Panama Relocation FAQ 2025–2026

Panama Relocation Firm is a licensed Panamanian immigration and relocation law firm founded in 2013. We help Americans, Canadians, Europeans, military veterans, retirees, investors, and digital nomads relocate to Panama through a complete, one-stop service that covers immigration visas, real estate due diligence, corporate formation, bank account opening, and tax optimization structuring. All legal services are handled by attorneys registered with the Colegio Nacional de Abogados de Panamá (CNAP).

Panama Relocation Firm was founded in 2013 and has assisted more than 500 international clients over 13+ years. We are powered by Solidity Law Firm — the licensed legal entity behind our attorney services.

Yes. All our attorneys are fully licensed and their credentials are publicly verifiable at organojudicial.gob.pa:

• Roberto Guardia — Idoneidad de Abogado No. 28771
• Christopher Seguí — Idoneidad de Abogado No. 21741; also a licensed Traductor Público Autorizado (Español ↔ Inglés), Resuelto N.° 3579-TPA
• Roberto I. Díaz Fábrega — CNAP License No. 5594 (Real Estate & Due Diligence)

Complete the form at panamarelocationfirm.com/start.html. You can also reach us via WhatsApp at +507 6200-0299 or email help@panamarelocationfirm.com. We respond within 24 hours. The consultation is free and covers visas, real estate, corporate, and banking.

We work in English and Spanish. Christopher Seguí is a licensed Traductor Público Autorizado (Español ↔ Inglés), so official document translations are handled in-house — no third-party translation costs or delays.

The Friendly Nations Visa (FNV) grants Panama permanent residency to citizens of 50+ countries that Panama has friendly diplomatic relations with. It does NOT require a pension, job, or minimum investment — only proof of economic ties to Panama. Our legal fee is $6,550 plus government fees. See our full guide at panamarelocationfirm.com/friendly-nations-visa-panama.html.

The Friendly Nations Visa is available to citizens of 50+ countries including the United States, Canada, United Kingdom, Germany, France, Spain, Italy, Australia, New Zealand, Switzerland, Netherlands, Belgium, Sweden, Norway, Denmark, Finland, Japan, South Korea, Singapore, Israel, Brazil, Argentina, Mexico, Chile, Colombia, Portugal, Austria, Croatia, Czech Republic, Poland, and more. View the full country list →

Our legal fee for the Friendly Nations Visa is $6,550. This covers attorney fees, document preparation, filing, representation before the Servicio Nacional de Migración, and follow-through to approval. Government fees are additional (typically $250–$500 USD). We publish our fees transparently — unlike firms that only reveal pricing after an initial call.

You typically need: valid passport (6+ months remaining), apostilled criminal background check from your home country, apostilled birth certificate, 2 passport photos, proof of economic ties to Panama (bank account, property deed, or Panama corporation), and proof of health insurance valid in Panama. Our attorneys guide you through every document step-by-step and review everything before submission.

Typically 3 to 6 months from initial filing to approval. During processing you receive a carnet provisional (provisional ID card) that allows you to live and work in Panama legally while your application is reviewed.

No. Panama does not require FNV holders to live in Panama full-time, though you should not completely abandon the country. In practice, most clients visit at least once per year. Requirements can change; contact our attorneys for your specific situation.

The Panama Pensionado Visa is a lifetime retirement residency for anyone with a pension or annuity of at least $1,000/month ($750/month if you own real estate in Panama). Qualifying pensions include US Social Security, US military retirement pay, VA disability pensions, Canadian CPP + OAS, UK state pension, German DRV, and most government and corporate defined-benefit pensions worldwide.

Our legal fee for the Pensionado Visa is $2,000 plus government fees. It is one of Panama's most affordable residency paths and comes with lifetime benefits.

Yes. US military retirement pay and VA disability pensions qualify for the Pensionado Visa, provided the monthly income meets the $1,000/month threshold (or $750/month if you own property in Panama). Panama has a historic connection to the US military through the Canal Zone — Fort Clayton, Howard AFB, and Rodman Naval Station — and we have helped hundreds of veterans obtain residency here.

Pensionado Visa holders receive lifetime discounts mandated by Panamanian law: 20–25% off doctor visits and hospital services; 15% off dental and eye care; 25% off airlines; 30% off public transportation; 50% off hotels Monday–Thursday; 25% off restaurant bills; 25% off utilities; and more. These benefits cannot be revoked once the visa is granted.

Yes, if your Social Security income is $1,000/month or more. Many Americans retire comfortably in Panama on Social Security alone, especially in lower-cost areas like Boquete, El Valle, or smaller beach towns. In Panama City, a budget of $1,300–$1,800/month covers rent, food, and basic expenses. Pensionado discounts further stretch your income.

