Relocating to Panama, four visas and costs

1. Why do foreigners pick Panama?

Americans, Canadians and Europeans move to Panama for a short list of reasons, and the dollar tops it. The four cards below are the reasons that come up in every first call with us.

Dollarized economy

Panama uses the US dollar. A pension or rental income paid in dollars carries no exchange-rate risk here.

Territorial tax system

Only income earned inside Panama is taxed. A foreign pension or an investment held abroad is generally outside Panamanian income tax.

Political and economic stability

Economic policy has stayed consistent for years. The banking sector is established, and foreign residents are a normal part of daily life in Panama City.

Programs for expats

Four residency programs on this page fit investors, retirees, entrepreneurs and citizens of the Friendly Nations list.

The climate is warm all year and a couple lives in Panama City for less than in most North American or Western European cities. Private hospitals such as Hospital Punta Pacífica charge moderate prices for care of recognized quality. That mix draws retirees, and the territorial tax rule draws investors who earn abroad.

2. Which visa fits your profile?

It comes down to your passport, your income and how much you can invest. The four programs below are the ones foreign residents use most. Requirements change, so confirm the current ones with a licensed immigration attorney before you file.

1Friendly Nations Visa

Citizens of approximately 50 countries qualify, among them the US, Canada, most of Western Europe and several Latin American nations.

You invest USD 200,000 in real estate, or bring an employment contract, or make a bank deposit
The residence is provisional for 2 years, then permanent
Government fees run approximately USD 1,050

2Qualified Investor Visa ("Golden Visa")

Open to every nationality. It's the fastest route to permanent residence if you can commit the capital.

You invest USD 300,000 in real estate and hold it 5 years. Our buyer process covers the purchase steps
The file typically resolves to permanent residence in approximately 30 days
Government fees are approximately USD 10,000, higher than the other programs

3Pensioner Visa (Jubilado)

For retirees with a verified lifetime pension. It's the program retirees ask us about most, mainly for the discounts.

You need a lifetime pension of at least USD 1,000/month, or USD 750 if you buy a property of USD 100,000+
The residence is permanent from the start, with 2-4 months of processing
Holders get discounts on entertainment (50%), hotels (30-50%), utilities (25%), medical services (20%) and more

4Private Income Retiree Visa

For retirees who have savings instead of a pension. The capital goes into a deposit at a Panamanian state bank.

The deposit has to generate at least USD 850/month, which means approximately USD 300,000
The residence runs 5 years, renewable, and is not permanent
The discounts are similar to the Pensioner Visa

Before you decide. Requirements, fees and processing times change. Check the current ones with a licensed Panamanian immigration attorney before you commit money.

3. What does it cost to live in Panama?

A couple in Panama City spends more than the same couple in Boquete, mainly on rent. The two cards below put each monthly total line by line. The ranges are approximate and come from typical expat budgets.

Panama City (urban)

Rent (2BR apartment): USD 1,200-2,500/mes
Utilities: USD 100-200/mes
Groceries: USD 400-700/mes
Transportation: USD 100-300/mes
Healthcare (insurance): USD 100-400/mes
Couple total: USD 2,500-4,500/mes

Interior (Boquete, Coronado, El Valle)

Rent (house): USD 800-1,800/mes
Utilities: USD 80-150/mes
Groceries: USD 350-600/mes
Transportation: USD 150-300/mes
Healthcare (insurance): USD 100-350/mes
Couple total: USD 1,800-3,500/mes

Families with children

International school tuition runs USD 300-1,200/month per child. With school fees on top, a family of four in Panama City can budget USD 4,500-8,000/month.

These ranges are illustrative. Your actual costs depend on the neighborhood you pick and how you spend, and in most lines they land below comparable cities in North America or Western Europe.

4. Hospitals, schools and banks in Panama

Healthcare system

Panama runs two healthcare tracks. Residents can use the public hospitals of the Caja de Seguro Social, and a broad network of private clinics and hospitals delivers care of recognized quality at moderate prices.

Many physicians speak English, especially in Panama City
Pensioner Visa holders get a 20% discount on medications and professional medical services
Private health insurance costs USD 100-400/month depending on age and coverage
Major hospitals in Panama City include Hospital Punta Pacífica, Hospital Nacional and Hospital Paitilla

Education options

Families with school-age children have these options in Panama:

Public schools are free and teach in Spanish
Bilingual private schools run an English/Spanish curriculum
International schools follow US, British or IB curricula
Tuition at private institutions runs USD 300-1,200+/month

Children of residents enroll without a separate visa. Many expat families pick a bilingual school so the kids settle in while they learn Spanish.

