Moving to Panama? How to Get Residency if You’re Not Retired Yet

Thinking of moving to Panama but not ready to retire? Explore 4 visas: Friendly Nations Visa, Digital Nomad Visa, Investment Visa, and Qualified Investor Visa.


If you’ve ever dreamed of tropical beaches, vibrant cities, and tax-friendly living, moving to Panama might be your ideal choice. While the country has traditionally been a haven for retirees, you don’t need to be retired to gain legal residency. Panama offers various pathways for entrepreneurs, digital nomads, and investors, providing a smoother process to live and work in this Central American paradise.

In this guide, we’ll dive into four great residency options:

  1. Friendly Nations Visa
  2. Temporary Visa for U.S. Citizens and Digital Nomads
  3. Investment Visa
  4. Qualified Investor Visa

Whether you’re planning to work remotely, open a business, or make a substantial investment, we’ve got you covered.


Why Move to Panama? Key Benefits of Residency

Panama’s residency programs offer more than just a legal permit to live in the country. Below are some compelling reasons why more expats are considering Panama their new home:

  • No Income Tax for Foreign-Sourced Income
  • A Stable Economy Tied to the U.S. Dollar
  • Affordable Healthcare and Low Cost of Living
  • World-Class Banking Infrastructure
  • Ease of International Travel with Global Connectivity
  • A Favorable Business Environment with Fewer Bureaucratic Hurdles

If you’re still working or pursuing investments, these advantages make Panama an ideal location to relocate even if you aren’t ready for full retirement.


What to Know Before Applying for Residency

Before you start the application process, you need to understand the basics:

  • Residency Status and Work Permits: Most visas may require a separate work permit.
  • Minimum Investment Thresholds: Panama may require specific financial requirements, varying with the visa type.
  • Processing Time: Residency approvals can take anywhere from a few weeks to several months.
  • Documentation: You’ll need a clear criminal record, valid passport, and, in some cases, proof of financial stability or investment.

The Friendly Nations Visa: By Investment and For Work

The Friendly Nations Visa is one of Panama’s most popular residency options, designed to attract individuals from countries with close diplomatic ties to Panama. The program was modified in 2021, now focusing on two main paths:

Option 1: Friendly Nations Visa by Investment

To qualify, applicants must invest at least $200,000 in real estate, which can be a single property or multiple properties combined. The real estate must be held under your name or a company or private foundation you control.

Option 2: Friendly Nations Visa for Work

Alternatively, you can apply through a work contract with a Panamanian company. You’ll need an employer willing to sponsor you or self employ yourself in your own Panama company, and this path allows you to legally work and live in the country.

This visa leads to permanent residency after two years, making it an excellent option for people seeking stability without retirement.


Temporary Visa for U.S. Citizens & Digital Nomad Visa

Panama also offers unique visa solutions for U.S. citizens and remote workers, acknowledging the rise of the digital economy.

Temporary Visa for U.S. Citizens

U.S. citizens enjoy several benefits in Panama, including a 6-month tourist stay without needing a visa. For extended stays, you can apply for a Temporary Visa, which allows you to remain for up to one year extendable for up to 5 years. This visa is ideal for those willing to try Panama, staying for a short time or considering permanent residency switching later to a permanent residency program.

Digital Nomad Visa

This visa was launched to attract remote workers and freelancers. To qualify:

  • You must provide proof of income (at least $36,000 annually).
  • You need to show that your work is entirely online and outside Panama.

The Digital Nomad Visa allows you to stay up to 9 months with the possibility of renewal.


Business Investment Visa: For Entrepreneurs and Business Enthusiasts

If you’re an entrepreneur, Panama’s Investment Visa could be the right fit for you. This visa encourages business creation and offers residency to individuals who invest at least $160,000 in Panamanian businesses.

Key points:

  • You can invest in multiple sectors, including tourism, retail, and manufacturing.
  • The visa provides a path to permanent residency.
  • Business ventures must employ local Panamanians, aligning with government incentives to boost employment.

Qualified Investor Visa: A Fast-Track Option for High Net-Worth Individuals

Panama’s Qualified Investor Visa is a premium option for individuals who want permanent residency fast-tracked. The requirements are straightforward but come with higher financial thresholds.

To qualify, applicants must invest at least:

  • $300,000 in real estate or
  • $500,000 in the Panamanian stock market or government bonds

This visa is a great choice for high-net-worth individuals looking to gain permanent residency quickly without waiting years.

We also offer the standard Investor Visa on Real Estate and Fixed Term Deposit with the same investment amount. This type will grant permanent residency in 2 years.


Requirements for Panama Residency Applications

While each visa has specific eligibility criteria, these general requirements apply across most residency types:

  • A valid passport with at least six months of validity.
  • National Background Check from your home country.
  • Proof of investment or income, depending on the visa.

Tips for Navigating Panama’s Immigration Process

Here are a few tips to make your residency application smoother:

  1. Hire a Local Immigration Lawyer: They can help you navigate paperwork and legal requirements.
  2. Prepare Documents in Advance: Some forms need to be authenticated or apostilled in your home country.

Taxes and Financial Incentives for Panama Residents

Panama offers attractive tax benefits for residents:

  • No tax on foreign income
  • Low property taxes (0.5%-1%)
  • Tax incentives for companies operating in Free Zones

These financial perks make Panama especially appealing for entrepreneurs and investors.


Living and Working in Panama: A New Lifestyle Awaits

Panama offers a high quality of life, combining modern amenities with a tropical lifestyle. Whether you prefer the bustling streets of Panama City or a laid-back beach town, there’s something for everyone. Many expats find it easy to integrate, thanks to the country’s diverse and welcoming community.


FAQs: Residency in Panama Without Retirement

1. Can I work in Panama with the Friendly Nations Visa?

Yes, if you apply with a work contract, the Friendly Nations Visa allows you to work legally.

2. How long does it take to get residency with the Qualified Investor Visa?

Processing can take 30 to 60 days, making it one of the fastest residency options.

3. Is Panama a good place for digital nomads?

Absolutely! Panama offers fast internet, co-working spaces, and the Digital Nomad Visa program for remote workers.

4. What is the minimum investment for the Business Investment Visa?

The minimum investment is $160,000 in a Panamanian business.

5. Does Panama tax worldwide income?

No, Panama only taxes income earned within its borders.


Conclusion: Why Panama is the Right Choice Now

Moving to Panama offers incredible opportunities, even if you aren’t ready to retire. With flexible visa options—whether you’re an investor, a digital nomad, or an entrepreneur—Panama provides a perfect balance between work and lifestyle. The friendly immigration policies, tax incentives, and tropical lifestyle make it an irresistible destination


If you like to learn more about the visa process in Panama you can also watch our video about Navigating the Panama Immigration Process: Tips and Tricks for Expats.


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Disclaimer: This blog post is meant for informational purposes only and should not be considered legal or tax advice. For personalized advice tailored to your situation, it’s recommended to consult with us.

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