The Qualified Investor Visa grants Panama permanent residency to investors who make a qualifying investment of at least $300,000 in Panama real estate OR at least $500,000 in securities listed on the Panama Stock Exchange or fixed-term deposits in a Panamanian bank. It is governed by Executive Decree 722 of 2020 and is popular with HNWI seeking residency alongside an investment. See our 2026 guide →

The Reforestation Investor Visa grants permanent residency through a minimum $100,000 investment in a MiAMBIENTE-approved reforestation project under Law 24 of June 23, 1992. Investors also receive a 25-year income tax exemption on timber harvest income and import duty exemptions on reforestation equipment. It is the most affordable investor visa path in Panama. See our full guide →

Yes — the Friendly Nations Visa is designed exactly for this. Citizens of 50+ qualifying nations obtain Panama permanent residency with no pension and no minimum investment. You only need to show economic ties to Panama (a bank account, property deed, or Panama corporation). See our no-pension residency guide →

Yes. Spouses and dependent children under 18 (or full-time students up to age 25) can be added to most Panama visa categories. Dependent applications are filed alongside the primary applicant. See our dependents guide → for required documents and fees.

No. Panama operates on a strictly territorial tax system — only income earned from sources within Panama is taxed. Foreign income (salary from a foreign employer, Social Security, pensions, foreign investment returns, rents from foreign properties) is completely exempt from Panama income tax. This is one of Panama's most significant financial advantages. See our Panama tax guide →

US citizens are taxed on worldwide income regardless of residence, so you still file US returns. However, you can use the Foreign Earned Income Exclusion (IRS Form 2555) to exclude up to $126,500/year (2024 figure) of foreign-earned income. Panama pays no tax on foreign income, so US citizens with earned income can effectively eliminate tax on the excluded amount. We coordinate with US tax professionals to structure your situation optimally.

Canadians who establish CRA non-resident status pay reduced withholding tax of 15–25% on eligible Canadian-source income (CPP, OAS, RRSP withdrawals, RRIF income) rather than full Canadian income tax rates. Combined with Panama's zero tax on foreign income, this creates a highly tax-efficient structure. We coordinate with Canadian tax advisors for proper structuring.

Panama has no capital gains tax on the sale of publicly listed securities. For real estate, a withholding of 3% of the sale price (or 10% of the gain, whichever is lower) is paid by the seller at closing. Overall, Panama's investment tax environment is extremely favorable compared to the US, Canada, and most of Europe.

A Panama Private Interest Foundation (Fundación de Interés Privado) is a legal structure for asset protection, estate planning, and wealth management. A foundation holds assets for designated beneficiaries while the founder maintains control. It is popular with HNWI clients who want to protect family wealth from estate taxes or creditors. Our firm forms and manages Private Interest Foundations.

These are separate concepts. Immigration residency (your visa) is the right to live in Panama granted by the Servicio Nacional de Migración. Tax residency is your status for tax purposes, determined by DGI (Panama's tax authority). You can have immigration residency without being a Panama tax resident. For most expats, Panama tax residency is advantageous because it formally establishes that your foreign income is not taxed. See our full comparison →

Yes. Foreign buyers in Panama have exactly the same legal property ownership rights as Panamanian citizens — guaranteed by the Panamanian Constitution. There are no ownership restrictions, no special taxes for foreigners, and no caps on foreign ownership percentages in a development. Panama uses the Torrens title system through the Registro Público for all property transfers.

Our due diligence covers: title search through the Registro Público to verify ownership and chain of title; lien and encumbrance clearance; survey and boundary verification; HOA compliance review; zoning verification; infrastructure and utilities check; purchase agreement review and negotiation; public deed preparation; and registration with the Registro Público. Lead real estate attorney: Roberto I. Díaz Fábrega, CNAP License No. 5594.

Buyer closing costs are typically 2–3% of the purchase price, including legal fees, transfer tax (2% of property value or sale price, whichever is higher), stamp duty, and notary fees. Sellers pay a property transfer tax of 3% of sale price or 10% of the gain (whichever is lower). Costs are significantly lower than in the US or Canada.

Yes, in multiple ways: (1) Any real estate purchase satisfies the 'economic ties' requirement for the Friendly Nations Visa. (2) A $300,000+ investment qualifies for the Qualified Investor Visa. (3) Owning property reduces the Pensionado Visa income requirement from $1,000/month to $750/month. See current timelines and rules →

Popular expat neighborhoods include: Punta Pacifica (luxury high-rises, ocean views, next to Hospital Punta Pacifica); Costa del Este (planned community, safe, family-friendly); San Francisco (mid-range, vibrant); Marbella/Bella Vista (central, mixed); El Cangrejo (walkable, all services). Outside the city: Boquete, Coronado Beach, and Pedasi are popular with retirees. See our full neighborhood guide →

Yes. A Panama will (testamento) prepared by a local attorney ensures your Panama assets pass to your intended heirs without complications. Without a local will, Panama estate procedures can be lengthy and costly. We also advise on Private Interest Foundations as a vehicle to hold Panama property and bypass probate entirely. See our estate planning guide →

Yes. Panama banks conduct thorough AML due diligence, and the process can be challenging without guidance. Requirements typically include: passport, proof of address, reference letters from your home bank, proof of income or source of funds, and sometimes a letter from a Panama attorney. Panama Relocation Firm assists with personal and corporate account openings and has established relationships with Panama banks. See our banking guide →

Panama's banking center is one of the largest in Latin America with 80+ licensed banks. Options include: Banco General (Panama's largest domestic bank), BAC Credomatic, Global Bank, Multibank, Banistmo (HSBC affiliate), Scotiabank, and Citibank. Each bank has different requirements for non-resident and newly-arrived foreign clients. We guide clients to the right bank for their profile.

