Panama Friendly Nations Visa New Investment Employment Rules

What is the Panama Friendly Nations Visa and who can apply?

The Panama Friendly Nations Visa is a residency program that allows citizens of specific countries with "friendly" relations to obtain Panamanian permanent residency through economic or professional ties. You can usually qualify either by investing in Panamanian real estate or by securing a local employment contract with a Panamanian company.

Legally, this program is based on:

• Immigration Law 3 of 22 February 2008 (Ley 3 de Migración)
• Executive Decree 343 of 2012 (created the Friendly Nations category)
• Executive Decree 197 of 7 May 2021 (reformed the program, removing the "easy" deposit model and creating the 2-step residency)

Citizens of eligible "friendly nations" can apply. The list changes over time, but it typically includes countries such as the United States, Canada, most of the European Union, the United Kingdom, Australia, New Zealand, Singapore, Hong Kong, Japan, South Korea, and several Latin American countries.

To qualify, you must:

• Hold a passport from one of the listed countries published by the Servicio Nacional de Migración (SNM)
• Be able to demonstrate economic or professional ties to Panama through:
  • Qualified real estate investment in Panama; or
  • A valid employment contract with a Panamanian company
• Meet basic immigration requirements (clean criminal record, proof of solvency, valid passport, etc.)

How did the Friendly Nations Visa rules change under the new Executive Decree?

Under the new rules, the Friendly Nations Visa moved from an instant permanent residency based on a modest bank deposit to a more structured program requiring either real estate investment or employment, plus a 2-year provisional residency period. This change significantly increased both the cost and the timeline for most applicants.

The old program (under Decree 343 of 2012) became extremely popular because it allowed relatively fast and low-cost entry. The government responded with Executive Decree 197 of 7 May 2021, which reshaped the program to attract more serious investors and residents.

Key differences: old vs new Friendly Nations rules

For many years, simply showing a small bank deposit and opening a Panamanian company was enough. Under the new decree, the government removed this "easy" path and now focuses on people who either:

• Commit meaningful capital to Panama through property, or
• Integrate into the local labor market with a regulated job and work permit

What are the main paths to residency: real estate investment vs employment contract?

Today, the two main practical paths under the Friendly Nations Visa are either to invest at least USD 200,000 in Panamanian real estate or to sign an employment contract with a Panamanian employer and obtain a work permit. Your best path depends on your finances, lifestyle plans, and willingness to work in Panama.

Other economic-tie theories exist in the law, but in practice Migración and local lawyers overwhelmingly use these two routes because they align clearly with Executive Decree 197 and current administrative practice.

Path 1 - Real estate investment (USD 200,000+)

• Minimum investment: USD 200,000 (same value in Panamanian balboas) in titled Panamanian real estate
• Ownership: In your personal name or via a corporation/foundation where you are the ultimate beneficiary
• Financing: Often allowed if the property value is at least USD 200,000; local banks may require higher down payments for foreigners
• Use: Can be a rental property, your residence, or a mix; property must be properly registered in the Public Registry

Path 2 - Employment contract with a Panamanian company

• Job offer: You must secure a written employment contract with a Panamanian employer
• Registration: The contract must be registered at the Ministry of Labor (MITRADEL)
• Work permit: Your employer (through a lawyer) must process a work permit for you; this is separate from residency
• Sector rules: Some professions are reserved for Panamanian citizens (law, medicine, engineering, etc.), so foreigners cannot work in those roles

Which path is better for you?

• Choose real estate investment if:
  • You have the cash or financing to invest USD 200,000+
  • You prefer location independence or remote work for foreign companies
  • You want an asset that can produce rental income or appreciation
• Choose employment if:
  • You want to actively live and work in Panama
  • Your profession is suitable for local hiring and work permit approval
  • Finding a job is easier for you than committing capital to property

How does the new two-step residency timeline work (provisional then permanent)?

Under the new rules, you first receive a 2-year provisional residency card, and only after those 2 years can you apply for permanent residency. Both stages require separate filings and fees with the Servicio Nacional de Migración.

