Why Panama

What the Friendly Nations Visa is

The Friendly Nations Visa, the Visa de Países Amigos, is a residency by connection programme established under Executive Decree 416 of 2012 and substantially modified by Executive Decree 197 in 2021. It allows citizens of designated countries with strong diplomatic, economic and professional ties to Panama to apply for legal residency by demonstrating a genuine economic connection to the country.

Before 2021 the programme was remarkably simple: a local bank account or a registered company could be enough, and approval brought immediate permanent residency. That era is over. The reforms introduced a two step structure, provisional first and permanent later, and raised the bar for what counts as a genuine tie. The stated reason was to end abuse of the programme and make sure applicants were contributing to the local economy rather than ticking a box.

The distinction matters because a great deal of what circulates online, including from firms that have not updated their pages, still describes the old programme. If you read that a company with no employees or a modest deposit will qualify you, that information is out of date.

Who qualifies

As of 2026, 50+ nations are on the list, including the United States, Canada, the United Kingdom, the European Union member states, Australia, Japan, South Korea, Brazil, Argentina, Chile, Mexico and Singapore. If your passport is from one of them, you are eligible to apply, provided you can meet one of the three economic connection requirements below.

If your country is not on the list, the Friendly Nations Visa is not open to you, but Panama has other routes worth exploring: the Pensionado Visa, the Qualified Investor Visa and others.

The three ways to qualify

Employment with a Panamanian company. A formal employment contract with a Panamanian company that has real, active local operations, is registered with social security and holds the work permit and registered labour contract the route requires. This suits people relocating into a genuine role inside an established local business, not a shell entity.

Real estate of USD 200,000. Property in Panama with a minimum value of USD 200,000, registered in your name and free of liens, or with demonstrated equity at or above the threshold if there is a mortgage. The most popular route for people relocating with capital: it satisfies the requirement while building a tangible local asset.

A fixed term bank deposit of USD 200,000. A certificate of deposit of at least USD 200,000 in a Panamanian bank for a minimum of three years, held for the duration of the provisional period. This suits people who prefer liquidity in a Panamanian bank over physical property.

What you receive

• Permanent residency. After the provisional period of 2 years you apply to convert your status, provided your qualifying tie is still in place. Permanent residency does not expire.
• No minimum stay. You are not required to spend a set number of days in Panama each year. You must enter the country at least once every two years to keep the status active. Tax residency is a separate question with its own criteria.
• A work permit. Friendly Nations Visa holders may obtain a Panamanian work permit and be formally employed by local companies.
• Family inclusion. Your spouse of any nationality, dependent children under 25 and dependent parents can be included and receive residency alongside you.
• A path to citizenship. After five years of permanent residency you become eligible to apply for Panamanian citizenship and a passport with visa free or visa on arrival access to 140+ countries.
• Access to the territorial tax system. Once you establish tax residency in Panama, only income from Panamanian sources is taxed. More on this below.

The process, step by step

1. Consultation and route selection. Before you travel, your attorney assesses eligibility, confirms which of the three routes fits and provides a complete document checklist. Entirely remote. Precise guidance here matters, because the order of operations matters and a property purchase or deposit made in the wrong sequence is costly to correct.
2. Document preparation. In your home country you gather and apostille a valid passport with at least six months remaining, a criminal record check (an FBI check for US citizens), a birth certificate and a marriage certificate where relevant. Documents in other languages are translated into Spanish by a certified translator. Allow about 3 weeks for the criminal record alone.
3. One visit to Panama. As a tourist you complete the in country steps: a medical examination at an approved clinic, opening a Panamanian bank account, a certified cheque for government fees and a notarised power of attorney so your attorney can act for you. Coordinating all of this in an unfamiliar city, with no local banking history, is where a full concierge service earns its place. Plan on about 5 business days.
4. Filing. Your attorney files the complete application with the Servicio Nacional de Migración. Processing depends on completeness, any requests for further information and the office's workload at the time.
5. Provisional card. Once approved you receive the provisional card, your legal proof of residency. At the same stage you may apply for the cédula, the national identity card, and a local driving licence.
6. Permanent residency. After the provisional period your attorney files the conversion. Provided the qualifying tie has been maintained, this is straightforward and does not repeat the in country process.

