The Panama-Italy Treaty Visa allows Italian citizens to apply for permanent residency in Panama under the Treaty of Friendship, Commerce and Navigation between the two countries. This category does not require a mandatory minimum investment, real estate purchase, or specific bank deposit, but it does require demonstrating the purpose of establishing residency in Panama through an economic, professional, employment, or corporate activity, as well as proving sufficient economic solvency.
Panama-Italy Treaty Visa
The Panama-Italy Treaty Visa allows Italian citizens to apply for permanent residency in Panama under the Treaty of Friendship, Commerce and Navigation between the Republic of Panama and the Republic of Italy.
This immigration category is aimed at Italian nationals who wish to establish their residency in Panama on an indefinite basis, whether for personal, family, professional, employment, business, or international planning reasons.
Unlike other immigration categories, this permit allows applicants to apply for permanent residency directly. However, the applicant must demonstrate an economic or professional purpose for settling in Panama and prove sufficient economic solvency before the National Immigration Service.
The Panama-Italy Treaty Visa is one of the most attractive immigration categories for Italian citizens who wish to establish a legal, family, professional, or business base in Panama.
This option may be suitable for:
Italian citizens who wish to live in Panama.
Entrepreneurs, investors, or professionals seeking a local presence.
Individuals who wish to incorporate or participate in a Panamanian corporation.
Consultants, remote workers, or individuals with international activities.
Italian families interested in stable residency in Latin America.
Individuals who wish to plan residency, banking, wealth, and eventual naturalization.
This visa is especially attractive because it allows Italian citizens to obtain permanent residency in Panama, include dependent family members, and carry out economic, professional, or business activities, subject to the applicable permits and regulations.
In addition, pursuant to Resolution No. 17405 of August 29, 2019, Italian permanent residents under the Panama-Italy Treaty are exempt from the residency reinstatement procedure applicable to other permanent residents who have remained outside Panama for more than two years.
However, it must be taken into account that the same resolution states that foreigners who have remained outside the national territory for more than six years must initiate a new immigration procedure in accordance with the regulations in force.
This residency can also serve as a basis for future naturalization in Panama and, if local tax criteria are met, to apply for a Tax Residency Certificate in Panama.
As part of the immigration file, the applicant must submit documentation demonstrating the purpose for establishing their residency in Panama and the economic or professional activity they will carry out.
Depending on the case, this purpose may be supported through:
A share certificate of a Panamanian corporation, with registered, fully paid-up and issued shares, or
An employment contract endorsed by the Ministry of Labor, with a salary of no less than USD 850.00 per month, when the application is based on an employment relationship.
This part of the file is important because it allows the applicant to demonstrate that they have a reasonable economic, professional, employment, or business connection with Panama.
In addition to demonstrating the purpose of establishing residency in Panama, the applicant must prove sufficient economic solvency.
This solvency may be proven through a bank reference letter, a statement of account for the last month reflecting a balance of at least medium four figures, or another document that demonstrates income and is acceptable to the National Immigration Service.
In practice, this proof may include:
A recent bank reference letter.
A bank statement of account for the last month.
Documents demonstrating income.
Other acceptable financial documents depending on the case.
Our team reviews each file to determine the most appropriate way to present the economic solvency, especially when the applicant resides outside Panama, works remotely, participates in corporations, receives income from abroad, or wishes to structure their residency together with a Panamanian corporation.
Italian citizens approved under this category may legally establish themselves in Panama and carry out economic, professional, corporate, or commercial activities, provided they comply with the applicable labor, professional, tax, and corporate regulations.
Should the Italian resident wish to work as an employee or carry out a remunerated activity in Panama, they must apply for the corresponding work permit before the Ministry of Labor and Workforce Development — MITRADEL. MITRADEL maintains a specific work permit category linked to the Panama-Italy Treaty of Friendship, Commerce and Navigation.
Likewise, if the activity is subject to special professional regulation, additional licenses, professional accreditations, or authorizations may be required depending on the type of profession or activity to be carried out.
This may include:
Working as an employee in Panama, after obtaining the work permit.
Incorporating a Panamanian corporation.
Participating as a shareholder, director, or officer of a local company.
Carrying out commercial or consulting activities.
Establishing a professional or business base in Panama.
When the applicant's objective is to do business, it may be advisable to evaluate complementary services such as the incorporation of a Panama corporation, obtaining an operating notice, tax registration, assistance with opening a bank account, and corporate compliance.
Panama is internationally recognized for its territorial tax system, under which, in general terms, mainly the income generated within Panamanian territory is taxed.
For Italian citizens who wish to establish residency in Panama, this may represent relevant advantages within proper immigration, wealth, and tax planning.
Among the tax aspects that tend to make Panama attractive are:
Foreign-source income is generally not subject to income tax in Panama.
Panama does not generally apply a worldwide income taxation system.
There is no inheritance tax in Panama.
The country offers a favorable environment for entrepreneurs, consultants, investors, retirees, and individuals with international activities.
Additionally, Italian citizens residing in Panama may consider applying the Double Taxation Treaty between Panama and Italy, depending on their tax structure, country of effective tax residency, type of income, and compliance with the applicable criteria.
When the Italian resident meets the local tax criteria, they may also consider applying for a Tax Residency Certificate in Panama, issued by the General Directorate of Revenue, especially when they need to evidence their tax status before banks, foreign authorities, custodians, brokers, or entities subject to CRS.
