Friendly Nations Visa in 2025: The "Easy" Days Are Gone (Here’s What to Do)

If you are reading a blog post or forum thread about the Friendly Nations Visa that mentions opening a bank account with $5,000 and "starting a business" on paper... close that tab immediately.

That information is from 2020. In the fast-moving world of Panama immigration, that might as well be a decade ago.

The Friendly Nations Visa (FNV) is still one of the best residency programs in the world, but the rules have fundamentally changed. The government has shifted from a "quantity" approach (letting everyone in) to a "quality" approach (seeking real investment or labor).

Here is the no-nonsense reality check on what it actually takes to qualify in 2025.

The Reality: The "$5,000 Option" is Dead

Executive Decree 197 killed the old method where you could form a dormant corporation and deposit a small sum to qualify. Today, you cannot just "buy" residency for a few thousand dollars in legal fees.

To qualify in 2025, you must prove Economic or Professional Ties to Panama through one of these three specific tracks:

Option 1: The Employment Track (Labor Reasons)

This is now the most common route for younger expats, but it has a catch.

• The Requirement: You must have a formal employment contract with a Panamanian corporation.

• The Catch: This requires a Work Permit.³ You cannot just hire yourself through your own shell company easily anymore; the company must be a real, operating business, and you must obtain a work permit from the Ministry of Labor (MITRADEL).

• Who it’s for: Professionals transferring with multinational companies (SEM) or those hired by local Panamanian firms.

Option 2: The Real Estate Track ($200k)

This is the preferred option for retirees who don't have a pension, or investors.

• The Requirement: You must purchase real estate with a registered value of at least $200,000.

• The Good News: Unlike the "Qualified Investor Visa" (which requires $300k+ in cash), the Friendly Nations visa allows bank financing.⁶ You can put a down payment on a property and mortgage the rest, as long as you are the titleholder.

• The Strategy: Many clients buy a rental property in Panama City or a vacation home in Coronado to meet this requirement while generating income.

Option 3: The Fixed Deposit Track ($200k)

• The Requirement: Open a Certified Deposit (CD) account in a Panamanian bank with $200,000 for a minimum term of 3 years.

• The Benefit: You earn interest (currently ~4-5% in many local banks) while you wait. It is essentially a low-risk investment that buys you residency.

The "Two-Step" Process (Important!)

This is the part that trips people up. Under the old laws, you got Permanent Residency immediately.

In 2025, the process is:

1. Provisional Residency: Approved first (usually takes 4-6 months). Valid for 2 years.

2. Permanent Residency: You must apply again after the 2-year provisional period ends.

Important: If you sell your property or cancel your CD before you get your Permanent Residency (during that 2-year window), you will lose your status. You must hold the investment until you are permanent.

Friendly Nations vs. Pensionado: Which is Better?

If you have a lifetime pension (Social Security, Military, etc.) of at least $1,000 USD/month (+ $250 for a spouse), the Pensionado Visa is almost always the better choice. 

• Pensionado: No investment required. Immediate Permanent Residency. Discounts on utilities and healthcare.

• Friendly Nations: $200k investment required.¹¹ 2-year wait for Permanent status.

The Verdict: Only use the Friendly Nations Visa if you are too young to retire or do not have a guaranteed lifetime pension.

Summary Table: 2025 Requirements

*Note: Qualified Investor Real Estate minimum is set to rise to $500k in Oct 2026.