Member Login
Facebook-f Twitter Youtube Instagram Telegram-plane

Panama Country Profile

Passport
For more details visit Panama Passport Ranking
  • Passport Grade
    B
  • Passport Ranking
    61/198
  • Passport Score
    138.5/198
  • Visa-free Countries
    125
  • Visa-required Countries
    73
  • Access to the World's GDP
    40%
  • Access to the World's Surface Area
    45%
  • Access to the World's Population
    36%
  • Access to the Unesco Sites
    71%
Citizenship and Naturalization
Birthright citizenship (Jus Soli)
  • Birthright citizenship (Jus Soli)
    Yes
    Unrestricted: Any child born in the country automatically becomes a citizen.
Naturalization - Standard Conditions
  • Minimum residency period
    5 years
  • Physical presence requirement
    Officially, need to visit the country every 2 years to keep permanent residency active. In reality, better to spend significant time on the ground
  • Language test
    Yes, Spanish
  • Need to renounce original citizenship?
    Yes, but not enforced
  • Can minor children naturalize?
    Yes
  • Can naturalized parents pass citizenship to a child born abroad?
    Yes
    A child can become Panamanian by birth, after establishing domicile in Panama and submitting an application before turning 19
  • Can you lose naturalization due to prolonged absence/ naturalization elsewhere?
    No / Yes
Naturalization - Your Spouse is a Citizen
  • Living IN the country: Residency/marriage requirement
    3 years / 3 years
    Must be both married and reside in the country for 3 years.
  • Living ABROAD: Marriage requirement
    Not allowed
  • Language test
    Yes, Spanish
  • Need to renounce original citizenship?
    Yes, but not enforced.
Naturalization - Other Beneficial Provisions
  • Your child is a citizen
    3 years
    May apply immediately after having a child with a Panamanian citizen or giving birth in Panama (jus soli), assuming you have resided there for 3 years.
  • Citizens of specific countries
    1/2/3 years
    Based on resiprocity rules: 1 year for citizens of Colombia, El Salvador. 2 year for citizens of Argentina, Ecuador, Honduras, Mexico, Nicaragua, Peru, Spain. 3 year for citizens of Uruguay.
"–": The provision has not been analysed.
Taxation
For more details visit Cost of Living
  • Taxation Type
    Territorial
A tax resident of a country with a TERRITORIAL tax system pays taxes on the income generated within the country only. Income generated outside of the country remains tax-free.
Schiff Sovereign's Take on Panama
Our founder, Simon Black, used to spend significant amounts of time in Panama. He started going there in the early 2000s. 

Back then, the only positive thing you could say about the country was that you could drink tap water safely. Otherwise, it was very much a backwater type of place.

Today, Panama is an entirely different country. Its GDP grew fivefold. Panama City’s skyline reminds one of Hong Kong. The changes over the past couple of decades have been simply remarkable.

The country is profoundly pro-business. Revenues from the Panama canal have also been a major boon for the country,

The country has also received a high level of press visibility pre-Covid. Yes, we are talking about the Panama Papers – the “scandal” that helped demonize, once again, the entire idea of asset protection structures.

But despite all the negative coverage by breathlessly anti-liberty activists with little understanding of how the global economy actually works, Panama remains a reputable jurisdiction within which to structure your company – if you conduct most of your business in Latin America.

But if your focus is not that region, we would probably abstain from Panamanian structures or even banking – there is simply too much negativity swirling about it.

Panama’s cost of living is also still quite reasonable, though it now tends to be the highest in Latin America (after Puerto Rico).

One reason for this is that they don't have control over their currency, the balboa. It has been pegged to the US dollar since 1904. Dollarization brought fiscal stability, but also an inability to control (read: “inflate away”) the currency, which generally meant a higher cost of living for Panamanians. 

For many years, Panama was home to one of the world’s most attractive residency programs – the Friendly Nations Visa. Westerners could obtain Panamanian permanent residency after starting a local corporation and depositing around $5,000 in a local bank account. 

But its conditions have become much stricter as of 2021. 

Today, Panama is still interesting for residency if you are a retiree with a stable income, or if you’re willing to purchase local real estate.