What the territorial tax system means

Panama's tax system is built on one principle: only income that originates inside Panama is taxable. This is not a loophole. It is the core structure of the Fiscal Code, and it applies to citizens, residents and non residents alike. A residency card does not make Panama your tax residence by itself. That takes genuine presence or a demonstrable centre of life here, and a proper exit from your previous tax net. How the territorial tax system works

Is it right for you?

The Friendly Nations Visa is an excellent option if you hold a qualifying passport, have USD 200,000 to place in property or on deposit, and want a stable, established route in a dollar economy with a territorial tax system.

It is not the only option. The Qualified Investor Visa grants permanent residency at once, with no provisional period, against a larger investment: USD 300,000 in new build property under the rules in force since 16 September 2026. The Pensionado Visa remains the standard for retirees with a qualifying pension of at least USD 1,000 a month. Two residency paths compared

Next steps

The most important first step is a consultation with a licensed Panamanian immigration attorney and a qualified tax professional in your home country, in parallel rather than one after the other, because your immigration strategy and your tax strategy are deeply connected. Our concierge service runs both tracks at once, coordinates every appointment and handles the logistics from the airport to the bank to the attorney's office. Panama is an extraordinary opportunity. The process does not need to be complicated.

The programmes at a glance

The Friendly Nations Visa was established under Executive Decree 416 of 2012 and substantially revised by Executive Decree 197 in 2021. It is open only to citizens of 50+ designated countries and requires a genuine economic connection to Panama: employment, property of USD 200,000 or a bank deposit of USD 200,000. It grants provisional residency first, converting to permanent residency after 2 years.

The Qualified Investor Visa was established under Executive Decree 722 of 2020 and now runs under Executive Decree 17, in force since 16 September 2026. It is open to nationals of any country. The investment is larger and the result is permanent residency at once, with no provisional period. The routes are new build property from USD 300,000, resale property or Panamanian securities from USD 500,000, a state bank deposit of USD 500,000 or a private bank deposit of USD 750,000, each held for 5 years.

01. Eligibility

The Friendly Nations Visa is restricted to citizens of qualifying nations. A passport from the United States, Canada, the United Kingdom, Australia or an EU member state qualifies. A passport from a country off the list does not, whatever your means.

The Qualified Investor Visa has no nationality restriction. Anyone who can meet the investment threshold and show a clean source of funds may apply, which makes it the vehicle of choice for applicants from Asia, the Middle East and other regions the Friendly Nations list does not cover.

02. Investment thresholds

For citizens of eligible countries the lower threshold is a real advantage: USD 200,000 in property or on deposit against USD 300,000 for new build property under the Qualified Investor Visa, and USD 500,000 for resale property or securities.

The programmes also differ in what the investment must do. A Friendly Nations deposit is held for a minimum of three years. Every Qualified Investor route is held for 5 years. An early sale, withdrawal or encumbrance can affect your status and limits liquidity for the holding period.

03. Timeline

This is where they diverge most. The Friendly Nations Visa gives you a provisional card first, typically within about 6 months of a complete file, and permanent residency after 2 years.

The Qualified Investor Visa grants permanent residency on approval, with a target decision within about 30 working days of a complete file. There is no provisional phase. For clients who want the cleanest, most definitive status as quickly as possible, this is the deciding factor.

04. Physical presence

Both programmes ask very little. Under either, entering Panama once every two years keeps the residency card valid, and neither obliges you to spend a set number of days in the country each year. Tax residency has separate and distinct requirements, addressed below.

05. Fees

The Qualified Investor Visa generally costs more to process because the investment is larger and the source of funds checks are more extensive. Government fees differ too: the Qualified Investor Visa carries a fee for the main applicant and smaller fees per dependent, while the Friendly Nations Visa's government fees are considerably lower. Attorney fees are quoted in writing on either programme after the consultation. We set them out on the service pages.

06. Path to citizenship

Both roads end in the same place. After five years of permanent residency you become eligible to apply for Panamanian citizenship and a passport with visa free or visa on arrival access to 140+ countries. Panama generally does not permit dual citizenship for naturalised citizens, so weigh this carefully against your existing passport.

