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1 PM Panama Time (GMT-5)

Ask your questions live to the Kraemer & Kraemer team in this Panama Friendly Nations Visa Walk-Through. Review the process, requirements, costs and more. Learn More.

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About the Panama Friendly Nations Visa

The Panama Friendly Nations Visa is a special immigration program where citizens of selected countries who have professional or economic ties with Panama are eligible to apply for permanent residency, and have the right to obtain Panamanian ID (Cédula) and request a work permit indefinitely as long as they meet the requirements.

This program is one of the faster options to obtain residency in Panama.

The Panama Friendly Nations Visa applications include one main applicant and optional dependents, such as a spouse and children up to 25 years old.

Eligible Countries

Find the list of eligible countries in this dropdown

Or CLICK HERE to see the full list of countries

How much does it cost?

The Panama Friendly Nations Visa requires USD $1,050 in government fees for applicants and dependents 12 years old or more. This is split in $800 for the National Immigration Service and $250 for the National Treasury.

Government fees for dependents under 12 years old include $250 to the National Treasury. They are excluded from the fee payable to the National Immigration Service.

Besides government fees you need to consider other costs such as legal fees, multiple entry visa, opening a corporation, opening a bank account, or obtaining a work permit.

For instance, you should budget around USD $4,000 for a process that includes Permanent Residency, Multiple Entry Visa, and Opening a Corporation for one person.

In another example, a family of one main applicant, spouse, and two dependents under 12 years old should budget around USD $8,000 for a process that includes Permanent Residency, Multiple Entry Visa, and Opening a Corporation.

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How to demonstrate Professional or Economic Ties

Applicants to the Panama Friendly Nations Visa program must demonstrate economic ties with Panama in one of the folowing three forms:

EMPLOYMENT CONTRACT

Requires an employment contract between the applicant and a Panamanian company. Other required documentation includes a letter from the employer.

This assumes the applicant has at least an offer of employment, or a conditional contract pending the immigration process.

OWNERSHIP OF A CORPORATION

Requires the applicant to have controlling ownership on a Panamanian company such as an IBC or a LLC. Such controlling ownership is demonstrated with a notarized Certificate of Company Shares and a notarized Certificate from the Public Registry.

Expats frequently choose this option, which requires opening a Panamanian company with its associated costs.

REAL ESTATE OWNERSHIP

Requires the applicant to own Panamanian property with a registered value of at least 5 figures in the Panama Public Registry. Such ownership is demonstrated with a notarized Property Certificate less than 6 months old.

Application Requirements

The application for Panama Friendly Nations Visa includes a main applicant and optional dependents, such as spouse or children. There are different requirements for each of them:

Main Applicant

Dependent Spouse

Dependent Children

  • Power of attorney
  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • Certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Second form of identification, e.g. identity card or citizenship certificate
  • Criminal background check from your country of origin, less than 6 months old
  • This document must be authenticated at the Panamanian Consulate in your country of origin, or Apostilled in your country of origin
  • Medical certificate of good health issued in Panama by a qualified doctor
  • Documents to demonstrate professional or economic ties with Panama
  • Proof of financial solvency, through a bank reference letter showing a balance of at least USD $5,000 in a Panamanian bank.
  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • Certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Marriage certificate, authenticated or apostilled (valid for 1 year)
  • Notarized proof of address in Panama, e.g. rental contract or letter from hotel
  • Proof of financial solvency: if the bank reference letter comes from a joint bank account (under the name of the main applicant and the spouse), it is recommended to show a balance of USD $8,000 (rather than $5,000).

The main applicant is allowed to include dependent children as long as their are 25 years old or younger. The requirements for dependent children include:

  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • If the child is 12 years old or more, certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Authenticated or apostilled birth certificate, less than 1 year old, demostrating that the child is related to the applicant.
  • If the main applicant is the only parent in the application, letter from the other parent authorizing their children application
  • If the dependent child is 18 years old or more, it is necessary to demonstrate the child is single and enrolled as a full-time student in Panama.
  • Power of attorney
  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • Certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Second form of identification, e.g. identity card or citizenship certificate
  • Criminal background check from your country of origin, less than 6 months old
  • This document must be authenticated at the Panamanian Consulate in your country of origin, or Apostilled in your country of origin
  • Medical certificate of good health issued in Panama by a qualified doctor
  • Documents to demonstrate professional or economic ties with Panama
  • Proof of financial solvency, through a bank reference letter showing a balance of at least USD $5,000 in a Panamanian bank.
  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • Certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Marriage certificate, authenticated or apostilled (valid for 1 year)
  • Notarized proof of address in Panama, e.g. rental contract or letter from hotel
  • Proof of financial solvency: if the bank reference letter comes from a joint bank account (under the name of the main applicant and the spouse), it is recommended to show a balance of USD $8,000 (rather than $5,000)

