Population
4.4 million
Capital
Panama City
Languages
Spanish, English
💰Cost & Practicalities
🏥Living Conditions
🛂Immigration
Visas & Immigration
View all💻Digital Nomad Visa
Short-Stay Visa for Remote Workers launched for digital nomads working for foreign companies. Requires $36,000 annual income ($3,000/month) from non-Panama sources. Valid 9 months, renewable once for total 18 months stay. Must have contract with foreign entity - cannot work for Panamanian companies. Major benefit: territorial tax system means zero Panama income tax on foreign earnings. Application requires licensed attorney, processing typically 30 days. Costs: $250 application + $50 visa card. Must have international health insurance valid in Panama. Cannot convert to permanent residency but can apply for other visa types after. Popular with remote workers wanting to test Panama before committing to permanent residency programs.
🤝Friendly Nations Visa
Panama's most popular residency program for citizens of 50+ "friendly" countries including US, Canada, EU, Australia. Requires minimum $5,000 bank deposit in Panama plus economic ties (employment, business, or $200,000 real estate investment). Grants two-year provisional residency, then eligible for permanent residency. Processing typically 3-6 months. Total costs $8,000-12,000 over two years including legal fees. No age restrictions, can include spouse, children under 25, and parents as dependents. After 5 years of permanent residency, eligible to apply for citizenship. Work rights included from start. Requires licensed Panamanian attorney to file application.
🇵🇦Panama Citizenship
Panamanian citizenship available after 5 years of permanent residency through any residency program (Pensionado, Friendly Nations, Investor). Requires passing Spanish language test and Panama history/civics test. Must demonstrate ties to Panama and good moral character. Dual citizenship permitted - Panama allows citizens to maintain other citizenships. Citizenship grants visa-free travel to 140+ countries including Schengen Area, UK, and much of Latin America. Application process takes 1-2 years after eligibility. Costs approximately $5,000-7,000 including legal fees. Children born in Panama to foreign parents can acquire citizenship. Marriage to Panamanian citizen reduces residency requirement to 3 years. Citizenship by descent available for those with Panamanian parents or grandparents.
🌴Pensionado (Retirement) Visa
Panama's world-renowned retirement visa program, consistently rated as best retirement program globally. Requires only $1,000/month pension or lifetime income ($250 per dependent). Grants IMMEDIATE permanent residency (no provisional period). No age limit - open to retirees of any age with qualifying income. Famous "Pensionado Benefits" include 50% off entertainment, 25% off restaurants, 20% off medical consultations, 15% off hospital bills, and more. 97% approval rate with nearly 2,000 granted in 2024. Processing 2-4 months, total costs only $2,400-2,800. After 5 years, eligible for citizenship. Can include spouse and dependents. Must prove lifetime income source (pension, Social Security, annuity, trust distributions).
💰Qualified Investor Visa
Fast-track permanent residency program for significant investors in Panama. Multiple investment options: $300,000+ in Panama real estate, $200,000+ in Panama company shares, $200,000+ in Panama bank fixed deposit (3+ years), or combination thereof. Fastest processing of all Panama programs at 2-3 months. Grants immediate permanent residency status. Can include family members. Particularly attractive for investors wanting quick permanent residency with substantial capital to deploy. Real estate investment is most popular option and can be residential or commercial. Properties can be rented out for income. After 5 years permanent residency, eligible for citizenship. Full work rights from day one.
🌳Reforestation Investor Visa
Agricultural and forestry investment pathway to Panama residency. Standard route requires $80,000-100,000 investment in certified reforestation projects (teak, pine, tropical fruits). Express track requires $350,000 investment for faster processing. Investment must be in minimum 5 hectares certified by Ministry of Environment. Grants 2-year provisional residency, then eligible for permanent residency. Investment must be maintained for 5 years after permanent residency approval. Popular with environmentally-conscious investors. Additional $2,000 per dependent. Properties can generate income from timber/fruit sales. After 5 years permanent residency, eligible for citizenship. Appeals to those wanting to combine residency with sustainable investment. Licensed attorney required for application.
