Panama · Residency by investment
Friendly Nations Visa
Reformed by Executive Decree 197 of 7 May 2021 and Executive Decree 226 of 20 July 2021, both effective 7 August 2021. The pre-2021 version, instant permanent residency on the strength of a Panamanian company and a small bank balance, is dead. There is now a real economic tie and a two-year provisional stage.
At USD 200,000 with bank financing permitted, this is materially cheaper than the Qualified Investor route in cash terms. The price is two extra years and a two-stage process. For a family that is genuinely moving to Panama, that is often the better trade. For a family buying optionality, it is not.
Qualifying routes
This is registered value in Panama's Public Registry. Unlike the Qualified Investor route, it may be financed through a Panamanian bank.
A three-year term with a Panamanian bank. It cannot be pledged as collateral.
This route requires a genuine job offer plus a Ministry of Labour work permit. It is not a passive route.
The facts
- Minimum investment
- $200k
- Total landed cost
- USD 200k qualifying tie plus roughly USD 3.2k in fees for provisional residency and USD 2.3k for the permanent stage. Add USD 1.2–2k per dependant per stage.
- Route type
- Residency by investment
- Timeline
- 1–2.5 years (Roughly 6 months to provisional approval, then two years of provisional status, then roughly 6 months to convert to permanent.)
- Physical presence
- There is no meaningful minimum. Even so, do not let two years elapse without entering Panama.
- Family
- SpouseMinor childrenDependants need not hold a passport from a listed country
- Permanent residency
- 2 years of provisional residency. Conversion follows once you can show the qualifying tie is still in place.
- Citizenship
- 5 years of permanent residency, so roughly 7 years from first filing.
- Language test
- Spanish plus Panamanian history and civics examination
- Dual citizenship
- Not permitted. You would have to renounce.
- Requirements
- citizenship of a listed friendly nationclean criminal record, apostilledhealth certificate issued in Panamaproof of economic solvency and the qualifying economic tiefiled through a Panamanian lawyer
- Eligibility is restricted to roughly 49–50 listed countries. The list is set by decree and has been amended before. It can be amended again.
- The 2021 reform is the cautionary tale for this whole region. Panama abolished a beloved, heavily-marketed route overnight and grandfathered nobody who had not already filed. Assume any open programme here can be repriced or closed with weeks of notice.
- The two-year provisional stage is a real conditionality. The tie must still exist at conversion. A deposit that matures early, or a property sold in year two, costs you the residency.
- Provisional residency is not permanent residency, and some banks and tax authorities treat it differently. Do not build a tax-residency argument on the provisional card alone.