How to obtain residency in Panama

How to get the residence in Panama for Italians

Regardless of whether you are Italian or from another country, and regardless of the type of Panamanian residence visa you obtain, your path will always be this:

• Request residency with the appropriate documents
• Obtaining temporary residence
• Upgrading your residency to permanent
• Request and release of Cedula E
• Request and release of the RUC
• Possible update/obtaining of Panamanian driving license.

Panama is among the countries where it's easy to obtain official residency. Panama offers the guarantee, through a legal intermediary such as a qualified firm like Studio Panama Italia , of obtaining official permanent residency, which is why it's so sought after among investors, digital nomads, and families . Furthermore, you don't have to live directly in Panama to maintain your current residency.

Panama allows you to manage your business and live at modest costs ( for example by purchasing a property ) , increase individual and financial freedom (for example by using your personal bank account ) while respecting banking secrecy and personal and tax privacy.

Panama's corporate system offshore companies, which is particularly useful for businesses with territorial taxation.

Panama is a tax haven and a destination for businesses and rentiers. Those who arrive in Panama do so at obviously higher initial costs, to reduce taxes and then eliminate them 100% with Panama's territorial tax

Panama, then, is not a destination for those seeking a budget-friendly tropical paradise, but it is essentially an impressive banking and offshore destination, an influential, motivating, and quite chaotic city with a high cost of living, where those who take up residency for tax purposes rarely actually live, unless they love the tropical and colonial-style luxury that makes Panama impeccable and memorable.

It will exploit the tax, banking and residential platform, optimizing operating costs, paying zero taxes and avoiding accounting; but it will optimize the personal cost of living in much cheaper countries (for example in Mexico, where it will spend the proceeds earned in Panama by earning money from the exchange into Mexican pesos).

Permanent residency in Panama is easily obtained by holding an Italian passport (immediate permanent and definitive residency) or one of the passports belonging to Panama Friendly Nations, including the USA and Spain, (temporary residency). Permanent residency for Italians in Panama can be obtained in 3 days with our office, saving on accommodation in Panama, having to stay only a maximum of 72 hours.

In this section we explain the various methods of obtaining residency in Panama: 

• Residency in Panama via Convention on Commerce and Navigation between Panama and Italy – known as the Panama-Italy Friendship Treaty
• Investment (useless for Italians because there is a Treaty of Friendship, fast, cheap and safe)
• Friendly Nations Visa of Panama (of which Italy is not
• Residency in Panama as a Pensioner

Official SNM section: 'Convenio Panamá Italia' for operational details and forms.

If you are Italian go directly to this section to read how you have to do to ask for residence in Panama

Moving to and obtaining residency in Panama legally and in accordance with Panamanian jurisprudence is the only standard to avoid serious risks with the law and future renewals, as well as safe access to Citizenship in Panama and Panamanian Passport after 5 years.

If you are an Italian citizen, you can obtain permanent residency in Panama thanks to the Italy–Panama Treaty of Friendship, Commerce and Navigation (Law No. 15 of February 1, 1966).

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 residence , 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 appropriate for residents with citizenship other than Italian . The only regulatory reference remains Resolution 4803/2012 .

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Residency in Panama for Italians is currently one of the most advantageous solutions in the world for those seeking tax reduction thanks to the territorial tax system. With the Panama-Italy Treaty, Italians can obtain permanent residency in Panama in just a few days, with minimal costs and no future restrictions.

Summary Main Requirements

1. Open a company in Panama (required only for the treaty, can be closed immediately after).

2. Panama bank account with a minimum deposit of $5,000, instantly withdrawable.

3. Mandatory documents:

   • Criminal Record and Pending Charges (valid for 3 months).

   • Cumulative certificate (birth, residence, citizenship, family status).

   • Marriage certificate, if applicable.

   • Valid Italian passport.

   • Proof of bank deposit.

Summary of the 6-step procedure

1. Opening of the Panamanian company (even remotely).

2. Send documents via email to our office.

3. Certified translation and legalization.

4. Traveling with an Italian passport and entering Panama.

5. Official presentation with our lawyers.

6. Obtaining residency in Panama for Italians in 2–3 business days.

It pays to act now

The Panama Italy visa is the most convenient of all immigration programs. It requires no rent, large investments, or fixed deposits. Given its unique nature, it's advisable to apply now: in the future, conditions may become more expensive or restrictive, as has already happened with other visas.

For those wishing to take up residency in Panama by investing large sums of money, there are six major investment schemes in Panama. Italians can skip this paragraph and go up to the previous Panama-Italy treaty, unless you want as Italians in Panama to make an investment in Panama and then through this investment apply for residency in Panama.

