Panama Residency for UK Citizens: Routes, Requirements, and Post-Brexit Realities

Introduction: Why Panama Is Back on the British Radar

Sunshine, warm temperatures, tax advantages, and a cosmopolitan ambiance attract expats from different corners of the world. Today, we analyze a specific sector: Panama residency for UK citizens and their options in the country of the canal. We will break down the subject of whether leaving the European Union has changed anything for the British who want to leave the UK for the tropics.

Sunshine Economics: Cost of Living in Panama vs. the UK

Panama is known for many things; one of them is its affordability. While this is not necessarily so for Latin Americans, it is for residents of major Western powers like the UK, the US, France, Germany, and others. Citizens from these backgrounds find more convenient prices here, depending, of course, on the city where they're from. Capitals and large metropolises are known for their high prices, surpassing those in small villages and rural areas. 

Adding up the costs of rent, healthcare, tuition, insurance, and entertainment makes a high number, especially for those in their retirement years. This is why many Britons choose places where they can afford more with the same takings. The golden combination is the UK-generated income, whether drawn from retirement, remote work or dividends, with the lower costs found in Panama.

The following table shows a wide picture of products and services’ costs, both in London and Panama City. Since this information was taken from general research, we strongly encourage the reader to confirm it with verifiable sources. Note that we added another city (also popular among retirees) for the sake of comparison.

Cost of products and services – London – Panama City – Miami

Disclaimer: The information on the table above was taken from openly available sources, yet not derived from official research. Therefore, the prices stipulated on the table may be inaccurate or outdated at the time of reading. The reader is responsible for conducting his or her own research when planning relocation.

Mundo's conclusion on the comparison of costs

The table shows that only a few products are more expensive in Panama. While the cell phone bill can be a bit more costly in the Central American nation, we observe that many services and products, vital for daily living, are considerably cheaper. One must take a look at rent and utilities, and products like beef, to see a significant difference. Moreover, the price gap is larger for Pension Visa Holders (check out the graph below).

Residency Routes Open to Britons

The Friendly Nations Advantage for UK Passport Holders: Still Viable After Brexit

The British have an advantage over other applicants since the UK is on the friendly nations list. Interestingly, this didn't end with Brexit. After leaving the European Union, the UK still belongs to the approximately 50 nations that are considered to have friendly relationships with the Republic of Panama.

This benefit is open through a program called the Friendly Nations Visa, which offers a residency path specifically to citizens from those countries.

Friendly Nations Visa: Employment, Business, or Property Routes

Eligible candidates must demonstrate having financial ties with the country, which can be done through any of the following ways.

Obtaining employment with a local company

Working in a local company gives you a clear financial tie to the country. To apply for the Friendly Nations Visa, you need to be hired full-time through a contract, which must be registered with the Ministry of Labor. In simple terms, this means that you can't be hired as an independent professional, but as a fully-fledged employee.

Obtaining employment by creating your own company

The previous option is challenging because it requires knowing a local company willing to hire a foreigner. It is even more complicated because there is a law that stipulates a maximum percentage of foreign employees a company can have. Luckily, there's the option of registering your own company and hiring yourself. This must include paying yourself a salary and Social Security, plus the typical corporate and legal fees required for registration, renewal, etc. 

More information

Investing in real estate or fixed-term deposits

By investing in real estate or a fixed-term deposit in a local bank with a minimum amount of $200,000, the applicant can meet the financial requirement and proceed with the application.

Pensionado: Panama Retirement Visa for UK Citizens

Pensionado is Panama's retirement visa, and it's the most convenient and advertised path to permanent residency. Since the Qualified Investor option represents an outstanding investment visa, it often overshines a lesser-known but still highly convenient retirement option.

Although the word “retirement” may lead you to thinking otherwise, this program is actually not age-restricted: It is available for anyone who meets the main requirement of having a lifetime pension.

For instance, a UK couple can apply as long as one of them has a lifetime pension of any source, regardless of whether this pension comes from the government or from private sources. The pensioner will be the main applicant and the spouse will be added as dependent. 

Beneficiaries of veteran pensions, disability pensions, or even widower pensions can relocate to Panama through this visa. Besides, they can add their children as dependents (as long as they're younger than 25 years of age), and they can apply for a work permit.

Mundo Expert's recommendation: Many have their sights set on Qualified Investor, yet Pensionado is actually the most cost-effective path to permanent residency. Although it requires a pension, it is not age restricted, and it grants eligibility for permanent residency with several lifestyle benefits for visa holders.

Qualified Investor: The $300,000 Fast Track

In Mundo's view, Qualified Investor's main advantage is its full independence from external eligibility factors. Applicants don't depend on having a work contract, a pension, or nationality to pursue this visa.

