Residency in Panama: A Complete Guide for Italian Citizens

The Panama–Italy Treaty: Permanent Residency for Italian Citizens

The Panama–Italy Friendship Treaty (Spanish: Convenio Panamá–Italia , Ley 15/1966) is a bilateral agreement that grants Italian citizens preferential access to permanent residence in Panama. Unlike the Friendly Nations Visa (available to 51 countries, excluding Italy), the Treaty does not require real estate investments, does not require biennial renewals, and does not impose minimum stays. Service costs start at $1,400, with an Express process of 24–48 hours ranging from $3,400–$3,800.

A brief comparison of the main residency programs

Panama offers several residency programs, each with specific requirements and benefits. The choice depends on the applicant's nationality, economic situation, and the purpose of the move.

• Panama–Italy Treaty — Exclusively for Italian citizens (including dual citizenship, one of which is Italian). It grants direct permanent residency, without mandatory real estate investments or employment restrictions. It is the fastest, most cost-effective program with the fewest future restrictions. If you are Italian, this is the program for you.
• Pensioner — For citizens of any nationality with a lifetime pension of at least USD/EUR 1,000 per month. Direct permanent residency with additional benefits (discounts on services, transportation, healthcare).
• Friendly Nations Visa — For citizens of 51 selected countries. Italy is not included (Italians use the Treaty Visa, which is more advantageous). It grants temporary residency for two years, which can then be converted to permanent residency. Requires economic ties with Panama and a $200,000 deposit.
• There are also visas for investment, reforestation, marriage , and religious purposes, which are less common but available. We describe them in the dedicated sections .

Regardless of the program chosen, all Panamanian residency procedures require apostilled documentation (passport, criminal records, proof of financial means) and physical presence in Panama for biometric identification. With a complete application, the initial process allows for provisional residency to be obtained in 2–5 business days.

Standard Practices of Migration Procedures in Panama

1. Submission of the residency application with apostilled documentation
2. Release of Temporary Residence
3. Permanent Residency Upgrade (timeframes vary by program)
4. Request and issuance of the Cédula E (identity document for foreign residents)
5. Obtaining the RUC (Panamanian Tax Code)
6. Possible issuance or conversion of the Panamanian driving license

Documents required for the Panama–Italy Treaty

To correctly start the procedure, Italian citizens must present:

• Cumulative Anagraphic Data (including citizenship, residence and marital status)
• Multilingual Birth Certificate, required in cases where the cumulative birth certificate does not include the parents' complete data
• General Criminal Record
• Certificate of Pending Charges
• Italian passport with at least 6 months of residual validity upon entry into Panama

Panama's regulatory and tax framework

The Panamanian residency system is based on three pillars: territorial taxation (only income generated in Panama is taxed), no continuous residency requirement for Italian residents under the terms of the Treaty, and the ability to open bank accounts and companies for international activities in compliance with CRS and tax cooperation regulations.

The tax obligations of the resident's country of origin (for example, the RW framework and Italian tax monitoring) remain in force regardless of Panamanian residency. It is always necessary to discuss your situation with a qualified tax and immigration professional.

Panama as a Tax Platform: What to Really Expect

Panama applies territorial taxation : only income generated within Panama is taxed. Foreign-source income—salaries, dividends, real estate income, capital gains—is not subject to tax in Panama. This makes the country a popular tax hub for entrepreneurs, freelancers, and investors who generate income outside of Panama.

The cost of living in Panama City is high (comparable to an average European capital). Most Italians who obtain residency in Panama do not move there permanently: they use the Panamanian tax, banking, and corporate framework and physically reside in countries with a lower cost of living. For those wishing to combine residency with an offshore asset protection structure , Panama offers complementary legal instruments.

What does residency in Panama not mean?

It's important to clarify that obtaining residency in Panama does not automatically imply tax residency in the country, nor does it mean you can open an untraceable offshore bank account. Panamanian law requires banking transparency and compliance with both local and international tax laws.

