Panama Residency Requirements: A Guide for Investors, Retirees, and Workers

Panama’s immigration system allows investors, retirees, and individuals seeking to live abroad multiple pathways to acquire residency and, over time, pursue Panamanian citizenship. The residency visa system has several attractive options, each with its own set of requirements. 

In this article, we’ll explore Panama’s residency requirements, discussing topics such as:

• General requirements for foreigners seeking residency in the country
• The difference between temporary and permanent residency in Panama
• Temporary and permanent residency visa programs
• The application process for Panamanian residency
• The path towards becoming a Panamanian citizen 

Benefits of Panama Residency

Several key benefits make Panama an attractive destination for foreigners seeking second residency. The country offers:

• A territorial tax system, which requires you to pay taxes only for income that originated in Panama
• No wealth, inheritance, or gift taxes
• A well-developed financial sector, making it the region’s financial hub
• A low cost of living compared to many North American or European countries
• Modern infrastructure and services, such as healthcare
• Special discount programs aimed at retirees

Panama Residency Requirements for Foreigners

Panama offers multiple permanent residency programs with specific requirements if you’re an investor, a retiree, a business owner, or an individual who wants to live and work in Panama. Most of those programs share certain general residency requirements, such as:

• Certificate of criminal record, issued by your country of residence
• Health certificate, issued by a doctor in Panama, not older than three months
• Repatriation deposit in the form of a check made out to the National Migration Service
• Processing fee payment in the form of a check made out to the National Treasury
• Sworn statement of personal background
• Documents that support your eligibility under one of Panama’s residency visa programs

The documents that prove your eligibility will vary depending on the program. In general, they should demonstrate that you’re able to support yourself once in the country or that you’ll be able to contribute to the country economically.

Requirements Under Panama Temporary Residency Visa Programs

Panama’s temporary residency visas are usually issued for specific purposes, such as labor and education. Their terms vary depending on the program. Some might be renewed multiple times for a total duration of six years, but they usually don’t provide a path to permanent residency.

To apply for temporary residency to work in Panama, you must fall into one of the following categories:

• Employees under a contract with the national government or an autonomous/semiautonomous entity, or a company contracted with them
• Staff members or interns at a foreign embassy or an international organization
• Foreign correspondents in traditional media
• Employees in a technical, executive, or managerial role in the Colon Free Zone, with a minimum salary of USD 2,000
• Professional athletes or sports workers
• Employees in a small company with fewer than 10 Panamanian employees, with a minimum salary of USD 1,000

If you want to visit and stay in Panama for educational purposes, you have to meet one of the following requirements:

• Enrolling in a full-time program at any level
• Being a part of a student exchange, internship, or professional practices program
• Being an accredited scholar of the Fulbright program
• Being an accredited scholar of a foreign security institution

Panama awards temporary residence visas to investors who invest at least USD 60,000 in agriculture or at least USD 80,000 in forestry. It also offers programs for investors and workers in specific industries, such as film and audiovisual, as well as employees in institutions like the Ciudad Del Saber Foundation.

Requirements Under Panama Permanent Residency Visa Programs

Panama’s permanent residency visa programs allow you to stay indefinitely in the country. Under most of the programs, you are awarded two types of permits:

1. A provisional residency permit with a duration limited to two years
2. A full permanent residency you can apply for after the two-year provisional permit expires

Some of the most popular residency programs in Panama include:

1. Qualified Investor Visa
2. Retiree Visa
3. Friendly Nations Visa
4. Reforestation Visa
5. Macro-Business Investor Visa (Active Business Investor Visa)
6. Personal Economic Solvency Visa 
7. Foreign Professional Visa

Qualified Investor Visa Requirements

The Qualified Investor Visa program was established to allow a fast-track process for acquiring permanent residency in Panama. Instead of obtaining a two-year provisional permit, you can become a permanent resident right away if you can meet one of the following requirements:

• You can purchase real estate for a minimum value of USD 300,000
• You can buy a minimum of USD 500,000-worth of securities 
• You can place a five-year fixed-term deposit of at least USD 750,000 with a local bank 

As a Qualified Investor Visa applicant, you are also required to pay a higher processing fee and a repatriation deposit of USD 5,000 each. 

