Last updated October 13, 2026

Quick summary

Americans have three main ways to live in Panama. The Friendly Nations Visa is a path to residency for people who buy property, make a bank deposit or take a local job. The Pensionado Visa is for people with a lifetime pension. The Short Stay Remote Worker Visa is for people who work remotely for a company outside Panama. The government requirement sheets call for a notarized power of attorney, so applications are usually filed through a Panamanian lawyer. Amounts in balboas (B/.) equal US dollars.

• Friendly Nations Visa. Two-year provisional residency, then permanent residency. The immigration service’s friendly-countries sheet lists $200,000 of titled Panamanian real estate, a $200,000 fixed-term bank deposit held for 3 years, or a job with a Panamanian company. Its current permit list does not name this category, so confirm it with the agency.
• Pensionado Visa. A lifetime pension of at least $1,000 a month, or $750 a month if you own Panamanian property worth more than $100,000. Add $250 a month for each dependent. The permit is indefinite, per the immigration service.
• Short Stay Remote Worker Visa. At least $36,000 a year from a foreign source, for 9 months, extendable once for the same period, per the immigration service.
• US dollar economy. Panama uses the US dollar, so you avoid exchange rate swings on everyday spending.
• Territorial taxes. Panama generally taxes only income earned inside Panama, but you still file US taxes as a citizen.
• Long game. Naturalization has its own requirements sheet at the immigration service, which we could not open.

Why Americans are moving to Panama

Panama pairs a dollar-based economy with modern infrastructure, tropical coastlines on two oceans and some of the most flexible residency programs in the region.

• The US dollar. Prices, bank accounts and ATMs all work in dollars.
• Residency options. There are routes for investors, retirees, workers and remote workers.
• Pensionado discounts. Retirees on the pension visa are commonly listed as getting discounts on healthcare, travel and more. Ask the authorities for the current list.
• Variety. A big modern capital, a colonial old town, cool mountain towns and Caribbean and Pacific beaches are all in one small country.
• Travel. Panama City has one of Latin America’s busiest air hubs, with direct flights to many US cities.
• Low taxes on foreign income. Panama’s tax agency pages were not readable by us. Non-government guides say foreign-sourced income is generally not taxed by Panama, so confirm it with an adviser.

Visa options

Pick the route that matches how you earn money and how long you want to stay. The Pensionado permit is indefinite and the Friendly Nations route starts with a 2-year permit. The remote worker visa is a short stay. The requirements below come from the immigration service’s own sheets.

The requirements and government fees above come from the immigration service’s permit sheets. The timelines come from law firms. The Friendly Nations figures come from an undated sheet, “Países específicos”, and the agency’s current list does not name that category, so confirm it before you commit money to an investment. Rules and fees change.

Things to know

• Check which deposit route applies. The immigration service sheets list $200,000 (friendly countries) and $300,000 (general routes, deposit and real estate). Older guides online still list a $5,000 route that does not appear on the current list.
• Get a lawyer. Every sheet we read starts with a notarized power of attorney naming your parents’ names and nationalities, which is why a lawyer usually files. Ask for a flat fee in writing.
• Real estate must be titled and free of liens. The general real estate sheet says the property must be in your name and a Public Registry certificate must show no liens. A mortgage balance is allowed only after you have paid the minimum amount in cash.
• The deposit must stay put. The $200,000 deposit has to remain unencumbered in a general-license Panamanian bank for 3 years.
• Remote work means foreign clients. The remote worker visa requires you to declare that you will not work for Panamanian clients.
• Keep your status. Ask the immigration service what entry or presence rules apply to your permit.
• Pensions must be lifetime. The sheet says the pension must be granted for life. A private pension also needs letters from the fund manager and proof the pension company is in good standing.

How to apply, step by step

The steps below follow the immigration service’s own requirement sheets. First, match your situation to the Friendly Nations, Pensionado or remote worker route.

1. Pick your route and read its sheet. The immigration service permit list links each sheet: Pensionado, remote worker, $300,000 deposit and $300,000 real estate. The friendly-countries sheet covers the $200,000 routes.
2. Hire a Panamanian lawyer. Each sheet requires a notarized power of attorney that lists your parents’ names and nationalities. Ask for a flat fee in writing.
3. Gather the base documents. Application form, 3 photographs, a certified copy of your passport (notarized or authenticated), a criminal background certificate, a health certificate and the sworn personal background declaration form.
4. Add proof for your route. Pension: a certification from the pension source showing at least $1,000 a month for life. Deposit or real estate: a bank certification or Public Registry certificate. Remote worker: foreign company letter, proof of foreign income, health insurance with coverage in Panama and a sworn declaration that you will not accept work in Panama.
5. Apostille and translate. The Panama Embassy says a document with an apostille needs no extra consulate authentication, and consulate authentication costs $30 per document (see the Embassy legalization page). Get US apostilles from the State Department or your Secretary of State. Documents must be in Spanish or officially translated.
6. Pay the government fees. Provisional permits on the friendly-countries and $300,000 sheets list a $250 certified check to the National Treasury and an $800 certified check to the Migration Service. The remote worker visa lists $250 plus a $50 card. The Pensionado sheet lists no fee.
7. Your lawyer files. The sheets say the provisional permit lasts 2 years. The Pensionado permit is indefinite. The remote worker visa lasts 9 months and can be extended once.
8. Convert to permanent residency. For the provisional routes, apply with the same documents except the criminal record certificate and the checks. The remote worker visa is a short stay.

