Panama Friendly Nations Guide: 2025 Residency Requirements

Panama's Friendly Nations visa might be Central America's best-kept secret. Since 2012, citizens from 47 specific countries have been getting residency in Panama faster and cheaper than almost anywhere else in the world.

What makes a country "friendly" to Panama?

Back in 2012, Panama got smart about immigration. Instead of treating everyone the same, they picked countries with strong diplomatic ties, good trade relationships, and stable economies. These became the "friendly nations."

The genius part? If you're from one of these countries, you skip most of the usual bureaucracy and investment requirements that make other residency programs so painful.

How much do you actually need to invest?

Here's where Panama gets interesting. You don't need millions sitting in a bank account. You have several options:

• Get a job with a Panamanian company (requires genuine employment offer) 

• Buy real estate (currently around $200,000 minimum) 

• Start a business with similar capital requirements 

• Make a bank deposit (amounts vary by program updates)

Real estate is a popular investment route and the market is performing strongly. Gross rental yields in Panama City averaged 7.83% in 2025, up from 6.78% the previous year, while the overall real estate market is projected to grow 3.71% annually through 2029. Home sales surged 20.7% in 2023, building on strong momentum from previous years.

The top three investment areas show distinct opportunities. Panama City leads with high rental yields driven by a housing shortage, particularly in mid-range apartments where vacancy rates sit under 2%. David has emerged as an attractive alternative to the capital, enhanced by the new Panama-David train connection that cut travel time to just 2.5 hours.

Boquete rounds out the top three as a premier expat destination in the western highlands, where 20% of the 25,000 population consists of international residents attracted by year-round spring-like temperatures and a well-established English-speaking community.

Here is my advice - if you have the capital available and would like the security of receiving permanent residency immediately, the standard Qualified Investor visa at $300,000 may make more sense (link to our country program)

Who qualifies for Panama friendly nations?

Panama Friendly Nations

Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, New Zealand, Norway, Paraguay, Poland, Portugal, San Marino, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, United States, and Uruguay.

That's 47 countries. If you're reading this and your passport is from one of these places, you're already ahead of 90% of other residency applicants worldwide.

Panama reviews this list and program requirements periodically, so always verify your country's current status and investment thresholds with official sources or qualified legal counsel before starting your application.

The application process (simplified)

You'll need the usual documents: criminal background checks, birth certificates, marriage certificates if you're married. The difference is how Panama handles them.

If your country signed the Hague Convention, you just need apostille certification. If not, you'll go through Panamanian diplomatic missions for authentication.

You'll also need to show where your investment money comes from and prove it's legitimate. Panama takes banking compliance seriously.

Here's my advice: use a team that includes  a local immigration attorney who knows this program inside and out. I've seen too many families mess up their applications trying to save a few thousand dollars on legal fees, only to lose months in delays.

Why Panama makes sense strategically

Panama's tax system treats foreign income kindly. Earn money outside Panama? You don't pay Panamanian taxes on it. This makes Panama attractive for remote workers, international business owners, and anyone with global income streams.

Your Panamanian residency also opens doors throughout Central America. Regional trade agreements mean easier business access across multiple countries.

Banking becomes much simpler. Panama uses the US dollar, and their banks understand international clients. No currency conversion headaches or explaining your foreign income to local bankers who've never dealt with international transfers.

Family benefits matter too. Your spouse and kids under 25 can join your application. After five years of continuous residency, you can apply for Panamanian citizenship, though this requires meeting language proficiency, residency requirements, and other legal criteria that may present challenges depending on individual circumstances.

How Panama compares to other options

European golden visas often require €250,000-€500,000+ investments. Panama friendly nations starts at €200,000

Processing time beats most alternatives. European programs take much longer. Caribbean programs are also facing delays and cost more. Panama hits the sweet spot of reasonable cost and reasonable timing.

Portugal and Italy offer great programs if you want European access. But if Central American positioning makes more sense for your business or family, Panama delivers similar benefits at lower cost.

Should you consider Panama friendly nations?

This program works best for specific situations. You're from a qualifying country. You want Central American access for business or personal reasons. You like the idea of territorial taxation protecting your foreign income. You prefer tropical living to European climates.

Your investment capacity matters too. Panama friendly nations works for successful professionals and small business owners, not just ultra-wealthy families. The barrier to entry stays reasonable.

Timeline considerations also matter. If you need residency within a year, Panama delivers. If you can wait longer and prefer European access, other programs might suit you better.

Think about your long-term goals. Panama provides a potential path to citizenship after five years, but naturalization requires meeting continuous residency, language proficiency, and other legal criteria that vary by individual circumstances. Some Caribbean & EU programs offer faster citizenship but at significantly higher costs.

The world keeps changing. Having a second residency option in a stable, dollarized economy with reasonable tax treatment makes sense for many families.

Find you more about the Panama FNI Visa here.

Get in touch to find out how Panama fits into your global mobility plans.