Panama Permanent Residency Requirements in 2025

Panama Permanent Residency Requirements in 2025: A Complete Guide

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If you value Bitcoin and the financial freedom and sovereignty it offers, moving to a country with supportive regulations may be a necessary step. Panama is a Bitcoin-friendly country where Bitcoiners can enjoy financial sovereignty, legal clarity, and low taxes.

In this guide, we’ll explore the Panama permanent residency requirements and provide a step-by-step walkthrough of the application process. 

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TL;DR

• Panama is a Bitcoin-friendly country that doesn’t tax foreign income, making it an attractive destination for Bitcoiners seeking financial sovereignty.
• Main visa options in 2025 include the Friendly Nations Visa, Self-Economic Solvency Visa, and a few special agreements.
• Requirements include a valid passport, a police record, a Panama health certificate, proof of income or investment, and an application form.

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Why Is Permanent Residency in Panama So Popular?

Attaining permanent residency in Panama is becoming increasingly popular, especially for bitcoin holders, due to the country’s bitcoin-friendly nature and favorable tax policies. 

One key advantage of Panama is its territorial tax system, which exempts income earned outside the country from taxation. Therefore, bitcoin gains coming from abroad as a result of BTC trading are typically not taxed locally, appealing to BTC holders seeking financial independence and privacy.

Bitcoin isn’t an official currency, but Panama residents and businesses can freely spend BTC. In Panama City, you can even pay municipal taxes in cryptocurrency, which is automatically converted into dollars. This was made possible through a municipal law passed by Mayer Mizrachi, Panama City's Mayor. 

The Panamanian government offers several accessible residency routes, such as the Friendly Nations Visa and Qualified Investor Visa. Regardless of which you qualify for, the process of securing permanent residency in the country through them is straightforward.

Additionally, many Bitcoiners choose Panama as their Plan B residency thanks to its safety, political stability, strong infrastructure, warm tropical climate, and dollar-based economy, with the U.S. dollar used as legal tender. 

Panama stands out as a top bitcoin-friendly country not just as a tax haven, but for bitcoin HODLers seeking a way to protect their financial freedom. 

“Panama’s blend of political stability, favorable tax system, and bitcoin-friendly policies makes it an ideal destination for Bitcoiners. Obtaining a permanent residency there offers a secure legal status and protects your financial sovereignty by enabling tax-efficient management of your Bitcoin assets,” explains Tony Yazbeck, co-founder of The Bitcoin Way. 

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Panama Residency Visa Options: Here’s What You Can Get!

Panama offers several visa options, each with specific conditions, processing times, and requirements. Choosing the right one is critical to guarantee a smooth migration process and meet Panama residency visa requirements. 

Below is an overview of the options and criteria for meeting Panama's temporary residency requirements and Panama's permanent residency requirements.

Friendly Nations Visa

The Friendly Nations Visa is one of the most popular options for foreigners seeking Panama residency. It targets citizens from over 50 countries, including Australia, Germany, and the United States, that maintain close diplomatic ties with Panama.

There are three ways to qualify for this visa. These include:

• For employment reasons, which means having an employment contract with a Panamanian company.
  
  
• Investment, by either owning real estate with a minimum value of $200,000 or a fixed-term $200,000 deposit in a Panamanian bank for three years.

Applicants to the Friendly Nations Visa must first meet Panama's temporary residency requirements and can then apply for permanent residency after two years.

Qualified Investor Program

The Qualified Investor Visa option is a program designed for foreigners who want to invest in Panama. All investment funds must originate from outside Panama. Applicants can submit their applications remotely. However, once approved, the applicant and their dependents have to travel to Panama to complete the process.

The residency application for this visa option is usually expedited, with approval typically granted within 30 days of submission, provided one invests as per the standards and amounts as follows:

• Real estate: minimum investment of $300,000 in real estate in Panama
  
  
• Panama securities exchange: minimum investment of $500,000
  
  
• Bank deposit: $750,000 for five years in any bank authorized to operate in Panama

Additionally, investments have to be maintained in Panama for at least five years to prevent cancellation of permanent residency status. After maintaining permanent residency for five years, applicants become eligible to apply for Panamanian citizenship.

Pensionado (Retiree) Visa

The Pensionado (Retiree) Visa is designed for foreigners who are retired and receive a lifetime pension of at least $1,000 per month and an additional $250 for each dependent. This visa does not have a minimum or maximum age, and applicants can obtain permanent residency within five to six months.

Additionally, they receive incentives such as tax exemptions for household goods and a new car (except when importing it) every two years, discounts on utilities, loans, entertainment, hotels, transportation, and medical services. This makes it one of the best retirement programs globally.

Other Pathways

There are other routes that one can opt for. These include:

• Reforestation Visa: Requires a minimum investment of $100,000 in a reforestation project approved and managed by a forestry company regulated by the Ministry of Environment of the Republic of Panama.
  
  
• Self-Economic Solvency Visa: This visa option requires individuals to invest at least $300,000 in a fixed deposit for three years or real estate (or both combined).
  
  

• Panama-Italy Treaty Visa: This visa is available to Italian citizens under the Treaty of Friendship, Commerce, and Navigation between Panama and Italy. It allows Italian nationals to live in Panama to engage in economic, professional, or investment activities. Additionally, applicants have to demonstrate economic solvency to qualify.
  
  
• Other routes include an employment contract or marriage to a Panamanian citizen. 

Each visa offers distinct benefits depending on your individual needs. Before making a decision, it's important to consult with an expert to determine which option is best suited for you. Book your free consultation with our experts at The Bitcoin Way to discuss your Panama permanent residency requirements and how they can be met. ‍

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Panama Permanent Residency Document Checklist: Here’s What You’ll Need

Panama residency visa requirements vary depending on the type of visa you apply for, with each category requiring specific documentation. 

