Moving to Panama from the United States — complete guide

Panama is a favorite destination for retired American expats in Central America. Dollarized economy (USD is official currency), accessible residency, quality private healthcare, and the famous Friendly Nations Visa, which grants citizens of 50+ countries including the US a 2-year provisional residency with a path to permanent residency.

Residency types

  • Friendly Nations Visa — 2-year provisional residency, then a separate permanent-residency application; requires B/.200,000 real estate (may be bank-financed) OR a B/.200,000 3-year fixed deposit OR employment
  • Pensionado Visa — For pensioners with a lifetime pension of US$1,000+/month (Social Security counts), or US$750/month if you own Panama property worth B/.100,000+. Add B/.250/month per dependent; spouses may combine their pensions to reach the minimum. The permit is indefinite (no renewals) — plus the famous pensioner discounts

Why Panama

  • Dollarized economy — USD is the currency
  • Banking center — sophisticated financial system
  • US proximity — 3-5 hour flight from Miami, Houston, NYC
  • No territorial tax — Panama does NOT tax income generated outside the country (key for US expats)
  • Pensioner discounts — unique legal system: 50% off restaurants, 30% transport, 25% electricity, etc.
  • English widely spoken in Panama City and expat areas (Boquete, Coronado, El Valle)

Last verified: 2026-06-11.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.