Panama Friendly Nations Visa

Panama's Friendly Nations Visa is one of the most popular residency programs for international entrepreneurs. It offers a straightforward path to permanent residency in a territorial taxation country.

Overview

Feature	Details
Type	Permanent residency
Timeline	3-6 months
Investment	~$5,000 bank deposit + fees
Tax system	Territorial (foreign income not taxed)
Path to citizenship	5 years
Qualifying countries	~50 countries (includes US, UK, EU, Canada)

Why Panama?

Territorial Taxation

Panama only taxes income earned within Panama. Foreign-source income—including your US LLC income from international clients—is not subject to Panamanian tax.

Dollar Economy

Panama uses the US dollar as its official currency, eliminating currency risk and making business easier for US-based entrepreneurs.

Strategic Location

Panama is in a convenient time zone for working with both US and European clients, with good flight connections to major cities.

Quality of Life

Panama City offers modern infrastructure, international schools, quality healthcare, and a large expat community.

Requirements

To qualify for the Friendly Nations Visa, you need:

1. Eligible Nationality

Your country must be on Panama's "Friendly Nations" list. This includes:

• United States
• United Kingdom
• Canada
• Australia
• Most EU countries
• And about 40 more

2. Economic Tie to Panama

You need one of the following:

• Employment with a Panamanian company, OR
• Panamanian corporation (most common for entrepreneurs), OR
• Real estate investment of at least $200,000

For most entrepreneurs, forming a Panamanian corporation (S.A.) is the simplest option. You can own the corporation 100%.

3. Bank Account

Open a Panamanian bank account with a minimum deposit of approximately $5,000.

4. Police Clearance

Criminal background check from your home country (apostilled).

The Process

1. Gather documents — Passport, police clearance, birth certificate (all apostilled)
2. Form Panamanian corporation — Done through a local lawyer
3. Open bank account — Requires in-person visit
4. Submit application — Through immigration lawyer
5. Receive temporary permit — Usually 3-4 weeks
6. Receive permanent card — 3-6 months total

Costs

Item	Approximate Cost
Immigration lawyer	$2,000-4,000
Corporation formation	$1,500-2,500
Government fees	$800-1,200
Bank deposit	$5,000 (yours to keep)
Total	$9,000-13,000

Plus ongoing costs:

• Corporation maintenance: ~$600-800/year
• Registered agent: ~$300/year

Living in Panama

Cost of Living

• Panama City: $1,500-3,000/month (comfortable lifestyle)
• Interior: $800-1,500/month (smaller towns)
• Rent: $800-2,000/month for a nice apartment in the city

Climate

Tropical—hot and humid year-round. Rainy season from May to November.

Healthcare

Good quality private healthcare at reasonable prices. Many doctors trained in the US.

Internet

Reliable high-speed internet available in Panama City and major towns.

Path to Citizenship

After 5 years of permanent residency, you can apply for Panamanian citizenship. Panama allows dual citizenship for most nationalities.

Panamanian passport provides visa-free access to 140+ countries.

Pros & Cons

Pros:

Cons:

Our Recommendation

Panama's Friendly Nations Visa is an excellent option for US LLC owners who want:

• Territorial taxation (foreign income tax-free)
• US dollar economy
• Straightforward process
• Good infrastructure
• Path to citizenshi
• Requires Panamanian corporation (ongoing costs)
• Must visit in person for bank account
• Hot, humid climate not for everyone
• Spanish helpful (though English widely spoken in business)
• Tax-free treatment of foreign income
• A stable, dollar-based economy
• A comfortable lifestyle in a modern city
• A path to citizenshi

It pairs well with a Wyoming LLC structure—your US business income isn't taxed in the US (assuming no US-source income), and it's not taxed in Panama either.

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