However, the standard documents required for all visa options include:

• A valid passport
• An authenticated criminal record certificate from your country of residence
• Proof of economic solvency
• A health certificate issued in Panama
• Passport-sized photos
• Duly filled application forms and payment receipts for government fees

Depending on the type of visa program, additional documents may include:

• Birth certificates for minors
• Marriage certificate for spouses

It’s important to remember that each visa application has to be submitted through a Panamanian lawyer or law firm. Additionally, all foreign documents must be recent and notarized by your home country and by a Panamanian consulate before being presented to the Panamanian authorities. The Bitcoin Way can help you with all these steps! 

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What Are the Estimated Costs and Fees for Panama Permanent Residency?

The cost and fees of securing a Panama permanent residency vary depending on the visa program. Below is a table with estimates of government fees and legal costs:

Keep in mind that these costs are separate from the investment requirements and may vary based on your permanent residency visa type. 

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How to Apply for a Permanent Residency in Panama: Step-By-Step 

Below is a step-by-step guide on how to apply for permanent resident status in Panama with estimated processing times at each stage. This process may differ slightly depending on the visa option.

Choose the right Panama residency visa 

Panama offers several permanent residency programs. Research and choose a program that best aligns with your needs and financial situation. 

Gather required documents 

Collect all the required documents, including a valid passport, health certificate, police clearance certificate, proof of economic ties, passport-sized photos, and properly filled application forms. Make sure that all documents are notarized by the relevant authorities and translated if needed. This process can take anywhere between one and four weeks. 

Hire a Panama lawyer or law firm

All visa applications must be done through a Panamanian lawyer or law firm. Hire a lawyer or law firm in Panama that is responsible for reviewing, preparing, and submitting your documents to the Panama immigration office. This process can take two to three weeks. 

Visit Panama

Secure a visit visa to Panama, as you must be physically present in Panama before submitting your visa application for permanent residency. Remember to bring all your original documents and complete the application process when in the country. 

Submit your application

Your lawyer will submit your permanent residency application on your behalf to the National Immigration Service, after which you will be provided with a temporary residency card valid for six months. This card allows you to stay in Panama as your permanent residency application is being processed. The procedure to get the temporary card takes anywhere between one and three weeks. 

Await approval

Once all documents have been submitted, the necessary fees paid, and the temporary card issued, you will need to wait for approval of your visa application. The duration of this varies and can last anywhere between 30 days (for the Qualified Investor Program) and six months. 

Approval and permanent residency

Once your application is approved, you will be granted a temporary residency permit, after which you can apply for a permanent residency permit. You will receive a Panama identity card as well.

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Explore Your Plan B Residency in Panama With The Bitcoin Way

If you want to explore your Plan B residency in Panama, it’s best to consult professionals who have built the capacity over time. This will help you avoid any mistakes and oversights. 

The Bitcoin Way offers personalized guidance on the most cost-effective way to secure permanent residency in Bitcoin-friendly jurisdictions, providing an exceptional quality of life. 

Start your path to securing a Plan B residency in Panama by booking a free 30-minute consultation with our team of experts.

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FAQs

What are Panama residency requirements for U.S. citizens?

U.S. citizens have to meet the same general Panama residency requirements as applicants from other countries, including through visa options like the Friendly Nations Visa, Qualified Investor Program, and Pensionado Visa. Depending on the visa type, the general documentation needed for U.S. citizens includes a valid U.S. passport, an original police certificate issued by the FBI, a health certificate from a Panamanian doctor, passport-sized photos, proof of financial solvency, and birth and marriage certificates (where applicable).

What are the residency and visa requirements for Panama?

Panama offers several residency and visa options for foreigners looking to live, invest, work, or retire in the country. Requirements vary depending on the type of visa. However, general requirements include a valid passport, a police record from your country of residence, a health certificate from a Panamanian doctor, proof of income or investment, passport-sized photos, and correctly filled application forms. All applications must be submitted through a licensed Panama attorney, whereas all foreign documents have to be legalized or apostilled before presentation.

How much monthly income do I need to retire in Panama?

To qualify for Panama’s popular Pensionado Visa, retirees must demonstrate a lifetime pension of a minimum $1,000 per month and an additional $250 per dependent. However, regardless of the Pensionado Visa threshold of $1,000 per month, retirees may need more than $1,000 per month to live comfortably, depending on location and lifestyle. 

How do I become a permanent resident of Panama?

You can become a permanent resident of Panama through various visa options. These include the Friendly Nations Visa, the Qualified Investor Program, the Self-Economic Solvency Visa, the Reforestation Visa, and the Pensionado Visa. Each visa route has its own eligibility criteria, timelines, financial thresholds, and minimum investment amounts. Some may grant permanent residency immediately, whereas others require provisional residency for two years before upgrading to permanent.

Is moving to Panama a good idea?

Moving to Panama can be a good idea for Bitcoiners who want a Plan B residency in a Bitcoin-friendly country. Additionally, the country has a stable political environment, a warm climate, a dollarized economy, a territorial tax system exempting foreign income from local taxes, and a lower cost of living compared to other countries. 

Is it easy to get permanent residency in Panama?

The ease of getting a permanent resident status in Panama depends on the program you are applying for and whether you meet the eligibility criteria. For example, if you meet the requirements for the Qualified Investor Program and work with an experienced Panamanian attorney, the process can be quick and seamless, taking between 30 and 60 days to have the Panamanian residency granted to you.

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