Panama residency visas: Friendly Nations, Pensionado and the investor visa compared

Panama residency options at a glance: four visas compared

For most people the choice comes down to two questions: where your money comes from and which passport you hold. A pension points to the Pensionado. A passport from a listed country plus a job or $200,000 points to Friendly Nations. Capital from abroad and a need for speed point to the Qualified Investor visa. Remote work with no plan to settle yet points to the remote worker visa.

Figures as of October 2026. Government fees exclude legal fees, card fees and document costs. B/. (balboas) trade at par with the US dollar.

The Friendly Nations list is the only route here tied to your passport. Panama also offers non-listed nationals the Pensionado, the Qualified Investor visa and a handful of other investment routes, covered below.^[3]

Panama Friendly Nations visa: requirements, countries and costs

The Friendly Nations visa gives residency to citizens of 51 countries who also have an economic tie to Panama: a job with a Panamanian company, a property worth at least $200,000, or a $200,000 fixed-term deposit held for three years.^[3] Nationality alone is not enough. You need both a listed passport and one of the three ties.

Which countries are on the Friendly Nations list in 2026

The list sits in Executive Decree 416 of 2012, amended in 2021 and again by Executive Decree 16 of 31 August 2026. That last decree added Ecuador and brought the total to 51.^[3] The list includes the United States, Canada, the United Kingdom, most European Union members, Australia, New Zealand, Japan, South Korea, Israel, Singapore, Hong Kong, Mexico, Brazil, Argentina, Chile, Uruguay, Paraguay, Costa Rica and South Africa.^[4] Peru was added in 2021.^[3]

Colombia, Venezuela and India are not on the list. Italy has never been on it either: Italians apply under a separate bilateral treaty with its own requirements.^[3] Older lists that still show Taiwan are out of date. It dropped off after Panama switched diplomatic recognition to China in 2017.^[3] Adding Ecuador changed nothing else, and the requirements, phases and fees of the 2021 decree remain in force.^[5]

The three ways to qualify

• A job in Panama. You need a genuine employment contract with a Panamanian company, registered with the Ministry of Labor. Professional-services contracts do not count.^[6] Residency does not replace the separate work permit from MITRADEL, the labor ministry.^[5] One agency reports that work permits generally take six to nine months before you can start working.^[7]
• A $200,000 property. The Public Registry must show a property worth at least $200,000. You can hold it in your own name, through a company you ultimately own, or through a private interest foundation, and a local bank can finance the purchase.^[5] It has to be a finished, registered unit, not a project under construction.^[6]
• A $200,000 deposit. The deposit goes into a bank with a general license in Panama, free of liens, for at least three years.^[5] You cannot pledge it as collateral during that period.^[8]

If the property route is your plan, our guide to buying property in Panama as a foreigner explains titles, closing and the taxes you will meet.

Two years provisional, then permanent

Approval gives you a two-year provisional permit. After that you apply for permanent residence and must prove the economic tie again.^[3] Firms quote three to four months^[9] to four to six months^[4] to get the provisional card, and another three to six months to convert to permanent status after the two years.^[10] One agency puts the whole process at about three years from start to finish.^[7]

The "$5,000 Friendly Nations visa" no longer exists

Some pages still describe a route based on a $5,000 bank deposit. The current SNM (National Immigration Service) requirements sheet has no such route, only the job, property and deposit options.^[5] Any guide that sells a $5,000 version is describing rules from before 2021.

What the Friendly Nations visa costs

Government fees are B/.250 to the National Treasury and B/.800 to the SNM per applicant, about $1,050 in total.^[10] Some firms describe the B/.800 as a repatriation deposit. Whether it is ever refunded is unclear, so budget it as a cost.