Which programme is right for you?

If you hold a qualifying passport and USD 200,000 is the comfortable figure, the Friendly Nations Visa is the natural choice and the provisional period is a formality rather than a burden. If you do not hold a qualifying passport, if you want permanent status from day one, or if you would be buying new build property at USD 300,000 or more anyway, the Qualified Investor Visa is the stronger route.

A note on tax residency

Neither programme makes Panama your tax residence by itself. A residency card gives you the legal right to live here. Tax residency typically requires 183 days or more a year in Panama or a demonstrable centre of vital interests here, and usually a formal exit from your previous country of tax residence. These are two separate processes needing separate professional guidance. Many clients focus entirely on immigration and neglect the tax side, and keep owing tax at home while living in Panama. Work with an immigration attorney and a qualified tax professional in your home jurisdiction at the same time, not one after the other. How the territorial tax system works

Next steps

Both programmes are well established, legally sound and widely used. The right choice depends on your passport, your budget, your timeline and how quickly you need definitive permanent status. Our concierge service manages the whole process for either: the attorney, the bank appointment, the medical examination, the property search where relevant and every document in between. You focus on the decision. We handle the rest.

The foundation: source, not residence

Most countries tax on a residence principle: once you are tax resident, you are taxed on worldwide income wherever it was earned. The United Kingdom, Canada, Australia, Germany, France and most of Europe work this way. Moving to Panama does not remove you from your home country's worldwide taxation until you take active steps to leave it and establish Panama as your genuine tax home.

Panama works differently. Its system rests on a territorial, or source, principle set out in Article 694 of the Fiscal Code: only income that originates inside Panama is subject to Panamanian income tax. The rule applies to citizens, permanent residents and non residents alike.

This is not a temporary incentive, a special economic zone benefit or a time limited exemption. It is the foundational structure of the whole tax code, in place for decades. Panama has never operated a worldwide taxation system.

What is not taxed

• Foreign wages, salaries and professional fees earned from clients or employers outside Panama. Working remotely from Panama City for a company in Toronto, London or New York, with no Panamanian clients or operations, produces foreign sourced income that Panama does not tax.
• Foreign dividends and investment returns. Dividends from a US brokerage account, a European portfolio or shares in a British company are not taxed here.
• Foreign pensions, social security and retirement distributions.
• Foreign capital gains. Selling shares in a Canadian company or a property in France gives Panama no claim.
• Foreign rental income from property outside Panama.

Unlike some modified territorial systems, Panama does not tax foreign income when it is brought into the country. Foreign sourced returns can be deposited in a Panamanian bank account without becoming taxable here. Even for locally sourced income there are specific exemptions: interest on savings and time deposits with banks established in Panama, and interest on Panamanian government securities.

What is taxed

• Income from Panamanian employers. A local job or consulting for Panamanian clients falls inside the net, at progressive rates that are substantially lower than in most North American and European countries.
• Business activity conducted inside Panama. Clients in Panama, services provided in the country, revenue from Panamanian economic activity.
• Dividends from Panamanian corporations, with different withholding rates for locally and foreign sourced profits, a nuance many investors miss.

The critical question: where is income sourced?

For a remote worker employed by a US company who performs all services from Panama City, with no Panamanian clients or operations, the income is generally treated as foreign sourced and exempt. The test is where the benefit lands: if the services benefit clients or operations outside Panama, the income is foreign sourced.

If that same person starts advising Panamanian businesses, opens a local office or hires Panamanian staff, the share of income attributable to Panamanian activity becomes locally sourced and taxable. Multiple income streams, corporate structures and digital businesses need formal structuring. Do not rely on a general interpretation where your circumstances call for professional review.

Residency is not tax residency

This is where most people go wrong. A residency card, from the Friendly Nations Visa, the Qualified Investor Visa or any other programme, gives you the legal right to live in Panama. It does not make Panama your tax residence.

To establish Panama as your tax residence you typically need to spend at least 183 days a year in the country, or establish Panama as your demonstrable centre of vital interests: your primary home, your banking, your professional base and your social ties. You obtain the cédula, a local driving licence and a Panamanian tax identification number where applicable. And you formally de register as a tax resident of your previous country, following that country's own procedures.