This structure allows Migración to review whether you maintained your ties (property or employment) and complied with Panamanian law before granting permanent residence.

Stage 1 - Provisional residency (2 years)

1. Application filing: Your lawyer submits your Friendly Nations application with full documentation.
2. On filing day:
   • You receive a temporary residency card (carné provisional) usually valid for 6 months while your case is processed.
   • You also obtain a multiple-entry visa in your passport so you can leave and re-enter Panama while your application is pending.
3. Resolution: If SNM approves, you receive a 2-year provisional residency card under the Friendly Nations category.
4. Obligations during these 2 years:
   • Maintain your real estate investment or employment tie
   • Keep your passport valid
   • Avoid long, unexplained absences or legal issues

Stage 2 - Permanent residency

1. Timing: Shortly before your 2-year provisional card expires, your lawyer files for the change from provisional to permanent residency.
2. Updated documentation: You must prove you still meet the requirements (continue owning the property or maintaining your job).
3. Approval: On approval, SNM issues a permanent residency card. After that, you normally renew only the ID card itself every 10 years.
4. National ID (cédula E): As a permanent resident, you can obtain an electoral ID for foreigners (cédula E) through the Tribunal Electoral, which functions as your main local ID.

What documents do you need, and how do apostilles and police records work?

You need a clean police record, apostilled or legalized civil documents, financial evidence, and either real estate or employment documentation. Most foreign documents must be apostilled or consular legalized and issued within the last 3 to 6 months.

Missing, expired, or non-apostilled documents are among the most common reasons for delays and rejections, so planning ahead is critical.

Core personal documents

• Passport: Valid for at least 6 months, with readable data page and entry stamp to Panama.
• Police record:
  • Issued by the central police or FBI/RCMP equivalent of your country of citizenship or residence (depending on your situation).
  • Must typically show no criminal record.
  • Must be issued within the last 6 months (preferably 90 days to avoid issues).
  • Must be apostilled or consular legalized for recognition in Panama.
• Second residence police record (if applicable): If you have lived more than 2 years in another country, Migración may also ask for a police record from that country.
• Marital status documents (for dependents):
  • Marriage certificate for spouse, apostilled/legalized.
  • Birth certificates for children, apostilled/legalized.
  • Proof of dependency for adult children or parents (economic support, disability, etc.) if applicable.

Financial and solvency documents

• Bank reference letter: Usually from a Panamanian bank stating you are a client in good standing and referencing a minimum balance or account relationship.
• Account statements: Some lawyers also include recent statements to demonstrate real solvency.
• Affidavit of support: For dependents, you must sign a responsibility letter assuming financial support.

Real estate path - specific documents

• Public Registry certificate (Certificado del Registro Público): Shows property ownership, legal description, and value.
• Property deed (escritura pública): The notarized and registered deed showing purchase details.
• Municipal tax receipts: Evidence that property taxes are up to date, if requested.
• Corporate/foundation documents: If the property is owned by a company or foundation, you need updated corporate registry certificates and shareholder or beneficial owner documentation linking you to the entity.

Employment path - specific documents

• Employment contract: Written contract in Spanish, stating position, salary, and conditions, signed by both parties.
• Company documents: Public Registry certificate of the employer, business license, and proof the company is active and in good standing.
• Social security and payroll documentation: To show the job is correctly registered with the Caja de Seguro Social.
• Work permit process: Parallel file at the Ministry of Labor (MITRADEL) for your work permit; your immigration lawyer often coordinates both.

Apostilles and legalization

• Apostille: If your country is party to the Hague Apostille Convention, you must apostille documents with the competent authority in that country.
• Consular legalization: If your country is not part of the Convention, documents must be legalized through the Panamanian consulate and your foreign ministry.
• Translations: Any document not in Spanish must be translated by a Panamanian certified public translator; foreign translations are not accepted.

What are the government fees, typical legal costs, and minimum investment amounts in Panama?

Government fees for the Friendly Nations Visa are moderate compared to the investment requirement, but legal fees and property transaction costs add significantly to your total budget. For most applicants, the real estate path requires at least USD 215,000 to 230,000 available, including transaction and professional costs.

