Panama Residency

- Company: Establish a company in Panama and obtain a license to hire yourself. The company does not have to carry out any actual activity. This is the most common route chosen by our business clients, investors or self-employed professionals.

- Bank deposit: Deposit at least 200,000 USD in a time deposit in Panama and keep it for 3 years. If you deposit 750,000 USD for at least 5 years, you can directly obtain a permanent residence permit as a Qualified Investor.

- Real estate: Purchase a property worth at least USD 200,000 and keep it for 2 years. By purchasing and owning a property worth at least USD 300,000 for 5 years, you can directly obtain permanent residency as a Qualified Investor.

- Shares: Investment of at least 500,000 USD in Panamanian shares through a brokerage firm in Panama for at least 5 years. This route allows you to directly obtain a permanent residence permit as a Qualified Investor.

- Pensioners: Proof of pension or annuity of at least 1,000 USD per month.

- Italian: Establishment of a company in Panama as an Italian citizen. This allows you to obtain a permanent residence permit directly.

We also have other ways to obtain residency in Panama.

1. Prepare the application and collect the required documents at least 2 weeks before your trip.
2. Visit Panama for the initial application and stay there for 2 weeks.
3. After 6 months, return to Panama and stay for 4 days to update your ID.
4. After 2 years of temporary residency, return to Panama to apply for permanent residency.
5. After another 6 months, return to Panama and stay for 4 days to update your ID.

Each visa option may require its own documents, but all visas require some basic documents:

• Original passport, valid for at least six (6) months
• Five passport photos
• Apostilled police certificate. Does not apply to children under 18 years of age.
• Bank reference letter from a bank in Panama with a balance of more than US$ 5,000.00 (account opening is included in the service).
• To open a bank account: Second identity document, bank reference letter, employment certificate or proof of income.
• For the spouse: Apostilled marriage certificate
• For children: Apostilled birth certificate
• For children between the ages of 18 and 25: Proof of study at a university and proof of single status.

Adriano Castillo is a Panamanian lawyer with a Bachelor's and Master's degree in Law from the Universidad de Santa María de Panamá. His team has been at the forefront of Panama City for over 15 years, providing comprehensive advice to local and international clients looking to invest and establish themselves in Panama.

The team's range of services includes areas such as: Real estate legal services, tax advice, asset protection plans and family planning, inheritance law, immigration and visa services, commercial and corporate law, contract and deed drafting, advice for the “Home of Business” and representation in labor, criminal and civil matters.

• Legal residence permit in Panama through various visas
• Opening a bank account in Panama
• Application for a Panamanian ID and Cédula
• Remote service with information about the required documents
• Specialist to guide you through the migration residency process
• Depending on the residency option: Setting up a company

• All costs related to the trip to Panama
• All costs associated with accommodation in Panama
• Driver's license. Our lawyers can help with the application
• Assistance with opening an additional bank account: 1500 USD
• Completion of the Panamanian naturalization process
• Tax and accounting support in Panama: We can recommend accountants in the country for all needs
• Real estate support in Panama: We can recommend brokers in the country for real estate investments

Yes, there are discounts for additional members. For the Friendly Nations visa, the fee per dependent family member is 1499 USD. For the visa for Italian citizens, the fee is 999 USD.

Yes, you must travel to Panama to complete the immigration process and stay in the country for at least 2 weeks.

If you intend to leave the country after applying for a residence permit, you must apply for a special multiple-entry visa (exit permit), which costs 50 USD per person applying for the visa with you. The process for this visa only takes 48 hours. Keep in mind that this is necessary to leave the country during the residency process and avoid fines of up to 2,000 USD.

In total, you will need to obtain a permanent residence permit and a cédula:

• 1 visit for the Qualified Investor (investment over 300k USD)
• 2-3 visits for Italian citizens
• 5-6 visits for the Friendly Nations Visa (via company or property and 200k USD deposit)

We need at least 2 weeks lead time between the application and your travel date to Panama to request documents and arrange the immigration appointment.

You will then travel to Panama City, where the application will be submitted within 2 weeks.

Once the application is submitted, the residence permit (temporary or permanent) will be ready within 6 months.

For Qualified Investor applications, the residence permit will be ready in 30 days.