Retiree Visa Requirements

As a retiree, you can apply for residency under one of two programs:

Program	Monthly Income Requirement	Residency Period
Retired Pensioner	At least USD 1,000 from a pension or annuity	Indefinite
Retired Rentist	At least USD 850 derived from interest on a deposit in a local bank	Five years, extendable

If you apply under the Retired Pensioner program, the monthly income requirement can be reduced to USD 750 if you purchase real estate with a minimum value of at least USD 100,000.

Friendly Nations Visa Requirements

The Friendly Nations Visa program allows you to apply for a two-year provisional residence permit in Panama, after which you’ll be eligible for full permanent residence.

There are three permanent residency visa requirements under the program:

1. You have to be a national of a “friendly” country
2. You have to fulfill an economic requirement, either through employment or through investment
3. You have to hold the requirement for the duration of your residence 

Countries deemed “friendly” for the purposes of obtaining this visa include:

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, Costa Rica, Mexico, United States of America
South America	Argentina, Brazil, Chile, Paraguay, Peru, Uruguay
Asia-Pacific	Australia, Hong Kong, Israel, Japan, New Zealand, Singapore, South Korea
Africa	South Africa

The economic requirements for the program include:

• Employment with a company in Panama
• Purchase of real estate worth at least USD 200,000
• Deposit of at least USD 200,000 in a local bank

Reforestation Visa Requirements

If you plan to invest in Panama’s reforestation effort, you might be eligible for permanent residency. You have to invest in an accredited reforestation project, and your investment has to be:

• At least USD 100,000, if you want to be awarded a provisional permit
• At least USD 350,000, if you want to be awarded full permanent residency

For each dependent you plan to bring to Panama, you have to increase the amount invested by USD 2,000. 

Macro-Business Investor Visa (Active Business Investor Visa) Requirements

The Macro-Business Investor Visa (also referred to as the Active Business Investor Visa) program allows you to apply for a two-year provisional permit if you’re willing to invest at least USD 160,000 in a company in Panama. 

You should increase your investment by USD 2,000 for each dependent who applies for permanent residency in Panama. After the provisional period lapses, you can apply for permanent residency, as long as you have not pulled your investment.

Personal Economic Solvency Visa Requirements

Under the Personal Economic Solvency Visa program, you can be awarded a two-year provisional permit if you meet any of the following requirements:

• An investment of at least USD 300,000 in real estate in Panama
• A fixed-term deposit of at least USD 300,000 in a local bank
• An investment in real estate and a fixed-term deposit with a combined value of at least USD 300,000

You should increase the value of your investment by USD 2,000 for each dependent on your application.

Foreign Professional Visa Requirements

This visa program allows you to apply for a two-year provisional permit as long as you:

• Have a university degree that can be recognized in Panama
• Don’t plan to work in a profession reserved for Panamanian citizens

The professions reserved for citizens of Panama include many occupations in the fields of medicine and science, legal and social work, and administration and traditional media.

How To Apply for Residency in Panama

Choosing an appropriate program is the first step in applying for residency in Panama. Your circumstances and goals will determine whether you’re looking for a temporary or a permanent program, as well as which one is the best fit for you. 

After deciding which program you want to apply to and taking action to meet its requirements, your next steps should be:

1. Finding a lawyer in Panama
2. Gathering the necessary documents
3. Having the lawyer submit a completed application
4. Applying for permanent residency

If you’re facing difficulties in choosing an appropriate residence program or performing any of the other steps in the process, consider consulting an advisory firm, such as Nomad Capitalist. 

Find a Lawyer in Panama

Residency applications in Panama have to be submitted through a local immigration lawyer. You will have to be present for some parts of the process, such as the medical examination, but for the most part, your lawyer will act in your stead. 