Tax residency vs. immigration residency

Migratory residency (residence permit) is the administrative document issued by the National Migration Service (SNS) authorizing a foreigner to legally reside in Panama. Fiscal residency is the tax status that determines where a person pays taxes and depends on specific criteria: average stay of 183+ days per year, center of economic interests, and family ties. Obtaining migratory residency in Panama does not automatically entail Panamanian tax residency.

Bank accounts in Panama and transparency

Panama requires identification, transparent reporting, and compliance with international regulations. There are no legally recognized and approved "untraceable" accounts. There are Panamanian bank accounts that, by virtue of applying for and obtaining Panamanian residency, are legally opened as local accounts and subject to the CRS and applicable international information exchange regulations.

Difference between residence permit and citizenship

The residence permit does not automatically grant citizenship rights or access to preferential tax treaties, but after five years of permanent residence, it allows the applicant to apply for naturalization according to the requirements established by law at that time.

Regulatory Comparison of Panama Residency Programs

The following table compares the four main residency programs in Panama with the type of permit, duration, legal basis, and official sources from the National Migration Service (SNM). Last updated: March 2026 — legal basis confirmed (Executive Decree 193/2024).

Legal basis of the Panama–Italy Friendship Treaty

The Italy–Panama Treaty of Friendship, Commerce and Navigation (Law No. 15 of February 1, 1966) allows Italian citizens to obtain permanent residency in Panama . The program was regulated by Legislative Decree No. 3 of February 22, 2008 and Executive Decree No. 320 of August 8, 2008 , and made operational by Resolution No. 4803 of April 9, 2012 of the National Migration Service (SNM) . With this regime, Italians obtain direct permanent residency , without the biennial renewals required for other visas (e.g., "Friendly Nations").

Download the official document of the Panama–Italy program (PDF SNM)

In the past, some offices confused this regime with that of the Friendly Nations. The SNM has clarified with internal documents, including Resolution No. 17405 of August 29, 2019 (interpretative only), that Italians' residency is permanent without the obligation to return every two years, as is the case for residents with citizenship other than Italian . The only regulatory reference remains Resolution 4803/2012 .

Costs and times of the service for Italians

6-Step Procedure: How to Obtain Residency in Panama for Italians

1. Contact us and open a company in Panama from home

   Contact us about 1-2 months before planning your trip to Panama and book your appointment online with us well in advance. Open a Panamanian company in your name (an instrumental company): this is the formal requirement to demonstrate the commercial connection with Panama, which is the basis of the Treaty. The company does not need to carry out any real business activity, and it can be closed after obtaining residency.

2. Request personal and criminal records

   Request a cumulative certificate of residence, birth, citizenship, and family status from the registry office, and from the court in your province, a general criminal record and a certificate of pending charges (optional, but preferably supplementary). All must be apostilled for Panama. You should also request a Birth Certificate Extract with both parents' names and surnames if they are omitted from the cumulative registry certificate.

   Please email the documents in PDF format, along with a copy of your Italian passport and a copy of your driver's license or ID card (both sides), in a single email to begin the translation process. Each file must be named clearly and consistently with the document it refers to. If the files are high-resolution or too large, you can use WeTransfer to send them.

   Documents used for applications in Panama must be valid for a maximum of 90 days from the date of issue until the time of entry into the country, but it is essential that the year of issue coincides with the year of submission: if you enter Panama in 2026, the documents must have been issued in 2026. Documents issued on the last day of 2025, even if less than 90 days old, are not valid for applications submitted in 2026 and will be automatically rejected by the Panamanian authorities. If you are abroad or do not wish to visit the relevant offices in person, you can purchase the documents through specialized online portals; following these instructions will avoid delays, rejections, and unnecessary costs.

