Visas in Panama

The Panamanian government has created several laws which, depending on the particular type of visa applied for, enable foreigners to obtain temporary or permanent residency, and in some cases citizenship and/or Panamanian passports. Most of these laws have been created to promote foreign investment in the country which benefits the local economy.

There are several types of Visa available, the most common being:
- Pensioner Visa
- Retirement Visa
- Small Business Investor Visa
- Self Economic Solvency Visa

Note: These visas do not convey permission to work in Panama. See below for procedures to obtain a work permit.

Pensioner Visa
The applicant of the Pensioner Visa must receive a pension from a foreign government, international entity or private company. The minimum age required to qualify is 18. The pensioner must receive a monthly income or pension of at least US$500for life and an additional US$100 for each dependant. The applicants' income must be proved by providing documentation such as a letter from the government or company that is issuing the pension, and it must be apostilled* in the country where the documents are issued.

Benefits of the Pensioner's Visa:
1. Total exemption from import duties on personal and domestic goods up to the value of US$10,000.
2. Import tax exemption every two years on a motor vehicle for personal use.
3. Indefinite residency.
4. Multiple tax exemptions and discounts on various services in Panama, such as movies restaurants, concerts and public transportation among others.
5. Property tax Freeze on your primary residence: the property must be in your name and be your only property and primary residence

Retirement Visa
This visa requires that the retiree establish a long-term savings account for a minimum of 5 years, with the Banco National de Panama, a national bank. The amount of this deposit should generate a monthly interest of no less than 750 USD, an amount considered the monthly income of a retiree.
This type of visa is allows one to obtain a special renewable passport, issued by the Panamanian Government, which is valid for 5 years. This passport is a valid travel document for the bearer, but does not grant Panamanian Citizenship. This Visa must be requested through a Panamanian lawyer and takes approximately 15 business days to obtain.

Benefits of the Retirement Visa:
1. Total exemption from import duties on personal and domestic goods up to the value of 10,000 USD.
2. Import tax exemption every two years on a motor vehicle for personal or family use.
3. Indefinite residency 15 years after applying for the provincial residency permit.
4. Multiple tax exemptions and discounts on various services in Panama, such as movies restaurants, concerts and public transportation among others.

Documents needed for Applying for Pensioner and Retirement Visas:

Original passport (expiration date must be more than 6 months from date of application) and photocopy of all pages of the valid passport of the applicant (and dependents if applicable), including the picture page.

Eight (8) passport-sized photographs of the applicant (and dependents if applicable).

Certificate of Good Health, issued by a licensed Panamanian hospital or clinic, signed by a registered, licensed physician, indicating that the applicant (and dependents if applicable) has no contagious diseases and is in good mental and physical condition. If Pension is from a Government Institution or Social Security, the client must provide certification from the respective Government institution that pays the applicants retirement or pension income, certifying that the person receives a "pension" in the amount of at least US$500 per month for life (plus US$100 for each dependent if applicable). This document must be apostilled*.

If the pension is from a Private Corporation, then you must also provide a Certification from the appropriate Government authority that certifies that the Corporation pays the pension, is in good standing and duly registered. This document must be apostilled*.

Clean police record from the country of the last 5 years of residency. This document must be apostilled*.

Marriage Certificate (for the spouse if applicable), and/or Birth Certificate (for children under 18 years of age if applicable). This document must be apostilled*.

*APOSTILLE is a French word which means a certification. It is commonly used in English to refer to the legalization of a document for international use under the terms of the 1961 Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents. Documents which have been notarized by a notary public, and certain other documents, and then certified with a conformant apostille are accepted for legal use in all the nations that have signed the Hague Convention. In countries which are not signatories to the 1961 convention and do not recognize the apostille, a foreign public document must be legalized by a consular officer of the country from which the document is issued.


Small Business Investor Visa
This Visa requires a minimum investment of 40,000 USD and maximum investment of 150,000 USD in either a new business venture, or an established company in Panama. The business must employ at least 3 Panamanian employees paying them no less than the minimum wage, with Social Security benefits. All documents expedited outside the Republic of Panama must apostilled or certified by a Panamanian Consulate in the place of expedition.

Benefits of the Small Business Investor:
1. Permanent Residency four years after applying for the provisional residency permit
2. The Right to a Panamanian Cedula (ID card).
3. Option to apply for Panamanian nationality 5 years after receiving the Permanent Residency.