💎Self-Economic Solvency Visa (PEC)
High net worth individual pathway requiring $300,000 investment in Panama. Investment options: real estate ($300K+ property), bank fixed deposit (3-year CD at Panama bank), or combination. Shows economic self-sufficiency without needing employment. Grants 2-year provisional residency, then eligible for permanent residency. Must maintain minimum $10,000 in Panama bank account. Additional $2,000 per dependent. Property must be mortgage-free and registered in applicant's name. Bank deposits must be 3+ year term. After provisional period and maintaining investment, converts to permanent residency. Appeals to retirees and investors who don't qualify for Pensionado but want passive residency. After 5 years permanent residency, eligible for citizenship. Full work rights though typically used by those not seeking employment.
Expat Life
View allCost of Living
Panama offers excellent value with costs 30-50% lower than the US. Living comfortably in Panama City: $2,000-2,500/month. Smaller towns like Boquete or Coronado: $1,500-2,000/month. Healthcare dramatically cheaper.
Healthcare
Panama has excellent healthcare at 25-50% of US costs. Several internationally-accredited hospitals in Panama City. Many doctors trained in US. Health insurance available for $100-200/month under age 64.
Housing
Modern apartments with amenities widely available. Panama City: $800-1,500 for 1BR. Boquete/Coronado: $700-1,200. Buying property straightforward for foreigners with same rights as citizens.
Banking
Panama is a banking hub using US dollar. Opening account straightforward with passport and proof of address. Many expats use US banks plus local account. Stable, regulated banking system.
Language
Spanish is official language. English widely spoken in business, tourism, and expat areas. Basic Spanish very helpful for daily life. Many successful expats with minimal Spanish.
Safety
Panama is one of Latin America's safest countries. Expat areas very secure with gated communities and 24/7 security. Petty crime exists but violent crime rare. Common sense precautions sufficient.
Climate & Weather
Tropical climate with hot, humid weather year-round in most areas. Dry season (Dec-April) and rainy season (May-Nov). Mountain towns like Boquete offer cooler spring-like weather.
Working Remotely
Panama is excellent for remote workers with fast fiber internet, modern coworking spaces, and new Digital Nomad visa. Territorial tax system means zero tax on foreign income.
Transportation
Panama City has modern metro and Uber. Outside the capital, car essential. Buying car straightforward for residents. Gas ~$3.50-4/gallon. Driving easier than most Latin America.
Expat Community
Large, welcoming expat communities especially in Panama City, Boquete, and Coronado. Active organizations, clubs, and meetups. Easy to make friends and get support.
Taxes
Panama has territorial tax system - only Panama-source income taxed. Foreign income (pensions, remote work) not taxed. US citizens still file with IRS. Property taxes very low.
Culture & Lifestyle
Panamanian culture is warm, welcoming, and heavily influenced by US proximity. Relaxed pace of life, strong family values, and "tranquilo" attitude. Mix of indigenous, Spanish, Afro-Caribbean influences.
Food & Dining
Panamanian food is hearty with rice, beans, plantains, and meat. Mix of indigenous, Spanish, Afro-Caribbean influences. Excellent seafood. International cuisine abundant in Panama City.
Education
International schools available in Panama City for expat children. Public schools Spanish-only. Private schools range from $300-1,500/month. University options available.
Family Life
Panama is family-friendly with outdoor activities, beaches, and welcoming culture. Childcare affordable ($300-600/month). International schools expensive. Safe communities exist.
Questions
View allIs Panama's healthcare really good? What are the actual costs for expats?
What is the real monthly cost of living in Panama for a retired couple?
What are the main differences between living in Panama City vs Boquete?
Should I learn Spanish before moving to Panama?
How does the Panama Friendly Nations Visa work and am I eligible?