Besides applying, your lawyer can also help you gather the necessary documentation and explain the finer points of the application process, such as when and where your physical presence might be required. They can also provide ongoing support when applying for visa renewals, permanent residency, or citizenship.

Gather the Necessary Documents

You’ll have to prove that you meet Panama’s residency requirements by providing supporting documents. Any documents issued outside of Panama should be apostilled. You should also have any foreign-language documents translated into Spanish by an official translator in Panama.

Some of the documents that are often used as proof of meeting residency requirements include:

• Bank statements showing deposits and terms
• Certificates from the Public Registry of Panama and the National Land Titling Authority demonstrating ownership over real estate and its value
• A business license and documents proving company ownership
• Employment contracts
• University degrees 

Have the Lawyer Submit a Completed Application

Once you’ve gathered all the documents, your lawyer will apply on your behalf to the National Immigration Service in Panama City. Typically, a submission should include:

• An official application
• Power of attorney
• A copy of your passport with passport-sized images 
• Documents proving you meet the general requirements 
• Documents proving you meet program-specific requirements
• Two checks to cover the processing fee and repatriation deposit

Apply for Permanent Residency

If you applied for permanent residency under one of the non-expedited programs, your lawyer will have to submit a permanent residency application at the end of your provisional permit’s term.

The main requirement for obtaining permanent residency is to meet the program’s requirements for the duration of your provisional permit. Your application will have to contain many of the documents submitted with the original application.

Panama Residency to Citizenship Path Explained

After spending five years as a permanent resident in Panama, you can become eligible to apply for citizenship. As a naturalized citizen, you have all the same rights as citizens by birth, and you’ll be granted a Panamanian passport. 

Here are several important conditions to consider when choosing this path:

• The temporary residency period does not count towards the five-year requirement
• You will have to maintain the residency requirement under your program for the whole duration of permanent residency
• While there are no official requirements for time spent in the country, living in Panama for at least three of the five years increases your chances of getting citizenship
• You will be asked to declare renunciation of your country of origin, but whether you actually lose that citizenship depends on your home country’s laws

The application for naturalization has to be submitted by a Panamanian lawyer on your behalf. The supporting documents you will have to provide include:

• Copies of your passport and permanent resident card, along with passport-sized photos
• Criminal background certificate
• Medical certificate not older than 90 days
• Documents to prove economic solvency, which can include income tax returns, a bank certificate showing available funds, property ownership documents, a retirement certificate, or business ownership documents
• Tax clearance

During the process, you’ll have to pass a written examination to assess language skills and knowledge of Panamanian culture.

Being awarded Panamanian citizenship is the culmination of a long process that starts with meeting Panama’s residency requirements. To create an efficient residence or citizenship strategy and ensure any administrative hurdles are managed effectively, contact Nomad Capitalist. 

Get Your Panama Residency With Nomad Capitalist

Nomad Capitalist is a consultancy firm that helps high-net-worth individuals with all aspects of relocation, residence acquisition, tax optimization, and investment advisory services. 

When you partner with Nomad Capitalist, we create an Action Plan—a custom, step-by-step relocation strategy that outlines the steps to ensure your financial and lifestyle objectives are met. The Plan takes into account specific circumstances and desires, and is custom-made to ensure maximum efficiency. 

Here’s how we develop and implement the Action Plan:

1. You fill out a form to determine whether we’re a good match
2. We schedule a 45-minute onboarding call to learn more about your situation and goals
3. Our team creates an Action Plan and presents it to you for approval
4. We implement the Plan and handle the administrative part over the next 12 months
5. You get lifelong support after the Plan is implemented

We’ve helped over 1,500 clients achieve their goals through methods that include securing permanent residency in Panama. We’ve also helped clients gain citizenship, reduce their tax footprint, and diversify and protect their wealth through Panama’s favorable regulatory and financial environment. To enjoy the same benefits, contact Nomad Capitalist today.