The US dollar, a territorial tax system and one of the most established residency menus in the Americas, with routes for professionals, retirees and investors.
Panama only taxes income earned inside Panama. Salary, business profits, dividends and gains earned abroad are generally not taxed there, even for residents.
Income earned in Panama is taxed at 0% up to US$11,000 a year, 15% up to US$50,000 and 25% above that.
Full tax breakdownPanama has used the US dollar as legal tender for over a century, so there is no currency risk on savings, rent or contracts.
Tocumen airport has direct flights to most of North, Central and South America and to Europe, so most of the hemisphere is a short trip away.
Retirees can qualify on a pension, citizens of approx. 50 friendly nations through property or a deposit, and investors go straight to permanent residency.
A large international banking sector and a long tradition of serving foreign clients, and in October 2026 the EU removed Panama from its list of non cooperative tax jurisdictions.
Panama City offers high rise living, private hospitals and international schools, with beaches and mountain towns within a few hours.
The Panama Canal, the Colón Free Zone and a busy logistics sector give the economy a base that does not depend on one industry.
The first status on the friendly nations route, valid for two years. You can live and work in Panama and open bank accounts, then apply to convert to permanent residency before it expires.
The long term status, granted from day one to pensioners and qualified investors. You can live in Panama indefinitely, and five years of permanent residency opens the door to naturalisation.
Provisional residency is a way in that must be converted, and the years spent on it do not count toward citizenship. Permanent residency is the one you keep, and the clock toward a passport only starts when you hold it.
Time until you can apply for citizenship: Approx. 7 to 8 years
Time until you can apply for citizenship: Approx. 5 to 6 years
Time until you can apply for citizenship: Approx. 5 years
| Pathway | Minimum investment | Approval | What you get | Time to passport eligibility | Presence |
|---|---|---|---|---|---|
| Friendly Nations | US$200,000 property or deposit, or a job offer | Approx. 1 to 6 months | Provisional residency, 2 years | Approx. 7 to 8 years | Visits to apply; live there for citizenship |
| Pensionado | None; pension of US$1,000 a month | Approx. 1 to 6 months | Permanent residency | Approx. 5 to 6 years | Visits to apply; live there for citizenship |
| Qualified Investor | From US$300,000; up to US$750,000 by asset | Approx. 1 to 2 months | Permanent residency | Approx. 5 years | Visits to apply; live there for citizenship |
Naturalisation needs 5 years of permanent residency (3 if married to a Panamanian), Spanish and a history test, and naturalised citizens must renounce other nationalities.
Each option below qualifies on its own. We help you pick the one that suits your money and your plans.
A guaranteed lifetime pension, or US$750 a month if you also own property worth US$100,000. Permanent residency from the start, plus retiree discounts.
For citizens of listed countries. Two years of provisional residency, then permanent.
Direct permanent residency. New property from a developer from US$300,000, resale property from US$500,000, US$500,000 in securities or a state bank deposit, or US$750,000 at a private bank. Held for five years.
On top of the qualifying amount there are government fees, a refundable repatriation deposit, residency card fees, a health certificate and legal work, and one or two trips to Panama during the process. Every situation is different, so we quote everything as one custom fixed fee in writing after a free call.
We assist you in obtaining each document, then have it apostilled (certified with an international stamp so it is valid abroad), translated and filed for you.
A spouse and children under 18 can be included on every main route, and children up to 25 who are single and studying full time usually qualify too. On the pensionado route, each dependant adds US$250 a month to the pension needed.
The headline rates for people who are tax residents there. Holding a residency or passport does not by itself make you a tax resident, and your current country may still tax you, so the licensed tax advisers in our local team confirm your position.
Pension, friendly nations or qualified investor, based on your passport, budget and plans. We then assist you in obtaining the relevant documents and having them apostilled and translated.
We check the property, deposit or pension proof against the current thresholds, including whether a property counts as a first sale, before any money moves.
A licensed lawyer from our local team files with the National Migration Service, and you visit Panama for biometrics and registration.
Provisional or permanent residency is granted and your residency card is issued. Investors are usually approved within approx. 30 business days of the investment being certified.
On the friendly nations route we prepare your permanent application after two years. Investors keep the investment for five years, with a yearly check.
Our local team stays with you once you are approved and takes care of the practical steps, then keeps everything current and compliant.
Yes, for people who can meet one of the routes. Permanent residency is long lasting, the country uses the US dollar, and it is a short flight from North America. Once permanent, an absence of more than two years in a row can lead to cancellation, so a visit at least once every two years keeps it safe. The entry cost is higher than Paraguay, since most routes need US$200,000 or more, unless you qualify on a pension.
Yes. Panama taxes only income earned in Panama, so foreign salary, dividends and gains are generally not taxed there. You become tax resident by spending more than 183 days there in a year, and holding permanent residency can also count, with your centre of economic and family life taken into account. The harder part is leaving your home country's tax net, which depends on your nationality and circumstances, so book a free call and we can talk through yours.
It can be. Panamanian companies and foundations are long established tools, and profits earned outside Panama are not taxed there. Local banks are solid but cautious with foreigners: expect detailed questions about source of funds and in person meetings, so opening accounts takes time. In October 2026 the EU removed Panama from its list of non cooperative tax jurisdictions, which should make Panamanian structures easier to use with European counterparties.
Only if you qualify for a route without stretching your budget. Most routes need US$200,000 or more, which is a lot to tie up early on. If you run a small business inside Panama, companies with annual income under US$500,000 can register for reduced corporate rates of 7.5% to 22.5% instead of the standard 25%. For many founders, a lower cost residency elsewhere is the better first step.
No. You visit to apply and for biometrics. Permanent residents should return at least once every two years, because a continuous absence of more than two years can lead to the residency being cancelled. Naturalisation is different: it expects you to have genuinely lived there.
Permanent residents can apply for naturalisation after five years, or three if married to a Panamanian or with Panamanian children. It requires Spanish, a test on Panama's history and institutions, proof of means and good conduct, and approval is at the government's discretion.
Not for naturalised citizens. Applicants must declare that they renounce their other nationality. Whether your home country treats that declaration as ending your citizenship depends on its own law, which we look at with you before you apply.
Executive Decree 17, in force since 16 September 2026, kept the US$300,000 minimum for property bought directly from a developer but raised resale property to US$500,000. Securities stay at US$500,000, deposits at the two state banks at US$500,000 and private bank deposits at US$750,000. Applications already under way may qualify under the old rules if filed by about mid March 2027.
Approx. 50 countries, including the United States, Canada, the United Kingdom, Australia, most of the European Union, Brazil and Argentina. We confirm your nationality qualifies on the free call.
On the qualified investor route, the investment is held for five years and checked every year. A sale or swap within that period needs notice to the authorities and, where allowed, a replacement of equal value, or the residency can be cancelled.
Children over 18 usually stay included while they are single and studying full time, up to approx. 25. Once a child holds permanent residency, it is not normally withdrawn because they get older.
The qualified investor route is the fastest: approx. 15 business days to certify the investment and up to 30 business days for the migration decision. Pensionado and friendly nations applications typically take one to six months.
Laws and fees change, so we confirm every number before you commit.
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