Major changes to Panama's Friendly Nations Residency Program

Major changes to Panama's Friendly Nations Residency Program

The Government of Panama recently passed a new law (Executive Decree 197, 7th of May 2021) that changes the requirements for the Friendly Nations (e.g. the Netherlands) visa residency program.

As of the 17th of August it will no longer be possible to apply for Panamanian residency on the basis of settting up or buying a corporation (an S.A. - Sociedad Anonima) in Panama. The economic activity requirement will be limited to just two reasons:

• Employment in Panama by a corporation with a formal labor contract, and a work permit.
• Purchasing real estate property with a minimum value of US$200,000 (can be with bank financing)

Another important change is that instead of obtaining permanent residency directly, the applicant will be granted a 2 year temporary residency permit, after which the applicant may apply for permanent residency.

If you are planning to apply for a residency permit by establishing or buying a business in Panama, you are advised to act NOW! (application deadline 17th of August 2021). Contact Holland House Panama for more info & help (info@hollandhousepanama.com).