Panama Residency
Panama residency is the perfect document for digital nomads and successful entrepreneurs looking for a tax haven to call their own.
Panama - The Dubai of Central America
The Advantages of Panama Residency
Residency in Panama offers a combination of advantages that is hard to find elsewhere.
- Taxes: Complete exemption from taxes on income earned abroad.
- Asset protection: A country with a strong history of asset protection and low taxes.
- Low stay requirements: You only need to be in the country for 1 day every 2 years to keep your legal residency active.
- Networking: A financial, business, and travel hub in Latin America.
- Economic Freedom: Ranked 56th in the Index of Economic Freedom (Brazil is 133rd).
- Language: Spanish is the official language, but there is a high level of English proficiency.
- Banking: A low-debt banking system with no central bank and crypto-friendly banks.
Panama Residency Options
Panama has a residency application procedure for "Friendly Nations." Currently, when you apply, you obtain a Provisional Residency for a period of 2 years. At the end of this period, you can renew your residency and obtain permanent residency in Panama.
The main options for residency in Panama currently are:
- Company: Open a company in Panama and obtain a license to hire. The company does not need to have real activity. This is the most common route for our business owner, investor, or freelancer clients.
- Bank Deposit: Deposit at least 200,000 USD in a fixed-term deposit in Panama and hold it for 3 years. By depositing 750,000 USD for at least 5 years, it is possible to obtain permanent residency directly as a Qualified Investor.
- Real Estate: Purchase a property for at least 200,000 USD and hold it for 2 years. By purchasing and holding a property of at least 300,000 USD for 5 years, it is possible to obtain permanent residency directly as a Qualified Investor.
- Stocks: Invest at least 500,000 USD in Panamanian stocks through a brokerage firm in Panama for at least 5 years. This pathway allows you to obtain permanent residency directly as a Qualified Investor.
- Retiree: Provide proof of a lifetime retirement or pension of at least 1,000 USD per month.
- Italian: Open a company in Panama as an Italian citizen. This pathway allows you to obtain permanent residency directly (our local specialist can assist you with this).
We also work with other pathways to residency.
Step-by-Step Guide to Friendly Nations Residency in Panama
- Trip 1 (Entry and Filing): The client must be in Panama to file the application. Generally, 5-10 business days are sufficient to file, provide biometrics, and obtain a "residency in process" card valid for ~6 months (while waiting for the decision).
- Trip 2: Approval of temporary residency (typically 3-6 months). Once the resolution is issued, the client returns when summoned to collect the temporary residency card (valid for 2 years). This is not a mandatory return within 6 months, but rather when the process is decided (it may be sooner or later). The stay is usually short (1-3 business days), only for photos and collection.
- Trip 3: After 2 years of temporary residency, return to Panama to apply for permanent residency. Again, your presence is required to file the application (5-10 business days), followed by a wait for the decision, which is usually faster.
- Trip 4: Once permanent residency is approved, return to the country to collect your permanent residency card and, if desired, issue your E-Cédula at the Electoral Tribunal.
Required Documents for Residency in Panama
Each visa option may require specific documentation, but all visas require some essential documents:
- Original passport, valid for at least six (6) months.
- Five (5) passport-sized photographs.
- Apostilled criminal background check. Not applicable for children under 18.
