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.

Before obtaining the permanent residency, applicants will receive a provisional residency valid for two years. After that time and proving that they have maintained the requirements, applicants will be eligible to request permanent residency.

The Panama Friendly Nations Visa application includes one main applicant and optional dependents, such as a spouse, parents, 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?

Professional or Economic Ties with Panama

Applicants to the Panama Friendly Nations Visa program must demonstrate economic ties with Panama in one of the following 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.

REAL ESTATE OWNERSHIP

Requires the applicant to own Panamanian property with a registered value of at least USD $200,000, which can be financed with a local institution.

CERTIFICATE OF DEPOSIT

Requires the applicant to own a fixed-term peposit of at least $200,000 in a national bank in Panama. The fixed-term deposit must include title, value, term, and must be free of encumbrances with a minimum validity of 3 years.

This investment can be made under the name of the applicant or under the name of a legal entity in which the applicant is the natural person beneficiary of the shares.

Application Requirements To Obtain Provisional Residency

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 (Employment contract or Real Estate ownership)
  • 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 (Employment contract or Real Estate ownership)
  • 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 Requirements To Obtain Permanent Residency

The applicant may apply for Permanent Residency after two years of holding Provisional Residency.

The same requirements must be complied with as when initiating the Provisional Residency process (see above), with the exception of the payment of USD $250 to the National Treasury.

Application Process

The application process is divided into 3 phases with periods between phases. This immigration program first grants a 2-year provisional residency permit, prior to applying for and obtaining the permanent residency permit. The whole process takes up to 3 years counting the waiting period between phases.

Step 1 – OBTAIN TEMPORARY RESIDENCY ID

The objective of Phase 1 is to file the application and for the applicant and his dependents to obtain a Temporary Residency ID and six months after, a provisional residency permit.

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

This is a sample breakdown of your time in Panama:

Meet with your attorney and fill out paperwork.

Register passport at the Panama Immigration Office (USD $5 per person). This might take the whole day since 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.

Submit the application at the Panama Immigration Office to obtain a Temporary Residency ID.

Have a picture taken and receive a Temporary Residency ID.

Immigration will hold your passport for 2 days.

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

Pick up your passport and Multiple-Entry Visa at our 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 your driver’s license in this phase, and it does NOT require the assistance of a lawyer.

Wait Period 1 – UP TO 6 MONTHS

After the initial application is accepted at the immigration office and the applicant has received a temporary residency permit, the Immigration Office will take up to 6 months to issue a resolution and give the applicant a provisional residency permit.

STEP 2 – OBTAIN PROVISIONAL RESIDENCY ID

Once the immigration office approves the initial application, the applicant will receive a provisional residency ID valid for two years. During that time he/she will have to uphold all the requirements previously mentioned.

Wait Period 2 – 2 years

After obtaining the provisional residency permit and upholding the requirements (see above) for two years, the applicant may then apply for permanent residency.

STEP 3 – APPLY FOR PERMANENT RESIDENCY ID

After two years of holding the provisional residency and fulfilling the requirements, the applicant can come back to Panama (if they are abroad) and start their permanent residency application process.

Wait Period 3

The immigration office may take up to 6 months to provide a resolution for the permanent residency application.

STEP 4 – OBTAIN PERMANENT RESIDENCY ID

Once the application is approved the applicant and his dependents obtain the Permanent Residency card.

If the applicants are out of the country, 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 after the two-year period of Provisional Residency to return to Panama (if they are out) and complete the process to obtain Permanent Residency. If they don’t complete the process on time, the application will be canceled.

Work Permit

Obtaining residency with the Friendly Nations Visa 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), which can be done when you obtain the provisional residency.

The process to obtain a Work Permit is independent from that of obtaining 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.

Can I add dependents to my application?

You can add your family members as dependents under a Family Regrouping Visa. This visa will grant your family members permanent residency in three years.

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.

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.