Panama uses the balboa (PAB), pegged 1:1 to the US dollar, and in practice the US dollar is the operational currency. The table below outlines typical cost ranges; exact figures vary by firm and property type.

What is the step-by-step process to obtain residency through real estate investment?

The real estate path typically takes a few months to secure provisional residency and at least 2 years to reach permanent status. The key milestones are acquiring qualifying property, gathering apostilled documents, filing the application, and later converting provisional residency into permanent residency.

Below is a practical sequence most successful applicants follow.

Step-by-step: real estate Friendly Nations Visa

1. Initial assessment with a lawyer
   • Confirm your nationality is still on the Friendly Nations list.
   • Discuss your family situation, budget, and timeline.
   • Decide if you will buy property in your name or through a company/foundation.
2. Gather foreign documents
   • Request police record, marriage certificate, and birth certificates for dependents.
   • Apostille/legalize all required documents.
   • Send scans to your Panamanian lawyer for pre-review before shipping originals.
3. Travel to Panama and open bank account
   • Visit Panama, meet your lawyer, and open a local bank account if required.
   • Prepare initial funds for the property deposit.
4. Select and purchase real estate
   • Work with a licensed realtor and your lawyer to identify qualifying property (USD 200,000+).
   • Sign a purchase agreement, pay deposit, and complete due diligence (title search, liens, zoning).
   • Close the transaction via a public deed before a Panamanian notary.
   • Register the deed at the Public Registry.
5. Prepare immigration file
   • Lawyer compiles your personal, financial, and property documents.
   • Apply certified translations into Spanish where needed.
   • Sign power of attorney and sworn declarations.
6. File Friendly Nations application
   • Attend SNM with your lawyer to submit the application.
   • Obtain a temporary residency card and multiple-entry visa.
7. Wait for approval of provisional residency
   • Processing time often ranges from 3 to 6 months.
   • On approval, exchange your temporary card for the 2-year provisional residency card.
8. Maintain your status during the 2 years
   • Keep the property in your name or approved structure.
   • Remain in good legal standing; avoid criminal issues and large unpaid debts.
9. Apply for permanent residency
   • Before the 2-year card expires, your lawyer files for the change to permanent residency.
   • Provide updated property and personal documents if requested.
   • On approval, obtain your permanent resident card.
10. Apply for cédula E
    • With permanent residency, process your foreigner ID card at the Tribunal Electoral.
    • This card is widely accepted as your main ID in Panama.

What is the step-by-step process to obtain residency through employment?

The employment path requires you to secure a job with a Panamanian company and then process both residency and a work permit. This path is more complex from a labor-regulation perspective but does not require a large capital investment.

Timeframes vary depending on how quickly you can secure employment and how responsive your employer is with paperwork.

Step-by-step: employment Friendly Nations Visa

1. Professional evaluation
   • Confirm your profession is not restricted to Panamanian citizens only.
   • Prepare your CV, educational certificates, and professional licenses (apostilled if needed).
2. Job search in Panama
   • Apply to companies willing to sponsor foreign workers.
   • Discuss openly the need for a work permit and Friendly Nations residency with potential employers.
3. Sign employment contract
   • Secure a written contract in Spanish specifying salary, role, and probation period.
   • Employer registers the contract with the Ministry of Labor (MITRADEL).
4. Gather foreign documents
   • Same as for the real estate path: apostilled police record, civil documents, etc.
   • Obtain apostilled diplomas or licenses if they are relevant to your job and permit category.
5. Open local bank account (if required)
   • Some work permit categories require proof of local banking; your lawyer will advise.
6. File Friendly Nations residency application
   • Your lawyer submits your immigration application to SNM based on your employment contract.
   • You obtain a temporary residency card and multiple-entry visa while your application is processed.
7. File work permit application
   • In parallel or shortly after, your lawyer files a work permit application with MITRADEL.
   • Your employer may need to show compliance with labor quotas and demonstrate the need for a foreign worker.
8. Obtain provisional residency and work permit
   • On approval, you receive a 2-year provisional residency card.
   • Once the work permit is approved, you can legally work and join payroll fully.
9. Maintain legal employment
   • Remain actively employed with the sponsoring employer or transition lawfully to another job under the rules.
   • Be sure that social security contributions and labor obligations are correctly paid.
10. Apply for permanent residency
    • Near the end of your 2-year provisional period, your lawyer files for permanent residency.
    • You must prove continued professional ties and compliance with labor and immigration rules.