The main applicant is allowed to include dependent children as long as their are 25 years old or younger. The requirements for dependent children include:

  • Original passport valid for at least six (6) months.
  • Five (5) passport-size photographs
  • Certified check for two hundred and fifty dollars (US $ 250.00) from a local bank in favor of the National Treasury
  • If the child is 12 years old or more, certified check for eight hundred dollars (US $ 800.00) from a local bank in favor of the National Immigration Service
  • Authenticated or apostilled birth certificate, less than 1 year old, demostrating that the child is related to the applicant.
  • If the main applicant is the only parent in the application, letter from the other parent authorizing their children application
  • If the dependent child is 18 years old or more, it is necessary to demonstrate the child is single and enrolled as a full-time student in Panama.

Application Process

The application process is divided in 2 phases whith a waiting period betwen the 2 phases.

Phase 1

Waiting Period

Phase 2

Can be completed in 10 days.The objective of Phase 1 is to file the application and for the applicant and his dependents to obtain a Temporary Residency card. It is possible to complete this phase in 10 days or less if all documentation is ready.

The applicant and his dependents must be physically present in Panama because the Temporary Residency Card uses a photo taken in the Panama Immigration Office.

This is a sample breakdown of your time in Panama:

Day 1

  • Meet with your attorney and fill out paperwork.
  • Open the bank account.
  • Obtain certified checks for main applicant and dependents.
  • Obtain bank reference letter or bank statement on this day or the next day.

Day 2

  • Register passport at the Panama Immigration Office (USD $5 per person).
  • This might take the whole day. Immigration offices are usually crowded.
  • It might be possible to submit the application this day, and speed up the process. But it depends on whether passport registration is completed fast.

Day 3

  • Submit the application for Permanent Residency at the Panama Immigration Offices.
  • Have picture taken and receive Temporary Residency ID.
  • Immigration will hold your passport for 2 days.

Day 4-5

  • Request Multiple-Entry Visa, if applicants plan to go back to their home country.

Day 6

  • Pick up your passport and Multiple-Entry Visa at our office.

We suggest planning for 10 days in the event that unexpected circumstances cause a delay. For example, consider power outages at the Immigration Office.

The Temporary Residency Card allows you to obtain a Panamanian Driver’s license valid for the same period of your Temporary Residency Card. You may want to obtain yor driver’s license in this phase, and it does NOT require the assistance of a lawyer.

About 3 months.There is usually a 3-6 month wait period between phases, and applicants usually travel back to their home country. This requires a Multiple-Entry Visa; otherwise, the applicant will be fined USD $2,000 upon his return to Panama to complete the residency process.

Once application is a approved.In Phase 2, the applicant and his dependents obtain the Permanent Residency card.

The date of return depends on the approval of the application by Immigration.

Upon arrival, it takes one to two days to complete the Friendly Nations Visa process and receive the Permanent Residency Card. This requires one more visit to the Panama Immigration Office.

Optionally, you can apply for the E-Cédula (National ID). This can be completed at any time after the Friendly Nations Visa application is approved. This ID is not mandatory, but is highly recommended.

Approved applicants have 6 months to return to Panama and complete the residency process, or they may be fined USD $50 per person in the application.

Can be completed in 10 days.The objective of Phase 1 is to file the application and for the applicant and his dependents to obtain a Temporary Residency card. It is possible to complete this phase in 10 days or less if all documentation is ready.

The applicant and his dependents must be physically present in Panama because the Temporary Residency Card uses a photo taken in the Panama Immigration Office.

This is a sample breakdown of your time in Panama:

Day 1

  • Meet with your attorney and fill out paperwork.
  • Open the bank account.
  • Obtain certified checks for main applicant and dependents.
  • Obtain bank reference letter or bank statement on this day or the next day.

Day 2

  • Register passport at the Panama Immigration Office (USD $5 per person).
  • This might take the whole day. Immigration offices are usually crowded.
  • It might be possible to submit the application this day, and speed up the process. But it depends on whether passport registration is completed fast.

Day 3

  • Submit the application for Permanent Residency at the Panama Immigration Offices.
  • Have picture taken and receive Temporary Residency ID.
  • Immigration will hold your passport for 2 days.

Day 4-5

  • Request Multiple-Entry Visa, if applicants plan to go back to their home country.

Day 6

  • Pick up your passport and Multiple-Entry Visa at our office.

We suggest planning for 10 days in the event that unexpected circumstances cause a delay. For example, consider power outages at the Immigration Office.