3. A translations produced book your date immediately

   Once your documents are translated, book your immigration application date in Panama. Do so well in advance, about 50-60 days in advance, as dates fill up quickly due to high demand. Once in Panama, we only need 48 hours to obtain your residency. So, land on a Sunday to be ready for action the following Monday. Upon landing in Panama, identify yourself with your Italian passport. If you have dual citizenship, always use your Italian passport when entering Panama. Optionally, you can also open a Panamanian company during the process if needed.

4. We open your Panamanian bank account in Panama

   Once you arrive in Panama with your Italian passport, you must send us a photo of the immigration stamp placed on your passport at the airport, via email or WhatsApp, as soon as possible. This arrival stamp will be used to pre-register for your interview at the immigration headquarters in Panama.

   On your first day in Panama, we'll open a bank account in your name, where you'll deposit $5,000 in cash (no wire transfers). This money is yours and can be withdrawn immediately after you submit your statement. It's not related to your residency fees. You'll need to bring this $5,000 with you from Italy or wherever you live in cash.

5. The next day you will be presented to Migration

   The next day we will go to Migration to present the documents (company, bank statement, translations, etc.).

6. After 2/3 days you will return to take up your residence

   Finally, after 2-3 days, you'll return to collect your residence permit with a photo. We generally complete the process within 24-48 hours. If we ask you to travel Monday to Monday, it's only to avoid any delays or inefficiencies on the part of public officials at the Migration Institute, which we have no control over.

Residency in Panama through investment

For those wishing to obtain residency in Panama by investing sums of money, there are six main investment schemes in Panama. Italians can skip this section and go to the previous Panama-Italy Treaty , unless, as an Italian in Panama, you wish to make an investment in Panama and then, through this investment, apply for residency in Panama.

The six investment schemes for residency in Panama:

• Home Investor Value: from $500,000
• Real estate investor: from $300,000
• Investor with fixed deposit: USD 750,000
• Film Industry: $150,000
• Free zones (including call centers and Panama Pacific): USD 250,000
• Friendly Nations Visa: Deposit a minimum of USD 200,000 into a bank account and set up a new company

Panama certainly offers a great investment opportunity if your primary concerns are Panamanian tax residency and the creation of an offshore company. If you're planning to invest money, you can do so even after obtaining Panamanian residency via the Friendship Treaty; you don't need to follow one of the six investment schemes to become a resident. For Italians, everything is simpler and, above all, more economical.

Panama Friendly Nations Visa: Official Requirements

Official sources: Panama's National Migration Service (SNM). Direct links to official resources.

Friendly Nations Visa Program (Executive Decree 416 of June 13, 2012, updated by Decrees 197 and 226 of 2021) is available to citizens of over 50 nations. This Panamanian residency program offers quick and easy access, along with tax benefits and business opportunities.

Residency in Panama as a citizen of a friendly country of Panama does not apply to Italian citizens; in this case, follow the 6-step Residency in Panama procedure explained above . To qualify for residency in Panama for friendly countries of Panama, you must not be an Italian citizen or you wish to apply for this residency visa through a second citizenship you hold that is included in the list of friendly countries of Panama for which this visa is offered.

The Panama Friendly Nation Visa has changed its economic requirements: it is now only temporary, not permanent . Those applying for this visa must renew every two years, is more selective and expensive, and must first demonstrate economic activity in the country and tie their investments to the duration of their residency.

This is done by incorporating a company. While there is no requirement for this company to have employees, it cannot be a dormant entity and must demonstrate a certain level of activity. It is up to the authorities to determine whether a company's activities are appropriate, although officials reportedly tend to be rather lenient on this point.

Next, you'll need to demonstrate your financial stability by depositing $200,000 into a Panamanian bank account. If you have dependents who are also applying for a visa, you'll need to deposit $8,000 per dependent into the account. Dependents include the applicant's spouse and children under 18, or 25 if they are full-time college students.

