How to Move to Panama: Full Guide (2025)


Jump to: Quick Facts · Living Essentials · Pros · Cons · Visas Guide · Residency & Citizenship · Business · Resources

Immigrating to Panama? Here’s what you need to know:

🇵🇦 Panama at a Glance

  • Population: 4.5 million (2025 estimate)
  • Geography: Connects North & South America via Panama Canal; borders Costa Rica (NW) and Colombia (SE); 1,550 miles coastline, 1,500+ islands
  • Climate: Tropical; temps 75–85°F; rainy season May–Dec (heavy rain), dry season Jan–Apr (sunny)
  • Currency History: First Latin American country using U.S. dollar (since 1904)
  • Economy: Panama Canal generates $2 billion/year
  • Biodiversity: 10,000+ plant species, 1,500+ bird species, rare wildlife like golden frog

🏠 Living Essentials

  • Currency: Panamanian balboa (PAB) pegged 1:1 to USD; USD widely accepted
  • Languages: Spanish (official), English common in business & tourism
  • Religion: Evangelical Christian 52.1%, Roman Catholic 33%, Others/None 14.9%
  • Ethnic Groups: Mestizo 65%, Afro-Panamanian 31.7%, Indigenous 12.3%, Other 9.2%
  • Largest Cities: Panama City (1.6M), San Miguelito (300k+), Tocumen (120k+)

🤔 Why Choose Panama

  • Tax Benefits: Territorial tax system exempts 100% foreign income; no tax on foreign earnings
  • Retirement Perks: Pensionado Visa ($1,000/month pension) grants 25% off utilities, 30% off public transport, 15% off healthcare, import tax exemptions on household goods ($10,000) & new car every 2 years
  • Healthcare: Private care 40–60% cheaper than U.S.; English-speaking doctors; public visits $2–5 without insurance
  • Economic Growth: GDP growth 3–5% in 2025; Panama Canal, logistics, tourism drive economy; Panama Pacifico economic zone offers corporate tax breaks & streamlined immigration
  • Retirement Haven: #1 retiree quality of life in Americas (2025); 50% hotel discounts, tax-free meds for Pensionado visa holders; temperate mountain towns like Boquete attract retirees
  • Travel Hub: Tocumen airport links 90+ cities on 6 continents; Miami 2.5 hours away; coastal towns like Coronado combine beach life with city access

⚠️ Panama Challenges

Note: these are common expat complaints, and may not apply to you.

  • Bureaucracy & Corruption: Residency takes 6–12 months; permits need intermediaries; employers pay 30–35% of salaries for social security; ranked 104th in corruption globally (2024)
  • Economic Inequality: 25% below poverty line, mainly rural/Indigenous; 40% work informal jobs with no protections; public healthcare & education underfunded; 30% medicine shortages in hospitals
  • Climate & Infrastructure: Panama Canal droughts cause shipping delays; urban floods disrupt Panama City traffic monthly; rising temps (+1.5°C since 2000) threaten coastlines & crops
  • Cost of Living: Luxury imports taxed 10–20% (e.g., Toyota RAV4 $45k vs. $32k US); expat hotspots have 50–70% higher rents; groceries & fuel 30–50% marked up in remote areas
  • Social Integration: Only 8% outside cities speak English fluently; expat enclaves can exclude newcomers; labor laws require firms to hire 90% locals; business success hinges on connections

🛂 Panama Visa Guide

A variety of visas are available:

  • Friendly Nations Visa
    • Eligibility: Citizens of 56+ countries (U.S., Canada, EU, Australia) with economic/professional ties
    • Requirements: $5,000 Panamanian bank deposit or $200,000+ real estate investment; clean criminal record, health certificate
    • Duration: 2-year temporary residency
    • Renewal: Apply for permanent residency after 2 years; no quotas
  • Pensionado Visa (Retiree Visa)
    • Eligibility: Age 18+ with $1,000+/month lifetime pension (government or private)
    • Requirements: Proof of pension income; $250/month additional per dependent
    • Duration: Immediate permanent residency
    • Renewal: Maintain pension income; visit Panama once every 2 years
  • Qualified Investor Visa
    • Eligibility: $300,000+ real estate, $500,000+ securities, or $750,000+ time deposit for 5 years
    • Requirements: Foreign-sourced funds; clean criminal record
    • Duration: Immediate permanent residency for investor, spouse, dependents
    • Processing Time: About 30 days
  • Professional Permanent Residency Visa
    • Eligibility: Foreign professionals with Bachelor’s or higher degree
    • Requirements: Degree authentication; no competition with local labor
    • Duration: 2-year temporary residency, renewable to permanent
    • Work Permit: Only principal applicant receives one
  • Work Permits
    • Quotas: Max 10% foreign workers per company, 15% for specialists
    • Processing: 40 business days (often 90+ due to delays)
    • Employer Obligations: Certified payroll for 20+ employees
    • Renewal: Apply 60 days before expiration, stricter for SEM/EMMA visas

🛬 Residency & Citizenship

  • Permanent Residency Pathways:
    • Professional Residency: After 2 years temporary residency
    • Investor Visa: Immediate permanent residency
    • Marriage: 3 years residency if married to Panamanian
  • Permanent Residency Requirements:
    • Clean criminal record (local/international)
    • Proof of economic solvency (income, investments)
  • Citizenship by Naturalization:
    • Eligibility: 5+ years permanent residency (3 years if spouse or parent of Panamanian)
    • Latin American/Spanish citizens: 1–3 years via reciprocity
    • Process: Submit authenticated documents, pass Spanish language & culture tests
    • Approval: Presidential decision, 2–5 years processing
    • Dual citizenship: Allowed

💼 Business in Panama

  • Pros:
    • 100% foreign ownership allowed
    • No capital gains or offshore income tax
    • Strategic Free Trade Zones (Colón, Panama Pacifico)
  • Cons:
    • Bureaucratic delays (4–8 weeks for registration)
    • Mandatory resident agent and annual franchise tax ($300+)
  • Steps to Start a Business:
    • Choose structure: Sociedad Anónima (S.A.) for corporations; Sociedad de Responsabilidad Limitada (S.R.L.) for small businesses
    • Register at Public Registry: Articles of incorporation, company name, purpose
    • Obtain sector-specific licenses (e.g., MICI health permits for restaurants)
    • Hire Resident Agent for legal representation
    • Open bank account (minimum $10,000 deposit for S.A.)
  • Costs:
    • Incorporation: $1,500–$3,000 (includes legal fees)
    • Annual fees: $300+ franchise tax, $500+ resident agent fees

📚 Helpful Resources

  • Panama Migration Service: Official portal for visa applications and residency requirements (Spanish only).
  • Computrabajo Panama – Popular Latin American job portal offering thousands of vacancies, including expat‑friendly listings.

↑ Back to Top


Leave a Reply

Your email address will not be published. Required fields are marked *