The last point is the one most often neglected. Moving to Panama and getting a card does not end your obligations at home. Most countries require affirmative steps to sever tax residency, and some keep asserting claims until those steps are completed correctly.

By nationality

United States. The most complex case. The US taxes its citizens on worldwide income wherever they live, and there is no income tax treaty between the US and Panama, so US citizens in Panama remain fully subject to US federal obligations. The main tool abroad is the Foreign Earned Income Exclusion, claimed independently by each spouse, subject to a physical presence or bona fide residence test, with a separate housing exclusion. An annual return is still due, and foreign account reporting applies above set thresholds, with severe penalties for missing it. US citizens should never rely on Panama's system alone. US qualified international tax advice is not optional.

Canada. Residence based, with detailed departure rules. Once you formally emigrate for tax purposes, filing a departure return and becoming a non resident, Canadian tax on foreign income ends, but certain Canadian sourced income such as pensions and rental income remains subject to Canadian withholding. Work with a Canadian specialist in international relocations before and after the move.

European Union and United Kingdom. Rules vary widely. Germany, France and the UK each have their own exit procedures and departure taxes, and some countries assert residence on the basis of remaining ties, a home or family, whatever the day count elsewhere. Seek country specific advice.

Double taxation agreements

Panama has a network of double taxation agreements, including with France, Ireland, Italy, Luxembourg, Mexico, the Netherlands, Portugal, Singapore, South Korea, Spain, the United Arab Emirates and the United Kingdom, updated to incorporate the OECD multilateral instrument, including a principal purpose test that can deny treaty benefits where obtaining them was a principal purpose of an arrangement. There is no treaty with the United States or Canada.

Corporate structures

Panama is well known for the Sociedad Anónima as an international holding and trading vehicle. A Panama S.A. is quick to incorporate, and income it earns from activity outside Panama is not subject to Panamanian corporate income tax, consistent with the territorial principle. Panamanian corporations have been used legitimately for decades to hold foreign property, manage international investments and structure cross border business.

The landscape around offshore structures has become far more demanding since 2016, with tightened compliance and reporting. A Panama corporation that is not properly structured, maintained and reported in your home country creates exposure rather than removing it. Structures should be designed and kept by qualified Panamanian attorneys and reviewed by tax advisers at home who understand your situation. Panama S.A. · Tax Consulting

The bottom line

Panama's territorial system is genuine, legally robust and exceptionally favourable for people with foreign sourced income who make Panama their real tax home. It is not a loophole or a workaround. It is the law.

Using it properly takes three things at once: a valid residency permit, genuine tax residency under the criteria above, and a proper exit from your previous tax net. Get any one of them wrong and the system does not work for you as intended. Get all three right and the result is substantial.

The system

Panama's banking system is the largest in Central America: 55+ licensed banks, from major international institutions to local private banks, fully dollarised and well integrated into the global financial system.

Opening an account as a foreigner, and especially as a non resident, is nonetheless demanding. Due diligence has tightened considerably in recent years, declines for non residents are real, and arriving without preparation is the most common reason for delay.

Can non residents open accounts?

Yes, with caveats. Some banks consider non resident applicants, but approval is entirely discretionary, due diligence is more extensive than for residents, minimum deposits are typically higher, an in person interview is usually required and the document list is longer.

Many non resident applications are declined because the file is incomplete or because the source of funds and the purpose of the account are not clearly explained. The compliance desk needs to understand who you are, where your money comes from and why you want an account in Panama. A foreigner with no Panamanian ties and no clear answer to those questions is not a strong profile.

A residency application in progress improves your position considerably. Banks are more comfortable opening accounts for people who are actively obtaining residency, and your attorney can confirm in writing that your application is under way.

Why you need the account

For the Friendly Nations Visa by the deposit route, the account holds your USD 200,000 certificate of deposit, in your name. For the Qualified Investor Visa, the investment must be shown to originate from a foreign source, and banking compliance is part of the process. Even on the property routes you need a local account to issue the certified cheque for government fees and for day to day finances once you are resident.

