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April 23, 2026
The Panama Friendly Nations Visa (Visa de Naciones Amigas) is a residency programme established by the Panamanian government to attract citizens from countries that maintain friendly diplomatic, economic, and investment relationships with Panama. It is widely regarded as one of the simplest and most accessible residency-by-investment programmes in the world.
Unlike investor visas that require hundreds of thousands of dollars in real estate or business investment, the Friendly Nations Visa requires only a bank deposit of approximately AUD $7,500 in a Panamanian bank account plus proof of an economic tie to Panama. This makes it accessible to a much wider range of applicants, from professionals and entrepreneurs to retirees and digital nomads.
The visa grants temporary residency from day one, with a clear and well-defined pathway to permanent residency (after approximately 2 years) and Panamanian citizenship (after 5 years of permanent residency). Panama allows dual citizenship, so applicants from Australia and other eligible countries can hold both passports.
Australia is on the Friendly Nations list. The complete list of eligible countries includes over 50 nations:
Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Monaco, Montenegro, Netherlands, New Zealand, Norway, Paraguay, Poland, Portugal, San Marino, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, United Kingdom, United States, and Uruguay.
If your country is not on this list, alternative pathways such as the Qualified Investor Visa or Pensionado Visa remain available. See our Panama Residency Advisory page for a full comparison of all visa types.
The Friendly Nations Visa requirements are straightforward compared to most residency programmes worldwide. Here is a complete checklist of everything you need:
Your passport must be from one of the 50+ countries on the Friendly Nations list and have at least 6 months of remaining validity at the time of application.
You need a criminal background check from your home country (for Australians, this is an Australian Federal Police check). The certificate must be apostilled for use in Panama.
This is deposited into a personal bank account opened in your name at a Panamanian bank during your visit. The official requirement is USD $5,000 (approximately AUD $7,500 at current exchange rates). The money remains yours and you can access it after your residency is approved. It is not a government fee and is not forfeited.
You must demonstrate an economic connection to Panama through one of the following: employment by a Panamanian company, formation of a Panamanian company (the most common route for self-employed applicants), ownership of real estate in Panama, or a professional or trade licence.
A medical certificate confirming you are in good health. This can typically be obtained at a clinic in Panama City during your visit.
Four passport-sized photographs, notarised and apostilled application forms, and a power of attorney for your Panamanian immigration lawyer (signed during your visit).
Total costs vary depending on your circumstances and the complexity of your application. All amounts below are shown in approximate AUD. Panama uses the US dollar; actual costs are denominated in USD.
| Item | Approximate Cost (AUD) |
|---|---|
| Government and immigration fees | $400 to $550 |
| Immigration lawyer fees | $4,500 to $7,500 |
| Bank account opening and deposit | $7,500 (remains yours) |
| Company formation (if required) | $1,200 to $2,500 |
| Document apostille and notarisation | $300 to $800 |
| Flights and accommodation (5 days) | $2,500 to $4,500 |
| Total estimated cost | $12,500 to $15,500 |
Note that the AUD $7,500 bank deposit is not a fee. It remains in your personal bank account and you retain full access to it after your residency is approved.
The typical timeline from initial application to receiving your Panama residency card is:
| Stage | Timeline |
|---|---|
| Document preparation (home country) | 2 to 4 weeks |
| Panama visit (bank, lawyer, immigration) | 5 business days |
| Provisional residency card issued | 3 to 6 months after visit |
| Permanent residency upgrade | Approximately 2 years |
| Citizenship eligibility | 5 years after permanent residency |
The bank deposit (approximately AUD $7,500, officially USD $5,000) is one of the most commonly misunderstood aspects of the Friendly Nations Visa. Here are the key facts:
The deposit is placed in a personal bank account in your name at a Panamanian bank. You open this account during your visit to Panama. The money is yours and remains accessible to you. It is not a government fee, bond, or security deposit that is forfeited. After your residency is approved, you can withdraw or use the funds as you wish. The deposit serves as proof of economic solvency and genuine commitment to establishing yourself in Panama.