Documents for the Friendly Nations residence visa

You will be required to submit the following documents (NB: some documents must be apostilled and therefore authenticated by a Panamanian consulate) when applying for residency in Panama under the "Friendly Nations Visa":

• Certified color copy of all passport pages
• Certified color copy of your driver's license or government-issued identification card
• Certified color copy of your recent utility bill. This should be no older than 30 days from the date of your application
• A professional reference letter from someone in your home country who has known you professionally for a long time and can attest to your good character
• A bank reference letter certifying that your banker has known you for at least two years and that your account is in good standing
• A letter specifying the type of profession or economic activity you wish to carry out in Panama, required to begin residency in Panama
• Eight current passport-sized photos of yourself and each of your employees
• A criminal record report, duly apostilled
• Marriage and/or birth certificates, if applicable
• If you have dependents, you will need to submit a letter of responsibility for them, as well as a copy of their birth certificates to prove that they are related to you
• If the dependent is your spouse, you will need to submit the marriage certificate
• Dependent children over the age of 18 must provide documents proving that they are not married

Applicants for Panamanian residency will receive a temporary residence permit, valid for one year, while their application is being reviewed. Once approved, they will receive a permanent residence permit, thus permanent Panamanian residency, and will be able to apply for a work permit.

Official List of 51 Friends of Panama Countries

List of countries eligible for the Friendly Nations (Executive Decree 197/2021).

Retirement in Panama (Pensionedo Program)

The Pensionado Program allows citizens of any nationality with a lifetime pension of at least USD 1,000/month to obtain direct permanent residency in Panama, with legal discounts of up to 50% on transportation, bills, healthcare, and services.

Costs and Requirements of the Pensionado Program

A low-cost alternative to the Friendly Nations visa or the Convenio Panama Italia is the Pensionado visa, which guarantees residency in Panama to foreigners with a lifetime income of at least $1,000 per month.

Italians who move to Panama as retirees must certify their tax residency in Panama to receive the tax-free INPS pension ( INPS ).

Although it is referred to as a retirement program in Panama, this visa is actually available to anyone over the age of 18. These residents of Panama with a pension are eligible to apply for Panamanian citizenship, thanks to Decree-Law 320 of 2008. After five years of Cédula E, the "pensionado" program allows Panamanian citizenship and a Panamanian passport.

The principal applicant must demonstrate lifetime monthly pension receipts of at least $1,000 from a foreign government, international organization, private pension institution, mutual fund, trust, bank, or insurance company. If the applicant purchases residential property valued at least $100,000, the required monthly pension requirement is reduced to $750.

For each dependent, the threshold increases by USD 250 per month. Studio Panama Italia ensures that all pension documentation complies with the standards required by Panamanian authorities. Spouses, children under 18, and adult children up to age 25 who are full-time students may be considered dependents.

All eligible family members can apply for permanent residence on the same application. Obtaining permanent residence as a pensioner usually takes between 2 and 8 months, depending on the specific case.

What's it like to live in Panama as a retiree? Panama ranked first in 2025 as the world's best retirement destination. No other place offers all the benefits Panama offers retirees.

Documents for the Pensionado Program

• A letter from the organization that issues your monthly payments, certifying that the funds exist and ensuring that the payments are for life (annuity)
• Proof of the existence of the organization issuing your payments
• Proof of previous payments to you, such as bank statements showing deposits made
• Government certification that the organization administering your income is in good standing if it is a private company
• A criminal record report from the national police or investigative agency of the country where you have lived for the last five years
• Certificate of Public Registration of Panamanian Real Estate in your name, if applicable
• Marriage and/or birth certificates, if applicable

For Italians with a lifetime pension, the Pensionado program is the most direct way to transfer tax residency to a country with territorial taxation, with immediate permanent residency and statutory discounts on services, transportation, and healthcare.

Other residency programs in Panama

In addition to the Panama–Italy Treaty, the Friendly Nations Visa, the Pensionado, and real estate investment, Panama offers additional residency programs for specific categories of applicants.

