The Top Four Visas For Moving To Panama

So, you’ve finally decided to expatriate to Panama. What are the steps to obtaining a Panama visa and residency?

Panama is an excellent destination for expats. While it technically has its own currency, the Panamanian Balboa, which is pegged at par with the U.S. dollar, the country primarily uses American dollars, so currency conversion is rarely a concern. Panama’s GDP ranks among the top eight of the 33 Latin American nations, making it an attractive place to do business. It continues to outperform regional peers, with projected GDP growth of 3.9% in 2026 and 4.1% in 2027 to 2028, maintaining its status as a top-tier business hub.

With its warm climate, friendly people, and diverse landscapes, Panama has emerged as a leading destination for foreigners seeking residency in Central America. Whether you’re considering retirement or exploring work opportunities, the country offers a range of visa options tailored to different needs.

In this article, we’ll cover the top four visas for expats, compelling reasons to relocate, popular activities, and essential information on healthcare and banking.

If your company generates income outside of Panama, it is not subject to tax on its income

PANAMA OVERVIEW

Property taxes in Panama are relatively low, ranging from 0.5% to 1%. The capital gains tax is set at 10%, and if the gains are foreign-sourced, it can be legally reduced to zero. There is a 7% excise tax on all nonessential purchases, while luxury taxes ranging from 10% to 15% apply to hotel stays, alcohol, and tobacco.

Most importantly, Panama is considered a tax haven due to its territorial tax system. This means that any income earned overseas by Panamanian residents is not subject to local income tax. However, income generated within Panama is taxed accordingly. The same principle applies to companies. If a company generates income outside of Panama, that income is not taxed locally. Even when income is generated within Panama, corporate tax rates are generally lower than those in many European countries.

Beyond its favourable tax policies, Panama is an excellent place to live. Its economy has been growing faster than that of any other nation in Latin America. In addition to being a safe and beautiful country, Panama allows individuals to apply for citizenship after five years of permanent residency, or after three years if married to a Panamanian citizen or if they have Panamanian children. The country maintains investment-grade credit ratings and continues to strengthen its position as a regional financial hub, supported by its banking system and canal-driven economy.

Panama is also a tropical paradise, offering stunning beaches and lush rainforests that are home to tens of thousands of plant species and hundreds of mammals and birds. This makes it an ideal destination for exploration and outdoor activities.

Visitors and residents alike can enjoy sightseeing and hiking in dense tropical rainforests, witness the engineering marvel of the Panama Canal, or spend time in one of Panama City’s many casinos. The country’s diverse cultural influences are reflected in its cuisine, which offers a wide variety of dishes. From ceviche and fresh seafood to hearty stews, empanadas, and fresh vegetables, there is no shortage of culinary experiences to explore.

The residency visa is a general category that includes several subtypes, such as the Friendly Nations Visa and the Pensionado Visa. To apply, individuals must visit the immigration office with a valid passport, a background check, and other supporting documents that demonstrate financial stability and a clean criminal record.

The Panama Friendly Nations Visa is offered to citizens of 51 countries to enjoy the Panama City Skyline from Ancon Hill

PANAMA FRIENDLY NATIONS VISA

For those looking to work or start a business in Panama, the Friendly Nations Visa is an ideal option. It grants residency to individuals with economic solvency and offers a fast-track route to permanent residency.

The capital city, Panama City, is a thriving metropolis with a dynamic job market and a hub for international businesses. Additionally, Panama's strategic location makes it an excellent base for entrepreneurs looking to explore opportunities in other Central American countries.

The Panama Friendly Nations Visa is offered to citizens of 51 countries, including North America, South America, and Europe (as well as a few other select countries like South Africa and South Korea). Here is a list of countries:

To qualify, you must have an employment contract with a Panamanian company or own property in Panama valued at $200,000 USD.

Alternatively, you may place a fixed-term certificate of deposit of $200,000 USD in a Panamanian bank, with a minimum term of three years and free of any encumbrances. One advantage of this visa, when choosing the property route, is that the property can be held through a structure such as a Panama S.A. or a Panama Private Interest Foundation.

The Panama Friendly Nations Visa grants provisional residency for two years. After this initial period, you may apply for permanent residency.

The requirements for the Panama Friendly Nations Visa include:

• A certificate of good health signed by a doctor

   

• Criminal background checks from the country where you have lived for the past two years

   

• Proof of employment or investment

   

• Eight passport-size photos

   

• Copies of your passport with at least six months of validity from the application date, along with a secondary form of identification such as a photo ID card, health card, or driver’s license

   

• Proof of economic solvency, such as a bank reference letter from a Panamanian bank, an employment contract, or a property title

   

• A notarized Power of Attorney prepared by a licensed Panamanian immigration attorney, including the names and nationalities of your parents

*Legal Fees and additional expenses are not included in these investment options.

