For eligible passports, Friendly Nations is the cheapest route to Panamanian permanent residency: 3,380 USD all in for the main applicant, with no company and no investment. Your proof of economic ties is a job offer stamped by the Ministry of Labor, which the lawyer prepares.
Panama Friendly Nations visa in one paragraph
The program covers about 50 nationalities, including the United States, Canada, the United Kingdom, France, Belgium, Switzerland, Spain, Argentina, Brazil and Uruguay. You first receive provisional residency, granted within about 6 months of filing, and then permanent residency. Naturalization becomes possible 5 years after permanent residency. The all-in cost with our partner team in Panama City is 3,380 USD per main applicant. We handle these files every week with that team, so the numbers and the traps below come from real cases.
Who is eligible and how economic ties are proven
Eligibility starts with your passport: it has to be from a country on the Friendly Nations list. The file also has to show a link to the Panamanian economy, and on this route that link is a job offer stamped by Panama's Ministry of Labor. The lawyer prepares that offer. You do not incorporate a company and you do not invest capital.
That makes this route the natural fit for remote workers and online founders who want a second residency in a dollarized, territorial-tax country without building a structure around it.
Real cost in 2026: the full breakdown
Here is how the 3,380 USD for the main applicant breaks down with our partner team. La Conciergerie Panamá, our partner team in Panama City, describes the program on its own page for this visa (Friendly Nations visa details, site in French).
| Line item | Amount (USD) | Notes |
|---|---|---|
| Legal fees | 1,600 | File preparation and filing |
| Government and notary costs | 1,400 | Includes the B/. 800 certified check to the National Migration Service and the B/. 250 check to the National Treasury |
| Job-offer documents | 350 | The Ministry of Labor offer that proves economic ties |
| Translations | 30 | Translation of documents not in Spanish |
| Total, main applicant | 3,380 | All in |
| Each dependant | +2,200 | Spouse, children under 18, student children |
A worked example: a couple with one child pays 3,380 for the main applicant, 2,200 for the spouse and 2,200 for the child, for a total of 7,780 USD.
Document checklist for the main applicant
- Passport valid for at least 6 months. You must enter Panama on that same passport.
- Criminal record, apostilled, from your country of origin or your country of legal residence.
- Five passport-size photos.
- Personal background form.
- A second ID document: national ID card, cédula or driver's license.
The health certificate and the passport verification are done in Panama, so you do not gather them beforehand.
Bringing your family: dependants and the local bank certificate
Eligible dependants are a legally married spouse, children under 18, and older children who are students (with proof of enrollment). Each dependant needs apostilled marriage and birth certificates as applicable. On top of that, the file includes a certificate from a local Panamanian bank showing a mid four-figure balance, around 5,000 USD, in the main applicant's name.
That bank certificate is why the banking step below matters: for a family file, the local account has to exist before the file is complete.
Timeline step by step
- Document gathering. Passport check, apostilled criminal record, photos, second ID and, for dependants, apostilled civil records.
- File preparation. The lawyer prepares the Ministry of Labor job offer and the filing package.
- Trip to Panama. You travel to file and to complete the health certificate and passport verification, and you later collect the card. In the files we handle, the main applicant travels at least once.
- Provisional residency, granted within about 6 months.
- Permanent residency, which follows the provisional stage.
- Naturalization, possible 5 years after permanent residency.
Banking: opening your first account before you land
In the files we handle with our partner team, the first Panamanian bank account is opened remotely, before arrival, with banks the team works with. Each bank makes its own decision, and no one can promise approval. For family files, the account matters twice: it holds the certified balance for dependants, and it gives you a local account in dollars once you are settled.
Common mistakes that delay a Friendly Nations file
- Passport with under 6 months of validity. Renew first, then file.
- Entering Panama on a different passport than the one filed. The passport verification ties the file to one document.
- Missing apostilles. The criminal record and the civil records must be apostilled before they are filed.
- Untranslated documents. Anything not in Spanish needs translation.
- Assuming no travel is required. You must be in Panama to file and to collect the card.
Friendly Nations vs the remote worker visa
People constantly confuse the two. Panama's short-stay visa for remote workers requires foreign-source income of at least 36,000 USD a year, lasts 9 months, can be renewed once and does not allow work for Panamanian employers. It is a visa, not a residency. Friendly Nations is a residency route that ends in permanent status.
Taxes: Panama's territorial system and what it does not change at home
Panama taxes on a territorial basis: only Panamanian-source income is subject to income tax, and foreign-source income pays no income tax there. The currency is the US dollar (the balboa circulates at par), and the general ITBMS (VAT) rate is 7%.
Panama's rules do not switch off your home country's rules. US citizens are taxed on citizenship, so moving does not end US filing obligations: FEIE, FBAR and FATCA still apply in general terms. For the US side, read our guide on US citizens and tax obligations abroad. Canada looks at departure tax and residential ties, the UK applies its statutory residence test, and Australia applies its own residency tests. Our checklist for leaving Canada or the UK covers the general logic. Get advice in your home country before you move.
Friendly Nations vs other Panama visas and vs Paraguay
| Route | Minimum requirement | Total cost | Timeline | Permanent directly? | Presence | Foreign-source income |
|---|---|---|---|---|---|---|
| Panama Friendly Nations | Eligible passport, Ministry of Labor job offer | 3,380 USD (+2,200 per dependant) | Provisional within about 6 months | No, provisional first | Travel to Panama to file and collect the card | Not taxed in Panama (territorial) |
| Panama Pensionado | Lifetime pension of at least 1,000 USD a month | 2,000 USD | About 3 months | Yes | Travel to Panama to file and collect the card | Not taxed in Panama (territorial) |
| Panama Qualified Investor | 500,000 USD in real estate (since October 15, 2026; 300,000 USD before) | 14,050 USD | About 3 months | Yes | Travel to Panama to file and collect the card | Not taxed in Panama (territorial) |
| Panama remote worker visa | 36,000 USD a year of foreign-source income | Not covered in this guide | 9 months, renewable once | No, it is a visa | Not a residency; no work for Panamanian employers | Not taxed in Panama (territorial) |
| Paraguay temporary residency | Law 6984/2022 documents | 2,500 USD with us, all included (DNM fee G. 2,787,550) | Up to 2 years, then permanent | No, temporary first | Personal, in-person filing | Territorial as a general rule (Law 6380/2019) |
If you have the pension or the capital, the Pensionado and Qualified Investor visas skip the provisional stage. If you have neither, Friendly Nations is the practical option. Paraguay is the alternative for people who want a lower-cost second residency in another country that also applies territoriality as a general rule. For the wider country-by-country view, see our comparison of Paraguay, Panama and Uruguay for digital nomads.
The bottom line
Budget 3,380 USD for the main applicant and 2,200 USD per dependant, expect provisional residency within about 6 months, plan at least one trip to Panama, and treat your home-country tax position as a separate question from your Panamanian residency.
This content is informational and does not constitute legal or tax advice. Immigration and tax rules change, so consult a licensed professional in Panama and in your home country before filing.