Panama: the Friendly Nations visa remains a safe bet

Panama grants residency to nationals of a list of states with which it maintains privileged diplomatic and economic relations, France among them. This regime is separate from the ordinary categories.

It rests on proof of economic means, shown in particular by a bank deposit or an investment of $200,000¹, or by a professional link with a Panamanian entity.

Panama's central appeal remains its strict territorial taxation: only Panamanian-source income falls within the tax base. Foreign-source income is not taxed there, even when received by a resident.

This rule is long-standing and consistent. It explains the presence of the banking centre, the ship registry and service companies, and it remains the main reason retirees and remote workers settle there.

We do not publish the exact list of eligible states, the detailed conditions of the regime, or the procedure for moving to permanent residency: they do not appear in full in the official sources we were able to verify. They must be confirmed with the National Migration Service.

Panama has long been presented as the fastest and most discreet residency in the Americas. The first quality has faded; the second has disappeared.

The country has been subject to sustained international monitoring on tax transparency and anti-money laundering. As a result, the compliance obligations placed on local banks have been considerably tightened.

Opening a Panamanian bank account is now a long, heavily documented process, with requirements comparable to those of a European bank, sometimes stricter. Yet the regime specifically requires a bank deposit.

This is where applicants are most often poorly prepared: they size their project around the required amount without anticipating the time and documents needed to open the account that will receive it.

Civil status documents and criminal record certificates must also be apostilled and translated, a step to be started in France whose lead time adds to the processing time.

One last factor sets Panama apart from its neighbours and works in its favour: the US dollar circulates as currency, which removes exchange-rate risk for a dollar-denominated budget and makes prices immediately readable for an international investor.

The permanent residence permit as a retiree is open to people with a monthly pension of at least from $1,000², one of the lowest thresholds in the world for a scheme of this kind.

It comes with a set of statutory discounts — transport, healthcare, entertainment, certain services — which are a tangible benefit, separate from taxation, and rarely quantified in comparisons.

Finally, there is a real estate investment route, open from about $200,000³.

The Panamanian passport gives visa-free access to about 142⁴ destinations, which brings no mobility gain to a European national.

1. Territorial taxation protects the source of income, not the person: an activity carried out from Panama calls for its own analysis.
2. The regime requires a local bank account, which takes time and paperwork to open.
3. Apostilled civil status documents are prepared in France, before departure.
4. For a purchase, check the nature of the right: registered title or untitled possessory rights.
5. Handle the departure from France according to its own criteria: Panamanian territorial taxation settles nothing on that side.

In principle, Panama remains one of the most accessible ways for a French national to settle outside Europe, and its territorial taxation is solid because it is built into its economic model. What has changed is how you get in: transparency is now the rule, and an application is built as it is elsewhere, with documents and time.