Legal packages add the rest. One firm publishes $3,000 for the main applicant, $2,200 per dependent and $1,400 per child under 12. Those prices include the government checks, $350 for notary work and forms, and $1,600 in professional fees.^[9] The same firm says a spouse, single children under 25 studying in Panama, and parents can be included in the same application.^[9]

Panama Pensionado visa: pension requirement, costs and discounts

The Pensionado visa gives permanent residency to anyone 18 or older with a lifetime pension of at least $1,000 a month. The minimum drops to $750 a month if you also own Panamanian property worth $100,000 or more.^[11][12] Each dependent adds $250 a month to the requirement.^[13] There is no upper age limit, and you do not have to be retired. You only have to receive a qualifying pension.^[12][14]

What counts as a pension for the pensioner visa

Accepted sources include US Social Security, other government retirement funds, military, state and police pensions, and private corporate retirement plans.^[13] Personal savings do not count.^[15] Neither do IRA or 401(k) balances, however large. Income from investments, rentals or self-employment does not qualify either.^[16]

The pension letter is where applications fail. Immigration looks for wording that the pension is guaranteed for life, and files without it can be sent back.^[17] If neither spouse reaches $1,000 alone, a couple can combine two pensions.^[12] The $750 route requires property you have acquired personally.^[11] Our guide to Boquete real estate shows what $100,000 buys in one of the towns where expats buy.

A dependent spouse needs the extra $250 a month. Dependent children receive a temporary permit up to age 25 if they study full time.^[18]

Permanent from approval, with a provisional card first

The Pensionado grants permanent residency on approval, with no temporary stage to sit through.^[12] When you file, you get a provisional card and a multiple-entry visa so you can live in Panama and travel while the file is reviewed.^[16][19] Law firms quote anywhere from two to six months from filing to approval.^[19][12] Once approved, you collect the permanent card and book an appointment at the Electoral Tribunal for the cédula E, the foreign resident ID.^[16]

How much the Pensionado visa costs

The main applicant is exempt from the government fee and the repatriation deposit under Law 9 of 1987, article 2(3). Some firm price lists still show a $400 government fee for the main applicant.^[12] Ask your lawyer to confirm that charge is not on your bill.

Dependents do pay. Each one owes B/.250 to the National Treasury and an $800 repatriation deposit to the SNM.^[20] Children under 12 are exempt from the deposit.^[21] Card fees apply to everyone: $50 for the provisional ID, $50 for the multiple-entry visa, $100 for the permanent card, and about $35 for the medical certificate.^[12] The full breakdown is in the costs section below.

Pensionado visa benefits: the Law 6 discounts

Law 6 of 1987 sets minimum discounts for retirees and pensioners. Under the consolidated text, they apply to all pensioners of any age, and to any resident aged 55 or over (women) or 60 or over (men).^[22]

Minimum discounts under Law 6 of 1987 as reformed, as of October 2026.

The figures come from the law and the Panamanian embassy's own list.^[13][22] Some guides still quote older utility limits, such as bills under $50 for electricity and under $10 for water.^[12] The consolidated law sets 600 kWh and B/.30.^[22] The law does not cover vehicle plates or municipal circulation taxes.^[23] Complaints go to ACODECO, the consumer authority.^[16] The law sets fines of B/.50 to B/.5,000 for refusing the discount, and the benefits cannot be transferred to anyone else.^[22]

The medical discounts matter most to retirees without full insurance. Our guide to healthcare in Panama for foreigners compares hospitals, costs and insurance.

Pensionado holders can also import household goods worth up to $10,000 duty-free once, and import a car duty-free every two years.^[12]

Can you work on a Pensionado visa?

Not as an employee of a Panamanian company. You can own a business, receive dividends or work remotely for clients outside Panama.^[24] Taking a salaried local job requires a separate work permit. For monthly budgets and the towns retirees choose, see our guide to retiring in Panama.