What the bank will ask

Prepare a clear written explanation of your source of funds. Whether the money came from a business, investments, a property sale or a professional career, document it and have supporting statements ready. The bank is not trying to make your life difficult. It has anti money laundering obligations and must explain your profile to its own compliance team. The clearer your paper trail, the smoother the process.

Request your bank reference letter well before you travel. It usually has to be recent, on original letterhead and signed by hand, so a digital copy will not do. Ask your home bank three to four weeks ahead, because last minute requests are often delayed or refused.

Engage your immigration attorney before the banking appointment. A formal introduction from a recognised local firm improves your standing with the compliance desk and marks you as a prepared applicant rather than a walk in with no local context.

The in person requirement

Most banks require you to appear in person. Remote opening exists at certain smaller or internationally focused institutions, but the mainstream banks that expats and investors rely on usually want you at a branch. This is why your residency visit is the right moment for banking, alongside the attorney meetings, the medical examination and the filing: one coordinated sequence in a single visit of a few days, rather than separate trips.

Timelines and deposits

Once a complete application is in, the bank reviews the compliance profile. Straightforward files open within days or a couple of weeks. Non resident and more complex profiles can take several weeks. Some banks open a preliminary account and activate it fully after review. Initial deposit requirements vary by institution and profile, with higher minimums for non residents, and some banks apply inactivity fees below a threshold.

Once the account is open

Most Panamanian banks offer solid online banking, debit cards and international transfers. English language interfaces vary. Panama runs entirely in US dollars, so there is no currency conversion to manage. Interest on deposits in Panamanian banks is exempt from Panamanian income tax, as our tax guide explains. How the territorial tax system works

How we help

We assess your profile before you apply, prepare the file the way the desk expects to read it, and introduce you as a referred client to a bank that is currently onboarding profiles like yours. One application, to the right institution. Bank Account Opening

Three tiers of expat life

Budget: USD 1,500 to USD 2,200 a month for one person. A modest apartment outside the premium neighbourhoods, cooking at home with local ingredients, public transport, dining out kept to a minimum. Comfortable by global standards and achievable, but it takes intention and does not include a car, a luxury apartment or frequent fine dining.

Comfortable: USD 3,000 to USD 4,500 a month for one person or a couple. A modern apartment in a good expat neighbourhood, a mix of home cooking and restaurants, Uber or a modest car, private health insurance and a full social life. This is where most professional expats and early retirees realistically land.

Upscale: USD 5,500 to USD 8,000 or more a month. A luxury high rise in Punta Pacifica or Costa del Este, a car, international restaurants, private schools, domestic staff and regular international travel. Panama delivers this at a fraction of what it costs in New York, London or Toronto.

Housing, by neighbourhood

Costa del Este. The new economic centre, home to most corporate headquarters, international banks and multinational offices. Master planned, walkable, clean and suburban in feel, with international schools and a Johns Hopkins affiliated hospital. The first choice for corporate expats arriving with families. A modern one bedroom runs USD 1,200 to USD 2,000 a month. Two bedrooms USD 1,800 to USD 3,000, with full amenity packages at the top of the range.

San Francisco and Coco del Mar. San Francisco is the classic expat and upper middle class neighbourhood, central and well connected, with older and newer buildings side by side. Coco del Mar is its modern waterfront extension, with newer towers, bay views and rooftop amenities. One bedrooms run USD 900 to USD 1,600 in San Francisco and USD 1,200 to USD 2,000 in Coco del Mar. The best balance of location, quality and price for most arrivals.

Bella Vista and El Cangrejo. Urban and walkable, with El Cangrejo the choice of younger professionals, students, digital nomads and anyone who wants restaurants and bars at the door. Excellent access to transport, clinics, pharmacies and groceries. One bedrooms run USD 700 to USD 1,200. Budget living with excellent urban access.

Punta Pacifica and Punta Paitilla. The prestige waterfront address, beside the Johns Hopkins affiliated hospital and lined with glass towers facing the sea. The neighbourhood agents show first, and it carries premium pricing: one bedrooms USD 1,200 to USD 2,200, two bedrooms with ocean views USD 1,800 to USD 3,500. Experienced buyers note that part of the stock is ageing and that newer buildings in Costa del Este and Coco del Mar often offer better value.

