Last Updated on April 22, 2025 by Caesar
Whether you’re an adventurous retiree, a remote worker tired of sky-high rent, or an investor looking for your next big opportunity, thinking about immigration to Panama might just be your perfect launchpad.
But moving abroad is a huge decision. You don’t just pack a bag and hop on a plane. You need clarity, facts, and a roadmap.
This guide gives you exactly honest insights about Panama immigration, tailored to help you take confident steps toward your next chapter.
Why Panama? The Country Everyone’s Whispering About
Let’s start with the main question, why are so many people relocating to Panama? Over 40,000 Americans have already made the leap, and that number keeps climbing.
Here’s why:
- A U.S. dollar economy: No currency exchange headaches here. Panama uses the USD, making it easier for Americans and investors to manage their finances.
- Stable government and economy: For almost ten years, Panama’s economy has been among the fastest-growing ones in the Western Hemisphere.
- First-world amenities at second-world prices: This place has new buildings, fast internet, foreign airports, and even Costco, but it doesn’t cost a lot.
- Healthcare that doesn’t bankrupt you: World-class hospitals at a fraction of U.S. costs. We’re talking $50 doctor visits and affordable private insurance.
Visa and Residency Options
When it comes to Immigration to Panama, there are multiple visa options to fit different needs.
Friendly Nations Visa
Available to people from more than 50 nations, including the United States, Canada, and most of Europe, the Friendly Nations Visa is the most often used visa among expats. Professionals, freelancers, small business owners, and others fit this visa.
Pensionado Visa
One of the most appealing retirement schemes available worldwide for people wishing to retire is the Pensionado Visa. Candidates must prove at least $1,000 monthly of a lifetime pension or retirement income in order to qualify. Along with additional advantages including savings on travel, leisure, healthcare, and basic services, this visa also carries People of any age who can use it if they satisfy the income criteria.
Real Estate Investment Visa
The Real Estate Investment Visa requires a minimum property investment of $300,000.
Reforestation Visa
Another option is the Reforestation Visa, which involves an $80,000 investment into government-approved forestry projects.
Business Investor Visa
Another Visa for business investors lets you launch a company in Panama using at least $160,000 in capital and mandates hiring five Panamanians.
These choices are perfect for those committed to conducting business in Panama or establishing a long-term financial presence there.
Digital Nomad Visa
Those who work from home also have the option of the Digital Nomad Visa, sometimes known as the Short-Stay Remote Work Visa.
Good for nine months; this visa is only one to be renewed once. To be qualified, you must make at least $3,000 every month from a foreign company.
Cost of Living
As you are planning to immigrate to Panama, you must be focusing on the cost of living there.
A new Panama City one-bedroom flat will rent on average $900 to $1,200.
About $90 to $130 a month goes to utilities, and about $250 to $350 a month goes to food.
Should you decide to live in more reasonably priced locations such as Boquete, David, or Coronado, everyday expenses and rent should be cheaper. For a comparable apartment in Boquete, for instance, rent may be as low as $500; utilities and groceries also typically cost less.
Private insurance policies, depending on coverage, range in monthly cost from $50 to $150, making healthcare also rather affordable.
There is public healthcare as well, although many foreigners choose private facilities for faster treatment. Relatively cheap, internet service runs about $30 to $50 a month.
Where to Live in Panama
Your own demands and tastes will determine the best spot in Panama.
The most developed area in Panama City presents contemporary infrastructure, international airports, and a favorable economic climate to make your immigration Pto anama a fruitful one. Entrepreneurs, professionals, and anybody else looking to be near government buildings and services will find this a wise decision.
Retirees who wish for a more peaceful living with a milder climate often choose Boquete. Rising high in Boquete, the climate is pleasant, the views are breathtaking, and a lot of foreigners call their home.
Driving from Panama City to the little seaside hamlet of Coronado takes around one hour. Renowned as an expat hub for accessibility to city facilities and a laid-back demeanour, it is also.
David is an affordable city in the west close to the Costa Rican border for people seeking even more reasonably priced living.
Bocas del Toro is a collection of Caribbean islands that is well-known among younger immigrants and digital nomads. Though far away, it provides a laid-back island lifestyle.
Taxes and Business Environment
Because Panama has a territorial tax system, your taxes are just paid on income generated inside of Panama. Overall doing business in Panama is not a complex task. You do not pay tax on foreign income—such as a U.S. pension, online business profits, or overseas investment—in Panama. This is among the key reasons digital businesses and foreigners decide to move here.
The tax rates for businesses are fair, and the land taxes are not too high. Many expats choose to set up a Panama company or charity as part of their plan to move or invest there. Particularly for individuals considering a company in Panama, these legal systems assist with tax efficiency and asset protection. To find out how local and international tax rules might apply to your circumstances, though, speak with a local tax counsellor or attorney.
Legal Requirements and Process
Applying for residency in Panama means compiling particular records to be sent to the immigration agency. To assist with the procedure, most people decide to deal with a licensed Panamanian lawyer.
Your passport, a background check from your hometown, a health certificate from a Panamanian doctor, and verification of income such as pension records, employment contracts, or investment papers are the most important paperwork you need.
The kind of visa you are seeking will determine whether a lawyer costs $1,000 or $3,000. Though they vary, process times typically run two to six months.
Conclusion
For many people, moving to Panama is a realistic and useful choice. The country has a low cost of living, a number of residency programs that are easy to understand, and tax rules that are in your favor.
Panama’s immigration rules allow for a lot of different options, whether you want to retire, work from home, invest, or start a business. Panama is still one of the best places for expats and foreign investors to live because it has good infrastructure, affordable health care, and a stable economy.
