---
title: "Panama Friendly Nations residence 2026: from PAB 200k needed"
url: https://settleanywhere.com/countries/panama/friendly-nations-permanent/
lang: en
updated: 2026-10-12
---

Panama · Work

# Panama Friendly Nations residence

**Investment needed:** from PAB 200k ≈ $200k

Residente permanente — nacionales de países amigos (Decreto Ejecutivo 197 of 2021)

Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/)

- **Investment needed:** from PAB 200k ≈ $200k (An investment of at least PAB 200,000 (≈ $200,000) · Investment basis A: real estate in Panama worth at least B/.200,000, held personally or through a company or private-interest foundation the applicant ultimately owns; purchase may be bank-financed. An investment of at least PAB 200,000 (≈ $200,000) · Investment basis B: fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens, valid for 3 years. A fee of PAB 250 (≈ $250) · Certified cheque to the National Treasury with the application. A fee of PAB 800 (≈ $800) · Certified cheque to the Servicio Nacional de Migración with the application.)
- **First stay:** 2 yrs (Provisional residence permit of two years, then permanent residence.)
- **Who can apply:** 51 nationalities (Only nationals of the countries named in Decreto Ejecutivo 197 of 7 May 2021.)
- **Tax angle:** Tax relief (Panama territorial income tax (foreign-source income outside the tax base): Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income.)

## Key facts

Friendly Nations residence is a work route for Panama. Applicants need an investment from PAB 200k ≈ $200k. You can stay 2 yrs. Checked 2026-10-12 against the official source.

- **Money needed:** from PAB 200k ≈ $200k
- **Government fees:** PAB 250 ≈ $250 · PAB 800 ≈ $800
- **First stay:** 2 yrs

## Cost, time and long term

To apply: government fees PAB 1,050 ≈ $1,050 in total (2 fees); investment from PAB 200k ≈ $200k. No lawyer or agent fee is included.

**Government fees: PAB 250 ≈ $250 · PAB 800 ≈ $800**

- PAB 250 (≈ $250) Certified cheque to the National Treasury with the application.
- PAB 800 (≈ $800) Certified cheque to the Servicio Nacional de Migración with the application.

**Invested and held: PAB 200k+ ≈ $200k · PAB 200k+ ≈ $200k**

- PAB 200,000 (≈ $200,000) Investment basis A: real estate in Panama worth at least B/.200,000, held personally or through a company or private-interest foundation the applicant ultimately owns; purchase may be bank-financed.
- PAB 200,000 (≈ $200,000) Investment basis B: fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens, valid for 3 years.

**Renewal: Renewal rules**

A provisional residence permit is granted for 2 years, after which you apply for the permanent permit.

[Servicio Nacional de Migración](https://www.migracion.gob.pa/wp-content/uploads/2026/04/LE2.pdf)

**Permanent residence: After 2 years of residence**

After the 2-year provisional permit you can apply for permanent residence.

[Servicio Nacional de Migración](https://www.migracion.gob.pa/wp-content/uploads/2026/04/LE2.pdf)

**Citizenship: General rule: 5 years of residence**

Naturalisation needs 5 consecutive years of residence in Panama, plus Spanish and basic knowledge of Panamanian history, geography and politics.

[Asamblea Nacional de Panamá](https://www.asamblea.gob.pa/Uploads/DocumentosCompartidos/137/Documento_Constitucion_1972.pdf)

## Why this route may not fit

Check this before you apply.

- Needs a job offer from an employer in Panama
- Only for passports from 51 countries

### What you'll need

#### Who can apply

- Eligible nationalities are those listed in Decreto Ejecutivo 197 of 7 May 2021.
- The permit is granted on employment in Panama, on real-estate investment or on a fixed-term deposit.

#### What you must show

- Real estate worth at least B/.200,000 qualifies, held personally or through a company or foundation the applicant ultimately owns.
- A fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens and valid 3 years, qualifies.
- Certified cheques of B/.250 to the National Treasury and B/.800 to the Servicio Nacional de Migración accompany the application.
- The resident must earn at least B/.1,000 a month plus B/.100 for each dependant.

