🇵🇦 Panama

Panama is one of the most expat-friendly countries in the Americas, famous for the Pensionado (retiree) visa, which offers significant discounts to retirees. The country also offers Friendly Nations Visas for citizens of approximately 50 qualifying countries, making permanent residency obtainable quickly with minimal requirements. Panama City serves as a major regional hub with a well-developed expat infrastructure.

Work permits in Panama are tied to specific visa categories. The Friendly Nations Visa allows immediate work authorization for qualifying nationals. Standard employment visas require employer sponsorship, and there are quotas limiting foreign workers in most sectors (typically 10% of workforce). Self-employed foreigners can establish a Panamanian company and apply for a business investor visa.

Spouses and minor children can be included in most Panamanian residency applications as dependents at no additional substantial cost. Dependent status follows the primary applicant's visa category and renewal cycle.

Panama uses a strict territorial tax system — only income earned in Panama is taxed. Foreign-sourced income is completely exempt from Panamanian tax, regardless of residency status. Income tax rates range from 0% to 25%. Panama has a limited tax treaty network but its territorial system makes it one of the most tax-efficient jurisdictions for internationally mobile expats.