Panama Friendly Nations Visa: Fast Residency from 50+ Passport-Holding Countries

Panama's Friendly Nations Visa (Visa de Naciones Amigas) remains one of the fastest and most accessible permanent residency programmes in the Americas. Established by Executive Decree No. 343 of 2012 and amended by Executive Decree No. 722 of 2020, the programme grants immediate permanent residency to citizens of over 50 designated "friendly" nations who demonstrate economic or professional ties to Panama.

Eligible Nationalities

The list of qualifying nationalities includes most Western European countries, the United States, Canada, Australia, the United Kingdom, Japan, South Korea, Israel, and select Latin American nations. The full list is periodically updated by executive decree. Notable inclusions:

• United Kingdom, Ireland
• United States, Canada
• Germany, France, Netherlands, Belgium, Switzerland, Austria
• Australia, New Zealand, Japan, South Korea, Singapore
• Brazil, Argentina, Chile, Uruguay, Mexico, Colombia, Costa Rica
• Israel, South Africa

Citizens of countries not on the list may qualify through other Panamanian residency programmes (Pensionado, Self-Sufficient Solvency, Qualified Investor).

Requirements

Economic Tie

Applicants must demonstrate one of the following economic connections to Panama:

Option 1: Panamanian Company Employment or Ownership

• Incorporate a Panamanian company (Sociedad Anónima or SRL) or be employed by an existing Panamanian entity
• The company must have a valid commercial licence (Aviso de Operaciones)
• No minimum revenue or employee requirement, but the company must have a genuine commercial purpose
• Share capital: minimum USD 10,000 in the articles of incorporation (though this need not be fully paid up)

Option 2: Real Estate Investment

• Purchase real property in Panama with a registered value of at least USD 200,000
• The property must be registered with the Public Registry (Registro Público)
• The purchase can be in personal name or through a Panamanian company

Option 3: Professional Employment

• A formal employment contract with a Panamanian employer
• The position must require specialised skills not readily available in the local labour market
• Approval from the Ministry of Labour (MITRADEL) is required

Bank Deposit

• A minimum of USD 5,000 must be deposited in a Panamanian bank account in the applicant's name
• The deposit must be evidenced by a bank reference letter (carta de referencia bancaria) dated within 30 days of the application
• The funds must remain on deposit through the processing period but are not frozen or held in escrow

Documentation

• Valid passport with at least 6 months remaining validity
• Criminal background check from the applicant's country of nationality and any country of residence in the preceding 5 years, apostilled and translated into Spanish
• Health certificate from a Panamanian-licensed physician
• Five passport-sized photographs (white background)
• Copy of the Panamanian company's incorporation documents and commercial licence (if using the company route)
• Proof of the economic tie (employment contract, property deed, or company documentation)
• Power of attorney to the Panamanian immigration lawyer

Application Process

Step 1: Company Formation (If Required)

If using the company route, the Panamanian company must be formed first:

• Name reservation and registration with the Public Registry: 5-10 business days
• Commercial licence (Aviso de Operaciones) from the Municipality of Panama: 1-2 weeks
• DGI (Dirección General de Ingresos) tax registration: 1-2 weeks
• Corporate bank account opening: 2-4 weeks (this is often the longest step)

Step 2: Document Preparation

• Obtain and apostille criminal background checks from all relevant jurisdictions
• Spanish translations by a certified translator
• Preparation of the immigration application packet by the attorney

Step 3: Filing with the National Immigration Service (SNM)

• The application is filed with the Servicio Nacional de Migración
• Biometric data (fingerprints, photograph) collected at the SNM office
• Filing fee: USD 250 per applicant
• Processing fee: USD 800 per applicant

Step 4: Provisional Residency Card

• Upon filing, applicants receive a provisional residency permit (carné provisional) within 2-4 weeks
• The provisional card permits full residency rights, including the ability to open additional bank accounts and sign contracts

