Panamanian government passed the Executive Decree 197 of May 7th 2021, which changes the requirements for the Friendly Nations residency program, as follows:

Since August 5th, 2021, Panama’s Friendly Nations residency program will NOT grant permanent residence immediately. Instead, the applicants will be granted a two-year temporary residency permit, and then may apply for permanent residency.

In addition, the economic activity requirement is now limited to two options:

1. Be employed in Panama by a legal Panama Corporation with a formal labor contract and a work permit.
2. Purchase a real estate property under personal name with a minimum value of USD 200,000.00 The government allows that property under bank financing can apply.

Option 1: Requirements

1. The applicant must submit a letter from the company with the company letterhead. This letter must certify the position, salary, the responsibility to pay the repatriation expenses if was the case.
2. Certificate of the Public Registry of the employer.
3. Notice of operation of the employer. If the company is not obliged to have an operation notice, the company must submit the justification of non-notice of operation under Article 4 of Law 5 of 2017.

Option 2: Requirements

1. Certification of the Public Registry of the property. The ownership must be personal, and the recorded value should be USD 200,000.00. Even if a local bank lends the money to the applicant to buy the property, the applicant is still qualified.

Application submitted before August 5th, 2021:

Those who already submitted their applications for residency under the Friendly Nations program and are in process or submit their applications before August 5th, 2021, will enter under the previous Friendly Nations law requirements. Nonetheless, those who have not applied by August 5th, 2021, will be required to comply with the new requirements.