Panama Friendly Nations Visa and Property Investment 2026

Panama's Friendly Nations Visa (Visa de Naciones Amigas) is one of the most accessible residency-by-investment programs in the Americas. Created by Executive Decree No. 343 of 2012 and subsequently amended, the program grants residency to citizens of countries that maintain diplomatic and economic ties with Panama, provided they meet specific economic requirements.

For property investors, the Friendly Nations Visa offers a path from property purchase to permanent residency to citizenship, all within a defined legal framework. This guide covers the program as it operates in 2026.

What Decree 722 of 2020 Changed

Decree 722 of 2020 rewrote the practical requirements. Applicants must document the legal origin of the funds behind the qualifying activity, background checks are more thorough, in-person interviews are part of the process, and processing runs longer than it did in the program's early years. The decree also asks applicants to show genuine ties to Panama rather than a nominal investment, and the Servicio Nacional de Migracion applies that test at its own discretion.

Who Qualifies

The Friendly Nations Visa is available to citizens of over 50 countries with which Panama maintains friendly relations. The list includes the United States, Canada, the United Kingdom, most EU member states, Australia, Japan, South Korea, Israel, and several Latin American countries.

The full list is maintained by Panama's Servicio Nacional de Migracion (National Immigration Service) and is updated periodically. Verify your country's eligibility before beginning the process, as countries can be added or removed.

The Property Investment Route

The most popular route for real estate investors is purchasing titled property in Panama worth at least USD 200,000.

Requirements:

The property must have a minimum value of USD 200,000. This can be a single property or, in some cases, multiple properties that together meet the threshold. The property must be titled and registered at the Registro Publico in your name or in the name of a Panamanian legal entity (sociedad anonima) that you control. You must provide the public deed (escritura publica) confirming the purchase. Proof that the funds originated from outside Panama is required. This typically means international wire transfer receipts or bank statements showing the source of funds. Financing through a Panamanian bank is permitted. If you finance the purchase, you must demonstrate that the down payment came from abroad and that you are servicing the mortgage.

What the property investment does NOT require: Living in the property. Using it as a primary residence. Maintaining it for any minimum period (though selling the property may affect your residency renewal).

The Bank Deposit Alternative

If you prefer not to invest in property, you can qualify by depositing at least USD 200,000 in a three-year fixed-term deposit (certificado de deposito a plazo fijo, CDP) at a Panamanian bank. The deposit cannot be used as collateral during the three-year term.

This route provides more liquidity than property investment, but the funds are locked for three years and earn modest interest. For buyers who want both residency and a tangible asset, the property route is generally preferred.

The Professional Employment Route

Alternatively, you can qualify by securing employment with a Panamanian company and demonstrating professional or economic ties to Panama. This route does not require a financial investment but does require a genuine employment relationship.

Two further routes sit alongside these. Employment requires a bona fide contract with a Panamanian company plus a work permit from the Ministry of Labor (MITRADEL). Business ownership requires registering a Panamanian company, obtaining the operating licence (aviso de operacion), and showing the business has real economic substance.

Application Process

Step 1: Gather documents. Required documents include a valid passport, police clearance certificate from your home country (apostilled), health certificate from a Panamanian doctor, passport-sized photographs, proof of economic activity (property deed, bank deposit certificate, or employment letter), proof that funds originated from outside Panama, and a notarized affidavit of your home address.

All foreign documents must be apostilled (under the Hague Convention) or authenticated by a Panamanian consulate. Documents not in Spanish must be translated by an authorized translator in Panama.

Police clearance is required not only from your country of residence but from any country where you lived for more than two years. Your passport needs at least six months of validity, and the SNM asks for five passport-size photos with the application form.

Step 2: Hire an immigration lawyer. While not legally required, navigating the Panamanian immigration system without a lawyer is inadvisable. Immigration lawyers handle document preparation, filing, and follow-up with the Servicio Nacional de Migracion. Fees typically range from USD 3,500 to USD 5,500 for a straightforward application.

Step 3: File the application. Your lawyer submits the application to the Servicio Nacional de Migracion. The application includes all supporting documents, government fees, and the required forms.

Step 4: Provisional residency. Upon approval, you receive a provisional (temporary) residency card (carnet de residencia provisional), valid for two years. Processing time in 2026 is typically four to six months from filing.

Step 5: Permanent residency. Before the provisional residency expires, you must apply for permanent residency. The application requires demonstrating that the qualifying investment is still in place (you still own the property or still hold the bank deposit). Permanent residency is granted indefinitely, with renewal of the physical card required every ten years.

Permanent residency also covers dependants. You can sponsor a spouse and children under 18, or under 25 if they are enrolled in university.

Step 6: Citizenship (optional). After five years of permanent residency, you can apply for Panamanian citizenship. Requirements include basic Spanish language ability, knowledge of Panamanian history and geography, and no criminal record. Panama allows dual citizenship with most countries.

Costs

Government fees: Approximately USD 1,050 (USD 250 to the National Treasury plus USD 800 to the Immigration Service).

Legal fees: USD 3,500 to USD 5,500 for the immigration application.

Document preparation: Apostille, translation, and notarization costs vary but typically total USD 500 to USD 1,500.

Property-related costs (if investing): Transfer tax (2 percent), registration fees, notary fees, and lawyer fees for the property transaction (separate from the immigration lawyer).

Total cost excluding the property investment itself: Approximately USD 5,000 to USD 8,000.

Tax Implications of Residency

Panama operates a territorial tax system. Residents are taxed only on income earned within Panama. Income earned outside Panama is not subject to Panamanian income tax, regardless of where you are a tax resident.

This means rental income from your Panamanian property is taxable in Panama, but investment income, pensions, and business income from outside Panama are not. This territorial system is one of the primary attractions of Panamanian residency for international investors and retirees.

Capital gains tax: 10 percent on the gain from selling property, or an advance payment of 3 percent of the sale price (whichever the seller elects).

Property tax exemptions: New construction receives property tax exemptions for 5 to 20 years depending on type and location. Properties valued below USD 120,000 (primary residences) are exempt from property tax.

Comparison with Other Programs

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*Greece and Portugal offer special tax regimes for new residents.

Other Panama Residency Routes

If your country is not on the friendly nations list, or the economic tie does not fit, three alternatives cover most cases. The Pensionado visa requires proof of a government-issued pension of at least USD 1,000 per month, carries no age limit, and brings statutory discounts on services and travel, but cannot be combined with employment in Panama. The Self-Economic Solvency visa (Solvencia Economica Propia) requires a USD 300,000 time deposit, a USD 300,000 real estate investment, or a combination reaching that figure, and is open to nationals of any country. The Qualified Investor visa covers investments of USD 500,000 and above in Panamanian real estate, securities or businesses, with faster processing.

For a comprehensive overview of Panama's property market and buying process, Bektu's Panama country guide provides current data and legal guidance.

Panama Friendly Nations Visa and Property Investment 2026