Friendly Nations Visa
Easy residency in a 0% foreign income tax jurisdiction using the US dollar
Best For
Eligibility Requirements
Step-by-Step Application Process
Verify Your Country Is on the Friendly Nations List
Confirm your nationality is on Panama's approved "Friendly Nations" list. The list includes approximately 50 countries and is periodically updated. Most Western nations, plus many Asian and Latin American countries, are included.
1 day- The list includes: USA, UK, Canada, Australia, most EU countries, Japan, South Korea, Israel, and many others
- Some countries have been added or removed over the years - check the latest version
- If your country is not on the list, consider the Panama Digital Nomad Visa or Self-Economic Solvency Visa instead
Hire a Panamanian Immigration Lawyer
A local immigration lawyer is effectively required for the Friendly Nations Visa process. They handle the application, interact with immigration (Servicio Nacional de Migracion), and navigate the legal requirements. Choose a reputable firm with experience in this specific visa type.
1-2 days- Budget $2,000-3,500 for legal fees - this is the largest cost component
- Ask for a fixed-fee quote that includes all government filings
- Your lawyer should handle: document preparation, translation, bank introduction, immigration filing, and follow-up
- Get referrals from expat communities or forums before choosing a lawyer
Open a Panama Bank Account and Deposit $5,000
Open a bank account at a Panamanian bank and deposit the minimum $5,000 USD. Panamanian banks have strict compliance requirements and may request extensive documentation. Your lawyer can provide a letter of introduction to a bank.
1-3 weeks- Banco General, Banistmo, and BAC are common choices for expats
- You typically need to visit Panama in person to open the account
- Bring: passport, proof of income, bank reference letter from your current bank, utility bill for address proof
- The $5,000 minimum must remain in the account - it can be used after your visa is approved but keeping it is recommended
- Bank account opening can be the most frustrating step - compliance reviews can take 1-2 weeks
Establish Your Economic Tie
Choose and establish one of the qualifying economic ties to Panama: employment by a Panamanian company, registering a Panamanian business (SRL or SA), purchasing real estate, or entering a professional service contract.
1-4 weeks- Registering a Panama company (SRL) is the most common route for entrepreneurs - costs about $1,000-2,000 including legal fees
- Real estate purchase of any value qualifies (no minimum), but involves additional transfer taxes of ~2%
- Employment means having a formal work contract with a Panama-based company
- Your lawyer can help set up a company quickly if that is your chosen route
Gather and Apostille Documents
Collect all required documents from your home country, have them apostilled, and then translated into Spanish by a certified Panamanian translator. Your lawyer will guide you on exact requirements.
2-4 weeks- Criminal record certificate must be apostilled and less than 6 months old
- You will need multiple passport copies, both notarized and apostilled
- All non-Spanish documents must be translated by a certified public translator (Traductor Publico Autorizado) in Panama
- Birth and marriage certificates also need apostilles if including dependents
File Application and Complete Biometrics
Your lawyer submits the complete application to the Servicio Nacional de Migracion. You attend an appointment for biometrics (fingerprinting and photo). After filing, the immigration authority reviews and issues a provisional permit (carnet) while the permanent cedula is processed.
3-6 months- You receive a provisional carnet (temporary residency card) relatively quickly after filing
- The permanent cedula (national ID) can take 3-6 months after approval
- The cedula is your permanent residency card and is needed for most official transactions
- You can live and work in Panama on the provisional carnet while waiting for the final cedula
- After 5 years of residency, you become eligible for Panamanian citizenship
Required Documents
Cost Breakdown
| Item | Amount | Notes |
|---|---|---|
| Immigration lawyer | $2,000-3,500 | Fixed fee for full application handling, filings, and follow-up |
| Government filing fees | $250-400 | Immigration processing and application fees |
| Cedula (national ID) | ~$100-150 | Permanent residency card fee |
| Document apostilles | $50-200 | Varies by country - typically $10-20 per document |
| Certified translations | $200-500 | Spanish translations of all non-Spanish documents by authorized translator |
| Company registration (if applicable) | $1,000-2,000 | Only if establishing a business as your economic tie; includes legal setup and annual agent fee |
Timeline Overview
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Frequently Asked Questions
Do I pay tax on my foreign income in Panama?
No. Panama operates a strict territorial tax system. Only income sourced within Panama is subject to tax (progressive rates of 0-25%). All foreign-sourced income, including remote work for overseas clients and foreign investments, is completely tax-free.
Which countries are on the Friendly Nations list?
Approximately 50 countries including the United States, United Kingdom, Canada, Australia, most EU member states, Japan, South Korea, Israel, Mexico, Brazil, Argentina, Chile, and others. The list is set by executive decree and can be updated. Check migracion.gob.pa for the current version.
Do I need to live in Panama full-time?
No. There is no minimum stay requirement for maintaining your residency. However, you should maintain your economic ties (bank account, company, or property) and visit periodically. For citizenship eligibility after 5 years, you need to demonstrate substantial presence.
Can I get citizenship through the Friendly Nations Visa?
Yes. After 5 years of permanent residency, you can apply for Panamanian citizenship. Panama allows dual citizenship with most countries. You will need to pass a basic Spanish language test and a civics exam.
Why do I need a lawyer for this visa?
While not legally required, the Friendly Nations Visa process involves navigating Panamanian immigration bureaucracy, filing documents in Spanish, and coordinating between banks, notaries, and government offices. A local lawyer dramatically increases your chance of approval and reduces processing time.
Can I use USD in Panama?
Yes. The US dollar is legal tender in Panama (alongside the Panamanian Balboa, which is pegged 1:1). ATMs dispense USD, prices are in USD, and there are no foreign exchange costs. This is a significant advantage for US dollar earners.