PANAMA QUALIFIED INVESTORS' VISA

Another option for individuals looking to move to Panama is the Panama Qualified Investors Visa. This program, created by Executive Decree 722 in 2020, allows individuals to obtain residency by investing $300,000 USD in Panamanian real estate, although this threshold is scheduled to increase to $500,000 USD by October 2026.

Alternatively, applicants may qualify by purchasing $500,000 USD in securities through the Panamanian stock market or by making a one-time deposit of $750,000 USD in a Panamanian bank for a minimum term of five years.

Executive Decree No. 193 of 2024 introduced enhanced transparency and source-of-funds requirements. Applicants must provide certification of their investment from authorized Panamanian institutions, along with documented proof that all funds originate from lawful sources abroad.

Panama’s banking system applies strict anti-money-laundering due diligence, meaning applicants undergo financial screening even before their immigration applications are submitted.

The requirements for the Qualified Investors Visa are significantly more demanding than those of the Panama Friendly Nations Visa because they require substantially higher investment amounts. However, one key advantage of this program is that it is open to citizens of all nationalities.

Documents required for this visa include :

• Eight (8) passport-size photos;

• A background check showing no criminal record;

• A copy of your passport;

• A certification of invested or deposited funds;

• Bank statements (either foreign or Panamanian) that demonstrate proof of the invested funds.

Applicants are required to pay an application fee of $5,000 USD to the National Immigration Service and an additional $5,000 USD to the Panamanian National Treasury. There is also an extra fee of $1,000 USD for each dependent over the age of 12.

Each dependent must pay government fees totalling $2,000 USD, consisting of $1,000 USD payable to the Tesoro Nacional and $1,000 USD payable to the Servicio Nacional de Migración.

For example, if you are the main applicant applying with a spouse and two children, the total application fees would amount to $14,000 USD.

The Qualified Investor Visa program has demonstrated a strong approval rate of 96%, with 237 approvals recorded through September 2025. North Americans currently represent the largest group of applicants.

Law No. 493 of October 28, 2025, grants Qualified Investor residents and their families access to a Special Travel Passport. This exclusive document enhances global mobility by leveraging Panama’s visa waiver agreements, providing a valuable travel benefit without requiring immediate citizenship.

This privilege is reserved exclusively for high-tier investors and is not available to applicants under the Friendly Nations or Pensionado programs. As of 2026, the Panama Passport Authority is actively issuing these documents, offering a streamlined international travel experience while allowing investors to retain their original nationality.

*Legal Fees and additional expenses are not included in these investment options.

The Pensionado Visa is perfect for retirees to live the best that Panama has to offer

PANAMA PENSIONADO VISA

The Pensionado Visa is highly favoured among retirees looking to settle in Panama. This visa is designed for individuals aged 18 and above who can show a steady income from a foreign source, like a pension or retirement fund.

With its affordable cost of living and vibrant expat community, Panama has become a top choice for retirees from around the world. Cities like Panama City, Boquete, and Coronado are particularly popular due to their excellent healthcare facilities, scenic beauty, and numerous recreational activities. As a Pensionado, you'll enjoy discounts on transportation, entertainment, and healthcare services.

The Pensionado Visa is designed for retirees, but it is open for anyone with a minimum income of at least $1,000 USD per month and 18 years of age with a guaranteed income, so employment or business income does not qualify. You need to have income from an annuity, a government or business pension, or some other guaranteed source for life. And if you have any dependents, then you need an additional $250 USD in income per dependent. 

It is important to understand that while the Pensionado Visa offers you permanent residency, it is not a pathway to citizenship. On the plus side, you only need to visit  Panama once a year. 

In order to apply for the Pensionado Visa, you must first enter Panama on a normal tourist visa. 

Visa requirements :

• Certificate of good health from a doctor in Panama;

• Proof of Income;

• Criminal record check;

• Proof of pension or another source of guaranteed income.

One of the benefits of retiring in Panama is that you get substantial discounts on a number of consumer goods and purchases. These discounts are available to all Panamanian residents who are 55+ for women or 60+ for men, regardless of their visa.

Panamanian seniors receive discounts on medicine, dental bills, hospital services, interest on loans, airline tickets and other forms of transportation, and a lot more. Savings typically range from 10% to 50%.

