Panama’s qualified investor program offers a path to citizenship requiring just one visit every two years over five years, a minimal physical presence requirement Vice Minister of Internal Commerce Eduardo Arango is promoting this as the country targets to grow the number of applications sixfold.
The government currently processes roughly 25 investor visas monthly but aims for 150 by 2026, capitalizing on a demographic shift that saw North Americans overtake Colombians as the program’s primary applicants.
“Most of our qualified investors in the last year are coming from North America, either the US or Canada,” he explained, noting Colombia has slipped to third place after dominating applications since the program launched in 2020.
The minister attributed the shift to Panama’s position as “the number one ally of the US, commercial” alongside practical advantages, including dollarized currency and direct flights from every major North American city.
While Canadians and Americans can access Panama’s Friendly Nations visa, he noted that route requires two years for permanent residency compared to the 30 to 45 days the qualified investor program delivers.
Arango identified real estate as the most popular investment option at $300,000, though he said investors can alternatively park $500,000 in Panamanian securities or $750,000 in time deposits. He acknowledged the program “never really got traction” despite strong fundamentals, attributing weak initial performance to poor promotion.
The program approved 237 applications through September 2025, maintaining a 96% approval rate.
The vice minister credited the high approval rates to intensive screening by Panama’s banking system before investors can wire funds. “By the time you apply, you have already been put through a screening process,” he explained, describing how anti-money laundering checks happen before applications reach immigration authorities because “Panama has one of the world’s strongest banking systems, but it’s also one of the most and best regulated banking systems in the world.”
Arango said the government formalized a partnership with Mercan Group to expand the program’s global reach. He identified Asia as a particular opportunity, given that it accounts for just 5% to 6% of current applications, calling the region “untapped.”
President José Raúl Mulino “has made a priority for him to catch back on that big delay, that backlog that we had of files regarding naturalization,” after previous administrations left applications unsigned for years, according to the minister.
He explained the president personally signs every citizenship grant, characterizing the presidential approval process as unique globally and demonstrating “how important it is for us to give the Panamanian nationality to someone.”
Arango confirmed that qualified investor visa holders will qualify for citizenship after five years by meeting only the minimal physical presence requirement of one visit every two years. “The only requirement that you have is you have to be in Panama once every two years during the five years of your residency,” he stated, explaining this qualifies applicants for naturalization.
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Mikkel Thorup, CEO of Expat Money, believes applicants following the minister’s guidance face likely rejection. “If they follow his advice, and they’re only spending one day in the country every two years, so that would be, call it three days over a five-and-a-half-year period, and they apply for naturalization, I highly, highly doubt that they will get approved,” he warned.
Thorup advocates for substantial integration into Panamanian society instead. Successful naturalization candidates should focus on “building a real life in Panama, learning the language, learning the history, learning the culture, spending time there, having a home, having an electricity bill, having a bank account with movement in the bank account,” according to his recommendations.
He emphasized the need for concentrated physical presence in the years immediately preceding naturalization applications. “Leading up to it, I’d say the last two years or more, I’d really want to see some substantial presence in that country,” Thorup explained, describing the one-day-every-two-years approach as insufficient regardless of its official endorsement.
Arango said the government is working to guarantee these rules remain fixed regardless of future administrations. Presidential terms last five years in Panama, he explained, creating potential uncertainty when governments change, and his office wants to ensure “once you apply to the program under a certain set of rules, those rules will be respected no matter which government is in power.”
Panama’s territorial tax system means residents pay no tax on foreign-sourced income regardless of time spent in the country, according to Arango. He expressed confidence that investors required to visit only once biannually will choose to come more frequently, spending money and using their properties beyond the minimum.
The minister cited Portugal’s Golden Visa as the model Panama hopes to emulate, praising its success in “bringing people into their country through this program and by doing that, making their economy grow exponentially.” He frames the investor program primarily as job creation through construction rather than direct revenue generation.
Arango said the ministry now pushes investments toward new construction rather than resale properties to maximize employment impact, and that in order “to create jobs, we need to build stuff, we need to build apartments.”
Reaching 150 monthly approvals demands both program improvements and aggressive marketing, according to the vice minister. He plans international promotional tours and participation in industry events to raise Panama’s profile among investors unfamiliar with the offering.