#### Documents

- Documents include a criminal record certificate, a health certificate, three photos and a sworn declaration of personal background.
- An employment basis needs an employer letter stating position and salary, the employer's Registro Público certificate and its operating notice.

#### Steps

1. The application is filed through a notarised power of attorney naming the applicant's parents and their nationality.

#### After you arrive

- After two years of provisional residence, permanence is requested with the same documents except the criminal record certificate and the cheques.

## When you become tax resident

How Panama decides tax residence and treats foreign-source income, from its tax records.

- **Foreign-source income:** **Territorial** Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income.
- **Special regime:** **Panama territorial income tax** · Tax relief

[All tax rules for Panama](https://settleanywhere.com/countries/panama/tax/) Tax records checked 10 Oct 2026

**Full official text**

Provisional two-year residence leading to permanent residence for nationals of countries listed in the decree, granted on employment, on real-estate investment or on a fixed-term deposit. (sources 1, 2)

#### What you must show and pay

- An investment of at least PAB 200,000 (≈ $200,000) · Investment basis A: real estate in Panama worth at least B/.200,000, held personally or through a company or private-interest foundation the applicant ultimately owns; purchase may be bank-financed. (source 2)
- An investment of at least PAB 200,000 (≈ $200,000) · Investment basis B: fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens, valid for 3 years. (source 2)
- A fee of PAB 250 (≈ $250) · Certified cheque to the National Treasury with the application. (source 2)
- A fee of PAB 800 (≈ $800) · Certified cheque to the Servicio Nacional de Migración with the application. (source 2)

#### Requirements

- Eligible nationalities are those listed in Decreto Ejecutivo 197 of 7 May 2021. (source 1)
- The permit is granted on employment in Panama, on real-estate investment or on a fixed-term deposit. (sources 2, 1)
- Real estate worth at least B/.200,000 qualifies, held personally or through a company or foundation the applicant ultimately owns. (source 2)
- A fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens and valid 3 years, qualifies. (source 2)
- Certified cheques of B/.250 to the National Treasury and B/.800 to the Servicio Nacional de Migración accompany the application. (source 2)
- The resident must earn at least B/.1,000 a month plus B/.100 for each dependant. (source 2)
- Documents include a criminal record certificate, a health certificate, three photos and a sworn declaration of personal background. (source 2)
- An employment basis needs an employer letter stating position and salary, the employer's Registro Público certificate and its operating notice. (source 2)
- The application is filed through a notarised power of attorney naming the applicant's parents and their nationality. (source 2)
- After two years of provisional residence, permanence is requested with the same documents except the criminal record certificate and the cheques. (source 2)

#### Stay

- Provisional residence permit of two years, then permanent residence.
- Initial permitted stay: 24 months.

#### Nationality

Only nationals of the countries named in Decreto Ejecutivo 197 of 7 May 2021. Open to: United Kingdom, Germany, Argentina, Australia, South Korea, Austria, Brazil, Belgium, Canada, Spain, United States, Slovakia, France, Finland, Netherlands, Ireland, Japan, Norway, Czechia, Switzerland, Singapore, Uruguay, Chile, Sweden, Poland, Hungary, Greece, Portugal, Croatia, Estonia, Lithuania, Latvia, Cyprus, Malta, Serbia, Montenegro, Israel, Denmark, South Africa, New Zealand, Hong Kong, Luxembourg, Liechtenstein, Monaco, Andorra, San Marino, Costa Rica, Paraguay, Mexico, Peru, Ecuador.

#### Work

Work permission depends on the employment basis.

#### Family

Spouse and children can be included; applicants aged 18 to 24 must show full-time study and single status. The resident must earn at least B/.1,000 a month plus B/.100 for each dependant.

