Panama’s Friendly Nations visa explained

Panama's Friendly Nations program is one of the best known residency routes in the Americas. It is open only to citizens of countries Panama considers to have close economic and diplomatic ties with it, and in exchange it asks for less money than most investor programs. On September 1, 2026, Ecuador became the latest country added to the list.

Who qualifies

The program was created by executive decree in 2012 for nationals of what the decree calls specific countries that maintain friendly, professional, economic and investment relations with Panama. The list has grown from 22 countries at launch to around 50 today, plus Hong Kong. Executive Decree 16 of August 31, 2026, which added Ecuador, sets out the current list. It includes:

• North America and Oceania: the United States, Canada, Mexico, Australia and New Zealand.
• Europe: the United Kingdom, Ireland, Switzerland, Norway, Liechtenstein, Monaco, Andorra, San Marino, Serbia, Montenegro and most EU member states, including Germany, France, Spain, Portugal, the Netherlands, Belgium, Austria and the Nordic and Baltic states.
• Latin America: Argentina, Brazil, Chile, Uruguay, Paraguay, Costa Rica, Peru and Ecuador.
• Asia, the Middle East and Africa: Japan, South Korea, Singapore, Hong Kong, Israel and South Africa.

What counts is the main applicant's nationality. A spouse and children can be included even if they hold passports from countries not on the list. Some notable countries are absent, among them Colombia, India and China. Italian citizens use a separate route under a bilateral agreement between Panama and Italy. Taiwan was removed in 2021.

The three routes

Applicants must show an economic or professional tie to Panama in one of three ways:

• A job. An employment contract with a company in Panama. Residency does not by itself give the right to work: the employee still needs a work permit from MITRADEL, the Ministry of Labour, and some professions are reserved for Panamanians.
• Real estate. Property in Panama with a registered value of at least US$200,000. A local bank may finance part of the purchase.
• A fixed deposit. At least US$200,000 in a time deposit at a bank in Panama, free of any lien and held for at least three years.

The usual supporting documents apply: a valid passport, a national criminal record check from the home country, a health certificate and, for family members, marriage and birth certificates, all apostilled (certified for international use under the Hague Convention) and translated into Spanish.

What the 2021 reform changed

Until 2021, the program granted permanent residency straight away and set a very low bar for proving ties. Many applicants simply formed a Panamanian company, opened a local bank account and deposited about US$5,000. Executive Decree 197 of May 7, 2021 and Executive Decree 226 of July 20, 2021 rewrote the program, with the changes taking effect in August 2021:

• The company and bank account route was abolished.
• The qualifying ties were narrowed to employment, US$200,000 of real estate or, added by the second decree, a US$200,000 fixed deposit held for three years.
• Residency now starts as a two year provisional permit rather than permanent status.

The route is still widely used. Panama's National Migration Service approved 2,022 Friendly Nations provisional permits in 2023, more than any other provisional category except dependants.

From provisional residency to a passport

After two years of provisional residency, the holder applies for permanent residency, provided the qualifying job, property or deposit is still in place. Processing at each stage typically takes several months, so the full path to permanent status often takes around three years.

Citizenship is possible but slower. Panama's Constitution allows foreigners to apply for naturalisation after five consecutive years of residence, or three if married to a Panamanian or the parent of a Panamanian child. In practice the clock runs from the resolution granting permanent residency. Applicants must show Spanish and basic knowledge of Panama's history, geography and institutions, and the Constitution requires them to renounce their previous nationality, although whether another country recognises that renunciation depends on its own law. Approval is at the discretion of the government and is signed by the President.

What it means if you are considering Panama

If your passport is on the list, Friendly Nations is usually the most affordable way into Panama for people below retirement age, especially if you would buy property anyway. Plan for the two year provisional stage and for keeping the investment in place until permanent residency is granted. If you are retiring on a pension, the pensionado route may suit you better, and if you want permanent status from day one, the Qualified Investor route offers that for a larger investment. We help clients compare these options, work with our local team in Panama and quote a fixed fee in writing.

This article is general information, not legal, tax or investment advice.