Once you have your residence permit, you can update your Panamanian ID in person, a process that requires your presence for a maximum of 4 days.

Then you must wait 45 days to obtain the Carta de Cédula, the document that authorizes you to obtain an identity card (ID) in Panama. With this document we must make an appointment at the Electoral Tribunal, where they will also take another photo that will be printed on the ID card. The ID card itself is issued 7 days later.

We can pick up the ID card ourselves and send it to another country.

Legal residency is a residence permit. It gives you the right to live in the country, stay as long as you want, come and go, apply for a driver's license, work and look for a job. With a residence permit, you can start counting down the days until you become a naturalized Panamanian citizen.

To keep your legal residency active, you may not leave the country for more than 2 consecutive years.

Tax residency is the obligation to pay taxes in the country (or not, if all your income comes from abroad). It also gives you the right to take advantage of Panama's double taxation treaties and apply for a tax residency certificate. You can obtain it in the following ways:

• By staying in the country for more than 183 days a year.
• Immediately after immigrating to the country as a Qualified Investor.

No. As soon as you have a residence permit, you may not leave the country for more than 2 consecutive years in order not to lose your residence status.

There are some advantages to obtaining a Panamanian residence permit even if you are going to stay in your home country:

• The countdown for permanent residency in Panama begins: This means that you are already on your way to permanent residency.
• Open additional accounts with Panamanian banks and brokerage houses: This offers you financial flexibility and potentially advantageous banking services.
• Unlimited stay in the country and the possibility of being employed locally: You can travel to Panama and work there whenever the opportunity arises.
• Obtaining a Panamanian driver's license: This comes in handy if you want to drive in Panama.
• Willingness to move to Panama: If you eventually decide to move to Panama, you will already have all the necessary documents and can get started right away.

Yes, Panama exempts all foreign earned income and earnings from tax. If you have no income from Panamanian sources, you will not be taxed in Panama.

It depends. If you obtain the Panamanian residence permit but live in your home country all year round, you will obviously continue to be tax resident in your home country and will have to pay taxes there.

However, if you:

• Acquire the Panamanian residence permit,
• Leave your country of origin permanently,
• Then become a “perpetual traveler” or emigrate to a tax haven,

it is quite possible to live tax-free without having to live in Panama. However, as the costs are higher and the residency requirements longer, we would recommend residing in Paraguay if you want to implement this plan.

No. You only become a tax resident in Panama if you spend more than 183 days a year there or if you are a Qualified Investor. In any case, Panama is a country with territorial taxation, which means that your income from abroad is not taxed.

As long as you do not have income of Panamanian origin (such as rental income in Panama, salary or dividends from a Panamanian company), you do not have to pay taxes in Panama.

No. Just because you are a legal resident does not mean that you have to file tax returns in Panama.

As a tax resident, it is important to know that Panama has territorial taxation. For income and earnings from abroad, you do not have to file a tax return or declare your assets (real estate, stocks, shares, funds, etc.).

There is an income tax exemption of USD 11,000 per year for local income. Up to this amount, no local income tax has to be paid or declared.

Yes, the step-by-step process is as follows:

1. Temporary residence permit. With this you can already live in Panama, open bank accounts, get a driver's license and work in the country. After 2 years of temporary residency, you can obtain permanent residency.
2. Permanent residence permit. Depending on the visa, you can skip this step directly.
3. Citizenship. After 5 years of permanent residency, you can apply for Panamanian citizenship. The process itself can take many years and requires proof of substantial ties to the country.
4. Passport. Once you are a Panamanian citizen, you can apply for a Panamanian passport.

Yes, we can issue an invoice for the service. Please send us your desired billing address.

Price: 5,499 USD

This includes:

• Cost of USD 5,499 for the main applicant and USD 1,499 for each dependent family member
• Including temporary residence permit, bank account opening and ID application

Price: 5,999 USD

This includes:

• Cost of USD 6,099 for the main applicant and USD 999 for each dependent family member
• Including permanent residence permit, bank account opening, company formation and ID application

Price: 7,399 USD

This includes:

• Cost of USD 7,399 for the main applicant and USD 1,499 for each dependent family member
• Including temporary residence permit, bank account opening, company incorporation and ID application