The Temporary Residency Card allows you to obtain a Panamanian Driver’s license valid for the same period of your Temporary Residency Card. You may want to obtain yor driver’s license in this phase, and it does NOT require the assistance of a lawyer.

About 3 months.There is usually a 3-6 month wait period between phases, and applicants usually travel back to their home country. This requires a Multiple-Entry Visa; otherwise, the applicant will be fined USD $2,000 upon his return to Panama to complete the residency process.

Once application is a approved.In Phase 2, the applicant and his dependents obtain the Permanent Residency card.

The date of return depends on the approval of the application by Immigration.

Upon arrival, it takes one to two days to complete the Friendly Nations Visa process and receive the Permanent Residency Card. This requires one more visit to the Panama Immigration Office.

Optionally, you can apply for the E-Cédula (National ID). This can be completed at any time after the Friendly Nations Visa application is approved. This ID is not mandatory, but is highly recommended.

Approved applicants have 6 months to return to Panama and complete the residency process, or they may be fined USD $50 per person in the application.

Work Permit

The permanent resident status does NOT entitle you to work in Panama right away; however, Panamanian law provides another process to apply for a work permit at the Ministry of Labor (Ministerio de Trabajo – MITRADEL), after the residency process is completed.

The process to obtain a Work Permit is independent from that of obtaining permanent residency, and it has a separate cost. MITRADEL usually takes 1-2 months to answer work permit applications.

Driving in Panama

Those who obtain Panamanian Permanent Residency with the Friendly Nations Visa program, who are over 18 years of age, and who bring a Driver’s License from their country of origin, can obtain a Panamanian Driver’s License. The process to obtain the driver’s license is simple, but requires a few steps:

Step 1 – The foreign driver’s license must be authenticated at the consulate of the issuing nation, and then this authentication must be certified at the Panamanian Ministry of Foreign Affairs, in Panama City.

Step 2 – The permanent resident must obtain a blood-type test from a laboratory authorized by the Autoridad del Transito y Transporte Terrestre (ATTT). This test must include the full name, identity card or passport number, a stamp, and the signature of the doctor. This blood-type test is NOT required if the foreign driver’s license (from Step 1) clearly indicates the blood type.

Step 3 – The permanent resident must visit a SERTRACEN office, and bring the certified copy of the foreign driver’s license (from step 1), the blood-type test (from Step 2), original and copy of permanent residency card, and original and a copy of passport. The application costs $40 and includes visual and auditory tests. If all tests are completed successfully, the applicant receives the Panamanian Driver’s license on the spot.

If older than 70 years of age, the permanent resident must visit a psychologist or geriatric doctor before receiving a driver´s license.

Benefits of the Panama Friendly Nations Visa

Fast second residency

As mentioned before, obtaining the Friendly Nations Visa is a simple and straightforward process to obtain a second residency as long as you meet the requirements. The requirements are to prove financial and economic solvency as well as personal documentation. You can learn more about the requirements here

The process to file the application at the Immigration Office can be done in 10 days or less. After that you can go back to your home country and wait for the application to be approved, which can take 2 to 3 months.

Taxes and Citizenship

Panama has a territorial taxation system, meaning that you only have to pay taxes for income generated inside the country. This is also true for companies in Panama; if your company generates income outside of Panama, it is not subjected to tax on its income.

Even if your company has income inside of Panama, the tax rate you have to pay are considered lower than the ones in European countries.

Besides being a safe and beautiful country, Panama lets you apply for a Panamanian citizenship after being a permanent resident for five years.

Lifestyle in Panama

Applying to the Friendly Nations Visa and becoming a permanent resident in Panama is a good option since the country is politically stable, it has modern infrastructure, and an affordable healthcare system. Furthermore, the cost of living is considerably lower compared to other countries such as the US and some European countries.

Taxes for expats in Panama

What income is taxable?

No matter the residency program, taxable income in Panama includes any income generated from business activities in Panamanian territory. Different from the US and European tax system, you will only be taxed for what you generate within Panamanian borders. In case you’re wondering how Panama gets tax revenue it is important to keep in mind that most of it comes from VAT.

Tax rates in Panama

Individuals who earn less than US$11,000 per year don’t pay income tax. In case of earning between US$11,000 and US$50,000, the rate for income tax is 15%. Income higher than US$50,000 will need to pay 25% income tax.

Panama tax residency

Now, if you obtain permanent residency through the Friendly Nations visa you might also be interested in obtaining your tax residency. The purpose of a tax residence certificate is to prove to other countries your tax status as resident of Panama. One main benefit of this certificate is that it can be used by citizens of countries which have conventions such as Mexico, Spain, France, UK, Germany, among others, for the avoidance of double taxation with Panama.