Banking and financial services

Once you're a resident you can open local bank accounts and apply for credit much like a Panamanian citizen. Banks ask for KYC documents (passport, proof of income, reference letters), and residency status shortens that process considerably.

5. Can a foreigner buy a home?

Yes, with rights similar to nationals. The limited exceptions are near national borders (approximately 10km).

What to verify first

Verify the title at the Public Registry (Registro Público) before you pay any deposit
A licensed Panamanian real estate attorney runs the due diligence
The same purchase can count toward the visa requirements for foreign investors (USD 200,000-300,000 depending on the program)
Your primary residence may be exempt from property tax on the first USD 120,000 of value
Budget for closing costs, mainly the transfer tax and legal fees

Where expats settle

Panama City

Punta Pacífica, Costa del Este and Casco Viejo draw the residents who want restaurants and an office nearby. Our own office is in Costa del Este.

Boquete

Boquete is coffee country, with cooler mountain temperatures and an established expat community. Trails start at the edge of town.

Coronado

Coronado is a beach community 1 hour from Panama City with golf and private clubs. Retirees who want the coast tend to land here.

El Valle de Antón

El Valle de Antón is a mountain valley with spring-like weather all year. It's quiet, and the weekend market is the main event.

Panavanti S.A. can shortlist properties that fit your daily life and the visa you're applying for. Our listings are verified, and Shai Bar-Ziv and Alexandro Carnevali Rojas can put you in touch with the immigration and real estate attorneys we work with.

6. What taxes will you pay in Panama?

Only income earned inside Panama pays Panamanian tax. That territorial rule is one of the reasons foreign residents pick the country.

Four tax rules

Territorial taxation means only income generated inside Panama pays Panamanian income tax
Foreign income such as pensions, investments abroad and remote work for non-Panamanian companies is generally not taxed
Local income (rent from Panamanian properties, local salaries and local business profits) is taxable
Property tax on a primary residence may be exempt on the first USD 120,000 of registered value

Capital gains when you sell

A sale carries a 2% transfer tax and a 3% withholding, paid as an advance on income tax. The final capital gains tax is generally 10% of the gain, and the 3% already paid counts as a credit. The exact treatment depends on how the transaction is structured, so confirm it with a tax professional.

If you're a US citizen, you stay subject to US tax obligations wherever you live. Work with an advisor who handles US and Panamanian filings together.

Disclaimer: This section is general information, not tax advice. Your own situation decides what applies. Consult qualified tax professionals in Panama and in your country of residence.

7. Six mistakes we see in relocations

Starting the process without an immigration attorney

Each visa's requirements change, and picking the wrong one costs months and money. The attorney tells you which of the four programs fits before you spend anything.

Assuming the paperwork moves fast

Some processes take 3-6 months. Plan the move around that date instead of counting on a fast approval.

Arriving with documents that aren't apostilled

Your home-country documents have to arrive apostilled. Getting the apostille once you're in Panama is slower and harder.

Buying without checking the title

A property bought without a Public Registry check can come with encumbrances or a defective title.

Ignoring tax planning in your country of origin

Several countries, the US among them, tax their citizens on worldwide income. Panama's territorial system doesn't cancel that obligation.

Moving before you've visited

One trip as a tourist lets you compare Coronado with Costa del Este in person and meet the attorney before you commit.

8. The relocation plan in nine steps

Initial evaluation

Research the visa options that match your profile (investment, pension, nationality). An immigration attorney confirms your eligibility and lays out the plan.

Gather documentation

Get your apostilled criminal record, any marriage or birth certificates and the pension letter if it applies, all issued in your home country. These documents stay valid for 3-6 months.

Exploratory trip (recommended)

Visit Panama as a tourist to see the areas, open a preliminary bank account, meet the attorneys in person and, if you plan to buy, view properties.

Hire specialists

The immigration attorney is required. Add a real estate broker if you're buying, an authorized translator for the documents and a tax advisor if your situation is complex.

Prepare funds

Open a bank account in Panama (several visas require one). Transfer the investment funds if applicable and prepare the paperwork on where the money comes from.

Execute the investment (if applicable)

Close the property purchase or the bank deposit your visa type calls for. Then obtain the certifications that prove the investment.

Submit the application

Your attorney files the case with Immigration. Immigration issues a provisional ID and a multiple-entry visa so you can come and go while it's processed.

