What is Panama's Friendly Nations Visa?

The Friendly Nations Visa is available to citizens of 50+ countries and requires an economic or professional tie to Panama, such as a bank deposit of USD 5,000. It includes a work permit and provides a path to permanent residency and citizenship after 5 years.

Is Panama really tax-free?

Panama uses a territorial tax system, meaning only income sourced within Panama is taxed. Foreign-sourced income is completely exempt, including global portfolio income, foreign rental income, and offshore business profits. There is no capital gains tax on foreign transactions.

How long does it take to get Panama residency?

Most Panama visa applications take 3-6 months to process. The Friendly Nations Visa, Pensionado Visa, and Self-Economic Solvency Visa all follow similar timelines.

What is Panama's Pensionado Visa?

The Pensionado Visa is one of the best retiree programs in the world. It requires a lifetime pension of at least USD 1,000 per month, has no age requirement, and offers significant discounts on utilities, travel, dining, and healthcare.

Can I get citizenship in Panama?

Yes. After 5 years of permanent residency, you can apply for Panamanian citizenship. Panama allows dual citizenship, and the passport provides visa-free access to numerous countries.

All Countries

Panama

A territorial tax system, USD-based economy, and the Friendly Nations Visa make Panama one of the most accessible and tax-efficient residency destinations for entrepreneurs and retirees worldwide.

4.4M

Population

Panama City

Capital

Spanish / English

Language

USD (Balboa)

Currency

GMT-5

Timezone

Foreign Income Tax

USD 5,000

Min Bank Deposit

3-6 months

Visa Processing

Visa Types

Panama offers several residency pathways, from the popular Friendly Nations Visa to one of the world’s best retiree programs with the Pensionado Visa.

Friendly Nations Visa

From USD 5,000 bank deposit

Processing: 3-6 months

Available to citizens of 50+ friendly nations
Requires economic or professional tie to Panama
Includes work permit
Path to permanent residency and citizenship after 5 years

Pensionado Visa

USD 1,000/mo pension income

Processing: 3-6 months

For retirees with a lifetime pension of at least USD 1,000/mo
Significant discounts on utilities, travel, dining, and healthcare
No age requirement
One of the best retiree visa programs in the world

Self-Economic Solvency Visa

USD 300,000+ in Panama assets

Processing: 3-6 months

For individuals with significant assets in Panama
Real estate, fixed-term deposit, or business ownership qualifies
Includes dependents
Fast track to permanent residency

The Tax Reality

Panama’s territorial tax system means foreign-sourced income is completely exempt. Here’s what you need to know.

Panama uses a territorial tax system — only income sourced within Panama is taxed. Foreign-sourced income is completely exempt.

There is no capital gains tax on foreign transactions or overseas income.

Corporate tax applies only to Panama-sourced income at rates from 0% to 25%.

Panama has no controlled foreign corporation (CFC) rules, making it attractive for international business structuring.

The country has signed very few tax information exchange agreements, offering a high degree of financial privacy.

A territorial system means your global portfolio, foreign rental income, and offshore business profits are not taxed in Panama.

Ready to set up in Panama?

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