Panama residency (2026): Friendly Nations, Qualified Investor, Pensionado

Tax & Residency
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Panama taxes residents only on Panamanian-source income, so foreign salary, client fees and investment income are generally outside its tax net. The three main residence routes in 2026 are Friendly Nations ($200,000 in property, a $200,000 three-year deposit, or a Panamanian job), the Qualified Investor “golden visa” (permanent residence for $300,000 in new property or $500,000 in resale property, securities or a state-bank deposit, under a decree in force since 16 September 2026), and the Pensionado visa for a lifetime pension of at least $1,000 a month. Every route needs a Panamanian lawyer, and Panama exchanges bank data under the CRS.

Last checked: October 2026

In short:

  • Executive Decree 17 of 2026 replaced the old Qualified Investor rules on 16 September 2026: $300,000 now applies only to a first sale of new property, while resale property, securities and state-bank deposits need $500,000 and private-bank deposits $750,000.
  • Friendly Nations is open to citizens of more than 50 listed countries, including the US, UK, Canada and Australia, and gives two years of provisional residence before permanent residence.
  • Territorial tax does not mean no paperwork: foreign income stays untaxed, but Panamanian-source income is taxed at up to 25%, and Panama reports foreign residents’ accounts under the CRS.

How Panama taxes residents

PwC (last reviewed 4 August 2026) says: “Panama’s tax system is based on a territorial concept of income. Citizens and residents are taxed on income earned from Panamanian sources.” A tax resident is someone “physically located and has been generating income in Panama for more than 183 days during the year.”

Panamanian-source taxable income (USD) Rate
$0 to $11,000 0%
$11,000 to $50,000 15% on the excess over $11,000
Over $50,000 25% on the excess over $50,000

Two practical points. First, income for work physically done in Panama can be Panamanian-source even if a foreign company pays you, so get advice before you invoice from Panama. Second, interest on savings and time deposits with banks established in Panama is exempt, per PwC.

Because the 183-day test is tied to generating income in Panama, a resident with only foreign income may have trouble getting a certificate of tax residence. Plan how you will prove residence to your old country before you leave it. See Territorial tax countries compared: where foreign income isn’t taxed for how other territorial systems handle this.

The routes compared

Route Main requirement Government fees (sourced) Status granted
Friendly Nations Citizen of a listed country plus $200,000 property, $200,000 three-year deposit, or a Panamanian job B/.250 to the National Treasury + B/.800 to Migration Two-year provisional, then permanent
Qualified Investor $300,000 new property; $500,000 resale property, securities or state-bank deposit; $750,000 private-bank deposit $5,000 Treasury + $5,000 Migration (law firm figure); $1,000 + $1,000 per new dependant Permanent from the start
Pensionado Lifetime pension of $1,000 a month ($750 if you own property worth over B/.100,000) Not listed on the official checklist Indefinite, no renewal
Remote worker short-stay visa Foreign income of at least $3,000 a month ($36,000 a year) B/.50 visa card + B/.250 Migration Nine months, extendable once
Macro-enterprise investor Company with at least B/.160,000 capital per applicant See official checklist Two-year provisional, then permanent

Friendly Nations after the 2021 changes

Friendly Nations was tightened in 2021 by Executive Decrees 197 and 226, effective 7 August 2021 according to Kraemer & Kraemer. The current checklist from the Servicio Nacional de Migración (SNM), based on Executive Decree 226 of 20 July 2021, gives three ways to qualify:

  • Real estate: a Public Registry certificate showing property in your own name worth at least B/.200,000.
  • Fixed deposit: a deposit of B/.200,000 in a licensed Panamanian bank “con vigencia de 3 años” (for three years).
  • Employment: a notarised letter from a Panamanian employer stating position and salary, the employer’s registry certificate, and a copy of the work permit application filed with the Ministry of Labour (MITRADEL).

Fees are a certified cheque of B/.250 to the National Treasury and B/.800 to the SNM. The first permit is a provisional residence for two years. You then apply for permanent residence with the same documents, minus the criminal record certificate and cheque.

Who qualifies. Executive Decree 16 of 2026, published in the Official Gazette in early September 2026, added Ecuador. The list now covers more than 50 countries and territories, including the US, UK, Canada, Australia, Germany, France, Spain, the Netherlands, Switzerland, Japan, Singapore, Hong Kong, New Zealand, South Africa and Israel. Italy is not on the list we read. Check the current list with your lawyer before you buy anything.

Qualified Investor: what changed in September 2026

The Qualified Investor route gives permanent residence directly, without a provisional stage. It has had a confusing history:

  • 2022: Executive Decree 9 of 13 October 2022 set real estate at B/.500,000 but allowed B/.300,000 for 48 months as a transitional measure.
  • 2024: Decree 193 of 2024 kept the $300,000 figure, according to Kraemer & Kraemer.
  • 2026: Executive Decree 17 of 8 September 2026, Official Gazette 30613, in force from 16 September 2026, replaced Executive Decree 722 of 2020 and its amendments, including Decree 193.