Step 5: Permanent Residency Card

• The permanent residency card (cédula de residente permanente) is issued after full processing, typically 6-12 months from filing
• The card is valid for 10 years and renewable

Total Costs

Item	Approximate Cost (USD)
Company formation (Sociedad Anónima)	1,500-2,500
Commercial licence	200-500
Bank deposit (refundable)	5,000
Government filing and processing fees	1,050 per applicant
Apostille and translation of documents	500-1,500
Legal fees (immigration attorney)	3,000-5,000 per applicant
Medical examination	100-200
Total per individual	11,000-15,000

Dependants (spouse and children under 18) can be included in the application, with government fees of approximately USD 1,050 per dependant and incremental legal fees.

Tax Implications of Panamanian Residency

Panama operates a strict territorial tax system under the Fiscal Code (Código Fiscal). Key features:

• Only Panamanian-sourced income is taxable: Income earned outside Panama is completely exempt from Panamanian income tax, regardless of whether it is remitted to Panama.
• Personal income tax rates: Progressive rates from 0% to 25% on Panamanian-sourced income.
• No capital gains tax on foreign assets: Gains on assets located outside Panama are exempt.
• No worldwide reporting: Panama does not require residents to report foreign income, assets or bank accounts (though CRS obligations may apply to financial institutions).
• No inheritance or gift tax: Panama does not impose estate, inheritance or gift taxes.

This territorial system makes Panama extremely attractive for entrepreneurs, investors and retirees whose income is derived from outside Panama. A remote worker earning income from a non-Panamanian employer, or a business owner with offshore companies, would pay zero Panamanian income tax on those earnings.

Path to Citizenship

Friendly Nations Visa holders become eligible for Panamanian citizenship (naturalisation) after five years of permanent residency. The naturalisation process requires:

• Five years of continuous residency (brief absences are permitted)
• Basic Spanish language proficiency
• Knowledge of Panamanian history and civics
• Clean criminal record
• Application through the Ministry of Government (Ministerio de Gobierno)

Processing time for naturalisation is typically 12-24 months. Panama permits dual citizenship, so applicants need not renounce their existing nationality.

A Panamanian passport provides visa-free or visa-on-arrival access to approximately 140 countries, including the Schengen Area, the United Kingdom, and most of Latin America.

Practical Considerations

• Banking: Panamanian banks (Banco General, BAC, Banistmo) apply rigorous KYC procedures. Non-resident account opening is difficult; the bank deposit requirement for the FNV effectively forces applicants through the KYC process early.
• Healthcare: Panama has a well-developed private healthcare system, particularly in Panama City. Punta Pacifica hospital (affiliated with Johns Hopkins) provides advanced care. Health insurance costs approximately USD 150-400 per month.
• Real estate: Panama City's property market offers modern apartments from USD 1,500-2,500 per square metre in desirable areas (Punta Pacífica, Costa del Este, Casco Viejo).
• Language: Spanish is the official language. English is widely spoken in Panama City's business district but not in government offices or outside the capital.
• Currency: Panama uses the US dollar as its official currency alongside the Balboa (pegged 1:1), eliminating currency risk for USD-denominated income earners.

Key Takeaways

• The Friendly Nations Visa grants permanent residency to citizens of 50+ designated countries through a company formation, real estate purchase, or professional employment route.
• Total costs are approximately USD 11,000-15,000 per applicant including legal fees, company formation and government fees, with a refundable USD 5,000 bank deposit.
• Panama's territorial tax system means foreign-sourced income is entirely exempt from taxation, making it one of the most favourable tax residency bases in the Americas.
• Citizenship by naturalisation is available after five years of permanent residency; Panama permits dual citizenship.
• The US dollar is legal tender, eliminating currency risk. The cost of living is moderate, with strong healthcare and banking infrastructure.
• Processing from filing to permanent residency card takes 6-12 months, with a provisional card issued within 2-4 weeks of application.