Panama Friendly Nations visa: requirements since 2021

The Friendly Nations visa is the main residency route for Americans who don’t have a pension. It is open to citizens of about fifty countries that Panama has friendly economic ties with, including the United States, Canada, the United Kingdom, Australia and most of the European Union.

It changed substantially in 2021. Much of what is written online describes the earlier version, which was far cheaper and gave permanent residency straight away.

What changed in 2021

	Before August 2021	Now
Economic tie	A Panamanian company or job, often just a newly formed corporation	Real estate, a fixed-term bank deposit, or a job
Money needed	About $5,000 in a Panamanian bank account	About $200,000 for the property or deposit routes
Status granted	Permanent residency	Two years’ provisional residency, then permanent

The three ways to qualify

Real estate

Buy property in Panama worth at least about $200,000. The details that attorneys check:

• The property must be titled and recorded in the Public Registry. Land held under rights of possession doesn’t qualify.
• It generally has to be in your own name. Ask before buying through a corporation or foundation, which is a common way to hold property in Panama.
• The purchase can be financed with a mortgage from a Panamanian bank.

Don’t choose a property to fit the visa. Read buying property in Panama first, and rent in the area before you commit.

Fixed-term bank deposit

Place about $200,000 in a fixed-term deposit at a bank in Panama, for a term of at least three years. The deposit earns interest and is returned at the end of the term, but it is tied up, and opening an account as a new arrival takes time. See what to expect in the steps for moving to Panama.

Employment

Hold a job with a Panamanian company. This route involves an employment contract, registration with the social security system and a work permit from the Ministry of Labour. Panama limits the share of foreign staff a company can employ and reserves some professions for citizens, so it suits people with a real job offer more than people looking for a low-cost option.

The amounts, terms and acceptable structures are set by decree and have been adjusted since 2021. Confirm the current rules with your attorney before you move money.

Documents

• Passport from a listed country, with copies of every page, and a second ID.
• An FBI background check, apostilled.
• Proof of the qualifying tie: the Public Registry certificate for the property, the bank’s certificate for the deposit, or the employment documents.
• Marriage and birth certificates for dependants, apostilled.
• A medical certificate from a doctor in Panama.
• Government fees and deposits, which are charged for each applicant.

The two stages

1. Provisional residency. You travel to Panama, your attorney files the application, and you receive a temporary card while it is processed. Approval gives you a provisional resident card valid for two years.
2. Permanent residency. Before the two years end, you apply for permanent status. You will be asked to show that the property, deposit or job you qualified with is still in place.

After you become a permanent resident you can apply for the foreigner’s ID card (the E cédula), and time as a permanent resident counts toward citizenship.

How it compares

	Friendly Nations	Pensionado	Qualified Investor
Main requirement	About $200,000 in property or a deposit, or a job	Lifetime pension of $1,000 a month	From about $300,000 invested
First status	Provisional, two years	Permanent	Permanent
Suits	Working-age people and early retirees without a pension	Anyone with a qualifying pension	People who want speed and have the capital

If you have a lifetime pension of $1,000 a month, the Pensionado visa is usually simpler and cheaper. If you are investing more and want permanent residency without the provisional stage, see the Qualified Investor visa.

Mistakes that cause problems

• Relying on pre-2021 advice. Forming a company and depositing $5,000 no longer qualifies.
• Buying untitled land. Property without registered title can’t support the application and carries its own risks.
• Selling or withdrawing early. If the property is sold or the deposit broken before you apply for permanent residency, you may no longer qualify.
• Letting documents expire. Background checks are accepted only for a limited time after issue.

A Panamanian immigration attorney files the application and should review the property or deposit paperwork before you commit.

Common questions

What are the requirements for the Panama Friendly Nations visa?

You must be a citizen of a listed country, which includes the US and Canada, and qualify in one of three ways: buying Panamanian real estate worth at least about $200,000, placing a fixed-term deposit of about $200,000 in a Panamanian bank, or holding a job with a Panamanian company. You also need an apostilled background check and an application filed by a Panamanian attorney.

Can I still get the Friendly Nations visa with a $5,000 bank deposit?

No. That was the old version. Since the rules changed in 2021, a small bank deposit and a Panamanian company are no longer enough. Articles that describe a $5,000 deposit are out of date.

Is the Friendly Nations visa permanent residency?

Not at first. It now gives provisional residency for two years. Before that period ends you apply for permanent residency, showing that you still meet the requirement you qualified under.

Can I work in Panama on the Friendly Nations visa?

Only with a work permit, which is a separate application to the Ministry of Labour. If you qualify through a Panamanian job, the work permit is part of the process.