The remote worker sheet also asks for a certificate that the foreign company exists, a company letter on letterhead stating at least $3,000 a month, and proof of the income by bank certification or statement. Self-employed workers provide a certificate for their own foreign company and a sworn description of clients. Law firms quote about 40 business days for processing.

Cost of living in Panama

A single person living comfortably in a smaller Panamanian city or town can expect to spend about $1,870 a month, and a couple about $2,710. These are our own estimates, built from several published sources, in US dollars for a comfortable (not luxury) lifestyle. Real costs vary with location and habits.

Living in Panama City raises rent, bringing the estimate to about $2,220 for a single person and $3,110 for a couple. Use our cost of living calculator to compare scenarios across all 12 countries.

Sources consulted: Wise, Expatistan and International Living cost-of-living pages, combined with our own calculations. Figures are estimates, subject to change, and exchange rates are approximate.

Healthcare

Medicare does not cover you in Panama, and the State Department says private hospitals require payment up front, costs can exceed $10,000 and medical evacuation insurance is strongly recommended. Most Americans rely on private insurance and private hospitals. The details below come from a non-government guide, so confirm costs with insurers and the authorities.

• Private hospitals and clinics. Panama City has well-regarded private hospitals, including Pacífica Salud Hospital Punta Pacífica, which is affiliated with Johns Hopkins Medicine. Other private options include Hospital Nacional, Centro Médico Paitilla and Hospital San Fernando.
• Typical private visit costs in Panama City. A general practitioner visit is commonly about $30 to $60 and a specialist about $50 to $120. An emergency room visit is often $100 to $300 or more.
• Private insurance. Insurers include ASSA, Mapfre, Bupa and others. Premiums depend heavily on age and coverage, so get several quotes and read the exclusions. The remote worker visa requires a policy that covers you in Panama.
• Public system. The social security system (CSS) covers people who contribute to it, and the health ministry runs public clinics, with waiting times that vary by location. Ask whether you qualify before relying on either.
• Pensionado discounts. Pension visa holders are commonly listed as getting discounts on private care. The immigration service sheet does not list them, so ask the authorities for the current list.
• Pre-existing conditions. Private insurers may apply exclusions or waiting periods, so check terms before you buy.
• Language. English-speaking doctors are common in Panama City and expat areas, and harder to find in smaller towns.

Hospital and cost details adapted from Panama Home Realty, which is marketing content. See also the CDC Panama travel page.

Taxes for Americans in Panama

Moving to Panama does not end your US tax obligations, and you may owe Panamanian tax on income earned there. This section is general information, not tax advice, so speak to an adviser who handles US and Panamanian taxes before you go.

On the US side

• You still file. US citizens are taxed on worldwide income and file a return wherever they live, according to the IRS.
• Extra time. Americans living overseas get an automatic 2-month extension, which moves the usual April 15 due date to June 15. Interest still runs on tax owed after April.
• Relief exists, but only if you file. The foreign earned income exclusion and the foreign tax credit can reduce what you owe, and you can claim them only by filing the right US return.
• Foreign account reporting. If your foreign accounts together exceeded $10,000 at any point in the year, you must file an FBAR (FinCEN Form 114) electronically by April 15, with an automatic extension to October 15, per the IRS FBAR page.

On the Panamanian side

The points below come from non-government guides. Panama’s tax agency is the Dirección General de Ingresos, whose pages we could not read, so confirm them there or with an adviser.

• Territorial system. Panama generally taxes only income from activities performed inside Panama. Foreign-sourced income such as a remote salary from a non-Panamanian employer, US Social Security, pensions and overseas investment income is generally exempt.
• Rates on Panamanian income. Residents pay 0% on the first $11,000, 15% on income from $11,001 to $50,000, and $5,850 plus 25% above $50,000.
• Tax residency. You are generally a Panamanian tax resident if you spend more than 183 days in the country in a calendar year, and a permanent home or center of economic interests can also count.
• Property tax. Properties valued under about $120,000 are generally exempt. Higher values are taxed at about 0.5% a year up to $700,000 and about 0.7% above that.
• Selling property. Capital gains on property are generally taxed at 10%, with 3% withheld at closing as an advance payment.
• Sales tax. The ITBMS, Panama’s VAT, is 7% on most goods and services.
• No treaty. The US and Panama have no income tax treaty and no totalization agreement, which matters mainly if you earn money in Panama.
• Panamanian companies. A US person who owns more than 10% of a Panamanian corporation may have to file additional US forms such as Form 5471, with penalties for missing it.

