In 2025, Panama remains a strategic and appealing destination for expatriates seeking residency, business opportunities, or a peaceful retirement lifestyle. However, important changes to its immigration system have come into effect, introducing new rules, refining visa categories, and increasing compliance requirements. This article outlines the most relevant reforms expats should be aware of, particularly if they plan to relocate, invest, or work in Panama.
Overview of Panama’s Immigration Reforms in 2025
As of January 2025, Executive Decree No. 15 of 2025 restructured key aspects of Panama’s immigration policies. The new measures aim to balance economic interests with national security and administrative efficiency. By redefining eligibility requirements and creating new visa options, the government seeks to attract qualified professionals and serious investors, while reducing misuse of short-term or inactive visa holders.
Key Changes to Residency Visas in Panama
1. Friendly Nations Visa: Narrowed Eligibility
The once-popular Friendly Nations Visa has undergone substantial reform. While it still exists, it now applies only to a reduced list of countries with which Panama maintains close diplomatic or economic relations. Additionally, applicants must now demonstrate substantial economic ties to Panama—such as owning an actively operating business, signing an employment contract with a Panamanian company, or acquiring real estate valued above $150,000.
This shift eliminates the possibility of securing residency through passive bank deposits or shell corporations, ensuring only individuals with legitimate connections to Panama qualify.
2. Digital Nomad Visa Extension
The Remote Worker Visa, commonly known as the Digital Nomad Visa, has been extended from 9 to 24 months, offering greater stability for foreign professionals who work online for companies based abroad. To qualify, applicants must present:
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A valid employment or service contract with a foreign company.
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Proof of a stable monthly income of $3,000 or more.
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Valid international medical insurance that covers Panama.
While this visa does not lead directly to permanent residency, it can help digital nomads establish ties that may open doors to other migration options, including business and investment pathways.
3. Economic Contribution Visa (New)
This newly created visa provides a legal route for foreign individuals contributing directly to Panama’s economy. Eligible contributions include founding a tech startup, investing in national infrastructure projects, or donating to government-supported social programs. The minimum qualifying threshold is $200,000, either through direct capital investment or official financial contribution.
The visa is part of Panama’s broader strategy to attract international capital, innovation, and sustainable development partnerships. It’s ideal for investors seeking long-term residency and active participation in the country’s economic growth.
Work Permits and Professional Licenses
Foreigners who intend to work in Panama must now follow updated regulations enforced by MITRADEL (Ministry of Labor). Key requirements include:
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Possession of legal residency or proof of pre-approved visa status.
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Mandatory registration in the newly established National Foreign Professional Registry (NFPR).
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Submission of background checks issued by their country of origin, duly apostilled and translated into Spanish.
Professionals in regulated fields such as law, architecture, education, and medicine must also comply with licensing requirements of Panamanian regulatory bodies. These changes aim to ensure professional standards and protect local labor markets, while still allowing highly qualified foreigners to contribute.
Temporary Residency & Real Estate Investors
To promote real estate and tourism development, Panama now offers a two-year temporary residency visa to foreigners who purchase property valued at $300,000 or more. This visa is renewable and may convert to permanent residency after three years of legal stay.
This measure particularly favors retirees, remote workers, and families who prefer to establish long-term roots in the country while benefiting from Panama’s tax advantages and high living standards. Applicants must also show clean criminal records and the lawful origin of investment funds.
International Treaties and Bilateral Agreements
Panama maintains special migration privileges with selected nations under bilateral treaties, which are unaffected by the 2025 reforms. These include:
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Italy: Citizens benefit from the Treaty of Friendship, Commerce, and Navigation, granting residency and business rights with minimal requirements.
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Spain: Spanish nationals have access to simplified residency processes through historical and cultural agreements.
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United States: U.S. citizens may qualify for various special work and investment permits depending on treaty-based business activities.
These agreements often offer faster processing times, fewer financial requirements, and other legal advantages compared to standard visa routes.
Increased Compliance and Anti-Fraud Measures
Panama has upgraded its internal immigration systems to minimize document fraud and identity manipulation. Notable updates include:
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Mandatory apostille and certified Spanish translation for all foreign documents.
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Introduction of biometric verification at immigration offices and border checkpoints.
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Implementation of stricter data sharing with Interpol and other international security agencies.
Violating immigration laws—such as presenting false documents or misrepresenting economic status—can lead to immediate visa revocation, deportation, and a permanent blacklist status in Panama.
How Can a Legal Professional Help?
Panama’s evolving legal landscape requires expert navigation to ensure success. A certified Panamanian immigration lawyer can:
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Evaluate your personal and financial eligibility.
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Draft and review supporting documentation in compliance with legal standards.
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Liaise directly with Servicio Nacional de Migración, MITRADEL, and public notaries.
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Represent your interests in case of application delays, rejections, or appeals.
Given the legal implications and long-term consequences of immigration errors, professional guidance is more valuable than ever in 2025.
Get Legal Assistance from Julisa Jaramillo
Whether you’re an entrepreneur, retiree, or digital nomad, Lic. Julisa Jaramillo offers comprehensive legal support for all types of immigration procedures in Panama. With years of experience in migration law, real estate, corporate structures, and labor compliance, she ensures your case is handled professionally and transparently.
Schedule a consultation today and get clarity, confidence, and compliance throughout your Panamanian immigration journey.
Final Thoughts
Panama’s 2025 migration law reforms represent a significant shift toward a more selective, but also more sustainable immigration policy. With better tools to filter applicants and attract high-value talent, the country is positioning itself as a regional leader in smart migration governance.
For expats, this means higher standards—but also clearer paths—toward legal, secure, and productive integration into Panamanian society. With proper legal advice, your dream of living or working in Panama remains entirely possible.