One way to qualify for a tax residence certificate is by showing proof of having spent a total of 183 days or more in one year in Panama. The requirements to request the certificate are:

  • E-Cedula
  • Notarized full copy of passport
  • Proof of address in Panama
  • Proof of economic activity that generates income in Panama
  • Proof of residency status
  • Details of tax treaty to be applied
  • Tax year of the request of the certificate

Frequently Asked Questions

My partner and I live together / in common law. Can we apply together?

No. Panamanian law requires an apostilled / authenticated marriage certificate to be able to apply together. However, you can each file separate applications.

Why do I need a multiple entry visa?

According to Panamanian Law, the multiple entry visa is required whenever a foreigner begins a process to obtain Panamanian residency, and the foreigner travels outside of Panama BEFORE the National Immigration Service provides a resolution to the application.

If the foreigner resides in Panama until the National Immigration Service provides a resolution, then no Multiple Entry Visa is required. However, the foreigner can only have tourist status during that time, and should not work in Panama.

It is also important to consider that a Tourist Visa can expire before the National Immigration Service provides a resolution. In such case, it is possible to request an extension of the Tourist Visa for another term, usually of 30 – 90 days.

How long are the documents for my application valid?

The Criminal background check is valid for up to six months, unless the document itself specifically states otherwise. However, this document can also be voided if the foreigner visits Panama and leaves without applying for Residency.

The Health Certificate issued in Panama is valid for ninety days. Bank reference letters are valid for thirty days. Other documents, such as marriage certificate and retirement letters are valid for one year, unless the document states otherwise.

How long does it take to obtain a Work Permit?

In Panama, the process to obtain a Work Permit is separate from the process to obtain Residency. The Ministry of Labor (Ministerio de Trabajo – MITRADEL) is responsible to answer applications for a Work Permit. This government branch is different and independent from the National Immigration Service.

It may take 1 to 2 months to obtain a work permit.

How long do I need to stay in Panama to maintain Permanent Resident status

Permanent Residency can be suspended if you are absent from the country for 2 years or more. Other reasons to have Permanent Residency suspended include to be found guilty of a criminal offense.

What is the e-Cedula? Do I need one?

The e-cedula is an optional form of ID available to Panamanian Permanent Residents. It is not a mandatory document, but it is highly recommended to have it. Although the Panama Immigration Office issues a Permanent Residency Card to approved applicants, this card requires holders to carry a passport when doing legal transactions (at all times), while with the e-Cedula solely it is sufficient. (will removes the need to carry the PR card and a passport) . Besides, the e-Cedula has a unique identification number and is similar in style to the ID carried by Panamanians.

Is it possible to apply for Panamanian Citizenship?

Yes, those who obtain Panamanian Permanent Residency with the Friendly Nations Visa program are eligible to apply for Panamanian Citizenship after 5 years of Permanent Resident status. The 5-year requirement may become 3 years if you are married to a Panamanian, or if you have children born in Panama. The 5-year requirement can also be reduced in other circumstances. Unlike Permanent Residency, the Citizenship process involves many government offices, and an application can take anywhere from 2 to 5 years to be approved.

Are there age restrictions to apply?

All main applicants must be 18 years of age or more. There is no maximum age to apply. Dependent children must be younger than 18 years old, with the exception that dependent children between 18 and 25 years old can be included in the application as long as they are not married and they are enrolled full time in a Panamanian educational program such as high school or college.

Can I obtain a Tax ID number for Panama?

A local tax id can be obtained with the Tax Office (DGI), for any permanent resident, or foreigners with more than 183 days in the country, or foreigners selling real estate acquired in the country.

Once residency is granted, may I dissolve the Corporation or do I need to keep it?

Once residency is obtained, the Corporation can be dissolved if no longer required for business or asset holdings. The dissolution can be processed within 1 week, by recording a Deed of dissolution into the Public Registry, and publishing a notice for 1 day in a local newspaper.

Articles about the Friendly Nations Visa

About Us

Founded in July 2008, Kraemer and Kraemer is a Panamanian law firm with more than 11 years of experience. The firm helps hundreds of clients yearly with one of the most popular immigration processes, the Panama Friendly Nations Visa, as well as other processes such as the Panama Retirees and Pensioners Visa.

On top of immigration processes, Kraemer & Kraemer also provides legal services related to industries such as: Business, Tax, Real Estate, and Banking Introduction Services. The firm focus its legal practices in Panama City and David, Chiriqui.

Do you have questions? Contact Kraemer & Kraemer today.