Qualified Investor visa: Panama residency by investment under the 2026 rules

The Qualified Investor visa, often sold as Panama's golden visa, gives permanent residency from approval in exchange for an investment of $300,000 to $750,000. It now runs under Executive Decree 17 of 8 September 2026, which replaced Decree 722 of 2020 from 16 September 2026.^[2] The investment must be kept for five years.^[25]

A promesa de compraventa (a purchase contract for a unit not yet delivered) also qualifies at $300,000.^[2] That opens the route to off-plan buyers, with the delivery risks that come with them. Our guide to Panama condos for sale to foreigners covers those risks.

When required, the independent appraisal must be issued within six months before filing.^[2] If securities lose value, you are not automatically in breach, provided you restore the minimum within 90 calendar days of being notified.^[2]

What counts toward the investment

For property, the amount that counts is the lower of the price you paid and the market value, minus any mortgage or lien. A $350,000 resale apartment with a $100,000 mortgage therefore counts as $250,000, below the threshold. The funds must come from abroad.

Rights-of-possession land (derechos posesorios, or ROP) is not a title and never qualifies. This trips up beach and island buyers in particular. Our guide to beachfront and land in Panama explains titled versus ROP land.

What changed in September 2026, and the transition

Under the previous decree, the real-estate minimum was $300,000 and the deposit route needed $750,000 for five years.^[10] The new decree splits property into new and resale, raises resale to $500,000, and cuts the deposit to $500,000 at the two state banks.

Applications filed before 16 September 2026 follow the old rules. Investments or contracts signed before that date can also use the old rules if the application is filed within six months, so by March 2027.

Fees and timeline

The main applicant pays $5,000 to the National Treasury and $5,000 to the SNM. Each dependent pays $1,000 and $1,000. On the official timeline, MICI (the Ministry of Commerce and Industries) certifies the investment within 15 business days, and the SNM decides within 30.

One firm puts the route at about 30 business days once the file is complete, and estimates total costs excluding the investment at about $11,000-14,000.^[26]

Panama digital nomad visa and other short-stay options

Panama's digital nomad option is the short-stay remote worker visa. It lasts nine months, can be renewed once for another nine, and is for people earning at least $36,000 a year from outside Panama.^[27]

It was created by Executive Decree 198 of 7 May 2021, sits in the non-resident category, and needs no work permit.^[28] Because it is a non-resident visa, it does not on its own lead to permanent residency or citizenship. When the 18 months are up, staying longer means switching to one of the residency routes above.

The government fee is about $300, and the decision takes about 30 days.^[27] You need a letter from your employer signed by its legal representative, or a company registration certificate if you are self-employed. You also need health insurance valid in Panama for the whole stay.^[29] The income has to come from work done for employers or clients abroad.^[29] Lawyers' fees for this visa are reported at roughly $1,200-2,500.

For shorter visits you may not need a visa at all. US citizens enter with a passport valid for at least three months and a round-trip ticket.^[13] Panama also waives its tourist visa for holders of valid US, UK, Schengen, Canadian, Australian, Japanese, Korean or Singaporean visas.^[3] Pensionado applicants can enter as tourists and change status inside Panama.^[13]

Other Panama residency routes: reforestation, solvency and professional

If none of the four main visas fits, Panama has several smaller routes. They are mostly used by people from countries off the Friendly Nations list.

• Reforestation investor: $100,000 in an approved forestry project gives provisional residency, and $350,000 gives direct permanent residency, under Law 24 of 1992. The investment must be kept at least five years.^[11]
• Self economic solvency: $300,000 in property held in your own name, a three-year fixed deposit, or a combination of the two, with funds from abroad.^[11]
• Foreign professional: a university degree in a profession not reserved by law for Panamanians. It starts with provisional residence.^[11]
• Macro-enterprise investor: at least $160,000 in a Panamanian company that employs at least five Panamanian workers per applicant.^[11]
• Agricultural investor: from $60,000 in a working farm, renewed in two-year blocks up to six years. It never becomes permanent residency.^[3]
• Italy treaty: Italian citizens with a Panamanian company or a local job contract use a separate treaty category.^[30]

