Residency in Panama by investment: the three routes compared

The three routes, compared

Panama’s National Immigration Service manages more than a dozen residency categories, but three concentrate the demand from those arriving with capital or income: Qualified Investor, Friendly Nations and Pensionado. They differ in the amount, the timeframe and the type of permit they grant.

Qualified Investor: permanent residency in 30 days

The programme was born with Executive Decree 722 of October 2020 and was replaced in full by Executive Decree 17 of 8 September 2026, published in Official Gazette 30613 of 16 September. The main novelty is the distinction between first-sale properties, bought from a developer and never occupied, which keep the minimum of 300,000 dollars, and secondary-market properties, which now require 500,000. The Ministry of Commerce and Industry has 15 working days to issue the investment certification once the file is admitted, and the investment must be maintained for five years with periodic checks.

• First-sale property: 300,000 USD, free of encumbrances, bought from a developer.
• Second-hand property: 500,000 USD.
• Securities on the Panama Stock Exchange: 500,000 USD through an authorised brokerage house.
• Fixed-term deposit: 500,000 USD at Banco Nacional de Panamá or Caja de Ahorros; 750,000 USD in private banking.
• Common requirements: funds of foreign and lawful origin, apostilled criminal record, health certificate, Panamanian lawyer and payment of fees.

The scale of amounts comes down to three steps, as Legal Solutions Panamá notes in its guide to the minimum investment needed for residency in Panama: 200,000 dollars in real estate for Friendly Nations, 300,000 for Qualified Investor in first-sale property and “around 500,000” in the other investment modalities.

Friendly Nations: the two-year route

The Friendly Nations visa has existed since 2012 and was reformed by Executive Decree 226 of 2021, which removed the possibility of obtaining it merely by incorporating a company. Today it requires a demonstrable economic link and grants two-year temporary residency; on expiry, permanent residency is applied for. It applies to nationals of a list of around 50 countries, among them the United States, Canada, Spain, Argentina, Brazil, Mexico, Chile, Germany, France, the United Kingdom, Italy, South Korea and Japan.

Anyone opting for the real estate investment should first understand the buying process, the taxes and the difference between titled property and possessory rights, which Radar Panamá explains in its guide to buying property in Panama as a foreigner.

Pensionado: residency by income

The Pensionado or Retiree visa is the oldest and the best known outside the country. It grants permanent residency to anyone who proves a lifetime pension of at least 1,000 dollars a month, paid by a government, a company or a recognised fund. The minimum drops to 750 dollars if the applicant buys a property worth at least 100,000 dollars, and 250 dollars are added for each dependant. It has no minimum age: it is enough for the pension to be for life.

The added attraction is the legal discounts for resident pensioners: between 15% and 50% on transport, hotels, restaurants, medicines, medical consultations, energy and entertainment, plus exemption from import tax on a vehicle every two years. Panama regularly appears among the best-rated retirement destinations in the Americas precisely because of that combination of simple residency and benefits.

What the procedure before Immigration is like

1. Choice of route and preparation of documents. Passport with minimum validity, criminal record from the country of origin apostilled and translated, health certificate, photographs and proof of the economic link (deed, bank certification, contract or pension letter).
2. Power of attorney to a Panamanian lawyer. All residency immigration procedures must be filed through a licensed lawyer. It is mandatory, not optional.
3. Registration with Immigration and application. The applicant must be in Panama for biometric registration. The file is filed with the National Immigration Service and the repatriation deposit and fees are paid.
4. Provisional card. While the application is decided, a card is issued that allows the applicant to stay in the country and apply for a multiple-entry visa.
5. Decision and resident card. Once the application is approved, the temporary or permanent resident card is issued according to the route.
6. E identity card. With permanent residency approved, the foreigner’s ID card is requested from the Electoral Tribunal, which makes banking, contracts and procedures easier.
7. Work permit, if applicable. Residency does not by itself authorise work; the permit is issued by the Ministry of Labour in a separate procedure.

Immigration residency and tax residency are not the same

Obtaining a resident card does not make anyone a Panamanian tax resident or free them from their obligations in their country of origin. Tax residency in Panama requires, in general terms, staying more than 183 days in the year or having the centre of vital interests here, and is certified by the Directorate General of Revenue. Panama applies a territorial system, so foreign-source income is not taxed in the country, but the country of origin may continue to tax its national under its own rules and the treaties in force. Anyone structuring their wealth with Panamanian companies should also know the transparency obligations described in Radar Panamá’s guide to offshore companies.

Mistakes that delay or sink an application

• Poorly documented source of funds. It is the main cause of rejection under Qualified Investor. Statements, sale contracts or tax returns that explain where the money comes from are needed.
• Incomplete apostilles and translations. Every foreign document needs a Hague apostille or consular legalisation and translation by a Panamanian public translator.
• Expired criminal records. They are usually valid for six months; a slow file can force them to be redone.
• Buying the property before getting advice. A 300,000-dollar second-hand property no longer qualifies for Qualified Investor since Decree 17 of 2026.
• Confusing residency with a work permit. They are different procedures before different institutions.
• Letting the temporary card expire. Under Friendly Nations, permanent residency must be applied for before the two years run out.

Frequently asked questions about residency in Panama

Sources

• Immigration permits, National Immigration Service of Panama.
• Qualified Investor Programme, Ministry of Commerce and Industry.
• Official Gazette of Panama, Executive Decree 17 of 8 September 2026 (Gazette 30613).
• Nuevas reglas para Inversionista Calificado, Fábrega Molino.
• Requisitos de la visa de inversión calificada: cambios clave, NDM.
• Visa de Países Amigos, guía actualizada, JSF & Asociados.
• Retiree and pensioner visa, Kraemer & Kraemer.
• Electoral Tribunal of Panama, foreigner’s ID card.
• Residencia en Panamá, inversión mínima necesaria and nuevas reglas de Países Amigos, Legal Solutions Panamá.