Here is a summary of the benefits you would be entitled to:

• One-time Duty tax exemption for household goods up to a total of $10,000;

• Duty exemption for importing a new car every two years;

• 50% off entertainment anywhere in the country (movies, concerts, sports);

• 30% off bus, boat, and train fares;

• 25% off airline tickets;

• 50% off hotel stays from Monday through Thursday;

• 30% off hotel stays from Friday through Sunday

• 25% off at restaurants;

• 15% off at fast-food restaurants;

• 15% off hospital bills (if no insurance applies);

• 10% off prescription medicines;

• 20% off medical consultations;

• 15% off dental and eye exams;

• 20% off professional and technical services;

• 50% reduction in closing costs for home loans;

• 25% discounts on utility bills;

• 15% off loans made in your name;

• 1% less on home mortgages for homes used for a personal residence.

*Legal Fees and additional expenses are not included in these investment options.

Related content: The Basics Of How To Get A Second Passport Or A Second Residency

The essence of the Reforestation Visa is that you purchase five hectares of land and then hire a management company to plant trees on it

REFORESTATION VISA

THERE ARE THREE TYPES OF REFORESTATION VISA

Applicants seeking to obtain permanent residency in Panama through the regular reforestation visa program must make an investment of $100,000 USD. This amount is typically allocated as $90,000 USD for the land, with the size depending on the project selected from a list of approved partners, and $10,000 USD for maintenance and management over a period of up to eight years, as outlined in the application process.

According to Executive Order No. 320 of August 8, 2008, investors who wish to include dependents, such as family members, must increase their investment by $2,000 USD for each dependent. It is also possible to structure the investment through a corporation or company. In this case, the residency application may include multiple applicants, provided that each individual invests $100,000 USD in a reforestation project.

For those pursuing a higher tier option, permanent residency can be obtained with a minimum investment of $360,000 USD. This is structured as $350,000 USD in an approved reforestation project and $10,000 USD allocated for maintenance and management.

The application process typically takes between 60 and 180 days. It begins with the submission of the residency application, which is then reviewed and approved by immigration authorities. Once approved, the applicant can obtain permanent residency status within that same 60 to 180 day timeframe.

This immigration program follows a phased pathway to permanent residency, usually completed over approximately three years. After the initial application is submitted, the applicant receives a temporary residency permit, typically processed within six months. Once approved, a two year provisional residency is granted, after which the applicant becomes eligible to apply for permanent residency, with a similar processing timeline.

From an investment perspective, applicants are required to maintain their reforestation investment for at least five years after obtaining permanent residency and must provide annual proof of ownership during this period. As a result, the total commitment, including maintenance and administrative costs, generally extends to approximately eight years.

In addition to purchasing the land, investors must hire a management company to carry out the reforestation and oversee the property. Even so, this type of investment typically requires significantly less capital than other residency options. It also offers the added benefit of contributing to the restoration of the Panamanian rainforest, at least until the trees are harvested and the investment generates a return.

Alternatively, investors may choose to let the trees continue growing. Since it is your investment, the decision is entirely yours. Beyond the lower capital requirement, there is also a reasonable potential for profit, supported by the steady increase in timber prices observed over the past several decades.

Required visa documents:

• A clean criminal record check;

•  Proof of funds along with proof of direct investment into an approved forestry program, which must be maintained for a period of 8 years;

• Passport photo;

• Copy of your passport.

*Legal Fees and additional expenses are not included in these investment options.

The third Reforestation Visa is the express path to citizenship after five years as a permanent resident

CONCLUSION

Panama offers investors many choices for entering the country, obtaining residency, citizenship, and overall immigration. All of these applications can be completed at the nearest Panamanian embassy or consulate. Panamanian residency can also lead to citizenship. Becoming a Panamanian citizen grants you access to a Panamanian passport, which is highly valuable for frequent travellers, offering visa-free access to over 140 countries.

In all cases, engaging the services of an immigration attorney can greatly assist with the visa application process. They provide valuable support and guidance, helping applicants navigate legal requirements, documentation, and the resolution of any issues that may arise along the way.

These four visa options offer diverse pathways for individuals and families to establish residency in Panama, each with its own set of requirements and benefits. Panama’s immigration system is designed to support those looking to live and work in this beautiful Central American country.

If you are considering Panama as part of your international diversification strategy, or looking to build a solid Plan-B through residency and citizenship options, you can download our special report on Plan-B Residencies & Instant Citizenships to explore your next steps in a structured and informed way.