Moving to Panama from the US, Canada or the UK

For retirees, remote workers and people with savings to put into property or a bank deposit. The Friendly Nations, pensionado and remote worker routes, what each asks for in US dollars, and which ones lead to permanent residence.

Panama sets its residence rules in balboas, which are worth one US dollar each, and the US dollar is the money in everyday use. That makes the rules easy to read for Americans and easy to compare for Canadians and Britons. Panama suits retirees with a pension, remote workers paid from abroad, and people who can put a large sum into Panamanian property or a bank deposit.

The government body that handles residence is the Servicio Nacional de Migración (SNM). Each application starts with a notarised power of attorney. In practice, a Panamanian lawyer files it for you in Panama.

The main ways in

Friendly Nations (Países Amigos). This is open only to citizens of listed countries. The United States, Canada and the United Kingdom are on the list. You also need one of three economic ties to Panama:

• A job. A notarised letter from a Panamanian employer that states your post and salary, plus a copy of the work-permit request filed with the Ministry of Labour (MITRADEL).
• Property. Real estate in Panama worth at least USD 200,000. You can own it personally, through a company you are the final beneficial owner of, or through a private-interest foundation. A local bank can finance the purchase.
• A bank deposit. A fixed-term deposit of USD 200,000 for three years at a bank with a general licence in Panama, free of liens.

You first get provisional residence for two years. Then you apply for permanent residence with the same documents, apart from the criminal record and the fee cheques. If you bring dependants, SNM asks for proof of income of at least USD 1,000 a month plus USD 100 for each dependant.

Pensionado (retiree). This fits retirees with a lifetime pension of at least USD 1,000 a month. The pension can come from a foreign government, an international organisation or a private company. If you bought property in Panama in your own name for more than USD 100,000, the minimum drops to USD 750 a month. A couple can add their pensions together to reach the minimum. Each dependant needs another USD 250 a month. The permit is indefinite, so it needs no renewal.

Remote worker visa. This fits remote employees of foreign companies and self-employed people with a business registered abroad. You need foreign-source income of at least USD 36,000 a year. If you are employed, your employer’s letter must show at least USD 3,000 a month. You also need health insurance that covers you in Panama, and a sworn statement that you will not take work from people or businesses in Panama. The visa lasts nine months and can be extended once for another nine. It is a non-resident category, so it does not lead to permanent residence.

Panama also has a qualified investor route for larger investments in property, securities or bank deposits, which gives permanent residence straight away. See every route below for its current thresholds.

Which routes lead to permanent residence

Naturalisation is a separate step that starts from permanent residence. SNM’s naturalisation checklist asks you to renounce your other nationality, expressly and irrevocably. Most US, Canadian and UK citizens will want to weigh that before planning on a Panamanian passport.

Money, tax and cost of living

SNM lists these government payments for the main routes. Lawyer fees, apostilles, translations and medical certificates come on top.

• Friendly Nations, provisional residence: a certified cheque for USD 250 to the national treasury and one for USD 800 to SNM.
• Remote worker visa: USD 250 to SNM, plus USD 50 for the remote worker card.
• Pensionado: SNM’s requirements sheet lists no fee. Ask your lawyer for the current amounts.

The visa cost calculator adds up the remote worker visa for you and your family.

Panama is widely described as taxing only income from Panamanian sources. We could not confirm this on an official Panamanian page, so check it with a tax adviser before you rely on it. US citizens stay subject to US tax on worldwide income wherever they live. Canadians and Britons generally stop being tax resident at home only if they cut their residence ties there.

For a sense of what your money buys, see the cost of living in Panama or try the cost of living calculator.

Your first steps

1. Choose a lawyer. Every route starts with a notarised power of attorney, which names your parents and their nationality.
2. Gather documents at home. Every route asks for a criminal record certificate, a health certificate and a certified copy of your passport. SNM sets formal rules for documents issued abroad, so ask your lawyer which need apostilles and translations.
3. Prove your money. Pensionado applicants need a certificate of their lifetime pension. Private-company pensions also need a letter from the fund manager and a bank statement or payment receipt. Friendly Nations applicants need a Public Registry certificate for property, or a bank certificate for the deposit.
4. File in Panama. Your lawyer files with SNM. SNM does not publish processing times for these routes.
5. Plan the second step. Friendly Nations holders apply for permanent residence after two years. Remote workers apply for their single extension before the first nine months end.

What catches people out

• The pension must be for life. A fixed-term annuity or investment drawdown does not meet the pensionado rule.
• Dependent children are not pensionados. Under the pensionado route, children hold a temporary permit until 25 while in full-time study. They do not get permanent status themselves, unless they have a proven severe disability.
• Pensionado is for living on your pension. SNM’s requirements sheet grants no right to work. Ask before you take a job in Panama.
• The remote worker visa runs out. It lasts 18 months at most. If you want to stay, look at Friendly Nations or pensionado early.

This is general information, not legal, tax or immigration advice. Confirm each requirement with SNM or a Panamanian lawyer before you apply.