Panamanian-side summary adapted from Greenback Tax Services: Panama expat taxes, a general guide and not professional advice. Rules and rates change, so confirm current figures.

Where to live

Your visa lets you live anywhere in Panama, so choose by budget, climate and lifestyle.

• Panama City. The capital has modern high-rises, restaurants, hospitals and an international airport, with the highest rents in the country.
• Casco Viejo. A restored colonial old town with cafes and historic buildings, popular with expats and visitors.
• Boquete and the Chiriquí highlands. A cooler mountain area with a long-established expat and retiree community.
• Pacific beach towns. Coastal communities west of Panama City offer beaches within driving distance of the capital.
• Bocas del Toro and the Caribbean coast. Island life with a laid-back feel and fewer services.
• The Azuero Peninsula. Quieter coastal and interior towns with traditional culture and lower costs.

Common mistakes to avoid

Most problems come from paperwork, the investment and choosing advisers.

• Following outdated guides. Older guides list a $5,000 deposit route that does not appear on the immigration service’s current permit list.
• Buying property you cannot qualify with. The sheet says the property must be in your name, free of liens and worth the minimum amount.
• Locking in a deposit before you are ready. The $200,000 deposit has to stay put for 3 years.
• Skipping a lawyer. Filings go through a Panamanian immigration attorney.
• Assuming residency lets you work. The employment route needs a separate work permit.
• Misreading the pension rule. The Pensionado Visa needs a guaranteed lifetime pension, not just savings.
• Working for local clients on the remote worker visa. You must declare that you will not.
• Ignoring presence rules. Ask the immigration service what entry or presence rules apply to your permit.
• Ignoring Panamanian tax residency. Over 183 days can make you a tax resident, even with foreign income.
• Forgetting US filing. Panama taxes little foreign income, but you still file with the IRS.

Permanent residency and citizenship

Panama has a clear path from provisional residency to permanent residency. The rules can change, so confirm them with Panamanian authorities when you approach each stage.

1. Provisional residency. The Friendly Nations Visa starts with a 2-year provisional card.
2. Permanent residency. You apply after the provisional period while the original conditions still apply. The Pensionado Visa grants permanent residence from approval.
3. Staying in status. Ask the immigration service what entry or presence rules apply to your permit.
4. Citizenship. The immigration service publishes naturalization requirements (PDF), which we could not open. Check it for the current residence period and tests, and ask an immigration lawyer about dual citizenship.

Frequently asked questions

Can I work in Panama on the Friendly Nations Visa?

Not automatically. The employment route needs a separate work permit from the labor ministry, so ask your lawyer what applies to your route.

Can I get residency with $200,000?

The immigration service’s friendly-countries sheet lists $200,000 in titled real estate or a $200,000 fixed-term deposit held for 3 years. Its current general routes list $300,000. Confirm which applies to your nationality.

Do I need to be in Panama to apply?

The sheets we read call for a notarized power of attorney, which lets a lawyer file for you. Ask whether your route needs you in Panama.

Does Medicare cover me in Panama?

No. Most expats use private insurance and private hospitals.

How long does the process take?

Firms commonly quote about 4 to 6 months for the provisional Friendly Nations card, and about 40 business days for the remote worker visa.

Can I bring my family?

Yes. The sheets list dependents, who add requirements: $250 a month on the Pensionado visa, $100 a month on the friendly-countries route and $2,000 on the $300,000 routes.

Do I need to speak Spanish?

Not for the visa, but daily life, paperwork and smaller towns are much easier with it.

Will I pay tax in both countries?

Panama taxes mainly income earned in Panama, but the US taxes citizens on worldwide income. Plan with a cross-border tax adviser before you move.

Sources and last updated

Last updated October 13, 2026. This guide draws on Panamanian and US government pages. Visa rules, fees and thresholds change often, so confirm every figure with Panama’s immigration service before you apply. Where this guide says something could not be confirmed or is unclear, consult and verify it with the immigration authorities before making any major decision, such as signing a lease, buying property, moving money or booking a move. This guide is general information, not legal or tax advice.

• Servicio Nacional de Migración: permit list and requirement sheets
• Immigration service: Jubilado pensionado sheet (PDF)
• Immigration service: remote worker short-stay sheet (PDF)
• Immigration service: friendly countries sheet (PDF, undated)
• Immigration service: fixed-term deposit sheet (PDF)
• Immigration service: real estate sheet (PDF)
• Immigration service: Rentista retirado sheet (PDF)
• Immigration service: frequently asked questions
• Embassy of Panama in Washington: legalization of documents
• US State Department: Panama
• Greenback Tax Services (non-government, used for the Panamanian tax summary only)
• Panama Home Realty (non-government, used for healthcare costs only)
• IRS: U.S. citizens and resident aliens abroad
• IRS: Report of Foreign Bank and Financial Accounts (FBAR)