Panama is a tropical gem with welcoming immigration policies. A variety of residency options exist for tourists, investors, professionals, retirees and digital nomads. This guide provides an overview of the country's visa types, requirements and benefits. It also includes information about obtaining citizenship and common challenges that expats may face during Panamanian immigration processes.
Navigating visas in Panama
Settling in another country can be an exciting experience. Novelty appeals to some, yet it is somewhat intimidating to others. Paperwork, though bothersome, is an inevitable aspect of starting a new chapter abroad.
Panama attracts tourists, business travelers and expats from around the world. Although hospitable, this strategically located hub is strict about its immigration policies.
If you plan a short-term visit to the country, you may not need to worry about the visa, depending on your nationality.
If you wish to live in Panama, obtaining legal status is necessary for a pleasant country experience. While arranging a visa without legal support is theoretically possible, it can be tricky. Working with an immigration lawyer is crucial for a smooth transition into the country. Seeking assistance has obvious benefits apart from stress reduction for the applicant. Small legislative changes can lead to unforeseen complications. Also, some cases may be more difficult than others. Legal experts know the nuances of laws and can find loopholes for special circumstances. It is worth noting that Panamanian authorities prefer dealing with local lawyers who ensure that the paperwork is in order rather than with individuals.
The information in this article serves as a guide. Consult official sources and seek professional advice for up-to-date information.
Tourist visa in Panama
If you fancy a short trip to Panama, verify the visa requirements for your country.
For those considering living here, visiting the country on a tourist visa is wise to get a feel of the place before the big move. You can gather a wealth of information about accommodation, culture, traditions and the steps for settling in. Additionally, you can make some contacts in business and legal areas.
Many nationalities enjoy visa-free entry to Panama for stays of up to 90-180 days:
- The United States;
- Canada;
- The European Union;
- Russia;
- Australia;
- Most Latin American countries (except Venezuela, Cuba, Dominican Republic and Haiti);
- Some countries in Asia, such as Japan, South Korea and Singapore.
Check with your embassy for the latest information before embarking on your Panama journey.
Extending your stay as a tourist
While this country allows 90-180 visa-free days for many tourists, it's possible to extend this period. A visit to the National Migration Service (Servicio Nacional de Migración) is necessary. Extensions are granted on a case-by-case basis. Be prepared to present compelling reasons for your request along with additional documentation.
Until recently, many foreigners lived in Panama as “permanent tourists”. They crossed the borders of the neighboring countries and re-entered to reset their stay. Yet, those times are gone. Border-hopping has become less reliable due to tightened regulations.
Digital nomad visa in Panama
In this era of modern technologies, the concept of work is being reinvented. Many people work remotely and aspire to do so from all corners of the globe. To encourage tourism for telecommuting travelers, Panama offers the Digital Nomad visa. It's a perfect opportunity to work and live in Panama's tropical settings without complicated paperwork. This short-term visa falls into the Non-Resident category.
Applicants must comply with the following:
- Work for a company outside Panama or run their business abroad;
- Provide proof of income generated abroad of at least $36,000 or its equivalent in another currency;
- Provide proof of health insurance covering the stay;
- Requires a payment of $250 to the National Treasury.
This authorization remains valid for nine months and can be extended for the same period.
Temporary residency visas in Panama
Several temporary residency options are available for those planning to relocate to Panama. These cater to different needs and circumstances, such as work, study or family reunion.
Friendly Nations visa
- Covers 50 countries, such as the United States, Canada and many European nations.
- Requires a work contract with a Panamanian company or an investment of $200,000 in real estate or a fixed-term deposit account in a local bank.
- Offers a simplified immigration process, a two-year validity period with the possibility to apply for permanent residency after two years.
- Requires a payment of $250 to the National Treasury and $800 to the National Migration Service.
Work visa
- Required for foreigners employed by Panamanian companies.
- Features varied benefits and requirements depending on the work visa type.
- Involves employers' participation in the immigration process and compliance with the foreign workforce quotas. According to Panamanian labor laws, up to 10% of the general workforce can be foreign. For specialized or technical personnel, the quota may be raised to 15%.
- Requires a payment of $250 to the National Treasury and $800 to the National Migration Service.
To work in Panama, foreigners must have both a work visa and a work permit issued by Mitradel (Ministry of Labour and Workforce Development). Working on a tourist visa or any other visa not related to work is illegal.
Many work visa types in Panama provide a pathway to permanent residency, while others do not.
Student visa
- Requires enrollment in Panamanian educational institutions.
- Prohibits any labor activity, except for professional practice prescribed by the educational center.
- Requires a payment of $250 to the National Treasury.
Family reunification visa
- Offers a provisional stay for the close relatives of temporary and permanent residents or citizens of Panama.
- Requires proof of relationship (marriage or birth certificates).
- Grants a two-year authorization and the possibility to request permanent residency afterward.
- Requires a payment of $250 to the National Treasury and $800 to the National Migration Service.
Most temporary visas present a pathway to permanent residency. However, some visas do not give this privilege. Researching and working with local attorneys is essential to finding the best option for your needs.
Permanent residency visas in Panama
To attract foreign capital, Panama has favorable immigration policies for international investors and retirees. Some visa types offer an immediate permanent resident status.
Investor visa
If you are ready to settle in Panama and can make an investment to secure your residency, several investment programs are available. A payment of $250 to the National Treasury and $800 to the National Migration Service are required for these visas. Legal fees vary depending on the lawyer.
