Panama Friendly Nations Visa 2026: requirements, cost, and tax
The Friendly Nations Visa is Panama's most popular route to long-term residency, and a favorite Plan B for nomads who want a territorial-tax base they can settle in. It is not the same as Panama's short-term digital nomad visa. Here is how it works in 2026: who qualifies, the three routes in, the path to permanent residency, and the tax picture.
Who qualifies
You must hold a passport from one of roughly 50 friendly nations, which include the US, Canada, the UK, most of the EU, Australia, New Zealand, Japan, and South Korea. Nationality gets you in the door; you then prove economic or professional ties to Panama through one of three routes.
The three routes in
| Route | Requirement | Notes |
|---|---|---|
| Real estate | ~$200,000 property | Residential or commercial; local bank financing is allowed. Must be held through the two-year provisional period. |
| Fixed bank deposit | ~$200,000 deposit | A three-year fixed-term certificate of deposit at a Panama-licensed bank, free of encumbrances. |
| Company or employment | Job with a real Panamanian company | A genuine employment contract, or form your own Panama company and hire yourself, with a work permit through the labor ministry (MITRADEL). No $200,000 lock-up, but more paperwork. |
Source: Panamanian immigration law (Executive Decree 197 of 2021) and immigration-law advisories.
The process and cost
Since 2021 the visa no longer grants instant permanent residency. You first travel to Panama, file your dossier (apostilled background check, local health certificate, proof of your route), and receive a two-year provisional residency, with the resolution usually issued in about three to six months. At the end of the two years, if your investment or job is still in place, you apply for permanent residency, which takes a few more months. After five years of permanent residency you can apply for citizenship.
On cost, government fees are about $1,050 per applicant (an $800 repatriation deposit plus a $250 application fee), and legal fees typically run $2,000 to $3,500. The company-formation route avoids tying up $200,000 but adds incorporation, a work permit, annual filings, and monthly Panamanian social-security contributions across the two-year period.
Friendly Nations Visa vs the digital nomad visa
Do not confuse the two. Panama's Short Stay Visa for Remote Workers, its digital nomad visa, is for people working for foreign employers or clients, asks for about $36,000 of foreign income, lasts 9 months (extendable to 18), and does not lead to permanent residency or citizenship. The Friendly Nations Visa is the route for anyone who actually wants to settle, build a tax base, or work toward a second passport. If a short stay is all you need, see the Panama digital nomad visa instead.
The tax picture
Panama's big draw is its territorial tax system: it taxes only Panama-source income, so money you earn from foreign clients, foreign investments, or a remote job for a non-Panamanian employer is not taxed in Panama. US citizens are the main exception, since the US taxes worldwide income, though the Foreign Earned Income Exclusion can help. A common nomad setup is a territorial-tax residency like this paired with a US LLC for non-residents, which can also be 0% on US federal income tax when run from abroad.
Comparing your options?
If you are weighing where to base yourself, the free checker matches your income to every nomad visa you qualify for, and our tax guide covers the other zero-tax and territorial countries.
Get the free Global Founder Setup Kit
A one-page PDF: the exact US LLC plus territorial-residency setup non-resident founders use to run an online business and pay near-zero tax, with the checklist and the honest caveats. Drop your email and it is yours, plus new setups as we add them.
Panama Friendly Nations Visa FAQ
Who qualifies for the Panama Friendly Nations Visa?
Citizens of roughly 50 countries that have strong ties with Panama, including the US, Canada, the UK, most of the EU, Australia, New Zealand, Japan, and South Korea. You qualify by your nationality, then prove economic or professional ties to Panama through one of the three routes.
How much does it cost?
Beyond the qualifying route (a ~$200,000 investment, or the cheaper company/employment path), government fees are about $1,050 per applicant (an $800 repatriation deposit plus a $250 application fee), and legal fees typically run $2,000 to $3,500. The company route also adds incorporation, work-permit, and ongoing Panamanian social-security costs.
Does it lead to permanent residency and citizenship?
Yes. Since 2021 it is a two-step process: a two-year provisional residency first, then permanent residency once you show the qualifying investment or job is still in place. After holding permanent residency for five years you may apply for Panamanian citizenship, subject to the usual conditions.
Is the Friendly Nations Visa the same as Panama's digital nomad visa?
No. Panama's Short Stay Visa for Remote Workers (its digital nomad visa) is for people working for foreign employers, needs about $36,000 of foreign income, lasts 9 months (extendable to 18), and does not lead to permanent residency. The Friendly Nations Visa is the long-term residency route. See our Panama digital nomad visa page for that option.
Do I pay Panama tax on my foreign income?
Generally no. Panama uses a territorial tax system, so income earned outside Panama is not taxed there. US citizens still owe US tax on worldwide income but can use tools like the Foreign Earned Income Exclusion. Confirm your situation with a tax professional.
Requirements, fees, and the friendly-nations list can change, and immigration now scrutinizes the company route closely. This is general information, not legal or tax advice. Confirm the current rules with a licensed Panamanian immigration attorney and a tax professional before you act.