The minimum and most popular investment is $300,000 in real estate; however, it's worth noting that it has other entry options. These are often omitted because they are considerably larger, but it's worth noting them as they are part of the program and may be convenient for many. To sum up, the investment requirements are the following: $300,000 in real estate, $500,000 in the stock market, $750,000 in a fixed-term deposit.

Comparison Table: Costs, Residency length, Requirements

The Application Process from the UK

Documents: ACRO Police Certificate, Apostilles, Certified Translations

The applicant must present documents proving his or her identity, relationship with the dependents, the absence of a criminal background, the existence of the pension, if applies, and proof that the source of funds is legit.

Documents may vary depending on each case and each visa, so the following list aims to provide a general idea rather than specific case-by-case information.

• First and second ID (passport and national ID or driver's license)
• Criminal record (clean background)
• Copy of the whole passport
• Birth certificate or marriage certificate to demonstrate relationship with the dependents
• Bank statements proving receiving a monthly pension
• Letter from a company or an entity that declares granting a monthly pension for life
• A certificate stipulating the securities owned by the applicant
• Certificate from the corresponding ministry showing that the applicant owns a real estate property in Panama
• Bank certificate proving that the applicant has made a fixed-term deposit for the right amount and the right time frame

Disclaimer: The information about residency programs presented in this article may be inaccurate or outdated at the time of reading. Before applying for a residency permit, always consult with certified professionals and through formal appointments.

Contact our experts

Working with a Panamanian Lawyer Remotely from Britain

While all residency processes must be conducted by a Panamanian lawyer through a POA, most of the process can be done remotely. This is an advantage for people still based in the UK and with little time for traveling. Physical presence will be required, though, two times along the process: once when submitting the application, and secondly when obtaining the approval letter and resident card. 

Many applicants choose to undergo the whole process while staying in Panama, especially those whose tourist visa allows them to stay for six months. This gives them plenty of time to transition both regarding their migration status and lifestyle adaptations. Such an approach has two advantages: firstly, you can seamlessly go from tourist to resident, and secondly, you will be in town whenever your presence is required at the migration office.

Typical Timeline from First Call to Cedula

We take the Qualified Investor to illustrate a typical residency timeline.

Step 1 – Choose your expert

Give us a call and you'll be assigned an expert to help you through your application. During the first calls, we will discuss your case, issue a quotation, and collect your documents for a preliminary screening and case assessment.

Step 2 – Choose your real estate

This is the part where you make an investment, which can be either in real estate, Panamanian securities, or a local bank. If you choose a real estate option, you'll have to select the property of your choice. At Mundo, we recommend you start this process several weeks in advance, as choosing a property can take longer time. An interesting and convenient fact is that you can apply by investing in pre-construction projects.

Step 3 – Book the unit

Once chosen, the first step is booking the unit. Then the sale process continues as with any usual real estate transaction. The transaction can be completed fully in cash, with a bank loan, or with a down payment in the case of construction or preconstruction deals. 

Important note: the qualified investor program stipulates that the $300,000 are paid in cash and up front, while you can pay the remaining sum through a mortgage or developer installment plans.

Step 4 – Document collection

Step 4 is getting ready for your residency application. The purchase process is totally independent from the migration pathway, but they are closely interconnected. One of the documents you'll need is a registered title deed showing that you own the property. Together with your Mundo expert, you'll collect all the necessary documents to submit to the migration office. Thanks to our in-house lawyer, we help you streamline this collection process and reduce bureaucracy.

Step 5 – Submitting the application

You approach the immigration office with your lawyer to submit all your papers and a set of curated documents.

Step 6 – Waiting period and approval

The processing time varies depending on the case, but it is stipulated to be between three and six months. Once the approval is ready, your expert will notify you. While the approval letter and resident card are given right there at the office, the Panamanian cédula must be applied for separately. Notice that the latter is only for permanent residents.

Conclusion: Is Panama the Right Post-Brexit Base?

In terms of convenience, accessibility, and lifestyle, Panama makes an excellent post-Brexit base for British citizens. They have the opportunity to obtain residency through Friendly Nations or choose Qualified Investor or Pensionado for a direct permanent residency. Overall, Panama constitutes an excellent destination for expats and retirees from all over the world, and offers several opportunities for British visitors, residents, and investors.

How Mundo Experts Assist British Clients

Thanks to our multilingual team, which is widespread across different jurisdictions, we can assist clients from different backgrounds. All of our team members speak English and are more than willing to assist you during your consultations and throughout the process. 

We specialize in second residency, citizenship, and financial services like bank accounts, trusts, and company incorporation. Our scope of services goes beyond Panama to Europe, the Caribbean, the United States, and even Africa, so write to us and tell us about your case.

Contact our team