Panama Friendly Nations Visa

The Friendly Nations permit is Panama's residence route for nationals of countries on a list set by executive decree that maintain friendly, professional, economic and investment relations with Panama. Executive Decree 226 of July 20, 2021 governs it and the Servicio Nacional de Migracion (SNM) grants it.

Applicants show an economic tie to Panama: a job with a Panamanian employer, Panama real estate or a fixed-term deposit in a Panama bank. The SNM first grants provisional residence for 2 years, then permanent residence.

It suits people from listed countries who want a long-term base and can either take a local job or commit $200,000.

Applicants must hold the nationality of a country on Panama's Friendly Nations list and show one of three ties to Panama:

• Job route: an employment contract with a Panamanian company, paired with a work permit application to the Labor Ministry (MITRADEL).
• Real estate route: property worth at least $200,000, held personally, through a company whose shares the applicant ultimately owns or through a private interest foundation the applicant founded and benefits from. A local bank may finance the purchase.
• Deposit route: a fixed-term deposit of at least $200,000 in a general-license bank operating in Panama, free of liens, for 3 years, held personally or through a qualifying company or foundation.

The list of eligible countries changes by decree, so nationality should be checked with the SNM or a Panamanian consulate before applying.

The SNM checklist asks every applicant for:

• a notarized power of attorney and application, naming the applicant's parents and their nationalities
• three photographs
• a certified copy of the passport
• a criminal record certificate and a health certificate
• the sworn personal background form
• a certified check for $250 payable to the National Treasury and one for $800 payable to the SNM

By route

• Job: a notarized letter on company letterhead signed by the legal representative giving position, salary and a repatriation commitment; the employer's Public Registry certificate; a notarized copy of its operating notice; and a copy of the work permit application filed with MITRADEL.
• Real estate: a Public Registry certificate showing ownership by the applicant or the applicant's company or foundation.
• Deposit: a certificate from the bank confirming the deposit, its value, its term and that it is free of liens.

Dependents

Spouses and children can join. The file needs a letter of responsibility from the sponsoring resident, proof of the relationship and proof of the sponsor's solvency. Children aged 18 to 24 must show full-time study and sign a sworn statement that they are single.

• National Treasury check: $250
• SNM check: $800
• Investment routes: at least $200,000 in property or a fixed-term deposit. This is capital held, not a fee.

The permanent residence stage uses the same documents minus the criminal record certificate and the checks. Lawyer, notary, translation and apostille costs are extra and vary by provider.

In Panama, at the Servicio Nacional de Migracion, through a notarized power of attorney (a Panamanian lawyer files it). The job route also needs a work permit application filed with the Labor Ministry (MITRADEL).

1. Confirm that the applicant's nationality is on the current list.
2. Set up the qualifying tie: the job offer and MITRADEL filing, the property purchase or the bank deposit.
3. Gather the SNM documents, with apostilles and Spanish translations for anything issued abroad.
4. The lawyer files the application and the two certified checks with the SNM, which grants provisional residence for 2 years.
5. Before the provisional permit ends, apply for permanent residence.

The SNM publishes no processing time for this permit.

• Provisional residence: 2 years
• Deposit term on the deposit route: 3 years

Yes. After the 2-year provisional permit the holder applies for permanent residence with the same documents, minus the criminal record certificate and the fee checks.

The SNM sheet does not describe extending the provisional permit, so the permanent residence application should go in before it expires.

Panama's income tax is territorial. Article 694 of the Fiscal Code taxes income produced within Panama's territory, wherever it is received. The DGI (tax authority) treats a person as tax resident after more than 183 days in the country in a fiscal year or the year before.

The Friendly Nations permit carries no special tax regime. Salary from a Panamanian employer on the job route is Panamanian-source income. Holders who move their life to Panama should confirm their position with the DGI and with the tax authority at home.