Obtain residency and ID

Once approved, pick up the resident card, then get the Panamanian ID (cédula E) at the Electoral Tribunal. The cédula speeds up banking and everyday paperwork.

Settling in and daily life

Find permanent housing and connect the utilities. Then come the driver's license, health insurance and, if you have children, school enrollment.

Path to citizenship

After 5 years of continuous permanent residence (3 years if you're married to a Panamanian or have Panamanian children), you can apply for Panamanian citizenship. Panama asks for basic Spanish, a civic knowledge exam, a clean record and stable economic means. Naturalization then takes an additional 1-2 years.

9. About this guide

About these figures

The figures come from the sources each guide cites and from Panavanti's own listings and deals in Panama.
Ranges are indicative. The same asset class changes between neighborhoods and between years.
This is information. Before you decide, talk to a lawyer and an accountant in Panama.

Panavanti S.A. wrote this guide for foreigners and families weighing a move to Panama. It draws on public sources, official documents and our own work as a brokerage in Costa del Este, Panama City.

Nothing here is legal, tax, immigration or financial advice. Rules and costs change often. Check the current version with a licensed Panamanian immigration attorney, and with a tax advisor or real estate attorney when your case calls for one.

Panavanti S.A. handles the property search and can introduce you to attorneys we've worked with. We don't give legal or tax advice ourselves.

Frequently asked questions

The dollar and the territorial tax rule, mostly. Panama uses the US dollar and taxes only income generated inside the country, so a foreign pension or investment is generally outside Panamanian income tax. Add a warm climate all year and immigration programs built for investors and retirees. The hospitals, schools and banks in Panama City are used to international residents.

Four programs cover most cases: (1) the Friendly Nations Visa, for citizens of approximately 50 countries, with an investment from USD 200,000 or an employment contract; (2) the Qualified Investor Visa, with expedited permanent residence and a real-estate investment from USD 300,000 for a new property or USD 500,000 for a resale, under Executive Decree 17 of 2026; (3) the Pensioner Visa, for retirees with a lifetime pension from USD 1,000/month; and (4) the Private Income Retiree Visa, through a bank deposit. Each program has its own requirements, and an immigration attorney should confirm them before you file.

A budget of USD 2,500-4,000 a month covers rent, utilities, food and transportation for a couple in Panama City. A family with children in an international school needs USD 4,500-7,000 or more. In the interior (Boquete, Coronado, El Valle) rent and utilities run lower, and labor costs less than in North America or Western Europe.

There are two tracks. Public hospitals serve residents, and a broad network of private clinics and hospitals delivers care of recognized quality. Many doctors speak English, especially in Panama City. Pensioner Visa holders get 20% off medications and professional medical services, and local private health insurance costs less than in the North American market.

Yes. Panama City has a wide choice of bilingual and international private schools where classes are in English and Spanish is the second language. Tuition runs between USD 300 and more than USD 1,000 a month depending on the school. Public schools, in Spanish, are there for families who want full local integration.

A clean title comes first. Foreigners buy real estate in Panama with rights similar to nationals, with exceptions near national borders. Check the title at the Public Registry, confirm it's free of encumbrances and work with a local real estate attorney. The same purchase can count toward a visa requirement. Closing costs typically include the transfer tax and legal fees.

Generally, no. Panama runs a territorial tax system and taxes only income generated inside the country. A pension, an investment or remote work for a foreign company is generally outside Panamanian income tax. If you earn local income, such as rent from a Panama property or a salary from a Panamanian company, that part is taxed. Confirm your own case with a tax advisor.

The six we see most: (1) starting the process without an immigration attorney; (2) underestimating processing times, since some procedures take months; (3) not apostilling documents in the country of origin before traveling; (4) choosing a visa that doesn't fit your profile; (5) buying without verifying the property title; and (6) leaving the banking and tax transition for last.

It depends on the visa. The Qualified Investor Visa can grant permanent residence in approximately 30 days, the Pensioner Visa grants it up front with 2-4 months of processing, and the Friendly Nations Visa currently requires a 2-year provisional phase before permanent status. Times move with Immigration's workload and with how well prepared your file is.

Yes, after 5 years of continuous permanent residence you can apply for Panamanian naturalization. You need to show basic Spanish, civic knowledge, good conduct and stable economic means. If you're married to a Panamanian or have Panamanian children, the period may drop to 3 years. The naturalization process itself takes an additional 1-2 years after you apply.

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