Choosing your second home: an inspiring story of how I became a resident with the Friendly Nations in Panama

The story of how I arrived in Panama is a very interesting one, but it's even more interesting how I was able to get residency with friendly nations. Traveling to Panama and becoming a resident is an impossible dream for many people, but there's always something that one can do. Here is a true story of an immigrant becoming a permanent resident in Panama. Keep in mind that some requirements and conditions have changed, so make sure to read the whole article and find out the updates on residency with friendly nations.

Why get residency in Panama and why this could be the perfect second home?

Panama is considered a financial hub worldwide but especially for the region. Americans, Colombians, Venezuelans, Argentinians, and people from various nationalities choose Panama as their second home. Why? Because the country boasts a cosmopolitan environment and an approach open to business and innovation.

If you want to get residency in Panama to start your own company, you have plenty of advantages including a territorial tax system and free zones with plenty of incentives. Traveling to Panama is also interesting for tourist purposes. It has beaches both on the Pacific, the Atlantic Ocean, and the Caribbean Sea with unforgettable landscapes in places such as San Blas, Bocas del Toro, and Contadora. Near the border with Costa Rica, you'll find a cooler climate and mountain views in Boquete, where you can also taste the best coffee in the country.

The capital city has everything a modern person needs: advanced real estate, parks, malls with international brands, a developed banking sector, quiet, pedestrian-friendly neighborhoods, and places with rich architecture and high cultural value. Add to this impressive ocean views from the Cinta Costera, Punta Pacifica, and Casco Antiguo, and you've got yourself the perfect place to live or visit. 

For investors, Panama has plenty of options. We're talking about a place with a developed touristic infrastructure with high-end hotel brands, lots of natural beauty, and plenty of entertainment options. 

Residency with friendly nations in Panama

I arrived in Panama one Thursday evening in January 2014. I had previously booked a hotel where I would live for one month until finding a cozier place. At that time, I didn't know that Panama would surprise me with excellent visa options for foreign people. As an Argentinian, traveling to Panama was easy because I didn't need any special requirements to enter the country and I was allowed to stay for six whole months as a tourist. It's worth noting that, a few years later Panama established that foreigners would need to have a certain amount of cash to enter the country, but I didn't need that at the time.

A few months later, I was already renting a room in Via Argentina and was ready to get legal residency in Panama. I consulted with different lawyers. One of them told me that it was possible to get residency if I opened a company in the country, but I declined because I wasn't interested in running my own business.

Luckily, I came across a lawyer that told me about the residency with friendly nations visa, which was a huge game changer for me.

What is the friendly nations visa

Toward the end of the article, I will explain the changes that this visa has suffered, but for now, I will stick to my story. This was when I first heard of the friendly nations, a program that was available for citizens from certain countries. Which are the friendly nations? There are approximately 50 countries on the list including the US, Canada, the European Union members, Costa Rica, Argentina, and Brazil.

Economic ties to the country

So, the first requirement was already met since I am from Argentina. Here I have to admit that I had quite my share of luck because, to get the friendly nations in Panama, I needed to have either my own company or to get hired by one. Luckily, soon I started to work as a teacher at an international school and I received a job contract that met all the requirements (it had to be registered with the Ministry of Labor).

Proof of solvency 

The next step to get residency with friendly nations was to prove that I had economic solvency, in other words, the immigration department required me to deposit $5000 in a local bank account. This money was to stay in the account until the authorities could prove my solvency, and when this was done, I was able to use it again. I also needed a police record, so I got this in the Argentinian embassy, located in the banking district (Calle 50). If you want to get the friendly nations in Panama, you'll also need to get a medical certificate from a local physician stating that you are in perfect health.

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Government fees and national fund deposit 

At the time, I had to pay $500 as a security deposit in case of deportation and $250 as a government fee. However, this had to be paid through cheques (not cash) issued in my name. I went to a branch of the National Bank to create the cheques and they asked me for a Panamanian recommendation, which I didn't have, but right at that moment I saw a coworker, from the school that recently had employed me, coming into the bank, and he helped me right on the spot. 

Multiple exit visa when applying for residency with friendly nations

My lawyer advised me to get a multiple exit and entry visa. According to the migration law at the time, a person who had an ongoing residency in Panama process could not leave the country and, if they did, they had to pay a $2000 fine. Even though I wasn't planning a trip, he advised me to get the multiple exit visa which costs $50. It would save me from paying the fine in case of a family emergency or any other unexpected reason that may have forced me to travel.

Permanent residency in Panama and Panamanian cedula

It's worth noting that once you submit all the papers, you have to regularly check the development of your process. In my case, my lawyer failed to let me know when the decision was finally made by the immigration office, and I went to claim my residency with a delay which cost me a fine. Make sure to hire a reliable lawyer that will be on top of things or else try to follow up yourself. 

Anyway, this story has a happy ending, and I got my permanent residency with friendly nations in only six months. Approximately thirty days after that, the immigration authority issued a document that allowed me to claim and create my Panamanian ID or “cedula”. I was already a happy permanent resident in one of the most beautiful countries in the world.

Friendly nations in Panama: what has changed

Nonetheless, lots of things have happened since 2014, the year in which I got this visa. Now you can't get immediate permanent residency with friendly nations, for that, there's a new program called the Qualified Investor Visa which has a totally different approach. Traveling to Panama and getting friendly nations is still an option but you will get a two-year temporary permit and only after this you will be able to get the permanent one. Now the multiple exit visa is mandatory for every immigration process and still costs $50 without including the legal fees.

Another important change involves the above-mentioned economic ties. While back in 2014 creating a company was enough to prove economic ties, now it isn’t. Through the friendly nations in Panama, you can create a company, but then you have to employ yourself, which entails extra costs as you have to register yourself in the social security system and comply with every labor law. In other words, this option is now more complicated and expensive but it's still viable.

Disclaimer: this article presents general information. For accurate requirements and conditions please consult with a certified professional.

Summary of what is the friendly nations visa and its updates throughout the years

If you're wondering which are the friendly nations exactly, book a consultation with an expert and ask for your specific country. The friendly nations visa is an option available for citizens of a certain list of nations that are considered to be friendly. You can apply by proving that you have economic ties to the country, i.e., if you're employed by a company or if you're legally self-employed by your own corporation, which naturally has to be in Panama. 

Friendly nations in Panama: aspects that remain the same since 2014

• It's still focused on citizens of certain countries
• You still need to prove having ties to the country
• You can still access it if you're legally employed by a local company

Friendly nations in Panama: changes since 2014

• Now applicants can also apply through a bank deposit or a real estate investment
• While before you could apply by owning a local company, now you have to legally employ yourself
• The multiple exit visa is now mandatory
• Now residency with friendly nations doesn't grant an immediate permanent status anymore. You get a 2-year permit after which you can renew your visa and change your status into a permanent one.

If you have any questions, Mundo’s team has experts and lawyers who specialize in Panama visas and other services in this country and across the world. Don't miss your chance to get residency in Panama in 2023.

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