Panama Friendly Nations Visa 2026: Eligible Countries, the $200,000 Requirement, Costs and Taxes

For years, the Friendly Nations visa was the cheapest permanent residence in the Americas. You formed a Panamanian company, put $5,000 in a bank and walked away with a residence permit. That version ended in 2021. Executive Decree 197 (May 2021) and Executive Decree 226 (July 2021) replaced it with a two-step process that requires a real economic tie to Panama.

It's still one of the best-value residencies anywhere, though. That's especially true when you combine it with Panama's territorial tax system, which doesn't tax income earned outside the country. Applications are handled by the Servicio Nacional de Migración.

Which countries qualify for the Friendly Nations visa?

The list is set by executive decree. It currently covers 51 countries:

Ecuador was added in 2026. Notably missing: Italy, Romania, Bulgaria, Slovenia, India and China. Citizens of those countries need a different route, such as the Qualified Investor visa or a pensionado visa. Dual citizens can apply with their eligible passport.

What are the Friendly Nations visa requirements in 2026?

Your nationality alone isn't enough. You also need one of these economic ties:

You also need these standard documents:

• passport valid for at least 6 months
• an apostilled criminal background check from your home country (FBI check for US citizens)
• a health certificate from a Panamanian doctor
• sworn statement and proof of economic solvency
• for dependents: apostilled birth or marriage certificates

The property or deposit has to be kept through the two-year provisional period. If you sell the property or break the deposit early, you can lose your status before you reach permanent residence.

How does the process work?

The 2021 reform turned a one-step permit into two steps:

1. Hire a Panamanian lawyer. Immigration filings must be made by a licensed attorney.
2. Set up the economic tie. That means buying the property, opening the CD or signing the employment contract.
3. File in person in Panama with apostilled documents. You get a temporary card while the application is processed.
4. Provisional residence is granted for 2 years. The first resolution usually takes around 6 months.
5. Apply for permanent residence after the 2 years, showing that you still meet the requirement. This takes about 6 more months.
6. Cédula and citizenship (optional). Permanent residents can apply for a cédula (national ID card), and can apply for naturalisation after 5 years of permanent residence. Naturalisation has stricter requirements, including Spanish and a history test.

There is no minimum stay, but you should enter Panama at least once every two years to keep your status active. Residents can also apply for a work permit.

How much does the Friendly Nations visa cost?

All in, budget $5,000–$10,000 for a single applicant on top of the $200,000, or more for a family. That's far cheaper than most golden visas, and the $200,000 stays yours, either as property or as a CD earning interest.

How is a Panama resident taxed?

Panama uses a territorial tax system. Under the Panamanian Tax Code, only income from activities carried out inside Panama is taxed. For a resident, that means:

• Foreign-source income is not taxed. That covers salary from a foreign employer for work done abroad, dividends from foreign companies, foreign rental income and gains on foreign investments.
• Panamanian-source income is taxed at progressive rates: 0% up to $11,000, 15% up to $50,000 and 25% above that.
• Corporate tax is 25% on Panamanian-source profit. A Panamanian company that only does business abroad pays nothing on that foreign income.
• No wealth tax, and no inheritance tax.
• Property tax on real estate, with an exemption for a primary residence up to a set value.

The big caveat is remote work done while physically in Panama. Under a strict reading of territoriality, work performed in Panama is Panamanian-source, even if the client is abroad. Most digital nomads structure their work through a foreign company and take dividends. Have a local accountant check how this applies to you.

You're tax resident if you spend more than 183 days in Panama in a tax year. The residence permit alone doesn't make you resident. That matters if your home country (like the UK or Canada) taxes you until you prove residence somewhere else. You can ask the DGI for a tax residency certificate once you meet the test.

Americans are still taxed by the US wherever they live. Panama's territorial system means there's no second layer of tax on foreign income, and the foreign earned income exclusion can shelter earned income up to $132,900 in 2026.

Is Panama on the EU tax blacklist?

Not any more. EU finance ministers removed Panama from Annex I of the EU list of non-cooperative jurisdictions on 9 October 2026, after Panama passed a new economic substance law. It moved to Annex II (the "grey list"), which means it's still being monitored while it completes its Global Forum review. Panama was also taken off the FATF grey list in 2023.

This matters mostly for companies. While Panama was on Annex I, payments to Panamanian entities could trigger defensive measures in EU countries, such as extra withholding tax, denied deductions and stricter CFC rules. For individuals holding residence, the practical effect was always limited. With Annex I gone, Panamanian banks and companies face less friction with European counterparts.

Friendly Nations vs other Panama residencies

Who is the Friendly Nations visa for?

It suits founders and remote earners who want a low-cost permanent residence in a territorial-tax country, with US dollar banking and a major airline hub. It also suits retirees who don't qualify for the pensionado visa, and families who want a Plan B residence in the Americas.

Read more on the Panama country page, compare other territorial tax countries, or see the broader playbook in how to legally pay no taxes.

Not legal or tax advice. Requirements and fees are from Panama's executive decrees and the Servicio Nacional de Migración as of November 2026. Confirm with a Panamanian immigration lawyer before you apply.