Residency as a professional in a local company

Professional residency in Panama is obtained through an employment contract with a local or Panamanian-based company. The professional pays their taxes in Panama and can apply for permanent residency after temporarily residing in the country for two years. After an additional five years of permanent residency, naturalization is possible. This type of visa is required by those who cannot satisfy all other options and offers an alternative for those who prefer to physically and truly settle in Panama.

Residence for commercial investors

Panama residency for commercial investors requires a minimum investment of $160,000 in a Panamanian company or the incorporation of a new Panamanian corporation. The company must have a commercial license, and the applicant must be registered with the Social Security Institute. The company/applicant must employ five Panamanians at the mandatory minimum wage.

This type of residence does not allow naturalization.

Reforestation Residence

Residency in Panama through a reforestation project requires the individual to make a minimum investment of $100,000 by 2026 through the purchase of at least five hectares of land to implement a forestry plantation program approved by the Panamanian government. The cost is $90,000 for the land and $10,000 for annual maintenance.

This visa guarantees an initial stay of two years, convertible to permanent residency after three years. After five years of permanent residency, it allows naturalization and a Panamanian passport. It is an option for those who do not qualify for the Panama-Italy Treaty or the Friendly Nations Visa.

Residency due to marriage to a Panamanian citizen

Residency by marriage is a permanent permit granted to the foreign spouse of a Panamanian citizen, subject to verification of actual cohabitation by the National Migration Service. Residency in Panama as a spouse is obtained after the marriage has been performed or registered in Panama, and only after meticulous and detailed due diligence and oversight by the Migration Service. This residency is permanent if the marriage is deemed genuine by the Migration Service (surveillant home checks and separate interviews) and allows for naturalization.

Panamanian Residency through Real Estate Investment (Qualified Investmentist)

Last updated: March 2026. Minimum real estate investment threshold confirmed: USD 300,000 (Decree 193/2024).

Real estate investment categories for residential properties

Sources: SNM, Gaceta Oficial. Confirmed minimum threshold: USD 300,000.

This program falls under the category of Qualified Investment Workers and is regulated by Executive Decree No. 193 of October 15, 2024 (amending previous Decree 722 of October 15, 2015), published in the Gaceta Oficial.

Under current regulations, a foreign citizen can apply for permanent residence in Panama through real estate investment by purchasing a property with a minimum value of $300,000 (free of encumbrances). The investment must be authorized by the Panamanian Ministry of Commerce and Industry (MICI).

The process is quick: in about 30 days, with the correct documentation, you can obtain permanent residence status, without having to go through any provisional procedures. The application requires documents such as proof of ownership, a criminal record, a medical certificate, a valid passport, and proof of foreign source of funds.

The investor must demonstrate ownership of the property and the legitimate source of the funds used. The application is submitted through a Panamanian lawyer and is evaluated by the National Migration Service (SNM) through an expedited procedure. The obtained residence visa is permanent and allows legal residence in Panama without the need for provisional renewals.

Consult Executive Decree No. 193 of October 15, 2024 (Gaceta Oficial)

By investing in real estate, the investor not only gains access to a growing real estate market but also obtains a residence permit that can lead to citizenship over time. A spouse and dependent children can be included in the same application, guaranteeing the entire family the right to live, work, and study in Panama.

Panama Residency Visa for Digital Nomads

The digital nomad visa in Panama (Executive Decree 198/2021) is a temporary residence permit for professionals working remotely for foreign clients or companies. It is not a permanent residence permit: it is classified as a short-stay visa for non-residents, valid for nine months, with a one-time extension for an additional nine months. It requires a minimum annual income of $36,000 from exclusively foreign sources.

No additional work permits are required. Income must be demonstrated through a remote work contract or equivalent professional documentation.

