Panama–Italy Visa: few immigration opportunities in the world offer what Panama makes available to Italian citizens, permanent residency from day one, with no minimum investment required, the right to apply for an indefinite work permit, and the possibility of bringing the entire family along. All of this is made possible by a bilateral treaty signed over half a century ago that remains in force and more relevant than ever.
The Treaty of Friendship, Commerce and Navigation between the Republic of Panama and the Republic of Italy was signed in 1966 and ratified through Law No. 15 of February 1, 1966. Its purpose was to strengthen cooperation between both nations, guaranteeing citizens of each country preferential treatment in the other’s territory. For Italians looking to establish themselves in Panama, this legal instrument represents an unmatched competitive advantage in the region.
At Esquivel & Asociados, a Panamanian law firm with over 40 years of experience in international immigration law, we have guided hundreds of Italian citizens and clients from more than 70 nationalities through this process. We know every detail of the procedure, every document that can create obstacles, and every strategy to maximize the chances of approval.
What Is the Panama–Italy Visa and the 1966 Friendship Treaty?
The Panama–Italy Visa, formally known as the Permanent Residency under the Panama–Italy Agreement, is an immigration permit that grants the applicant permanent resident status in Panama directly, without needing to go through a prior temporary residency stage.
What sets this visa apart from all other immigration options available in Panama is, above all, the simplicity of access. While other residency categories require investments of USD 300,000 in real estate, provable pensions, or family ties to Panamanian citizens, the bilateral agreement only requires the applicant to be an Italian citizen and demonstrate their intention to engage in an economic or professional activity in the country, either through participation in a Panamanian corporation or through an employment contract with a minimum salary of USD 850 per month, plus a bank account in Panama with a balance of at least USD 5,000.
Additionally, once permanent residency is obtained, the holder has the right to apply to the Ministry of Labor (Mitradel) for a work permit based on the treaty, which is granted on a permanent basis and requires no periodic renewal. For an Italian professional, entrepreneur, or self-employed worker, this means complete labor stability without the recurring costs and paperwork that other nationalities must face.
The legal foundation of this benefit rests on Resolution No. 4803 of March 30, 2012, issued by the National Immigration Service, which regulated the application procedures for the agreement, and on Decree-Law No. 3 of February 22, 2008, which modernized Panama’s general immigration framework.
Advantages of Living in Panama as an Italian: Taxes and Work
Beyond immigration status, living in Panama as a permanent resident under the bilateral agreement opens up a universe of opportunities that go far beyond simply legalizing one’s status.
Direct permanent residency. Unlike other countries, Panama does not require Italians to go through a two-year temporary residency before accessing permanent status. Approval under the agreement immediately grants permanent resident status, giving access to the permanent resident card issued by the Electoral Tribunal.
Right to an indefinite work permit. Once permanent residency is obtained, the holder may apply to the Ministry of Labor (Mitradel) for a work permit based on the treaty, which is granted permanently and requires no periodic renewal. This procedure is optional and applies solely to the main applicant, though dependents may pursue additional work permits through standard channels.
No minimum investment threshold. Unlike Qualified Investor visas, which require a minimum of USD 300,000 in real estate, the Panama–Italy Agreement does not impose a minimum capital requirement. The applicant demonstrates economic activity through participation in a Panamanian corporation or an employment contract with a minimum salary of USD 850 per month, and must show financial solvency with a Panamanian bank account reflecting a balance of at least USD 5,000.
Advantageous territorial tax system. Panama’s tax system operates on the principle of territoriality: only income generated within Panamanian territory is subject to local taxes. Income from foreign sources such as dividends from international companies, rental income from properties in Italy, or overseas investments is not taxed in Panama. For Italian entrepreneurs and professionals with international activity, this represents significant tax savings.
Access to Latin America’s financial hub. Panama is home to more than 65 international banks and is Central America’s leading financial center. Permanent residency facilitates access to corporate and personal bank accounts, credit lines, and top-tier private banking services.
Full family reunification. The agreement allows the applicant to include their spouse, unmarried children under 25 who are enrolled as students in Panama, and the applicant’s parents, even if these family members do not hold Italian nationality.
Path to Panamanian citizenship. After five years of continuous and provable permanent residency in Panama, the Italian resident may begin the naturalization process and obtain a Panamanian passport, which offers visa-free access to more than 140 countries.
“Although this agreement is exclusive to Italians, other routes exist which we cover in our Complete Guide to Residency in Panama 2026.“
Comparison: Panama–Italy Agreement vs. Other Residency Options
| Category | Minimum Investment | Residency Type | Work Permit | Dependents |
|---|---|---|---|---|
| Panama–Italy Agreement | None | Direct permanent | Permanent (separate procedure) | Yes |
| Friendly Nations | None | Permanent | Yes (renewable) | Yes |
| Qualified Investor (Real Estate) | USD 300,000 | Permanent | Yes | Yes |
| Pensioner / Retiree | USD 1,000/month pension | Permanent | No | Yes |
| Own Economic Solvency | USD 300,000 own funds | Permanent | Not directly | Yes |
| Digital Nomad | USD 3,000/month income | Temporary (2 years) | Remote activity only | Yes |
The table makes clear what Esquivel & Asociados confirms regularly in consultations: for an Italian citizen, the bilateral agreement is almost always the most efficient and cost-effective path to permanent residency in Panama.