Checked 2026-10-12

## Official sources

1. [Se modifican requisitos para permisos migratorios (Decreto Ejecutivo 197 of 7 May 2021)](https://www.panamadigital.gob.pa/Noticia/se-modifican-requisitos-para-permisos-migratorios-) · Panamá Digital · checked 2026-10-10 · published 2021-06-04
2. [Permiso de residente provisional, nacionales de países específicos que mantienen relaciones amistosas, profesionales, económicas y de inversión (PPT-PE)](https://www.migracion.gob.pa/wp-content/uploads/2026/04/LE2.pdf) · Servicio Nacional de Migración · checked 2026-10-12
3. [Constitución Política de la República de Panamá, art. 10](https://www.asamblea.gob.pa/Uploads/DocumentosCompartidos/137/Documento_Constitucion_1972.pdf) · Asamblea Nacional de Panamá · checked 2026-10-11

## Friendly Nations residence and its alternatives

| Route | Money needed | Stay | Work |
| --- | --- | --- | --- |
| Friendly Nations residence | Needs an investment from PAB 200k ≈ $200k | 2 yr | – |
| [Job-offer residence](https://settleanywhere.com/countries/mexico/temporary-resident-job-offer/) Mexico | – | 4 yr | – |
| [Internationalisation visa M](https://settleanywhere.com/countries/colombia/m-fomento-internacionalizacion/) Colombia | – | 3 yr | – |
| [Scientist/professional permit](https://settleanywhere.com/countries/costa-rica/temporary-professionals-scientists/) Costa Rica | – | 2 yr, renewable | – |
| [Work visa](https://settleanywhere.com/countries/brazil/vitem-v-work/) Brazil | – | 2 yr, renewable | – |

## Questions people ask

### How much money do I need for the Friendly Nations residence?

An investment of at least PAB 200,000 (≈ $200,000). Investment basis A: real estate in Panama worth at least B/.200,000, held personally or through a company or private-interest foundation the applicant ultimately owns; purchase may be bank-financed. An investment of at least PAB 200,000 (≈ $200,000). Investment basis B: fixed-term deposit of B/.200,000 in a general-licence bank in Panama, free of liens, valid for 3 years. A fee of PAB 250 (≈ $250). Certified cheque to the National Treasury with the application. A fee of PAB 800 (≈ $800). Certified cheque to the Servicio Nacional de Migración with the application.

### How long can I stay on the Friendly Nations residence?

Provisional residence permit of two years, then permanent residence.

### Can I work on the Friendly Nations residence?

Work permission depends on the employment basis.

### Can I bring my family on the Friendly Nations residence?

Spouse and children can be included; applicants aged 18 to 24 must show full-time study and single status.

### Who can apply for the Friendly Nations residence?

Only nationals of the countries named in Decreto Ejecutivo 197 of 7 May 2021. Open to: United Kingdom, Germany, Argentina, Australia, South Korea, Austria, Brazil, Belgium, Canada, Spain, United States, Slovakia, France, Finland, Netherlands, Ireland, Japan, Norway, Czechia, Switzerland, Singapore, Uruguay, Chile, Sweden, Poland, Hungary, Greece, Portugal, Croatia, Estonia, Lithuania, Latvia, Cyprus, Malta, Serbia, Montenegro, Israel, Denmark, South Africa, New Zealand, Hong Kong, Luxembourg, Liechtenstein, Monaco, Andorra, San Marino, Costa Rica, Paraguay, Mexico, Peru, Ecuador.

### Does the Friendly Nations residence lead to permanent residence in Panama?

Time on the Friendly Nations residence counts toward permanent residence in Panama, which the rules allow after 2 years of residence. The general rule for citizenship is 5 years of residence.

### Is there a tax break for Friendly Nations residence holders in Panama?

Panama territorial income tax (foreign-source income outside the tax base): Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income. It's separate from the visa and has its own conditions.

## Tax

Special regime

### [Panama territorial income tax (foreign-source income outside the tax base)](https://settleanywhere.com/countries/panama/tax/#tax-pa-territorial-income-tax)

Tax relief

Foreign-source income: Territorial

**Details**

- Who: Applies to every taxpayer, natural or legal, national or foreign

Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income.

