One of Panama's most compelling advantages for US investors: real estate purchases can create clear pathways to permanent residency and eventual citizenship. For Americans seeking geographic optionality, this dual benefit, investment returns plus residency rights, makes Panama particularly attractive.
The $300,000 Real Estate Investment Visa
Panama's most straightforward residency path for real estate investors:
Investment Requirement: Purchase $300,000 or more in Panama real estate (can be single property or multiple properties totaling $300K+)
What You Get:
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Permanent residency status (not temporary visa requiring renewals)
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Right to live and work in Panama indefinitely
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Access to Panama's healthcare system on equal footing with citizens
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Ability to open local bank accounts and establish business presence
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Path to citizenship after five years of residency
Process Timeline:
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Initial application: 6-9 months typical processing
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Required visits: Multiple trips for appointments, document submission, final approval
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Legal costs: $5,000-$8,000 in attorney fees and government charges (separate from property investment)
Key Requirements:
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Clean criminal background check from home country
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Health certification from Panamanian physician
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Economic solvency demonstration (property investment satisfies this)
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Personal appearance requirements during process
The Pensionado (Retiree) Visa
Panama's famous retiree visa offers excellent benefits:
Requirements:
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Minimum $1,000 monthly pension or Social Security income (verifiable from government or corporate pension)
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No minimum age requirement despite "retiree" name
Benefits:
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Permanent residency
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Extensive discount program (25% off restaurant bills, 50% off entertainment, 25% off airline tickets, medical discounts)
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Lowest cost residency option
Who This Fits: Retirees with qualifying pension income, or younger investors with pension access
Residency vs. Citizenship
Important distinction:
Permanent Residency:
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Right to live and work in Panama indefinitely
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No requirement to actually reside in Panama full-time
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Must visit at least every two years to maintain status
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Access to services, healthcare, banking as resident
Citizenship (After 5 Years):
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Available after five years of permanent residency status
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Requires demonstrating basic Spanish proficiency
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Provides Panama passport and full citizenship rights
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Dual citizenship allowed, no need to renounce US citizenship
Why Residency Matters for Investors
Even if you're not planning immediate relocation, permanent residency offers value:
Banking Access: Local bank accounts facilitate property management, rental income collection, and expense payments. International banking regulations make non-resident accounts increasingly difficult.
Healthcare Continuity: Residency enables building relationships with primary care physicians and specialists, impossible as tourist with temporary visits.
Tax Planning: Panama's territorial tax system (only Panamanian-source income taxed) provides interesting structures for certain business arrangements. Consult qualified tax advisors for specific situations.
Optionality Value: Having permanent residency elsewhere provides an insurance policy. If US conditions deteriorate, for economic, political, or personal reasons, you have somewhere to go without scrambling through visa applications during a crisis.
Property Management: Being able to stay in Panama for extended periods facilitates property oversight, renovation projects, and tenant issues requiring in-person attention.
The Real Estate Connection
For investors, combining property purchase with residency qualification makes financial sense:
Dual Purpose Investment: Property serves as rental income generator while also qualifying for residency, single investment achieving two goals.
Pathway Timing: You can begin the residency process before property fully closes. The attorney establishes an application using a purchase contract, then updates with title upon closing.
Multiple Properties: $300K threshold can combine multiple properties: $150K Panama City apartment plus $150K beach condo both count toward requirement.
Rental During Process: Property generates rental income while residency processes. No requirement to personally occupy property.
Common Questions
Do I have to live in Panama?
No. Permanent residency requires only visiting at least once every two years to maintain status. You can live anywhere while maintaining legal residency.
What about taxes?
US citizens remain subject to US income tax regardless of residence. Panama's territorial tax system means you're not taxed on foreign-source income in Panama. Consult both US and Panama tax advisors.
Can my family get residency?
Yes. Spouse and dependent children included in application. Each adult over 18 needs a separate qualifying path.
How much time in Panama is required?
The residency process requires multiple trips: initial submission, follow-up appointments, final approval. Working with a quality attorney minimizes required time and coordinates trips efficiently.
What if I sell the property?
Once residency is granted, selling the qualifying property doesn't affect your status. Residency is permanent.
CHORD's Residency Support
CHORD's Panama attorney network specializes in investor residency applications:
Clear Process: Attorneys provide timeline expectations, required documents list, and coordinate your trips for maximum efficiency.
English Communication: All attorneys in CHORD's network are fluent English speakers who regularly work with US investors.
Realistic Expectations: No promises of 60-day approvals or unrealistic timelines. You'll get an honest assessment of timeline and process.
Ongoing Support: Attorney relationships continue past initial residency, available for renewals, upgrades to citizenship, and other legal needs.
The Strategic Advantage
For American investors, Panama's combination of accessible residency pathways and solid real estate fundamentals creates unique opportunities. You're not choosing between investment returns and geographic optionality, you're getting both.
Whether you're actively planning relocation or simply value having options, understanding Panama's residency landscape helps inform investment decisions. A $300K property purchase becomes more attractive when it also provides permanent residency rights and eventual citizenship path.
Learn more about Panama residency and investment
Invest Panama Summit | May 28-30, 2026
[email protected] | 615.988.1001