How do dependents (spouse, children, parents) qualify under the Friendly Nations program?

Spouses, minor children, and certain dependent adult children or parents can obtain residency as dependents of the main Friendly Nations applicant. They must prove the family relationship and economic dependence through apostilled documents and affidavits.

Dependents generally follow the same 2-step path: provisional residency linked to the main applicant, then permanent residency.

Who can qualify as a dependent?

• Spouse: With an apostilled marriage certificate and proof of ongoing relationship if requested.
• Minor children: Typically under 18, with apostilled birth certificates.
• Adult children: Often accepted up to age 25 if:
  • Unmarried, and
  • Full-time students or demonstrably economically dependent on the main applicant.
• Parents: In some cases, parents can be added as dependents if you demonstrate economic responsibility.

Extra requirements for dependents

• Economic capacity: Migración may ask you to prove you have enough income or assets to support your dependents (bank statements, employment income, rental income).
• Affidavit of support: A signed responsibility letter in Spanish, usually notarized, where you accept full financial responsibility.
• School certificates: For older children, proof they are studying full-time.

When should you hire a Panama immigration lawyer or expert?

You should hire a Panama immigration lawyer as soon as you decide which path you want to pursue, ideally before collecting documents or committing to a property. An experienced lawyer will adapt your strategy to the latest SNM practices, which change faster than the written law.

Trying to navigate the Friendly Nations Visa alone is risky because small procedural errors can lead to costly delays or outright rejections.

Situations where professional help is critical

• Complex family structures: Blended families, adopted children, adult dependents, or dependents with disabilities.
• Criminal record issues: Even minor or old infractions may require careful analysis and strategy.
• Corporate or trust property structures: When your investment is not in your personal name.
• Employment path: Coordinating residency, work permit, and labor law compliance for both you and your employer.
• Time-sensitive moves: When you need to start residency quickly or have limited time in Panama per trip.

What a good immigration lawyer typically handles

• Verifies your eligibility under current Executive Decrees and SNM circulars.
• Designs the best route (real estate vs employment) based on your profile.
• Coordinates with realtors, banks, and notaries for property deals.
• Pre-reviews all foreign documents before you spend money on apostilles and courier.
• Submits applications, attends SNM appointments with you, and tracks your file until resolution.
• Helps you later with permanent residency and cédula E processing.

What are the next steps if you plan to apply for the Panama Friendly Nations Visa?

The next steps are to confirm your eligibility, choose your path (real estate or employment), and build a clear document and investment plan with a Panamanian immigration professional. Acting in the right order saves months of time and avoids paying for the wrong documents or property.

Action checklist

1. Verify eligibility:
   • Confirm your nationality is still on the official Friendly Nations list on the SNM website or with a lawyer.
2. Choose your main path:
   • Real estate investment if you have USD 200,000+ and want flexibility.
   • Employment contract if you seek a local career and can secure a job.
3. Schedule a consultation with a Panama immigration lawyer:
   • Discuss updated requirements under Executive Decree 197 and later regulations.
   • Clarify timelines, family members, and total projected costs.
4. Start document collection in your home country:
   • Request police records, marriage and birth certificates.
   • Arrange apostilles or consular legalizations.
5. Plan your first Panama trip:
   • Meet your lawyer, open a bank account, and (for investors) start viewing properties.
6. Execute and file:
   • Finalize your property purchase or employment contract.
   • File your Friendly Nations Visa application and obtain provisional residency.
7. Plan for the 2-year horizon:
   • Budget for maintaining your ties and legal status.
   • Set reminders to prepare in advance for your permanent residency application.