Panama has many avenues to residency. The variety of visas is one of the most attractive aspects of migrating to Panama. There’s a visa program to suit almost any person looking to move here. One of the most popular ways to attain residency is through the Panama-Friendly Nations Visa. These visas offer citizens from many countries a simpler path to permanent residency in Panama.

While the path is simpler for those eligible for this visa, there is still a formal process. The individual must also meet specific criteria for having professional or economic ties to Panama. However, even with the strict requirements and formal process, it is relatively simple compared to other options. It is also much simpler and quicker than getting similar visas in other countries. Let’s examine the processes and requirements for a Panama Friendly Nations Visa.

What You Need to Know About the Panama-Friendly Nations Visa

Roughly fifty countries, including the United States, Canada, the United Kingdom, Germany, Ireland, Portugal, and many more, meet the criteria. A complete list of the countries can be found here.

Professional or Economic Ties

The first point is considering what it means to have professional or economic ties with the country. Applicants can demonstrate economic ties with Panama in three ways.

Employment Contracts

The easiest path is to accept an employment offer from a Panamanian company. To do so, the applicant must present the company’s job offer, Certificate of Public Registry, and Business License. The applicant also must apply for a work permit at the beginning of their provisional residency. These applications generally take six to nine months to complete before the applicant can start working in Panama.

Owning Real Estate

Real estate offers another path toward establishing these ties. People who own property in Panama worth at least USD 200,000 can apply for this visa.

Certificate of Deposit

An applicant may own a minimum fixed-term deposit of USD 250,000 in one of Panama’s national banks. This deposit must include the title, value, and term without encumbrances and be valid for at least three years.

Provisional Residency

The Panama Friendly Nations Visa provides two years of provisional residency. When the two years expire, the visa holder may apply for permanent residency in Panama. Anyone applying for a visa must also provide applications for their spouse and dependent children if needed. The requirements also differ for spouses and dependents.

After holding provisional residency for two years, the visa holder may apply for permanent residency. However, the application must be submitted before the provisional residency term is completed. Otherwise, the applicant could face a monthly fine. The application is invalid if it takes longer than six months to process.

Application Process for the Panama-Friendly Nations Visa

Gaining a Friendly Nations Visa has three phases. The process typically takes about three years, including waiting periods and processing times. Phase 1’s goal is to ensure the application gets filed correctly. The applicant and their dependents must physically be in Panama during the application process. Obtaining a Temporary Residency ID is the important first step.

After the immigration office has approved the initial application, the applicant gets the provisional ID. It’s valid for two years. Once the two years are up and you’ve fulfilled all requirements, applying for permanent residency is next. There could be a waiting period as long as six months before approval. Finally, the immigration office grants the Permanent Residence Visa at the end of all this.

The process in Panama is relatively fast compared to other nations, and it is very straightforward.

Panama-Friendly Nations Visa Benefits

While the requirements are strict, the process is reliable. Anyone from an eligible country who meets the requirements can apply and likely get approved for this visa program. As mentioned above, it’s a fast process, only taking about three years from start to finish.

Finally, Panama’s quality of life and lifestyle significantly benefit those who move here. Panama’s government is stable, the infrastructure is modern, and they have an affordable healthcare system. They also use the US dollar as their currency. That means you won’t have to worry about exchange rates and fluctuations in value. Additionally, Panama’s economy, while one of the strongest in Central America, is much smaller than the US. That means you can stretch your dollar much further while living in Panama.

The greatest benefit is that once visa holders acquire permanent residence, they’ll be eligible for Panamanian citizenship after five years.

Panama Taxes

Panama uses a territorial taxation system, so you only pay taxes on what you earn in Panama. If you live in Panama, but you or your company generate income outside the country, Panama won’t tax that income.

Any income made in the country is taxable. One of the criteria for the Friendly Nations visa is a job offer in the country, so any income generated from that job will be taxable.

Panama’s tax rates are competitive. People earning less than $11,000 pay no taxes. People making between $11,000 and $50,000 pay a 15% tax rate, while those earning more than $50,000 pay a 25% tax rate.

Why Panama?

Panama should be at the top of the list if you want to set up residency in a new country. It is even more attractive if you’re from the US or any other country on the Friendly Nations Visa list. As long as you meet the other qualifications, establishing residency will likely be easier than in any other country.

Additionally, Panama is one of the most attractive countries to relocate to for the reasons above and many others. Panama is a tropical country with hundreds of miles of Pacific and Caribbean beaches. If tropical beaches aren’t your thing, Panama has acres of tropical jungles and mountainous terrain for people who prefer those environments. Panama is a country bursting with natural beauty.

Then there is Panama City. The capital of Panama is a world-class city with modern amenities and technology. You could move from Miami to Panama City without noticing much difference. It has a dynamic downtown area with high-speed internet that connects Panama City to the rest of the world. Panama City bustles with nightlife, restaurants featuring cuisine from around the world, thumping nightclubs, and high-end art and culture. Downtown Panama City is home to the regional headquarters of several Fortune 500 companies.

The varied housing options are another thing common throughout the country, but particularly in Panama City. Panama’s housing is as plentiful and varied as the needs of those looking for it. Panama City has several high-end luxury apartments that are much more affordable than those in Miami or Los Angeles. Single-family homes are common both in Panama City and elsewhere in the country. Several unique neighborhoods in Panama City cater to the needs of various people looking for homes.

Panama is an economic leader that stands out in Central America. The Canal laid the foundation for building Panama into a modern country. Panama has embraced technology and grown its economy to be the envy of Central and South America. The government of Panama is forward-thinking, and it understands the need for new ideas and outside-the-box thinking. Making it easy for people from outside the country to move here is one of the best ways to keep growing. The Friendly Nations Visa is ideal for residency in Panama and ultimately gaining citizenship if that is what you want.

Are you looking to establish residency in Panama? The Agency Panama is here to help you find the ideal place to live while you work towards that goal. We have a deep understanding of Panama City real estate, as well as the surrounding areas. Let us guide you through the Friendly Nations Visa process and help you determine if it’s the right fit. Reach out now to learn more about how we can help you navigate Panama real estate.

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