- For spouse: Apostilled marriage certificate
- For children: Apostilled birth certificate
- For children aged 18 to 25: Proof of university enrollment and proof of single status
More information about Panama
You can find more information and documents here:
- Article: How to Live in Panama: The Perfect Place for Entrepreneurs and Perpetual Travelers
- Article: 4 Reasons Why Panama Is One of the Freest Countries in the World
- Article: How to Get Your Cédula in Panama as a Resident
- Article: How to Obtain a Panamanian Driver's License as a Resident
- Article: How to Open an Offshore Bank Account in Panama - A Step-by-Step Guide
- Article: Guide to Surf Beaches in Panama
- Article: 7 Keys to Panamanian Foundations and How They Can Help You Protect Your Wealth
- Service: Company and Foundation Incorporation in Panama
- Service: Crypto-Friendly Bank Account Opening in Panama
- Service: Real Estate Support in Panama
- Podcast: Life and Opportunities in Panama - with Eliezer Miranda
Residency pricing and options
Panama Residency via Friendly Nations: Real Estate or Deposit
US$5499
- Cost of 5499 USD for the primary applicant, 2799 USD for each adult dependent, and 1799 USD for each minor dependent
- Includes legal processing for Panamanian residency and the application for the national ID
- Discounts available for families and annual Settee community members
Panama Residency for Italian Citizens
US$5999
- Cost of 5999 USD for the primary applicant, 2799 USD for each adult dependent, and 1799 USD for each minor dependent
- Includes legal processing for Panamanian residency and the application for the national ID
- Discounts available for families and annual members of the Settee community
Panama Residency via Company Formation
US$7299
- Cost of 6999 USD for the primary applicant, 2799 USD for each adult dependent, and 1799 for each minor dependent
- Includes legal procedures for Panamanian residency and the application for the national ID
- Discounts available for families and annual members of the Settee community
Is Panamanian Residency right for me?
We Recommend Panamanian Residency For:
- Clients seeking residency close to the US and Brazil: Panama offers high-level infrastructure, security, and civil liberties, making it an excellent choice for those who want to live in a country with strategic proximity to the US and Brazil.
- Those with foreign income who want to eliminate taxes: The territorial tax system allows for the minimization of taxes on income earned outside the country.
- Professionals and entrepreneurs seeking tax reduction: Panama offers tax incentives for entrepreneurs and freelancers across various sectors.
- Those wanting a Plan B or a nomadic lifestyle: Panama is an attractive option for those who wish to maintain active legal residency without the need to live in the country continuously.
We Do Not Recommend Panamanian Residency For:
- Those seeking tax residency without needing to live there or invest: Panama requires 183 days of physical presence for tax residency or specific investments to obtain a tax certificate, whereas Paraguay offers greater flexibility.
- Clients on a limited budget: The process and maintenance are expensive; Paraguay and Uruguay are more affordable.
- Those seeking an easy second citizenship: Panama is known for not naturalizing foreigners. Options like Colombia, Spain, and Argentina offer faster and more guaranteed paths to citizenship.
- Those looking for a low cost of living: The cost of living in Panama is high compared to countries like Paraguay or Colombia.
Results that speak for themselves
Settee has been a fundamental pillar in my process of obtaining Panamanian residency.
Their expertise and specialized guidance have been crucial, turning a potentially intricate path into a clear and manageable journey.
Settee's attention to detail and commitment to ensuring that every aspect is carefully handled highlight the value of their partnership at this decisive moment.
Beyond residency assistance, Settee's vast network of global contacts and partnerships has been invaluable.
This alliance not only strengthens my current position but also prepares me for future steps abroad.
In this crucial phase, Settee is not just a consultancy; it is a strategic ally, providing security and confidence as I approach a new life without borders.
Panama City
Frequently Asked Questions (FAQ)
- Legal residency in Panama through various visa programs.
- Application for the Panamanian ID and residency card
- Remote support with information on the required documentation
- Professional to accompany you through the residency process at the immigration office
- Depending on the residency option: Company incorporation
- Opening a bank account in Panama: a mandatory requirement for the residency process (Settee can help you with options starting at USD 899)
- Any costs related to travel to Panama
- Any costs related to accommodation in Panama
- Driver's License. Our lawyers can assist with the application.
- Opening a bank account in Panama
- Completion of the Panamanian citizenship process
- Tax and accounting support in Panama: We can refer you to accountants in the country for any needs you may have.
- Real estate support in Panama: We can refer you to brokers in the country for real estate investments.
- Settee Community: As an annual member of the Settee Community, you receive a 200 USD discount on your application as the primary applicant. Since the annual plan costs 200 USD, we recommend that everyone become a member before applying!
- Additional members: There are discounts for additional members. For the Friendly Nations Visa, the cost per dependent is 2,499 USD. For the Italian Citizen visa, the cost is 2,499 USD.
Yes, you are required to go to Panama to complete the immigration process and must stay in the country for at least 2 weeks.
