How to Become a Resident of Panama: Visas, Residency Options & Requirements

Dreaming of palm trees, lower living costs, and a tropical lifestyle? 

Panama might just be calling your name. This guide breaks down everything you need to know about becoming a legal resident in Panama—from visa options and residency requirements to the perks of living in this Central American haven.

🌴 Why Panama? Here’s Why People Are Moving South

Panama isn’t just about the canal. It’s a tropical paradise with:

• No hurricanes (yep, unlike its neighbors)

• A stable U.S. dollar-based economy

• Lower cost of living compared to the U.S. or Europe

• Expanding healthcare and infrastructure

• Tons of expat-friendly services and communities

Whether you're retiring, working remotely, or starting a business, Panama offers flexible paths to residency.

🧾 Types of Panama Residency Visas

Let’s dive into the most popular visa options available for foreigners wanting to live in Panama long-term.

1. Friendly Nations Visa (FNV)

Best for: Citizens from select countries like the U.S., Canada, UK, and over 40 others
Why It Rocks: Fast-track permanent residency

Requirements:

• Proof of economic or professional ties to Panama (employment contract OR ownership of a Panamanian company)

• Valid passport

• Police background check (apostilled)

• Bank reference letter with a minimum deposit (usually $5,000 USD)

• Legal fees and processing costs: $3,000–$5,000 depending on the lawyer

🔄 Update: As of 2021, Panama tightened this program. It now often requires actual employment or investment rather than just intent.

2. Pensionado (Retiree) Visa

Best for: Retirees aged 18+ with a pension
Why It Rocks: Discounts galore on everything from travel to healthcare

Requirements:

• Monthly lifetime pension of at least $1,000 (or $750 if buying property over $100,000)

• Valid passport

• Background check (apostilled)

• Medical certificate

Bonus: This visa is permanent from day one, and you’ll enjoy:

• 25% off airline tickets

• 20% off medical bills

• Up to 50% off entertainment

3. Self-Economic Solvency Visa

Best for: High-net-worth individuals looking to invest
Why It Rocks: No need for local employment or ties

Options:

• Invest $300,000 in Panamanian real estate

• Deposit $300,000 in a Panamanian bank for 3 years

• Combine both to meet the threshold

Great for those wanting freedom and flexibility, but you’ll need proof of clean income and funds.

4. Professional Employment Visa

Best for: Foreigners who land jobs with Panamanian companies
Why It Rocks: Legitimizes your stay while earning an income

Requirements:

• Job contract with a Panamanian company

• University degree or certification

• Work permit approval

Panama limits the number of foreigners a company can employ, so this path takes a bit more effort but is doable with an in-demand skill.

5. Investor Visa (Business or Agricultural Investment)

Best for: Entrepreneurs

Why It Rocks: Combine residency with profits

Invest at least $160,000 in a Panamanian business or agricultural venture. You must employ at least five locals, and your business must be operational.

📋 Step-by-Step Process to Get Residency in Panama

Let’s break down the residency application process so it doesn’t feel like a jungle.

Step 1: Choose the Right Visa

Align your background, income, and intentions with the visa that fits best.

Step 2: Gather Documents

You'll typically need:

• Passport (valid for at least 6 months)

• Birth certificate

• Marriage certificate (if applicable)

• Police clearance (apostilled)

• Proof of income or investment

• Health certificate (in some cases)

• Passport photos

Step 3: Hire a Local Immigration Lawyer

While not legally required for all visas, it’s highly recommended. 

The bureaucracy can be confusing, and lawyers speed things up.

Step 4: Enter Panama on a Tourist Visa

Then apply for residency within Panama. You’ll get a temporary card while your application processes (usually 3–6 months).

Step 5: Receive Temporary or Permanent Residency

Depending on your visa, you’ll either get:

• Temporary residency (good for 1–2 years)

• Permanent residency right away (Pensionado Visa, for example)

🏡 Living in Panama as a Resident: What to Expect

Once approved, you can start enjoying the benefits of legal residency:

• Healthcare: Access public and private care, including expat-focused hospitals

• Banking: Open a local bank account more easily

• Travel: Come and go as you please without tourist visa limits

• Discounts: Especially for retirees, these perks add up fast

Plus, after 5 years of permanent residency, you can apply for Panamanian citizenship, assuming you meet the language and civic knowledge requirements.

MORE about this topic, in the next article...