Photo by George Ruiz
What are the requirements for residency in Panama?
This is by far one of the most frequent questions I get from our visitors and home purchasers on Isla Palenque. Many looking to relocate to Panama for retirement, or even if they’re just searching for a vacation home, want to know what their Panama residency options are.
There are a couple of different ways to establish residency in Panama, of both permanent and non-permanent status. Requirements also vary by country, so the following are guidelines for North Americans during their path to establish residency in Panama.
During my talks with expats establishing residency here in Panama, everyone reiterated the importance of finding a good lawyer upon arrival to aid the process and explain the ins and outs of residency requirements. They insist that this is a crucial part of the process!
Permanent Visas
The Retiree Visa, or Panama’s much touted Pensionado Program, comes with amazing benefits and discounts. It requires the applicant to bring in more than $1000 of monthly income from a private pension fund or government pension (like Social Security). Of course you must prove that you are receiving these funds through a government document or letter from your pension funds, but it is a pretty straightforward process.
Recipients receive a Cedula, or Permanent Residency Card, but are not technically considered a Panamanian Citizen. It is also important to note that those granted a Cedula are expected not to gain income from business dealings within Panama, as they are living on their pension.
Specific requirements: proof of income and original birth certificate.
The Work Permit Visa
Like most countries, Panama prefers to award work visas to those with skills less prevalent within the country and are therefore more in demand.
The company you work for must sponsor you with a letter of employment and a copy of your contract during the process and need to be renewed annually for up to 5 years. At the end of the 5 years you are permitted to apply for your permanent visa.
Specific requirements: Company sponsorship, work contract on record.
The Economic Solvency Visa
The Economic Solvency Visa is perfect for those looking to invest larger amounts of money in Panama, and comes with some pretty amazing residency benefits.
It requires an individual to:
Invest a minimum of $300,000 in titled mortgage-free property.
OR
Deposit $300,000 or more for 3 years in a fixed-term rate in a Panamanian bank. The interest accumulated on deposits can be transferred monthly to any bank account free of tax.
OR
Combine the two options above for a minimum total investment of $300,000.
Investors get some fantastic benefits: permanent residency can be gained after 30 months, and within 5 years individuals are free to apply for citizenship and a Panamanian passport.
The Business Investor Visa
Formally known as the Small Business Visa, it requires a minimum investment of $160,000 in a new business and the hiring of at least 5 Panamanians.
Business owners receive a 2 year temporary residency, which can be renewed 3 times. After 6 years, permanent residency can be applied for.
Specific requirements: business plan, commercial license, rental agreements, employee contracts, lots of time.
The Reforestation Visa
As part of Panama’s effort to increase land conservation efforts, a Reforestation Visa is awarded to individuals purchasing a parcel of land that is part of a government program.
It requires individuals to invest $60,000 and undergoes frequent changes on what is required of purchasers. There seems to even be some confusion about requirements on different government websites, so this is a perfect example of wanting to be sure you have good legal support when considering a purchase!
Temporary Visas
Tourist Visas last up to 90 days and can be renewed for an additional 30 days by visiting the Immigration Office. A good amount of “residents” comply with this rule by traveling every 3 months to Costa Rica, Columbia, or back stateside and returning with a renewed Visa. If you do overstay your 90 days you must pay a fine before departing, so these rules should really be taken seriously if you don’t want to deal with the hassle and delay later on at the airport!
Specific requirements: passport.
Student Visas
Student visas are also granted to those with longer stays planned for studying or research. You will be issued a Carnet, or temporary ID card upon arrival and then need to submit an additional application through the Immigration Department. Often, school programs have counselors in both Panama and the reciprocal country to help with the paperwork process.
Specific requirements: passport, other requirements depend on school program.
Some tips:
- Bring all documentation (passport, paper work, notarized documents) and be sure to make copies of everything!
- Be polite to government officials, like in the United States, a buenas dias or hello and a smile can brighten the day of the person stuck behind the desk you’re standing in front of.
- Bring a book, magazine, and your patience. Like the BMV, or other US agencies, gaining your residency may require some time and energy.
- Stick with it! Just close your eyes and picture a day at the beach or a sunset over Playa Palenque; life in Panama is worth a little wait.
I’m so glad you enjoyed the information. If you’re thinking about a move to Panama, keep reading the Ambler for weekly updates and advice on the transition, or shoot me an email: laura@islapalenque.com!
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Thanks to Keith for this insight into adding spouses to an individual visa. According to his research:
For an economic solvency visa, a sum of $300 K must be spent on titled property or placed in a bank or any combination. To add a spouse, the applier must spend another $2k that’s all. So, if buying a home over $302k, a married couple both obtain the visas.