Yes. Panama's official currency is the Balboa, pegged 1:1 to the US dollar. US dollar bills are used for all transactions in Panama. There is no currency exchange risk for US clients. For Canadians and Europeans, you exchange once upon arrival and then operate entirely in USD with no ongoing conversion costs.

Yes. International wire transfers to Panama are routine and inexpensive. Once your Panama bank account is established, you wire from your home bank to your Panama account in USD. Standard SWIFT fees apply (typically $15–$50 per transfer). For large transfers, our attorneys advise on AML documentation requirements.

Panama's most common business structure is the Sociedad Anónima (SA), equivalent to a corporation. Formation takes 3–5 business days and requires 2+ shareholders (can be nominees), 3 directors, a registered agent, and a Panama address. We also form Sociedades de Responsabilidad Limitada (SRL/LLC), Private Interest Foundations, and branch offices of foreign companies. Contact us for a quote on corporate formation fees.

A Panama corporation (SA) earning only foreign-source income pays zero Panama income tax on that income. It is also not required to file annual financial statements if its income is entirely foreign-source. Panama corporations are frequently used for holding assets, offshore banking, IP licensing, and international trade. Note: US citizens must report foreign corporations on IRS Form 5471 and may have GILTI/Subpart F obligations.

No. A corporation is one way to demonstrate economic ties to Panama for the FNV, but not required. A Panama bank account OR a property deed also satisfies the requirement. We assess your situation and recommend the simplest, most cost-effective approach.

Yes. Many clients run US LLCs, Canadian corporations, or international businesses remotely from Panama. Panama does not tax foreign-source income from your foreign business. You still owe taxes in your home country per their rules. We help structure your Panama residency and corporate setup to optimize across jurisdictions.

Monthly costs in Panama City for a comfortable expat lifestyle range from $1,800 to $3,500/month for a couple, including rent, food, utilities, transportation, and entertainment. A single-person basic budget can be as low as $1,300/month. Groceries cost 30–50% less than in the US or Canada. Utilities for a 2-bedroom apartment run $150–$250/month. See our full cost of living breakdown →

Panama City has two hospitals with US-standard care: Hospital Punta Pacifica (affiliated with Johns Hopkins Medicine International) and Hospital Nacional. Specialist visits cost $50–$100 USD. Private health insurance for expats typically costs $150–$400/month depending on age and coverage. Pensionado Visa holders receive 20–25% medical discounts for life. See health insurance options →

No. Panama is outside both the Atlantic and Pacific hurricane belts due to its geography and has never been struck by a hurricane in recorded history. This is a major advantage over Caribbean islands and Gulf Coast states for retirees and property investors concerned about natural disaster risk.

Yes. Dogs and cats enter with a veterinary health certificate issued within 5 days of travel, a rabies vaccination certificate (vaccinated 30+ days but not more than 1 year before travel), and an official USDA/CFIA-endorsed health certificate. Panama does not require quarantine for pets arriving with proper paperwork. See our pet relocation guide →

Yes. Legal residents can exchange a valid foreign driver's license for a Panama license without taking a driving test. The exchange is processed through Panama's ATTT (transit authority) and typically takes a few days once you have your residency carnet. Our team assists with this process. See our license exchange guide →

While Spanish is Panama's official language, daily life in Panama City's expat neighborhoods (Punta Pacifica, Costa del Este, San Francisco) is very manageable in English. Major supermarkets, hospitals, malls, and many restaurants operate in English. Legal processes, banking, and real estate can all be handled in English through our firm. Basic Spanish greatly enhances your experience and is recommended for life outside the capital.

Panama citizenship requires 5 years of continuous permanent residency. If you are married to a Panamanian citizen, the requirement is reduced to 3 years. You must demonstrate knowledge of Spanish, Panamanian history, and civic values. Panama generally allows dual citizenship. See our citizenship guide →

Panama ranked #1 expat destination globally in the InterNations Expat Insider 2025 report. Key factors: USD currency (no exchange risk), territorial tax system (no foreign income tax), warm year-round climate, US-standard private healthcare, modern infrastructure in Panama City, cost of living 40–50% below the US, fast visa processing, generous Pensionado discounts, and a large established English-speaking expat community.

Verify any Panama attorney at organojudicial.gob.pa — search by name or idoneidad number. Our attorneys Roberto Guardia (No. 28771) and Christopher Seguí (No. 21741) are fully verifiable. Always verify credentials before hiring any immigration attorney. See our attorney verification guide →

We pay 10–20% of legal fees for every referred client that completes a case. A Friendly Nations Visa referral earns $655–$1,310; a Pensionado Visa referral earns $200–$400. No cap, no expiration. Real estate agents, financial advisors, tax consultants, expat bloggers, YouTube creators, and relocation coaches are welcome. Details at panamarelocationfirm.com/referral-partners.html.