Casco Viejo. The UNESCO World Heritage historic district: renovated colonial mansions, boutique apartments with rooftop terraces, cobbled streets, galleries and some of the best restaurants in the city, in an active renovation zone. Rents vary enormously with the building. A renovated one bedroom runs USD 1,000 to USD 2,000. Popular with creatives, architects, boutique business owners and anyone who prefers culture and walkability to corporate comfort.

Utilities: the electricity surprise

Electricity is the bill that surprises new arrivals. Panama is tropical and air conditioning is a daily necessity, so a standard two bedroom with normal use runs USD 100 to USD 250 a month. Internet is excellent: widespread fibre, with 100 to 300 Mbps packages at USD 35 to USD 60 a month. Mobile plans with ample data run USD 20 to USD 40. Water and refuse are minimal, USD 10 to USD 30, and often included in building fees. A realistic utilities budget for a two bedroom is USD 140 to USD 250 a month.

Groceries and dining

Costs depend on how far you lean towards imported goods. Local produce, rice, beans, chicken and seafood are inexpensive. Imported cheeses, particular wine labels, organic specialities and US brand packaged goods cost as much as or more than in North America. One person cooking mostly at home spends roughly USD 200 to USD 350 a month. A couple with more varied tastes USD 350 to USD 550. The main supermarket chains are El Rey, Super 99 and Riba Smith, the last gourmet oriented and noticeably dearer for comparable items.

Eating out is excellent value at the local and mid range levels: a sit down lunch at a Panamanian restaurant USD 6 to USD 12 a head, a mid range dinner for two at an international restaurant USD 30 to USD 60 with drinks, fine dining in Casco Viejo or a hotel USD 80 to USD 150 for two with wine.

Transport

The city is not car free, but it is increasingly navigable without one. The Metro is clean, modern, air conditioned and expanding, at under USD 0.35 a trip. Buses are cheap but hard for newcomers. Uber is widely available and reliable, with most crosstown trips at USD 3 to USD 8. Without a car, an active person spends USD 100 to USD 200 a month. A car adds roughly USD 300 to USD 500 a month in fuel, insurance and parking, with fuel around USD 0.90 a litre, insurance USD 60 to USD 100 a month and central parking USD 100 to USD 200. Vehicles and Transport

Healthcare

Private healthcare is among the strongest in Latin America. The Johns Hopkins affiliated Punta Pacifica hospital and Hospital Nacional are internationally accredited and work to North American standards. A GP consultation costs USD 40 to USD 80 at a private clinic, a specialist USD 80 to USD 150, and laboratory work is dramatically cheaper than in the United States. Private health insurance for a healthy person under 50 runs USD 100 to USD 200 a month from providers such as Mapfre, Humano or Bupa Panama, rising with age, and is best arranged before any significant condition is diagnosed.

Domestic help

One area where Panama changes daily life relative to North America and Europe. A part time cleaner two or three days a week costs USD 200 to USD 350 a month. A full time live in housekeeper USD 500 to USD 700 plus statutory benefits. A part time driver USD 600 to USD 900. A household with both a cleaner and a driver still spends well under USD 1,500 a month, about what a part time cleaning service alone costs in a major US or European city. Residence and Home

Outside the capital

For those who do not need to be in the city, costs fall sharply. In Boquete, the highland town in Chiriquí that has long been a favourite with retirees, a comfortable furnished house rents for USD 700 to USD 1,200 a month, the cool climate removes air conditioning from the bill, and a couple lives comfortably on USD 2,000 to USD 2,800 a month including a car. Coronado and the Pacific beach communities, about an hour from the city, offer a two bedroom house near the beach for USD 900 to USD 1,600 a month, popular with families and retirees who want the ocean without losing the city.

The bottom line

Panama City offers a quality of life that is hard to replicate at comparable cost anywhere else in the Americas. A budget of USD 3,500 to USD 4,500 a month buys an excellent urban life in a modern apartment with good healthcare, good restaurants and reliable infrastructure. The same life in Miami, Toronto or London costs two to three times more. The advantage is real. It is simply not as extreme as the most optimistic blog posts suggest. Budget accurately, and Panama will almost certainly exceed your expectations.