The cost of each investment scheme for Residency in Panama is:

• Home Value Investor: from $500,000
• Real estate investor: from $300,000
• Investor with fixed deposit: USD 750,000
• Film Industry: US$150,000
• Free Zones (including call center and Panamá Pacífico): 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 main concerns are tax-related Panama residency and setting up an offshore company. If your decision is to invest money, know that you can do it even after taking up residence in Panama via friendship treaty, it is not necessary to follow one of the six investment schemes to be a resident. For Italians everything is simpler and above all cheaper.

Program (Executive Decree 416 of June 13, 2012 updated by Decree 197 and 226 of 2021) is available to citizens of over 50 nations. This Panama residency program offers quick and easy access to tax benefits, business opportunities, and an extraordinary quality of life.

Residency in Panama as a citizen of a friendly country of Panama does not apply to Italian citizens. In such cases, follow the 6-step Panama Residency 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.

Remember that this visa has recently changed the economic requirements for being accepted as a resident of Panama and compared to the Panama residence visa obtained as an Italian, or residency in Panama for Italians via the Panama-Italy agreement, this visa from friendly countries is only temporary and not permanent . Those who obtain this visa have the inconvenience and burden of renewing it every year, it is more selective and expensive and you will first have to demonstrate that you carry out an economic activity in the country.

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 prove you're financially solvent by depositing $200,000 USD into a Panamanian bank account. If you have dependents who also apply for visas, you will need to deposit $8,000 per dependent into the account. Employees include the applicant's spouse and children under the age of 18 or 25 if they are full-time college students.

Panama Friendly Nation Visa Requirements 

You will be required to present the following documents (NB: Some documents must be annotated and then authenticated by a Panamanian consulate) when applying for Panama residency with the “Friendly Nations Visa”:

• Certified color copy of all passport pages
• Certified color copy of your driver's license or government-issued ID
• Color certified copy of your recent utility bill. This should not be 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 that you are a good person
• A bank reference letter stating 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 , which is 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 liability for them, as well as a copy of their birth certificates to prove they are related to you.
• If the dependent is your spouse, you will need to present the marriage certificate.
• Dependent children over the age of 18 must provide documents proving they are not married

Applicants for Panama residency will receive a temporary residency card, which is valid for one year, while their application is under review. Once approved, they will receive a permanent residency card, then permanent residency in Panama, and will be able to apply for a work permit.

You can move to Panama and obtain residency even as a retiree. A low-cost alternative to the Friendly Nations visa or the Panama-Italy convention is the Pensionado visa, which guarantees residency in Panama to foreigners willing to immigrate to Panama 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's billed as a retirement program, this visa is actually available to anyone over the age of 18. These residents, thanks to Decree-Law 320 of 2008, are eligible to apply for Panamanian citizenship. Therefore, the "pensionado" program can grant you Panamanian citizenship and a Panamanian passport after five years of holding the Cedula E.

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 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, thus ensuring a successful application. Dependents may include spouses, children under 18, and adult children up to age 25 who are full-time students and fully financially dependent on the principal applicant.

All eligible family members can be included in the same permanent residency application. Obtaining permanent residency as a pensioner typically takes between 2 and 8 months, depending on the specific case. The process includes gathering the requirements, preparing the application, an initial trip to Panama to submit the documentation, and a subsequent return visit to collect the residency card.

How do you live in Panama as a pensioner? 

Panama obtained the first place in 2025 as the best destination in the world for pensioners. There is no other place that includes all the benefits that Panama offers retirees.

To qualify for the Panama Retiree Residence Visa, you must meet these requirements:

To reside in Panama as a retiree, you must have a monthly income of at least $1,000 for the rest of your life. This payment must come from a guaranteed source, such as a pension or annuity. Spouses applying for this visa are allowed to combine their income to meet the $1,000 requirement.

Or

A monthly income of USD 750 and over a minimum investment of USD 100,000 in Panamanian real estate. If you have dependent children, you must have an additional monthly income of US$250 for each child. This amount can also be obtained from the interest accrued on deposits made at a local bank. Children up to the age of 18 are considered dependents, or 25 if they are full-time university students. They will lose their Pensionado status once they reach the age of 18 or 25.

Applicants to obtain residency in Panama as a retiree must submit the following documents:

• A letter from the organization issuing your monthly payments, certifying the funds exist and ensuring 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 detective agency of the country where you have lived for the past five years
• Certificate of Public Registration of Panamanian Real Estate in your name, if applicable
• Marriage and/or birth certificates, if applicable
• The Pensionado visa application process typically takes four to six months.