Requirements to Obtain Permanent Residency as an Italian in Panama
The process is simpler than most people would expect. The documents the main applicant must prepare are the following:
- Notarized power of attorney and formal application. The power of attorney must include the name and nationality of both of the applicant’s parents, a detail that frequently causes errors in applications prepared without professional guidance.
- Three passport-size photographs.
- Certified copy of the Italian passport (notarized or authenticated).
- Criminal background check apostilled in Italy.
- Medical health certificate.
- Certified check for B/. 250.00 payable to the National Treasury of Panama.
- Personal Background Affidavit Form.
- Document proving economic activity, which can be one of the following options:
- Certificate of shares in a Panamanian corporation.
- Employment contract endorsed by the Ministry of Labor of Panama with a salary of no less than USD 850 per month.
- Public registry of the company in either of the above cases.
- Copy of the Italian national ID or residency card.
- Bank certification evidencing financial solvency with a minimum balance of USD 5,000 in a Panamanian bank account.
For dependents included in the application, additional documents are required: proof of family relationship, proof of residence, and for those over 18, a certificate of single status and proof of enrollment in studies.
Step-by-Step Process: From Consultation to Permanent Resident Card
Understanding the flow of the procedure is essential for managing expectations and planning the relocation with precision.
Step 1: Initial consultation and assessment. The first step is to meet with an immigration attorney who evaluates the applicant’s specific profile and determines whether the Panama–Italy Agreement or another category is the most suitable option. In many cases the choice is straightforward, but some profiles, such as an Italian retiree with sufficient pension income, may have two or more equally valid routes.
Step 2: Company formation or employment contract management. If the applicant does not have a job offer in Panama, the usual approach is to incorporate a Panamanian corporation, a procedure that can be completed in approximately one week through the Public Registry’s forms.
At Esquivel & Asociados we incorporate your company in record time, ensuring the articles of incorporation meet the requirements of both the Immigration Service and bank compliance departments.
Step 3: Opening a Panamanian bank account. The financial solvency requirement means the applicant must hold a bank account in Panama with a minimum balance of USD 5,000. The account-opening process for non-residents can be complex without the support of an attorney with established relationships with local financial institutions.
Opening a bank account is the step where most independent applications run into trouble. We provide in-person support and pre-approval coordination with partner banks.
Step 4: Gathering and apostilling documents in Italy. The criminal background check must be obtained in Italy and apostilled before being sent to Panama. It is important to verify issuance dates, as the Immigration Service requires all documents to be valid at the time of submission.
Step 5: Filing the application with the National Immigration Service. Once the file is complete, the attorney submits the application. A provisional card is issued to certify the applicant’s status during the resolution period.
Step 6: Approval and issuance of the permanent resident card. The average resolution time ranges between 3 and 4 months. Once residency is approved, the Electoral Tribunal issues the permanent resident card. Optionally, the applicant may begin the process at Mitradel to obtain the permanent work permit based on the treaty.
Expert Advice: What We See at Esquivel & Asociados
With over 40 years of experience guiding international clients through immigration proceedings in Panama, Esquivel & Asociados has identified the most common errors that slow down or jeopardize approval under the Panama–Italy Agreement.
The number one error we observe is the incorrect preparation of the notarized power of attorney. Many applicants arrive with powers of attorney that do not include the name and nationality of the applicant’s parents, a specific requirement of this visa that does not apply to other immigration categories. The result is a returned file and weeks of delay. Our team reviews every document before submission to prevent this type of setback.
Frequently Asked Questions
Do I need to speak Spanish to obtain residency under the Panama–Italy Agreement?
No. Language is not a requirement of the immigration process. That said, knowing Spanish makes daily life, administrative procedures, and business relationships in Panama considerably easier.
Can my spouse also work in Panama if they enter as a dependent?
Yes, but independently. The work permit under the agreement applies solely to the main applicant. A spouse who enters as a dependent can apply for their own permit.
Can I include my adult children in the application?
Yes, with conditions. Children over 18 may be included as dependents if they are single, actively enrolled as students in Panama, and under 25 years of age.
How long do I need to stay in Panama to keep my residency?
There is no minimum number of days per year, but there is an important limit: being absent from Panama for more than two consecutive years can result in the loss of permanent residency. Regular presence in the country is strongly recommended. If the medium-term goal is naturalization, maintaining real and provable presence in the country during the five years prior to the citizenship application is necessary.
What is the difference between the Panama–Italy Agreement and the Friendly Nations Visa?
They differ in fundamental ways. The Panama–Italy Agreement grants permanent residency directly upon approval, while the Friendly Nations Visa begins with temporary residency that must later be converted to permanent status. On top of that, the agreement allows the applicant to request a permanent work permit from Mitradel, a benefit the Friendly Nations Visa does not offer. And since it is backed by a binding international treaty signed in 1966, its legal foundation is more robust against potential changes in local immigration policy.
Your Permanent Residency in Panama Starts with One Call
The agreement exists. The benefits are real. What makes the difference is how the process is managed.
At Esquivel & Asociados we have spent over 40 years guiding international citizens through immigration proceedings in Panama, with an approval rate above 95%. We know exactly which documents the Immigration Service requires, which mistakes to avoid, and how to build a solid file from day one.
Don’t leave your future to chance. Contact us today and schedule your personalized consultation.