The current thresholds, confirmed by the Ministry of Commerce and Industries (MICI) and the law firm Icaza, González-Ruiz & Alemán:

Investment Minimum
New property, first sale from the developer $300,000
Purchase promise (off-plan, through the structures the decree allows) $300,000
Resale property $500,000
Securities through a licensed Panamanian broker $500,000
Fixed deposit at Banco Nacional or Caja de Ahorros $500,000
Fixed deposit at a private bank $750,000

Deposits and securities must be held for at least five uninterrupted years, and you must prove the investment annually within 30 days before the anniversary of your immigration resolution. If the investment ends, you have up to 90 days to replace it. The decree sets up to 15 business days for the investment certification and up to 30 business days for the immigration decision.

Transition. Applications filed before the decree took effect stay under the old rules. IMI Daily reports a six-month window for investors with binding contracts signed before the decree to use the old $300,000 resale figure. Confirm your own case with a lawyer.

MICI reports 268 Qualified Investor certificates issued between July 2025 and June 2026, linked to B/.113.6 million of investment.

Pensionado

The SNM checklist for the retired or pensioner permit requires a pension of at least B/.1,000 a month, granted “en forma vitalicia” (for life). If you own Panamanian property worth more than B/.100,000, the minimum drops to B/.750. The permit “es de forma indefinida”, so it never needs renewing. It suits retirees with a government or company pension; a private investment income stream that is not for life generally does not count.

Short-stay remote worker visa

If you want to test Panama before committing, the short-stay remote worker visa lasts nine months and can be extended once for the same period. You need foreign-source income of at least B/.3,000 a month (B/.36,000 a year), health insurance valid in Panama, and a sworn statement that you will not accept work in Panama. Fees are B/.50 for the visa card and B/.250 to the SNM. It is not a residence route. Our Panama digital nomad visa guide (Panama digital nomad visa: requirements, fees and tax (2026)) covers it in detail.

Lawyers, banking and CRS

  • Lawyer. The SNM checklists start with a notarised power of attorney and application (“Poder (notariado) y Solicitud”). In practice, every residence application is filed by a Panamanian lawyer. Budget for legal fees on top of government fees.
  • Banking. Opening a Panamanian account usually takes in-person meetings, reference letters and proof of source of funds. Have your bank lined up early if you plan the fixed-deposit route, since the deposit certificate is part of the application.
  • CRS. Panama implemented the Common Reporting Standard through Law 51 of 2016, and Executive Decree 122 of 2018 set its first list of 33 reportable jurisdictions, per EY. Assume a Panamanian account will be reported to your country of tax residence. See Offshore bank account (2026): what’s legal, costs, where to open.

Is Panama right for you?

Panama suits founders and investors with foreign income who want a permanent residence card and a territorial system. Friendly Nations is the cheapest permanent route for most Western passports. Qualified Investor suits people who want permanent status fast and can buy new property. Compare it with Paraguay residency in 2026: temporary, permanent and investor routes and Uruguay residency (2026): nomad ID, permanent route and tax holiday if you want other Latin American territorial options.

Related guides: Low-tax residency for high earners (2026): 14 regimes compared · Territorial tax countries compared: where foreign income isn’t taxed · Paraguay residency in 2026: temporary, permanent and investor routes · Uruguay residency (2026): nomad ID, permanent route and tax holiday · Golden visa countries (2026): which are open, closed and the cost

Quick answers

Q: How much do you need to invest for Panama residency in 2026?
Friendly Nations needs $200,000 in property or a $200,000 three-year deposit, unless you have a Panamanian job. The Qualified Investor route needs $300,000 in new property from a developer, or $500,000 in resale property, securities or a state-bank deposit. A private-bank deposit must be $750,000.

Q: Does Panama tax foreign income of residents?
No. PwC confirms Panama’s system is territorial: residents are taxed on Panamanian-source income only, at 0% up to $11,000, 15% to $50,000 and 25% above. Work you physically do in Panama may count as Panamanian-source, so take advice before invoicing clients while living there.

Q: What is the Panama Pensionado visa requirement?
You need a pension for life of at least $1,000 a month. If you own Panamanian property worth more than B/.100,000, the minimum falls to $750 a month. The permit is indefinite and does not need renewing, per the National Migration Service checklist. All applications are filed through a Panamanian lawyer.

Sources

This is general information from the Nomad Forums team, not legal, tax or financial advice. Rules change; check the official source or a qualified adviser before acting.

Over to you: Did you get Panamanian residence through Friendly Nations or Qualified Investor, and were you caught by the September 2026 decree? How long did the process take, and which bank opened your account?

Low-tax residency for high earners (2026): 14 regimes compared