Panama offers several residency visa options. Here is how the Friendly Nations Visa compares to the Pensionado (retiree) visa, the Qualified Investor Visa, and the Digital Nomad Visa. All amounts shown in approximate AUD:
| Feature | Friendly Nations | Qualified Investor | Pensionado | Digital Nomad |
|---|---|---|---|---|
| Minimum investment | $7,500 deposit | $460,000 real estate | None | None |
| Income requirement | None | None | $1,550/month pension | $4,650/month |
| Permanent residency | After 2 years | Immediate | Immediate | No |
| Citizenship pathway | Yes (5 years) | Yes (5 years) | Yes (5 years) | No |
| Country restriction | 50+ countries | Any country | Any country | Any country |
| Processing time | 3 to 6 months | 1 to 3 months | 3 to 6 months | 2 to 4 weeks |
For a detailed comparison of all Panama residency pathways, visit our Panama Residency Advisory page.
Obtain your criminal background check and have it apostilled. For Australians, apply for an AFP check and arrange apostille through DFAT. Prepare certified copies of your passport. This typically takes 2 to 4 weeks.
A qualified Panamanian immigration lawyer will prepare your application, coordinate your visit schedule, and represent you before the immigration authorities. Y&S Accounting can connect you with vetted immigration lawyers through our Panama Residency Advisory service.
Day 1: meet your attorney and sign the power of attorney. Day 2: open your personal bank account and make the AUD $7,500 deposit (USD $5,000). Day 3 to 4: complete your health check and finalise documentation. Day 5: attend your appointment at the National Immigration Service (Servicio Nacional de Migracion).
After your immigration appointment, your application is processed. Your provisional residency card (carnet) is typically issued within 3 to 6 months. During this waiting period, you can leave Panama and return freely.
After approximately 2 years of holding temporary residency, you apply for permanent residency. This is a straightforward administrative process handled by your immigration lawyer.
If you are an Australian citizen or resident considering the Friendly Nations Visa, there are several important tax and legal matters to understand. Y&S Accounting specialises in advising on both sides: the Panama opportunity and your Australian obligations.
Obtaining Panama residency does not automatically end your Australian tax obligations. The ATO applies several tests (domicile test, 183-day test, superannuation test) to determine whether you remain an Australian tax resident. You need to take specific steps to properly cease Australian tax residency, and the consequences of getting this wrong are significant.
When you cease Australian tax residency, a CGT event is triggered on most of your worldwide assets (excluding Australian real property and certain business assets). This means you are treated as having disposed of and reacquired those assets at market value. Careful planning before departure can significantly reduce or defer this liability.
Panama only taxes income earned within its borders. Foreign-sourced income (such as income from Australian clients, international investments, or overseas business activities) is exempt from Panamanian income tax. This is one of the primary reasons Panama is attractive for international professionals and business owners.
Your Australian superannuation remains in Australia. You cannot access it early simply because you have obtained foreign residency. However, if you are on a temporary visa in Australia and depart permanently, you may be eligible for a Departing Australia Superannuation Payment (DASP).
Y&S Accounting advises on both sides: the Panama opportunity and your Australian tax obligations. We are CPA-qualified accountants based in Brisbane who understand the interaction between Panamanian immigration law and Australian tax law.
Learn more about our Panama Residency Advisory or book a strategy consultation (AUD $250).
Yes. Australian citizens are eligible for the Friendly Nations Visa.
Yes. The Friendly Nations Visa grants full residency rights, including the right to work and conduct business in Panama.
No. There are no strict physical presence requirements. You need to visit Panama at least once every 2 years to maintain your residency status.
Yes. Your spouse and dependent children can be included in your application as dependants. Each dependant will need their own documentation (passport, criminal record check, etc.).
If you already hold residency under the programme, your status is not affected by future changes to the programme rules. Your residency continues under the terms that existed when it was granted.
Yes. After 5 years of permanent residency, you can apply for Panamanian citizenship and a second passport. Panama allows dual citizenship.
The Friendly Nations Visa requires a bank deposit of approximately AUD $7,500 and is limited to citizens of 50+ eligible countries. The Pensionado Visa requires proof of a pension of at least approximately AUD $1,550 per month, is open to citizens of any country, and grants permanent residency from day one. Read our complete Pensionado Visa guide for details.
The information in this article is general in nature and does not constitute personal tax, legal, or financial advice. It is current as at the date of publication and may be subject to change. You should not act on the basis of this information without first obtaining professional advice specific to your circumstances. Y&S Accounting accepts no liability for any loss arising from reliance on this content.
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