Menu

Free 200+ Page eBook

Top 57 Places to Live & Invest in the Tropics

Quickly find out which country is right for you.
No-hype updates & resource guides. No Spam. Ever.
Limited offer. Instant Download.

Join More than 58,187 people who are breaking free


we value your privacy

Hot Real Estate Offer

Retiring to Panama Just Got Easier With This New Visa

Retiring to Panama Just Got Easier with new Visa

Panama has long been an attractive destination for expats of all ages, with its favorable residency requirements and unmatched retiree benefits.  But if you were thinking you had a few more years to slave away in a cubicle and a few more dollars to save before you could make your move to this Central American haven…

Think again.

In a recent executive decree, Panama’s President Ricardo Martinelli signed into effect a new visa option for those who want to escape the ever-tightening choke hold of the American government, but aren’t quite yet able to get by on their current retirement savings… Retiring to Panama Just Got Easier!

What’s different about Panama’s new visa?

The new visa, called the Immediate Permanent Residency visa, gives instant residency status to those who wish to engage in professional and economic activities, start a business, or get a job in Panama.  This is in contrast to options such as the pensioner’s visa that explicitly prevents retirees from taking jobs away from Panamanians.Also different are the solvency requirements.  Instead of an investment of anywhere from $60,000-$300,000, the new visa requires a mere $5,000 in a Panamanian bank account.  Another benefit is the option of obtaining citizenship after five years in the country, something that isn’t offered at all by many of the other visas.These are all perks that can benefit retirees as well.  It gives them the opportunity to work if they want (or if they can’t afford not to), and it basically serves as a fast pass that sends them directly to the head of what was once a long line of steps toward immigration.

What prompted the President’s decree?

Over the years Panama’s government has implemented a number of incentives that have made the country an extremely attractive place to do business.  As a result, its economy has been growing at a tremendous rate, experiencing a whopping 10.6% increase in 2011 alone.  This, coupled with an unemployment rate of only 4.5%, has led to a shortage of educated, trained, English-speaking workers.

The government recognizes that the long-term solution is, of course, education.  They have already begun to pour millions into the country’s education system.  But for the meantime the best way to find qualified labor is to import it.  They’re looking specifically for “workers in growth sectors such as logistics, tourism, banking, and those making Panama a regional hub for multinational companies,” explained Minister of the Presidency Demetrio Papadimitriu.

What would it be like to work or own a business in Panama?

Panama’s business community is heavily English-speaking, recognizes the U.S. dollar as its official currency (alongside the balboa), and bears an awful lot of other similarities to the States.  Well, on the surface at least.  Panama’s laws are much more favorable to investors and businesses.  There are fewer restrictions on banks and corporations and much greater financial privacy.  The country is home to several large duty-free zones, and personal taxes are reasonable as well, with none levied on income earned outside of the country.

Who qualifies for the new visa?

The new visa is available to those who hold a passport from one of 47 specific countries (currently, as the number has increased several times since the initial decree) “that maintain friendly, professional, economic, and investment relationships with the Republic of Panama,” including the U.S. and Canada.  A full list is included below.  Also eligible are applicants’ dependent spouses, children under 18 (or between 18 and 25 if they’re students), dependent parents, and family members with disabilities.

In order to qualify, applicants need $5,000 in a Panamanian bank (plus $2,000 for each dependent) and one of the following: evidence of investment in Panamanian real estate, proof of ownership in a Panamanian business or corporation, or a letter and contract of employment from Panamanian company.  Throw in a clean police record and a passport, and you’re well on your way to personal and financial freedom.

What are the first steps towards obtaining immediate residency?

Because the employment requirements must be met before the application can be completed, you should probably start there.  You’ll need a work permit, which is issued by the Ministry of Labor.  The next step is finding a job or setting up a corporation, which is not a very difficult or expensive process in Panama.  However, since several government entities are involved and the paperwork is all in Spanish, it wouldn’t be a bad idea to hire a competent attorney to assist you with the whole process.