We’ll close by pointing out that Panama is a great retirement destination. In this regard, Panama competes with neighboring Costa Rica. 
Schiff Sovereign's Rolodex
Service Providers available in Panama
  • Immigration (residency, citizenship)
  • Full relocation services (real estate search, bank account opening, driver's licence, etc.)
  • Tax advice (attorneys and/or accountants)
  • Asset protection (specialized LLCs, trusts, etc)
  • Corporate services (company formation, etc.)
  • Real Estate (agents, lawyers)
  • Banking contact
Obtain access to our Rolodex by signing up for Sovereign Confidential Join Sovereign Confidential Today

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
Explore Now
Found a mistake /
Have a suggestion ?
Please let us know if you spot any inaccuracies on this page or have a suggestion on how to make it even more useful.
Report Here
Panama Overview
  • Region
    North and South America
  • Capital City
    Panama City
  • Largest City
    Panama City
  • Currency
    United States dollar
  • Languages
    Spanish
  • Population
    4.3 million (128th)
  • Life Expectancy
    77.6 years (84th)
  • GDP (Nominal)
    $71.1 billion (81st)
  • GDP/Capita
    $16,614 (68th)
Useful Data
For more details visit Cost of Living
  • Cost of Living
    Inexpensive (3/7)
  • Climate
    Average (3/5)
  • Safety
    Safe (3/7)
  • Pollution
    Average (3/5)
  • English Proficiency
    Low (4/5)

Sovereign Global Explorer

Benefiting from over a decade of our team’s boots-on-the-ground experience, Global Explorer is where your international journey begins.
Explore Now
Found a mistake /
Have a suggestion ?
Please let us know if you spot any inaccuracies on this page or have a suggestion on how to make it even more useful.
Report Here
PREMIUM REPORTS
Panama inside Schiff Sovereign resources
Resource TitleProductTypeDate
October 2024 SC Q&ASovereign ConfidentialSMCQ&A31-Oct-2410/31/24
September 2024 SC Q&ASovereign ConfidentialSMCQ&A01-Oct-2410/01/24
Storing Gold Overseas: Advantages and DrawbacksSovereign ConfidentialSMCAlert23-Aug-2408/23/24
Is Panama Still Worth Your Time Despite the Headlines?Sovereign ConfidentialSMCAlert08-Aug-2408/08/24
April 2024 SC Q&ASovereign ConfidentialSMCQ&A29-Apr-2404/29/24
No Tax, All Gain: Crypto Havens of 2024Sovereign ConfidentialSMCAlert23-Apr-2404/23/24
February 2024 SC Q&ASovereign ConfidentialSMCQ&A28-Feb-2402/28/24
The Best Countries for Birth TourismSovereign ConfidentialSMCAlert06-Nov-2311/06/23
The Roundup of Common Residency Options in Latin AmericaSovereign ConfidentialSMCBlack Paper06-Sep-2309/06/23
August 2023 SC Q&ASovereign ConfidentialSMCQ&A30-Aug-2308/30/23
June 2023 SC Q&ASovereign ConfidentialSMCQ&A29-Jun-2306/29/23
April 2023 SC Q&ASovereign ConfidentialSMCQ&A28-Apr-2304/28/23
Panama Still Offers Excellent Residency OptionsSovereign ConfidentialSMCAlert19-Apr-2304/19/23
Total Access Special Report – Country Profile: PanamaSovereign Total AccessTAOther27-Mar-2303/27/23
January 2023 SC Q&ASovereign ConfidentialSMCQ&A30-Jan-2301/30/23
August 2022 SMC Q&ASovereign ConfidentialSMCQ&A29-Aug-2208/29/22
June 2022 SMC Q&ASovereign ConfidentialSMCQ&A29-Jun-2206/29/22
A Roundup of Naturalization Rules & Timelines in the AmericasSovereign ConfidentialSMCBlack Paper27-Jun-2206/27/22
March 2022 SMC Q&A (Live Call Recording)Sovereign ConfidentialSMCQ&A31-Mar-2203/31/22
February 2022 SMC Q&ASovereign ConfidentialSMCQ&A28-Feb-2202/28/22
January 2022 SMC Q&ASovereign ConfidentialSMCQ&A28-Jan-2201/28/22
November 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Nov-2111/29/21
October 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Oct-2110/29/21
September 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Sep-2109/29/21
SMC Update: The deadline to apply for the Panama Friendly Nations Visa is now August 7thSovereign ConfidentialSMCAlert22-Jul-2107/22/21
June 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Jun-2106/29/21
Here Are 15 Factors to Consider Before Your International MoveSovereign ConfidentialSMCMonthly Letter15-Jun-2106/15/21
Panama’s Friendly Nations Visa Will Become Much More Expensive SoonSovereign ConfidentialSMCAlert24-May-2105/24/21
The Sovereign Man Starter GuideSovereign ConfidentialSMCBlack Paper09-Feb-2102/09/21
January 2021 SMC Q&ASovereign ConfidentialSMCQ&A29-Jan-2101/29/21
Reporting requirements when applying for residency/citizenship programsSovereign ConfidentialSMCBlack Paper25-Jan-2101/25/21
Medical tourism destinations in Latin AmericaSovereign ConfidentialSMCAlert05-Jan-2101/05/21
Panama introduced four new residency by investment options (and kept its most popular residency routes)Sovereign ConfidentialSMCAlert04-Dec-2012/04/20
October 2020 SMC Q&ASovereign ConfidentialSMCQ&A30-Oct-2010/30/20
How to turn opportunities into freedom - from someone who has done itSovereign ConfidentialSMCAlert05-Aug-2008/05/20
A Plan B on the beach in Panama – that pays for itselfSovereign ConfidentialSMCAlert06-May-1905/06/19
October 2018 SMC Q&ASovereign ConfidentialSMCQ&A31-Oct-1810/31/18
Sovereign Man Country Rankings: The Right Country for YOU, with Simon's insightsSovereign ConfidentialSMCBlack Paper06-Apr-1704/06/17
The unsettling lesson I just learned firsthand… and how you can protect yourselfSovereign ConfidentialSMCMonthly Letter15-Mar-1703/15/17
These countries could give you a second residency or passport in 2016Sovereign ConfidentialSMCMonthly Letter14-Oct-1610/14/16
Why Panama could be a solid banking option for your Plan BSovereign ConfidentialSMCAlert24-Jun-1606/24/16
Why Panama is a no-brainer Plan B residency optionSovereign ConfidentialSMCMonthly Letter13-May-1605/13/16
Why Chile, Colombia and Panama are great options for residency and for doing businessSovereign ConfidentialSMCMonthly Letter16-Apr-1504/16/15
Simon's big picture thoughts and boots on the ground from the past month of travelSovereign ConfidentialSMCMonthly Letter19-Mar-1503/19/15
SMC Comprehensive Residency Update: 2015 EditionSovereign ConfidentialSMCAlert03-Mar-1503/03/15
Panama: The easiest place in the world to establish foreign residencySovereign ConfidentialSMCAlert21-Dec-1312/21/13