#### Taxed on

Taxable income = gross income minus foreign-source income, exempt/non-taxable income and deductible costs and expenses (Código Fiscal art. 695 as amended by Ley 8 of 2010); art. 694 par. 2 lists activities whose income is not treated as produced in Panama (invoicing from a Panama office for goods moving only abroad, directing from Panama transactions that are completed abroad, distributing dividends out of income not produced in Panama).

#### Who it applies to

- Applies to every taxpayer, natural or legal, national or foreign (art. 694 definition of contribuyente); no application, visa status or registration is needed to have foreign-source income left out of the base.
- Foreign-source income is reported on line 18 of the DGI natural-person return, citing par. 2 of art. 694 of the Código Fiscal and special laws.

#### Exclusions

- Income from work or services performed in Panama, Panama-located assets and Panama business activity is Panama-source and taxable.
- Persons domiciled abroad who receive payments for services that benefit persons in Panama and affect Panama-source income are subject to withholding on 50% of the amount remitted under art. 694 lit. e as amended by Ley 8 of 2010, unless they register as taxpayers.
- Costs and expenses attributable to foreign-source income are not deductible against taxable income.

#### Tax residence

no residency test is recorded.

#### Visas

The territorial base applies regardless of visa or residence permit type; it is a feature of the income tax, not of an immigration route.

#### Other taxes

Social security (CSS) and educational insurance are charged on salary by separate tariffs set out in the DGI instructivo (educational insurance tariff 2.75% of the base for employees per the instructivo).

Checked against official sources on 10 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/)

[Full page →](https://settleanywhere.com/countries/panama/tax/)

## More in Panama

[Remote worker visa](https://settleanywhere.com/countries/panama/remote-worker-visa/)

## Work visas elsewhere

[🇨🇦 Express Entry · Skilled Worker](https://settleanywhere.com/countries/canada/express-entry-pr/) [🇺🇸 Gold Card · Corporate $2M](https://settleanywhere.com/countries/united-states/gold-card-corporate/) [🇨🇱 Paid work residence](https://settleanywhere.com/countries/chile/paid-activities/) [🇪🇨 Company executive visa](https://settleanywhere.com/countries/ecuador/temporary-legal-representative/) [🇩🇴 Managers and technicians](https://settleanywhere.com/countries/dominican-republic/managerial-staff/) [🇨🇼 Work permit](https://settleanywhere.com/countries/curacao/employee-permit/)

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

## How this was checked

**Checked on 2026-10-12 against 3 official sources.** Status: verified against the official sources.

Every figure on this page comes from the official source it links to. The record was researched against these sources, then reviewed separately, with special attention to effective dates and amendments. Where a source does not state something, the page leaves it out.

1. [Se modifican requisitos para permisos migratorios (Decreto Ejecutivo 197 of 7 May 2021)](https://www.panamadigital.gob.pa/Noticia/se-modifican-requisitos-para-permisos-migratorios-) · Panamá Digital · checked 2026-10-10
2. [Permiso de residente provisional, nacionales de países específicos que mantienen relaciones amistosas, profesionales, económicas y de inversión (PPT-PE)](https://www.migracion.gob.pa/wp-content/uploads/2026/04/LE2.pdf) · Servicio Nacional de Migración · checked 2026-10-12
3. [Constitución Política de la República de Panamá, art. 10](https://www.asamblea.gob.pa/Uploads/DocumentosCompartidos/137/Documento_Constitucion_1972.pdf) · Asamblea Nacional de Panamá · checked 2026-10-11

Tracked since 2026-10-10. Rule changes and corrections are listed on the [changes page](https://settleanywhere.com/changes/), and the [methodology page](https://settleanywhere.com/methodology/) explains how facts are checked. Found something out of date? Email [contact@stayglobe.app](mailto:contact@stayglobe.app?subject=Correction) with a link to the official source.