What are the “specific countries” that are recognized by the decree?

Alphabetically, the 47 countries are Andorra, Argentina, Australia, Austria, Brazil, Belgium, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Finland, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Norway, Malta, Monaco, Montenegro, Netherlands, New Zealand, Poland, Portugal, San Marino, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Switzerland, Sweden, Taiwan, United Kingdom, United States, and Uruguay.

Up Next

7 of the Top Places U.S. Expats Are Living in Latin America (and Why)

New data shows where U.S. expats are residing all across the globe. Many of the top destinations are in nearby Latin America. Find out why. (Read It)

Central America's Best Real Estate Buy

Don't miss this up and commer. It has the tropical lifestyle, stunning beauty, and smokin appreciation potential. (Read It)

The World’s Top 10 Best Places to Put Your Money

Offshore banking isn't just for the super rich. But how does the average Joe decide where to put his money? Here are the world's top banking jurisdictions. (Read It)

Nosara, Costa Rica Everything You Need to Know. I Mean Everything.

Imagine a small, beautiful beach town surrounded by jungle and wildlife with a peaceful multicultural community and many of the comforts of home. That place, named by National Geographic as one of the top surf …

(Read It)
panama city panama real estate update

Panama City, Panama Real Estate Market Update

Today we have a guest post written by Kent Davis, owner of one of the most successful real estate brokerages in Panama City The Panama City real estate market may have finally taken a turn in …

(Read It)
costa rica websites

Top 133 Costa Rica Websites for Expats and Investors

Did you know there are dozens and dozens of great resources on Costa Rica for expats and investors? Sure, we have a ton of resources for Costa Rica on our site, and a whole bunch …

(Read It)

The Truth about Living in Costa Rica: The Good, the Bad, and the Muddy

It's easy to find tons of articles and information out there highlighting all the great benefits of living in Costa Rica. But it's also easy to read those blogs and marketing pieces and think, "Yeah, it …

(Read It)

Why Nosara, Costa Rica Is Not Your Average Surfing Town

A deeper look at Nosara and its history will quickly reveal that this long-time mecca for surfing enthusiasts offers so much more than just the sand and sea. The increasing interest in the area as a …

(Read It)

Expats Are Still Falling in Love with Nosara and Here’s Why

What was once the up-and-coming expat haven of Nosara, Costa Rica, has blossomed into one of Costa Rica's most established expat communities that continues to be ranked near the top of the list of most desirable destinations in the Latin …

(Read It)

5 thoughts on “Retiring to Panama Just Got Easier With This New Visa

  1. 1

    How long do you get on a tourist visa? Can you go to Costa Rica and return? If so how long must you stay out of the country? Cam you be a ‘permanent tourist’ like many in Nicaragua and Costa Rica are doing?

  2. 2

    Hey Dean,
    The length of time the Panama visa lasts depends on your country. For north Americans, it’s 6 months. There is some confusion as to how long you have to leave. I know people who leave for 3 days (that was the old rule), and I know people who leave for 10 minutes.

    And yeah, you can be a permanent tourist. I know several folks who have been doing that for 5+ years.

  3. 3

    I already own real estate in Panama and already have the correct dollar amount in a local Panamanian Bank. I just don’t want to work in Panama…..or need to.
    I am also married to a Citizen of Panama and we have a baby that is also a registered citizen of Panama. I should qualify for residency at least two different ways….What is the cheapest and easiest way to obtain a visa. Can I do this while currently living in the US and travelling back and forth to Panama?

  4. 4

    Can a Canadian Psychiatrist practice in panama?

  5. 5

    Any idea how “clean” the police record needs to be. Around the world it has various meanings ranging from no warrants to no felonies to squeaky clean.

    Any idea how it will be interpreted?

Leave a Reply

Your email address will not be published. Required fields are marked *

Hot Real Estate Offer

Real Estate In The Area

WordPress › Error

There has been a critical error on this website.

Learn more about troubleshooting WordPress.