Documents necessary to process legal residency and passport:

- Certificate of Good Health, signed by a registered, licensed physician, indicating that the applicant (and dependents - if applicable) has no contagious diseases and is in good mental and physical condition.
- Clean police record from the place of residence of the applicant for the last 5 years (and spouse & children - if applicable). This must be apostiled.
- Birth Certificate of the applicant (and dependents - if applicable). This must be apostilled in the country of issue.
- Marriage Certificate for the applicant (and dependents - if applicable). This must be apostiled in the country of issue at the Panamanian Consulate.
- Original passport (expiry date must be more than 6 months from date of application) and photocopy of the complete valid passport of the applicant (and dependents - if applicable), including the picture page (that shows the picture, name, date of birth, passport number, place of issue, etc.), and all other pages (all pages of the passport) and have it notarized.
- Four (4) passport-sized photographs of the applicant (and dependents - if applicable).
- Financial reference letter from your bank, credit union, or brokerage / investment firm.

Self-Economic Solvency Visa
There are three methods to obtain this type of Visa:

1. Purchase Real Estate in the Republic of Panama, for a minimum value of 200,000 USD and present evidence of sufficient economic solvency to cover associated costs.
2. Purchase real estate in the Republic of Panama, for a minimum value of 80,000 USD and establish an account with a local bank, for a period of at least two years, with a minimum deposit of 120,000 USD.
3. Open a long-term account in a local bank for a period of at least 2 years, and a minimum deposit of at least 200,000 USD.

Benefits of The Self-Economic Solvency Visa:
1. Permanent residency one year after applying for the provisional residency permit.
2. The right to a Panamanian Cedula (ID card)
3. The option to apply for Panamanian nationality five years after receiving the permanent residency.

The long-term deposit or CD account in all the above options must be in the personal name of the applicant (it may not be in the name of a corporation, foundation, or trust). The interest earned on the deposited funds, will be deposited monthly into any savings account at the bank that you designate (the savings account may be a personal account, or a corporate account). The income derived from the interest is not taxed by the Panamanian Government, nor is it subject to any tax reporting requirements. In methods #1 and #2 described above the titled real estate property must be in the personal name of the applicant (it may not be in the name of a corporation, foundation, or trust).

For each additional dependent that applies for residency under the applicant, the primary applicant must prove that he or she has enough income to support the general costs of living of each dependent.

Procedures for Applying for Residency:
- The bank account is opened and long-term deposit made, the bank then provides a certificate of deposit, and a copy of the deposit contract.
- Apply for a 1 year Temporary Immigrant Visa, under the Self Economic Solvency Program. The applicant is issued a Temporary Immigrant Card, which is valid for 3 months (those 3 months are used by the Immigration Department to process the 1 year Temporary Immigrant Visa). After 3 months, the applicant will be issued a new Temporary Immigrant Card that is valid for 1 year.
4. After the 1 year Temporary Immigrant Visa expires, one must submit a new application for a Permanent Residency Visa. The applicant will then be provided with a Panamanian Cédula (Permanent identification card).
5. After 5 years of Permanent Residency status, the individual may apply for Panamanian Citizenship, and a Panamanian Passport.

Required Documents for opening a bank account:
1. Valid passport of the applicant (and dependents - if applicable),
2. Two Original letters of reference from a banking or financial institution.
3. Two Original letters of reference from a commercial entity or individual with whom one has a business relationship.

Work Permits for Panama
Foreigners who wish to work in the Republic of Panama must obtain a Work Permit. The Work Permit is issued by the Ministry of Labor and Social Welfare and must be renewed every year. Work permits are offered under the sponsorship of a Panamanian employer, without such sponsorship it can be difficult to obtain a work permit

Work Permit application requirements:

1. The Work Permit application must be filed by an attorney.
2. Letter of responsibility issued by the future employer in Panama.
3. Original and two (2) copies of the future full-time Employment Contract.
4. Certificate of School Records and Professional Experience, legalized either by a Panama Consul or by the Apostille.
5. Eight (8) photos, passport sized.

Work Permits are granted on the basis of percentages established by Article 17 of the Labor Code, and the percentages of wages and remunerations combined may not exceed those established by the Labor Code.

The percentages indicated above shall be applied in the following manner:

1) 10% of a firm's labor force may be foreign personnel carrying out any functions.
2) 15% of a firm's labor force may be foreign personnel qualified as experts or technicians. Work Permits granted to technicians or experts are issued for a maximum period of 5 years, at the end of which the foreign worker must be replaced by a Panamanian.

No foreigner shall be allowed to work in Panama prior to obtaining a Work Permit.

Note: All documents issued abroad must be legalized either by a Panamanian Consul or by the Apostille in the place of issuance.