Residence Permits in Panama: Impact, Statistics and Recovery

The arrival of COVID-19 brought border restrictions, economic uncertainty and a temporary paralysis of many sectors, including migration. According to official reports, residence permits in Panama saw a historic 60% reduction in concessions during 2021, compared to the pre-pandemic period in 2020. The main causes were:

• The temporary suspension of procedures in the National Migration Service.
• The lack of foreign direct investment due to global uncertainty.
• The reduction in requests from international workers and entrepreneurs.

However, 2022 marked a turning point, with a slight but sustained recovery in both requests and approval of permits.

The statistics provide a clear picture of the situation. Below, we highlight some of the most relevant numbers:

• Initial drop: In 2021, fewer than 14,000 residence permits were granted compared to more than 35,000 in 2019.
• Increase in SEM permissions: Companies under the Multinational Enterprise Headquarters (SEM) regime experienced an uptick in requests, underpinning part of the economic recovery.
• Most requested categories: Permissions under the modality of Friendly Countries Act And for dependents occupied the highest percentage, boosting the immigration of entire families.

These data show that, although there was a significant decline, certain strategic programs such as SEM and Friendly Countries helped to counteract the most severe effects of the pandemic.

If you are evaluating your options for obtaining Panamanian residency, here are the main categories that lead the recovery after the pandemic:

1. Friendly Countries Act

This modality is one of the most popular. Designed for citizens of friendly nations (such as Spain, Mexico, and Colombia), it offers a quick route to obtaining permanent residence and opening economic activities.

2. SEM permissions

The SEM program has been a key catalyst in Panama's economic and migratory recovery. This regime encourages multinational companies to establish themselves in the country, attracting qualified international employees.

3. Dependent Permissions

Permits for companions of residents and workers in Panama have also increased, demonstrating that families are considering Panama as an ideal destination to settle in.

It is crucial, however, to comply with all legal regulations to ensure a hassle-free immigration experience.

In 2025, Panama implemented adjustments to migration regulations to strengthen its legal framework and encourage economic recovery. Some of the most notable changes include:

• Greater controls on regularizations under labor contracts, ensuring that they comply with the margin of 10% for foreigners in local jobs.
• Increases in fees for certain procedures, such as work permits, to reinforce the immigration budget.
• New requirements for residence permits related to real estate and commercial investments.

These changes seek to protect the interests of Panamanian citizens while positioning the country as an attractive destination for investment and skilled migration.

If you are considering obtaining your residence in Panama, here are some practical steps that we recommend you follow:

1. Consult with an experienced lawyer: The procedures can be complex and it's always best to have a professional guide to meet all legal requirements.
2. Gather the necessary documentation: It includes apostilled certificates, employment contracts (if applicable) and proof of financial solvency.
3. Evaluate your permission options: Depending on your profile (employee, employer, retiree or dependent), there are different modalities that may be more convenient.
4. Plan ahead: The processes can take weeks or months, so be sure to schedule your move and paperwork well enough.

With these recommendations, the process for obtaining your residence in Panama will be clearer and hassle-free.