Panama
Territorial tax, a friendly-nations door, a retiree favourite.
How we stand behind this
- Effective
- 2026
- Last verified
- 2026-07-23
- Source
- Rio Times, Tax Residency in Panama: The 183-Day Rule 2026
- Confidence
- High confidence
This block carries its source and dates above. Rules change constantly; the verification record is how you judge whether to rely on it, or take it to a professional.
The 15-second snapshot
- You can visit
- Yes, up to 180 days
- You can stay long term
- Yes, Friendly Nations & pensionado
- Remote-work routes
- 1 route
- Bring dependants
- Yes
- Open a local bank account
- Possible, due-diligence heavy
- Likely tax resident after
- 183 days
- Citizenship pathway
- Moderate, ~5 years
The sourced facts
Checked Jul 2026- Entry2026 · High confidence
US and Canadian citizens get up to 180 days visa-free (most others 90); residency via Friendly Nations Visa or Pensionado 180-day stay for US/Canada per Resolution 22706 (2021). Pensionado needs a lifetime pension of at least USD 1,000/month.
Kraemer & Kraemer, Panama Tourist Visa - Tax residence2026 · High confidence
Territorial system: foreign-source income never taxed; tax residency at 183+ days or a centre of vital interests, but even residents pay no tax on foreign income Holding a residency visa does not by itself create tax residency.
Rio Times, Tax Residency in Panama: The 183-Day Rule 2026 - Citizenship2026 · High confidence
Naturalisation after 5 years of permanent residency (3 years if married to a Panamanian or with Panamanian children); Spanish and civics tests required
Kraemer & Kraemer, Panama Citizenship by Naturalization - Income tax2026 · High confidence
Territorial: foreign-source income exempt; Panama-source income taxed progressively (0/15/25% bands)
Golden Harbors, Panama Taxes 2026
Researched from public sources on the dates shown. Rules change; this is a planning layer, not legal or tax advice, and not a substitute for a professional before you act.
Cost of living and residency
- Live, single (per month)
- $2.0k
- Live, family of four
- $4.8k / mo
- Main residency route
- Friendly Nations Visa
- Investment needed
- $200k
- Government fee
- $1.1k
Economic-solvency route: 200,000 USD fixed deposit in a general-license Panama bank for 3 years, OR 200,000 USD property, OR local employment. Govt fees ~1,050 USD plus ~3,500-5,500 USD legal. Leads to permanent residency.
Cost source: Numbeo (Panama City, Jun 2026)Residency source: expatden / paralelaw Panama FNV 2026
Enter
Getting inAs a visitor you can typically spend 180 days in Panama per entry. Staying longer than that means one of the routes under Stay.
- Visa-free stay
- 180 days per entry
- On arrival
- Yes, up to 180 days
Stay
Visitor to residentLiving here for years rather than weeks means a long-stay visa or residence permit. In Panama, yes, Friendly Nations & pensionado.
- Long-term routes
- Yes, Friendly Nations & pensionado
- Bring dependants
- Yes
Earn
Work & remote income1 remote-work route make foreign income relatively unremarkable here. Running your own company from Panama is a separate question, where a company is managed can shift where it's taxed, which the builder flags rather than this page.
- Remote-work routes
- 1
Keep
Tax residenceA visa lets you stay; it does not decide who taxes you. In Panama, tax residence typically turns on roughly 183 days a year, territorial: foreign-source income is generally untaxed
- Tax-residence threshold
- ~183 days
- Also weighs
- territorial: foreign-source income is generally untaxed
Belong
Residence to citizenshipCitizenship is a route of patience: roughly 5 years of qualifying residence, each year usually needing about 183 days present.
- Citizenship route
- ~5 years
- Qualifying presence
- ~183 days / year
Live
Banking & daily lifeThe practical scaffolding once the stamps are sorted. Opening a local bank account in Panama is possible, due-diligence heavy.
- Local banking
- Possible, due-diligence heavy
- Bring dependants
- Yes