The application of tax benefits, double taxation treaties, or tax residency certificates must be evaluated on a case-by-case basis, according to effective tax residency, source of income, wealth structure, and local and international compliance.
The main applicant may include dependents within the application, provided the corresponding immigration requirements are met.
Generally, the following may be included:
Spouse.
Dependent children.
Parents of the main applicant, as applicable.
Other eligible dependents in accordance with the applicable immigration regulations.
In the case of dependents, documents proving the family relationship, a letter of responsibility, proof of address, and other additional documents must be submitted depending on the age and condition of the dependent.
The required documents may vary depending on the case, but normally include:
Power of attorney and application.
Photographs.
Copy of the passport.
Criminal record certificate.
Health certificate.
Sworn statement form of personal background.
Italian identity document, Italian residence card, or official document proving Italian citizenship.
Document demonstrating the economic or professional purpose in Panama.
Proof of economic solvency.
Documents of dependents, if applicable.
Documents issued abroad normally must be apostilled or legalized and, if they are in a language other than Spanish, translated by an authorized public translator in Panama.
Before traveling to Panama, the applicant normally requires approximately 30 days to prepare, obtain, apostille, or legalize the necessary documents.
This stage may include documents issued in Italy or in the applicant's country of residence, such as criminal records, identity documents, civil certificates, powers of attorney, financial proof, and other supporting documents.
If the applicant wishes to structure their residency through a corporate or business activity, the incorporation of a Panamanian corporation can normally also be coordinated at this stage, including the definition of shareholders, directors, officers, the issuance of shares, and the corporate documents needed to support the economic purpose of the application.
If the documents are in a language other than Spanish, they must be translated by an authorized public translator in Panama.
Once the applicant is in Panama, the final review of the file is carried out, along with the preparation of forms, signing of documents, and submission of the application before the National Immigration Service.
During this first visit, the applicant normally must remain in Panama for approximately 3 to 5 business days.
In addition, this visit can be used to carry out complementary procedures, such as:
Opening or initiating the process of opening a bank account in Panama.
Signing of corporate documents, if applicable.
Legal, tax, or banking coordination meetings.
A visit to Panama City to get to know residential, commercial, banking, and other areas of interest for their future relocation.
After the application is submitted, the National Immigration Service issues a provisional processing card, generally valid for six months, while the permanent residency application is under evaluation.
This card certifies that the immigration file has been formally submitted and is in process.
Once the permanent residency resolution is approved, the main applicant and their dependents must return personally to Panama to complete the final stage of the process.
This stage includes:
Registration before Immigration.
Taking of a photograph.
Issuance of the permanent resident card.
This final phase normally requires approximately 2 business days in Panama.
The indicated times are estimates and may vary depending on document preparation, apostilles, translations, file review, bank account opening, the operational workload of the National Immigration Service, and the particular circumstances of each applicant.
At M. George & Asociados, we assist Italian citizens and their families in the preparation, review, and submission of permanent residency applications under the Panama-Italy Treaty Visa.
Our service includes guidance on immigration requirements, document review, file coordination, analysis of the economic or professional purpose, proof of solvency, assistance with Panamanian corporations when necessary, banking coordination, and support during the process before the National Immigration Service.
We can also assist with complementary services related to residency, such as work permit, incorporation of a Panamanian corporation, bank account opening, tax planning, tax residency certificate, and eventual naturalization in Panama.
Costs
Government fees: from $800 USD
Common questions answered before your consultation.
The Panama-Italy Treaty Visa is available to Italian citizens who can prove their Italian nationality through 2 official documents issued by the Italian government. This special category grants qualified Italian nationals a direct route to permanent residency in Panama under the Treaty of Friendship, Commerce and Navigation.
Yes. Although this category does not require a minimum investment, the applicant must demonstrate sufficient economic solvency through a bank reference letter, a recent statement of account, or other proof of income acceptable to the National Immigration Service. They must also prove the purpose of establishing their residency in Panama, for example through employment, professional, corporate, or business activity.
Yes. The residency allows applicants to legally establish themselves in Panama; however, to work as an employee or carry out remunerated activities, the Italian citizen must apply for the corresponding work permit before MITRADEL and comply with the applicable labor, tax, and professional regulations.
Related topic: Panama Corporation (S.A.).
Yes. The main applicant must be Italian, but eligible dependents such as a spouse, children, and parents can generally be included regardless of their nationality. Proper civil records, apostilles, translations, and immigration forms are required.
This visa is especially attractive because it allows Italian citizens to obtain permanent residency in Panama, include dependent family members, and carry out economic, professional, or business activities, subject to the applicable permits.
In addition, pursuant to Resolution No. 17405 of August 29, 2019, Italian permanent residents under the Panama-Italy Treaty are exempt from the residency reinstatement procedure, even if they remain outside Panama for more than two years.
It can also serve as a basis for future naturalization in Panama and, if local criteria are met, to apply for a Tax Residency Certificate in Panama.
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Permanent residency through investment in real estate, bank deposits, or securities.
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Legal assistance to prepare and organize banking files in Panama, including personal, corporate, merchant, investment and international banking accounts, CRS/FATCA, tax residency and source-of-funds documentation.