Foreign ownership rights

Panama's constitution guarantees private property and extends that protection to foreigners in nearly all cases. Foreign buyers can purchase most titled residential property directly in their own name, without special permits, residency status or government approval. That is not true of many countries in the region, and it matters.

The process is straightforward by regional standards but needs an experienced attorney for title search, contract review and registration. Buy nothing until your lawyer has investigated the title in the Registro Público. Liens and encumbrances are not rare, and entirely preventable with due diligence.

Two peculiarities to know. Much titled land is held by corporations, and sellers sometimes transfer the corporation rather than the land, a legitimate practice that avoids a revaluation but needs specific legal review of what you are actually buying. And island property is a special case: the constitution limits the alienation of insular territory in certain circumstances, so island purchases need project specific legal review.

Property taxes

Panama's property taxes are among the lowest in Latin America. A primary residence registered as Patrimonio Familiar or Vivienda Principal attracts reduced or zero rates up to set value thresholds. The exemptions are property specific and have changed over time, so confirm the applicable rate for any property with your attorney. A condominium exemption on improvements may still leave an annual tax on the land value. Transfer tax and capital gains tax on sales are low by international standards. The attorney confirms the current rates before you commit.

Where to buy

Costa del Este: corporate rental demand. Home to most multinational headquarters and international banks, with modern infrastructure, international schools and the airport close by. Companies relocating executives target it specifically, so corporate tenant demand is consistent and well paying. Prices per square metre are among the highest in the city. Yields are solid rather than spectacular, vacancy is low and tenant quality is high. Buying off plan can be effective, as developers release units at tiered pricing.

San Francisco and Coco del Mar: the best overall balance. San Francisco is described by experienced investors as the most reliable neighbourhood for long term residential investment: the commercial and residential hub, accessible from everywhere, home to the local upper class and the established expat community. Coco del Mar is its modern high rise extension, with newer buildings, bay views and premium amenities. For an investor in the USD 200,000 to USD 300,000 range, these two offer the most consistent combination of asset quality, rental demand and value stability.

El Cangrejo: the strongest rental yields. Within Bella Vista, El Cangrejo delivers some of the highest gross yields in the city, driven by young professionals, students, digital nomads and short stay visitors, in one of the few walkable urban neighbourhoods. The trade off is density, older stock in places and some buildings with maintenance issues. Entry prices are lower, which makes it accessible at the USD 200,000 minimum, but due diligence on building quality and management is essential.

Casco Viejo: culture, appreciation, complexity. The UNESCO World Heritage district offers a distinctive proposition: renovated properties command premium rents from tenants who want the historic district specifically, and appreciation on well chosen properties has been strong through a decade of steady regeneration. Renovation projects carry heritage requirements, permits and longer timelines. A renovated boutique apartment removes that complexity at a higher entry price. New short term rental rules introduced in 2026 require tourism and zoning approvals for Airbnb style operations in Panama City. Confirm them before relying on short term income.

The qualifying investment

For the Friendly Nations Visa the property must be worth at least USD 200,000, in your name and free of liens, or with equity at or above that figure if part is financed. A USD 350,000 property with USD 150,000 financed leaves USD 200,000 of equity, which qualifies.

For the Qualified Investor Visa, under the rules in force since 16 September 2026, new build property qualifies from USD 300,000 and resale property from USD 500,000, held for 5 years. Anything describing a flat USD 300,000 property rule, or a deadline after which it rises, is out of date. Your attorney and the bank confirm the exact structuring. Qualified Investor Visa

The buying process, step by step

1. Identify and investigate. You find a property and your attorney searches the Registro Público for title, liens, encumbrances and ownership history while you negotiate price and terms.
2. Promise of sale. A Promesa de Compraventa is signed with a deposit, typically ten percent, binding both sides to the agreed terms.
3. Transfer. The balance is paid and the public deed, the Escritura Pública, is executed before a Panamanian notary. Your attorney registers the transfer.
4. Proof of ownership. You obtain the Certificado de Registro confirming the title is in your name and free of liens. The residency application needs it.
5. Proof of value. For residency you also need a certificate of value from ANATI, the national land authority, confirming the property meets the threshold.