Qualified Investor visa
To apply, foreigners must make an investment and maintain it for at least five years in one of the following:
- $300,000 in real estate;
- $500,000 in national securities through a licensed Panamanian brokerage firm;
- $750,000 in a fixed-term deposit account at a local bank.
Macro-Business Investor visa
This program grants residency for those establishing a company in Panama. Applicants must each invest $160,000 and be shareholders in the company.
Reforestation visa
This program focuses on investing in reforestation or forest plantations. Panama's Ministry of Environment must authorize the projects. This visa provides:
- Two-year temporary residency with the option to apply for a permanent one afterward for $100,000;
- Immediate permanent residency for $350,000.
The investment must be maintained for five years to keep the residency status.
Retirees and pensioners visa
Panama is known for its comfortable lifestyle. Many retirees from around the world seek to settle in this tropical paradise. Stunning landscapes, a pleasant climate and affordable living make this country an expat hotspot.
Foreign retirees can enjoy simplified immigration procedures if they wish to relocate to Panama. They must have a lifetime pension of at least $1,000 per month. With a property purchase of over $100,000, the monthly pension income requirement is $750. A payment of $250 to the National Treasury is required, in addition to varying legal fees.
Holders of retirees and pensioners visas receive multiple benefits and discounts in Panamanian businesses. Those include restaurants, hotels, hospitals, medical consultations, prescription medications, transportation, entertainment and loans.
General visa requirements in Panama
Each visa type has its specific paperwork. However, there are common documents required for all Panamanian visas:
- Passport (valid for at least 6 months);
- Proof of financial stability: Bank statements, proof of income or an employment letter;
- Criminal background check: A certification issued by the country of origin or residency, apostilled or authenticated;
- A health certificate issued by a licensed Panamanian doctor;
- Photos: 5 passport-sized photos;
- Application forms and fees;
- Health insurance (for some visa types);
- Visa-specific documentation: proof of pension (Retirees and Pensioners visa), proof of investment (Friendly Nations or Investor visa), proof of enrollment (Student visa) or employment contract (Work visa).
Once permanent residency is approved, applicants receive a local identity card called cédula. For foreigners, the number on this card starts with the letter “E,” which differentiates them from Panamanian IDs. Cédula is the document permanent residents must use in banks, hospitals and government institutions.
Keep in mind that, in addition to government fees, immigration processes typically require legal assistance, which is a separate cost that varies by lawyer.
Obtaining citizenship in Panama
Panama offers citizenship (naturalization) to foreigners who have lived in the country for a certain period:
- Five years as a permanent resident;
- Three years as a permanent resident married to a Panamanian citizen or having a Panamanian child;
- A shorter time frame for nationals of Spain and Latin American countries under the concept of “reciprocity.” These Foreigners must be permanent residents and meet the same requirements that Panamanians must fulfill to become naturalized in those countries:
- One year: Colombia, El Salvador
- Two years: Argentina, Ecuador, Spain, Honduras, Mexico, Nicaragua, Peru
- Three years: Uruguay.
Naturalization is a more complex process than obtaining residency in Panama. The latter involves only the National Migration Service. Citizenship applications involve additional institutions, such as the Ministry of Government and Justice, the Public Ministry, the Electoral Tribunal, and the Presidency. Delays and extra paperwork are common; final approval can take two to five years. Furthermore, the authorities may deny the application with no explanation. However, a denial does not revoke permanent residency status.
Citizenship requirements are as follows:
- Criminal record certificate issued by Panama and/or by the applicant's home country;
- Certification of immigration status;
- Authenticated copy of permanent resident ID card;
- Authenticated copy of the permanent residency resolution;
- Proof of economic solvency (employment letter, bank reference letter, etc.);
- Income tax return filed with Panama's General Directorate of Revenue;
- Certificate of good standing from Panama's General Directorate of Revenue;
- Passport copy, authenticated by the Consulate or Embassy of the country of origin;
- Certificate of good health;
- 3 photos (3.5cm x 4.5cm).
The applicant must demonstrate knowledge of the Spanish language, as well as Panama's history, geography and civil rights. The exam occurs at a later stage, typically two to three years into the process.
Once the letter of naturalization is issued, the applicant must swear to accept the Constitution of the Republic of Panama and renounce all civil and political ties with their home country. However, Panama does not require applicants to give up their original citizenship in their home country officially.
Common challenges of obtaining a visa in Panama
Obtaining a visa in Panama is straightforward, but it requires preparation and assistance. Applicants may encounter the following obstacles:
- Incomplete documentation: Ensure you have all necessary paperwork. Remember translations and apostilles. Getting a missing document from your country of origin can be a hassle once you are in Panama.
- Language barrier: Most official procedures in governmental institutions are conducted in Spanish. If you are not a Spanish speaker, hire a bilingual lawyer.
- Changing regulations: Immigration policies can change without notice. Stay informed through local advisors or official sources like the National Migration Service.
- Long approval times: Panama is known for its slow pace of life, and immigration processes take time here. If you are applying during the holiday season, delays are inevitable.
It's important to dress appropriately for your residency application appointment. Security guards at government institutions may deny you entry for wearing unsuitable clothing. Men must wear trousers, long-sleeved shirts and closed shoes. Women cannot wear flip-flops, mini skirts, shorts and sleeveless tops.
Takeaway
Panama is an attractive destination thanks to its strategic location and tropical climate. The country provides residency opportunities for expats with varied circumstances. Permanent residents can apply for citizenship after a specific time in the country. Immigration processes can be complex and time-consuming. Thorough research and working with legal professionals ensure a smooth transition into the country.
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