How to Move to Panama

Panama Visa Options

Panama offers four main immigration pathways. The Friendly Nations Visa is the most popular, granting temporary then permanent residency to citizens of approximately 50 countries (including the US, UK, Canada, most of the EU, and several Latin American nations) who demonstrate economic ties to Panama through employment, a business, or real estate ownership, plus a $5,000 bank deposit. The Pensionado Visa is one of the world's best retiree programs, requiring just $1,000 per month in pension income and offering extensive discounts. The Remote Worker Visa requires $3,000 per month in income from a foreign employer. The Qualified Investor Visa grants PR through a $300,000+ investment in real estate or $500,000+ in financial instruments.

• Friendly Nations Visa grants PR to citizens of ~50 countries with a $5,000 bank deposit
• Pensionado requires only $1,000/month in pension income
• Panama uses the US dollar, eliminating currency exchange risk
• Territorial tax system means foreign-sourced income is not taxed
• Remote Worker Visa allows stays up to 18 months
• Qualified Investor Visa offers PR through $300,000 in real estate

Cost of Living in Panama

Panama offers a moderate cost of living that is significantly lower than the US, especially outside Panama City. The average salary is roughly $800 per month according to INEC 2024 data. Rent for a one-bedroom apartment in Panama City's modern neighborhoods (Casco Viejo, El Cangrejo, Obarrio) runs $800 to $1,500 per month, while comparable housing in David, Boquete, or Coronado costs $400 to $800. Groceries are affordable, with local produce and markets keeping food costs at $200 to $400 per month. Dining out at local restaurants costs $5 to $15 per meal. Panama's use of the US dollar means no currency conversion costs for American expats. A single person can live comfortably on $1,500 to $2,500 per month including rent, depending on location.

Language Requirements

No Spanish proficiency is required for any Panamanian visa application or for permanent residency. Citizenship requires basic Spanish and knowledge of Panamanian history, tested during the naturalization interview. Panama City has a large English-speaking expat community, and business in the banking, legal, and real estate sectors often operates in English. Outside Panama City, English is less common, and functional Spanish becomes important for daily errands, medical appointments, and interacting with government offices. Expat hubs like Boquete and Coronado have bilingual services catering to retirees. Most newcomers reach basic conversational Spanish within 3 to 6 months of consistent study.

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Credential Recognition

Foreign degrees in Panama are validated through the Universidad de Panama's credential validation office. The process requires apostilled and translated (sworn translation into Spanish) copies of your degree and transcripts. Processing takes 2 to 6 months. Regulated professions require additional licensing through their respective professional bodies. Foreign doctors must validate their degree and complete additional requirements through the Consejo Tecnico de Salud. Lawyers must revalidate their degree and pass the idoneidad examination. Engineers and architects register with the Junta Tecnica de Ingenieria y Arquitectura. Most expats working remotely or running their own businesses do not need credential recognition.

Visa Application Process

Panama visa applications are processed domestically through the Servicio Nacional de Migracion (SNM) in Panama City, meaning you typically travel to Panama on a tourist visa and apply in-country. The Friendly Nations Visa requires a passport from an eligible country, a $5,000 deposit in a Panamanian bank, proof of economic ties (employment letter, business registration, or property title), a police background check (apostilled), and a health certificate. Most applicants hire a Panamanian immigration lawyer (costing $1,500 to $3,000) to handle the process. Initial processing takes about 8 weeks for the temporary permit, with full PR issued 2 years later after a status check. The Pensionado and Qualified Investor visas follow similar timelines.

Path to Permanent Residency and Citizenship

The Friendly Nations Visa, Pensionado, and Qualified Investor Visa all lead directly to permanent residency. The Friendly Nations Visa first issues a 2-year temporary residence card, after which PR is granted upon confirmation that the applicant maintains economic ties. The Pensionado and Investor visas can grant PR more quickly. Citizenship requires 5 years of permanent residency and passing a naturalization test covering basic Spanish and Panamanian history and civics. Citizens of Spanish-speaking Latin American countries qualify for citizenship after 3 years. Panama permits dual citizenship, so you do not need to renounce your original nationality. The naturalization process takes 6 to 12 months from application to approval.

Your First Days in Panama

After arriving in Panama, your first steps are opening a Panamanian bank account (Banco General, BAC, and Banistmo are foreigner-friendly) and hiring an immigration lawyer if you have not already. The bank account is required for the Friendly Nations Visa $5,000 deposit. Next, obtain your health certificate from a local clinic and have your police background check apostilled. Your lawyer will file the visa application with the SNM and schedule appointments. Find housing through encuentra24.com or local real estate agents. Expect the initial setup process to take 2 to 4 weeks, with the full visa process running 8 to 12 weeks.

Moving with Family

All major Panamanian visa categories allow dependents (spouses and children under 18) to be included in the application. Each dependent adds to the processing cost and documentation requirements but follows the same timeline. Panama's public school system is free and compulsory from ages 4 to 15, with instruction in Spanish. Many expat families choose bilingual private schools (typically $3,000 to $8,000 per year) or international schools in Panama City ($10,000 to $20,000 per year). Childcare is affordable and widely available. The Pensionado visa extends retiree discounts to the visa holder's dependents as well.

Healthcare in Panama

Panama has a dual public-private healthcare system. The public system (Caja de Seguro Social, or CSS) provides coverage to workers and their dependents through social security contributions. Quality at public facilities varies, with long wait times for non-urgent care. Most expats use private healthcare, which is excellent in Panama City. Hospital Punta Pacifica (affiliated with Johns Hopkins) and Hospital Nacional offer US-standard care at a fraction of US prices. Private health insurance costs $100 to $300 per month depending on age and coverage. Dental and optical care are particularly affordable. In rural areas and smaller cities, healthcare options are limited, and many residents travel to Panama City for specialist care.

Taxes in Panama

Panama operates a territorial tax system, meaning only income earned within Panama is taxed. Foreign-sourced income, including remote work salaries from foreign companies, investment returns from overseas accounts, and foreign pensions, is not subject to Panamanian income tax. This makes Panama one of the most tax-friendly destinations for remote workers and retirees with foreign income. For Panama-sourced income, progressive rates range from 0% to 25%. There is no capital gains tax on foreign investments, no inheritance tax, and no wealth tax. Property tax exemptions of up to 20 years are available for new construction. Panama has no tax treaty with the US, which means US citizens still owe US tax on worldwide income but pay nothing to Panama on their foreign earnings.