Documents, timeline and costs for Panama residency

Every route needs the same core paperwork, filed in Panama by a Panamanian lawyer, and most of the cost is legal fees rather than government charges. Panama's embassies cannot process residency applications.^[13] You must also be in Panama when the visa is issued.^[13]

Panama residency requirements: the core documents

Passport

Valid for at least six months, plus five passport photos.^[12]

Criminal record

A national record, not a state or local one. Americans need the FBI check.^[3] For Friendly Nations, it can be no more than three months old at submission.^[31]

Proof of the basis

The pension letter, job contract, Public Registry certificate, bank deposit certificate or MICI investment certification, depending on the route.

Civil records

Marriage and birth certificates for dependents.

Apostille or authentication

Foreign documents need an apostille or authentication by a Panamanian consulate. The Washington consulate charges $30 per document.^[13] Spanish translations are done in Panama.

Health certificate

Issued by a Panamanian doctor once you arrive.^[13]

Sworn declaration and power of attorney

A sworn statement of your personal background, plus a notarized power of attorney for your lawyer.^[5]

How the process runs

What each visa costs in total

These are all-in figures for one applicant, excluding the investment itself.

Pensionado visa cost for one applicant

As of October 2026. A dependent spouse adds B/.250, an $800 deposit and card fees.

The card figures come from one firm's fee table.^[12] The cédula estimate and the legal-fee range come from another.^[24] One consultancy quotes a much higher $7,000-12,000 for a single applicant, with legal fees of $5,000-8,000.^[17] Quotes vary widely, so compare at least two firms.

Keeping Panama permanent residency, taxes and the path to citizenship

Permanent residency is not a lifetime guarantee. The SNM can cancel it if you stay outside Panama for more than two years without an absence it has justified and authorized.^[32] It can also cancel residency when the basis for it ends. That makes selling the qualifying property or breaking the deposit early a real risk.^[32]

Taxes on pensions and foreign income

Panama taxes only Panamanian-source income, and you become a tax resident after 183 days in the country in a year.^[10] Foreign pension income generally stays untaxed.^[12] US citizens still file US returns.^[24] Rent from a property in Panama counts as Panamanian-source income, so it is taxable even if you rent out the apartment you bought for residency.

Property taxes for investor and Friendly Nations buyers

The property transfer tax (ITBI) is 2% of the higher of the price and the cadastral value, and the seller pays it. Since September 2026, the first sale of a new home is exempt on the first B/.120,000 of the taxable base, provided the sale closes within two years of the occupancy permit.^[33] Any clause shifting the seller's ITBI to the buyer is void.^[33]

When you sell, capital gains tax is 10% of the gain, with an advance of 3% of the price paid before registration (3.75% for developers). The annual property tax under Law 66 of 2017 runs in brackets from 0% to 1%, with a lower primary-residence regime. Paying the full year before 30 April with no arrears earns a 10% discount.

Panama citizenship

You can apply for naturalization after five years of permanent residency, or three if you are married to a Panamanian.^[34] The clock starts on the date of the residency resolution (article 126 of Decree Law 3 of 2008). On the Friendly Nations route, that means roughly seven years in total, against about five on the investor route.^[10]

The process includes a Spanish-language exam on Panamanian history and geography.^[3] You are asked to renounce your original nationality.^[24] Approval is discretionary, and one consultancy reports 12 to 24 months from petition to decision.^[17]

Which Panama residency visa is right for you

The cheapest route that fits your situation is almost always the right one. Pay for the investor visa only if speed or a missing pension or passport forces you to.

Some readers should skip residency for now. If you plan only a few winter months, a tourist stay or the remote worker visa may be enough. If you would be away for more than two years at a stretch, permanent residency can be cancelled, so a pension-based move that you will not actually live may not hold.

Colombians, Venezuelans and Indians cannot use Friendly Nations. For them, the Pensionado, the investor visa or the reforestation route are the realistic options.

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