If you intend to leave the country after applying for residency, you must request a special multiple-entry visa (exit permit) at a cost of 50 USD per person. The processing time for this visa is 48 hours. Please remember that this is necessary to leave the country during the residency process to avoid fines of up to 2,000 USD.
In total, until you obtain permanent residency and your cédula, the following will be required:
- 1 visit for Qualified Investor (investing over 300k USD).
- 2-3 visits for Italian citizens.
- 4 visits for the Friendly Nations Visa (via company or real estate and a 200k USD deposit).
We require at least 2 weeks' notice between your request and your travel date to Panama so we can prepare documents and schedule your immigration appointments.
You will then travel to Panama City, where the application will be processed within 2 weeks.
Once the application is submitted, residency (temporary or permanent) is typically ready within 6 months.
For Qualified Investor applications, residency is ready in 30 days.
With residency, you can go in person to update your Panamanian ID, a process that requires a stay of up to 4 days.
After that, we must wait 45 days to obtain the Cédula Letter, which is the document that authorizes the issuance of the Panamanian identity card (ID). With this document, we must schedule an appointment at the Electoral Tribunal, where they will take another photo to be printed on the ID card. The ID card itself is issued 7 days later.
We can pick up the ID card ourselves and have it sent to another country.
Legal residency is a residence permit. It gives you the right to live in the country, spend as much time as you like there, come and go, apply for a driver's license, work, and seek employment. With a residence permit, you also begin counting time toward naturalization and obtaining Panamanian citizenship.
To keep your legal residency active, you cannot be absent from the country for more than 2 consecutive years.
Tax residency, on the other hand, refers to the obligation to pay taxes in the country (or not, if all your income is sourced from abroad). It also grants you the right to use Panama's double taxation treaties and request a tax residency certificate. You obtain it by:
- By maintaining a physical presence in the country for more than 183 days during the year.
- Immediately upon immigrating to the country as a Qualified Investor.
No. Once you have legal residency, you simply cannot be absent from the country for more than 2 years, or you will lose your residency status.
There are some advantages to obtaining Panamanian residency even if you continue to live in Brazil.
- Starts the clock for permanent residency and, eventually, citizenship in Panama.
- Allows you to open more accounts at Panamanian banks and brokerage firms.
- Allows for unlimited stays in the country and the possibility of local employment.
- Allows you to obtain a Panamanian driver's license.
- If you decide to move to Panama at some point, you will already have all your documents in hand—you can just go.
Yes. Panama exempts all income and gains from abroad from taxes. If you have no income from Panamanian sources, you will have no taxes in Panama.
It depends. If you obtain Panamanian residency but still live in Brazil year-round, you will obviously remain a tax resident of Brazil and must pay taxes there.
However, if you:
- Obtain Panamanian residency
- Complete your final departure from Panama or your home country
- Become a perpetual traveler or emigrate to a tax haven
Yes, it is entirely possible to live tax-free without actually living in Panama. However, since the costs are higher and the stay requirements are stricter, we would recommend residency in Paraguay if you are considering this plan.
No. You only become a tax resident of Panama if you stay there for more than 183 days per year or are a Qualified Investor. In any case, Panama is a territorial tax country, meaning your income from abroad would not be taxed.
As long as you have no income originating in Panama (such as rent in Panama, or a salary or dividends from a Panamanian company), you will not have to pay taxes in Panama.
Simply having legal residency does not mean you are required to file tax returns in Panama.
As a tax resident, it is important to remember that Panama has a territorial tax system. For income and gains from abroad, you do not need to file or declare your assets (real estate, stocks, equity, funds, etc.).
For local income, there is an income tax exemption of 11,000 USD per year. Up to this amount, you do not pay or declare tax on local income.
Yes. Here is the step-by-step process:
- Temporary Residency. With this, you can already live in Panama, open bank accounts, obtain a driver's license, and work in the country. After 2 years of temporary residency, you can obtain permanent residency.
- Permanent Residency. Depending on the visa, you may be able to skip directly to this stage.
- Citizenship. After 5 years of permanent residency, you can apply for Panamanian citizenship. The process itself takes an additional year and requires proof of substantive ties to the country.
- Passport. Once you are a Panamanian citizen, you can apply for a Panamanian passport.
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