From a tax perspective, the visa is particularly efficient thanks to the territorial tax system. Income earned outside Panama is not subject to local taxation, making the country attractive to those seeking legitimate tax optimization without complex corporate structures.

The process takes approximately 20–40 business days on average and requires a valid passport, an apostilled criminal record, health insurance, and proof of foreign income. There are no nationality restrictions.

Universal Checklist for Applying for Residency in Panama

Last updated: March 2026

To obtain Panamanian residency, you need to rely on serious professionals, avoiding risky shortcuts.

Under the Panama-Italy Treaty, obtaining residency through job offers or fictitious contracts is not valid: the law requires the opening of an account to demonstrate financial solvency and, optionally, the additional presentation of a certificate of incorporation of a Panamanian company in the applicant's name.

With Studio Panama Italia, you can be sure of a smooth process, without scams or shortcuts. We follow the law and guarantee you a stable and secure residence. This information has been reviewed annually by an experienced immigration lawyer on January 27, 2026.

Visit residenzapanama.com for information on living in Panama

Comparison: Residency in Panama vs. Other Latin American Countries

While Panama has specific procedures for residency, divided into categories and by country and type of employment, other Latin American countries such as Chile, Uruguay, Paraguay, Ecuador, Colombia, and Belize apply different rules regarding financial requirements, pension taxation, and minimum stay. These range from strict economic requirements in Chile to strict requirements regarding the length of stay in Uruguay and Belize, to a practice with no economic or corporate requirements but which only offers initial temporary residency, as in Paraguay, to more structured residencies, such as Panama for Ecuador and Colombia. For a complete comparison of all available destinations, consult our guide to residencies and citizenships around the world . If you're unsure which path to take, we invite you to contact us for a paid consultation to help you map out your goals.

Frequently Asked Questions about Panama Residency

After Panama Residency: The Next 7 Steps

Once you've obtained temporary residency in Panama, the process isn't over. In the following months, you'll need to complete some essential steps to fully activate your residency status and access all the country's services.

Post-Residency Checklist for Italians

1. Withdrawal of the permanent residence carnet

   After 3–4 months of temporary residency, the National Migration Service will notify you of your upgrade to permanent residency. You'll need to return to Panama briefly (even for just 24 hours) to take biometric photos and collect your permanent carnet, which does not expire.

2. Request for the Cédula E

   Fifteen days after obtaining the permanent carnet, you can apply for the Cédula E (Cédula de Extranjería) at the Electoral Court. This is the Panamanian identity card for foreign residents: without it, you cannot operate independently in Panama's banking, tax, and fiscal systems.

3. Obtaining the RUC

   The RUC (Registro Único de Contribuyente) is the Panamanian tax identification number. It is required for issuing invoices, declaring local income, and conducting business with any public or private entity in Panama. It can be obtained from the DGI (Dirección General de Income) with the Cédula E.

4. Conversion or issuance of driving licence

   With the Cédula E, you can request the conversion of your Italian license to a Panamanian license at the ATTT (Autoridad de Tránsito y Transporte Terrestre), or obtain a new one. The Panamanian license is valid throughout Central America.

5. Certificate of tax residency (optional)

   If you intend to transfer your tax residency to Panama, you will need to apply for a Panamanian tax residency certificate from the DGI. This document certifies your tax residency for the purposes of double taxation treaties, including the one between Italy and Panama.

6. Opening a company account (if you operate with a company)

   If you have established a Panamanian treaty company and intend to keep it operational for commercial or holding purposes, you can open a dedicated corporate checking account with a Panamanian bank. This allows you to separate your personal and business finances and manage invoicing, payments, and collections through the corporate structure.

7. Path to citizenship

   After 5 years from the Cédula E, you can apply for naturalization and a Panamanian passport . The exam at the Tribunal Electoral tests your knowledge of Spanish and Panamanian history. The Panamanian passport allows visa-free entry to over 140 countries.

Italy–Panama Double Taxation Agreement (PDF)