More and more Italians are applying for residency in Panama to reduce and eliminate their taxes. We remind you that Italians who proceed to obtain residency in Panama through the treaty of friendship between Panama and Italy, have residency in Panama guaranteed when, in their request through a lawyer, they bring all the requisites required by law. Paying zero taxes in Panama thanks to Panamanian tax residency is one of the reasons that prompt many entrepreneurs and rentiers to contact us for a Panamanian identity card.

At Studio Panama Italia, we are here to help you through every stage of your internationalization and structuring plans and are constantly on the lookout for the best global options and locations to enhance your privacy, freedom and wealth. The Residence in Panama is our flagship product for Italians who want to live abroad.

Transferring residence to Panama for Italians is very simple. Obtaining Panamanian residency is the best solution for transferring one's taxation to a country with preferential taxation and territorial taxation. Expatriating to Panama by obtaining a legal transfer of residence to Panama with the Panama – Italy treaty remains the best option for Italians wishing to live in Panama. At Studio Panama Italia you are in the right place to request all the requirements for residency in Panama and easily provide them to Panama Migration . Panama is among the countries where it is easy to obtain residency.

To start your residency transfer procedure in Panama, contact us at info@studiopanamaitalia.com, sending us a copy of your passport, and the precise dates to start and take up residency in the country of your preference, or contact us via the contact form on this site web or via whatsapp-telegram at +1 786-623-8177 and visit our FAQ

If you are interested in a Panamanian residency option, you could opt for Paraguayan residency

This country offers residency equal to residency in Panama but in a different context. Contact us about it.

If after taking up your residence in Panama you want to live in a country B that is excellent for taking advantage of your Panamanian residence, you can think of living tax free in Mexico

Residency in Panama which can be obtained as a professional in a foreign company or in a Panamanian company is obtained through an employment contract with a Panamanian company or one based in Panama. The professional who pays his taxes in Panama can apply for permanent residency in Panama, after having temporarily resided for two years in the country. Then, after another five years of permanent residence, naturalization is possible.

Panama residency for business investors requires a minimum investment of USD 160,000, either in a Panama business or in establishing a new Panama company. The company must have a business license, and the applicant must register for social security. The same company/applicant will have to hire 5 Panamanians with the mandatory minimum salary.

This type of residence does not allow naturalization.

Residency in Panama through a reforestation project requires the person to make a minimum investment of USD 80,000 through the purchase of at least five hectares of land to run a forest plantation program approved by the Government of Panama.

Residency in Panama as the spouse of a Panamanian citizen is obtained after having obtained the marriage performed in Panama or registered, and only after painstaking and detailed diligence and control during the time of migration. This residence is permanent if the marriage is assessed as real by Migration (surprise home checks and separate interviews) and allows naturalization.

Another popular way to obtain residency in Panama is through real estate investment. This program falls under the category of Qualified Investment Investors and is regulated by Executive Decree No. 193 of October 15, 2024 (amending the previous Decree No. 722 of October 15, 2015), published in the Official Gazette.

Under current regulations, a foreign citizen can apply for permanent residence in Panama through real estate investment by purchasing real estate worth a minimum of USD 300,000 (free of encumbrances).

The investment must be authorized by the Panamanian MICI (Ministerio de Comercio y Industria de Panamá).

The process for a residence visa for real estate investment is quick: in about 30 days, with the correct documentation, you can obtain permanent resident 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 the foreign origin of the 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 visa obtained is permanent and allows legal residence in Panama without the need for provisional renewals.

Average processing times subject to legal process and assessment by the competent authorities: approximately 30 working days.

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

With a residence visa for real estate investment, investors not only gain access to a growing real estate market but also obtain a residence permit that can lead to citizenship within a certain timeframe. The process is simple: choose the property, complete a legal verification, register the deed, and submit the application to the National Migration Service with the assistance of a local lawyer.

One of the main advantages of the real estate investment residency visa is the ability to include your spouse and dependent children in the same application, guaranteeing the entire family the right to live, work, and study in Panama. Furthermore, the Panamanian tax system does not tax income earned abroad, making this option particularly attractive to global entrepreneurs and investors.

Many foreigners choose the residency visa for real estate investment because of Panama's political and economic stability, the quality of its infrastructure, and its strategic connection to North and South America. This option is ideal for those seeking a secure "Plan B," a business-friendly environment, and a solid foundation for their international wealth planning.

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 legal: the law requires opening a company, which serves to demonstrate financial solvency.

Many shady firms use fake contracts or recycle companies between multiple clients: these practices inevitably lead to loss of residency and deportation.
If costs are high in Panama, it's because the system selects those who can truly afford the process. For those seeking cheaper alternatives, there are countries like Paraguay, but "dangerous tricks" should not be used.

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.

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