Panama Friendly Nations Visa — guide for American citizens

The Friendly Nations Visa is one of the most accessible residency routes in Latin America. US is one of 50+ eligible Friendly Nations. 2021 changes (Decretos 197 and 226 of 2021): opening a bank account is no longer enough — real economic ties are required — and the visa now grants a 2-year provisional residency first; permanent residency is a separate application filed afterward, not automatic or immediate.

Three paths to qualify (choose ONE)

Path 1: Real estate purchase

  • Minimum: B/.200,000 (≈ US$200,000) in Panama real estate, titled in your name
  • May be financed through a Panamanian bank (a mortgage does not disqualify you)
  • Property can be residential, commercial, or land

Path 2: Fixed-term bank deposit

  • B/.200,000 fixed-term deposit in a Panamanian general-license bank
  • Minimum term of 3 years, free of liens or encumbrances

Path 3: Employment with Panamanian company

  • Employment contract with Panama-registered company
  • Minimum salary per Panama law
  • Contract registered with MITRADEL

The process

  1. Preliminary in US: FBI background + apostille; book Panama migration attorney
  2. Travel to Panama as tourist (90 days no visa for US)
  3. Choose path: close property purchase / open the fixed-term deposit / sign employment contract
  4. Submit to Servicio Nacional de Migración with full dossier + fees
  5. Wait 30-60 days for resolution
  6. Receive 2-year provisional residency card + Panama E-cédula
  7. Apply for permanent residency in a separate application once the 2-year provisional period is completed (Decretos 197 and 226 of 2021)

Rights and restrictions

✅ 2-year provisional residency with a path to permanent residency, real estate, banking, study, can work with separate permit ❌ Cannot work without separate work permit, cannot vote (citizens only)

Total costs

  • Migration attorney (essential): $4,000-$8,000 USD
  • Official migration fees: B/.250 (Tesoro Nacional) + B/.800 (Servicio Nacional de Migración); dependents add B/.100 per month each to the requirement
  • Apostilles + translations: $300-$500 USD
  • Medical certificate: $150 USD
  • Total: $7,000-$12,000 USD (NOT including property purchase or company capital)

Taxation

Panama has territorial regime:

  • Income generated IN Panama: taxed in Panama
  • Income generated OUTSIDE Panama: NOT taxed in Panama

Excellent for US expats with pensions, Social Security, US dividends.

Path to Panamanian citizenship

After 5 years as a resident: naturalization (basic Spanish + history exam, no serious criminal record).

Panama allows dual citizenship — keep US passport + add Panamanian.

Official source: Servicio Nacional de Migración

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.