Articles featuring Panama

No inflation here...
Trends & News

No Inflation Friday: Dollarized Panama issues price controls for basic goods

July 25, 2014 Prague, Czech Republic Less than four weeks after starting his new job, Panama’s President Juan Carlos Varela already has a serious challenge to deal with: empty grocery shelves. This is largely a self-inflicted wound that was bound to happen. Fresh on the heels of his victory in May, the then President-elect announced […]
Second Residency

A look at Panama’s residency options in 2023 (and its Retirement Visa, in particular).

As far as Plan B residencies were concerned, nothing we’ve seen has ever come close to Panama’s former Friendly Nations Visa. (Which became distinctly less “friendly” in 2021.) Fortunately, however, the country is still home to several attractive residency options in 2023. Let’s get into the details below… Panama’s acclaimed Friendly Nations Visa became a […]
International Diversification Strategies

Second Residency: Panama is still an obvious escape hatch

At the turn of the 20th century, the United States had recently become the largest economy in the world… and it was showing. The US had just vanquished Spain in the Spanish-American War, resulting in a vast new American colonial empire, stretching from the Philippines to Puerto Rico. And it was just the beginning of […]
Trends & News

Actually, Panama has a higher corporate tax than Denmark…

Last night I got robbed. Not in the literal sense of the word. There weren’t armed men in masks holding me up on the sidewalk in Panama City. (I’ve been coming here for 13 years and have never once felt unsafe…) It was at the cashier’s cage at the Veneto Casino. After a few hours […]

Similar Country Profiles

Grenada Country Profile
Grenada
Nicaragua Country Profile
Nicaragua
Montserrat (UK) Country Profile
Montserrat (UK)
Brazil Country Profile
Brazil
Antigua and Barbuda Country Profile
Antigua and Barbuda
Anguilla (UK) Country Profile
Anguilla (UK)
Ecuador Country Profile
Ecuador

Ready to fire-proof your future? Learn how here...

Subscribe to our FREE Sovereign Letters series below. Packed with powerful, immediately actionable Plan B strategies, signing up for this newsletter is one of THE best steps you can take, right now, to safeguard your freedom and maximize your sovereignty.

SIGN UP NOW TO TAKE CONTROL OF YOUR FUTURE

Found a mistake or have a suggestion with Panama Country Profile? Let us know by filling out the form below.