Total transaction costs, including transfer tax, legal and registration fees, are a few percent of the purchase price. The attorney quotes them in writing before you sign.

Is now a good time to buy?

Panama's market did not follow the dramatic price spikes of North American markets between 2021 and 2023. It has been steadier, with consistent appreciation in prime neighbourhoods rather than speculative bubbles. Growing investor demand under the Qualified Investor Visa is putting upward pressure on qualifying grade property, and the two tier rule rewards buyers who choose new build at USD 300,000 over resale at USD 500,000. A purchase that qualifies for a visa is a decision to make with the attorney, not the agent. Legal Consulting

1. Using outdated information

The 2021 reforms changed the Friendly Nations Visa fundamentally. Before them you could qualify with little more than a registered company and a nominal deposit. Today the requirement is a genuine economic connection: employment, a USD 200,000 property or a USD 200,000 certificate of deposit held for three years. A great deal of what circulates online, including from firms that have not updated their pages, still describes the old programme.

The fix: check that every source you consult and every attorney you engage is working from current knowledge. Ask directly: what changed in 2021, and how does it affect my case?

2. Treating residency and tax residency as the same thing

The most consequential mistake, with the most serious financial consequences. A residency card gives you the legal right to live in Panama. It does not make Panama your tax residence, it does not end your obligations in your previous country, and it does not mean your home tax authority now sees you as a beneficiary of the territorial system. That takes genuine tax residency here, typically 183 days or more a year or a demonstrable centre of vital interests, and a proper exit from your previous tax net under that country's own rules. Stay on the rolls of a high tax country and you keep owing its tax on worldwide income, wherever you are.

The fix: engage a Panamanian immigration attorney and a qualified tax professional in your home country at the start, in parallel, not after you arrive. How the territorial tax system works

3. Trying to qualify with a shell company

The employment route requires a Panamanian company with genuine operations and the local headcount the route demands. A newly registered company with no employees and no activity does not qualify. Some advisers still steer clients towards registering a company as the qualifying vehicle. Since 2021 that no longer works and only wastes time and money.

The fix: if employment is genuinely your route, confirm the employing company meets every criterion before you proceed.

4. Underestimating the document timeline

Documents must be original, apostilled and in most cases officially translated into Spanish. A criminal record certificate alone takes about 3 weeks, apostilles vary by country and authority, and translations take their own time. Clients who start collecting documents two weeks before travelling arrive with papers that have expired or are not yet ready.

The fix: start collecting at least eight to twelve weeks before your travel date, beginning with the criminal record check, the longest lead item. Criminal Record Certificate and Authentication

5. Skimping on legal representation

Under Panamanian law every immigration application is filed through a licensed attorney. You cannot file yourself. Beyond the legal requirement, the quality of the attorney matters. A good one manages the process, flags issues before they become problems, introduces you to the right banks, knows current processing times and follows up efficiently. A poor one causes delays, misfiles documents and leaves you waiting months. The cheapest fee is rarely the best value.

The fix: ask for references, ask how many applications the firm has filed in the last twelve months, and ask specifically about its banking relationships.

6. Not coordinating banking and immigration

Your bank account and your application are connected. The bank wants to see your residency application in progress to improve your odds as a non resident, and your attorney can confirm your status in writing. Clients who approach a bank before engaging an attorney, with nothing to show they are in the process, face the steepest climb with the compliance desk.

The fix: engage the attorney first, then approach the bank with a formal introduction and documentation of your application. Opening a bank account in Panama

7. Buying property before due diligence

Panama has clear foreign ownership rights and a generally transparent registry, but title issues, hidden liens and encumbrances exist and are entirely preventable. Every purchase needs a full search of the Registro Público by your attorney before any money changes hands, and, where the property is your qualifying investment, an official ANATI valuation that supports the value.

The fix: never sign a purchase agreement or pay a deposit until your attorney has completed the title search. Real estate as a residency investment

Why Advisory N9

Company, banking, legal structuring and residency run through one network. Your company is incorporated, your account is opened, your permits are coordinated and your residency application moves at the same time. Nothing stalls because one piece is waiting on another.