of employment Citizenship of a “friendly” nation
Foreign Personnel Visa	Letter of employment Fulfillment of the employment quotas for foreign workers (maximum 10% if you’re a regular worker, or 15% if you’re a specialist)
Executives of International Companies Visa	Position in an international company that’s at least 10 years old and is doing business abroad Salary of at least B./2,000
Foreign Professional Visa	A degree in a profession not restricted to foreigners

3. Digital Nomad Program

Digital nomads can come to Panama under the Short Stay Visa for Remote Workers program. The program doesn’t grant residency, but it does allow you to stay and work in Panama for nine months, extendable for another nine months.

Here are the requirements you need to meet:

• Being either self-employed or working for a transnational company
• Not working remotely for a Panamanian company (your income has to come from abroad)
• Having monthly earnings of at least B/.3,000

4. Retiree Programs

A popular destination for retirees, Panama has two programs for people who don’t plan to work and have a stable source of income:

1. Retired Pensioner Visa: Available if you have a monthly pension of at least B/.1,000, or personal property in Panama worth B/.100,000, and a pension of B/.750
2. Retired Rentier Visa: Requires you to place a deposit with the National Bank of Panama or the Savings Bank that will generate at least B/.850 a month

As a Retired Rentier Visa holder, you are eligible for a special passport, just like a Qualified Investor. However, your permanent residence only lasts for five years, as opposed to the indefinite permanent residence granted to a Retired Pensioner Visa holder. 

Securing Residence in Panama

The first step to securing residence in Panama is meeting the requirements of a residence program. Some of the easiest ways to do so are getting the letter of employment from a Panamanian employer or opening a bank account in Panama and making a transfer. 

If your grounds for residence involve purchasing property, it’s highly advised that you hire a local lawyer familiar with foreign investments. They can help you navigate the legalities and perform due diligence before the purchase. 

You will also need to hire a Panamanian immigration lawyer to submit the application to Panama’s National Immigration Service. They can also help you with other requirements, such as:

• Gathering the required documents
• Ensuring that all the documents are duly notarized
• Scheduling a health examination for a health certificate

Most programs will require your presence in the country for at least some parts of the process. There is no official timeline for the application process, but it may take months.

Path to Panamanian Citizenship

Panama allows you to become a naturalized citizen after being a resident of the country for five years. Time spent on the provisional permit does not count toward this requirement; only permanent residence does. 

Before becoming a Panamanian citizen, you should know that you will:

• Be required to denounce your original citizenship, though doing so might not have any legal effect in your country 
• Have to provide proof of economic solvency, which can be the investment, retirement, or employment you used to secure residency
• Have to pass a Spanish language exam and a Panama civics exam

Although Panama is considered one of the easier countries to relocate to, the process can still present challenges. You will have to navigate a foreign regulatory landscape, in a language you might not use, through a mix of in-person and remote activities. These challenges can be reduced by working with an experienced team that has managed similar relocation projects. To ensure seamless relocation to Panama, partner with Nomad Capitalist.

Plan and Execute Your Relocation to Panama With Nomad Capitalist

As experts in global mobility and wealth preservation, Nomad Capitalist has supported more than 1,500 individuals in achieving their financial and lifestyle goals. We’ve helped our clients choose the most tax-friendly jurisdictions, secure legal grounds to become residents or citizens, and identify new investment opportunities abroad. 

At the core of our service is the creation of a personalized Action Plan, a playbook containing all the steps necessary to achieve our clients’ specific goals. Because each of our clients has unique circumstances and desires, no two Action Plans are the same, and we create a custom one for every case. 

Here’s what the process looks like:

1. We ask our potential clients to fill out a form, helping us determine whether we’re a good fit
2. We schedule a 45-minute onboarding call with our clients to understand their situation better
3. Our specialists create the Action Plan and present it to the client for approval
4. We implement the Plan, managing all the administration, over a 12-month period
5. Our clients continue receiving support even after the Plan was implemented

For your relocation to Panama, we can help you choose the most suitable visa option and assist you in fulfilling its requirements. We will also carry out the application process and provide you with invaluable, practical advice to help you transition smoothly to life in Panama.