Relocating from the United States or Canada to Panama is one of the most significant life decisions you can make — and with careful planning, one of the most rewarding. Panama offers a stable economy, USD-denominated transactions (no currency risk for Americans), a sophisticated expat community, excellent healthcare, and strategic tax advantages. But a successful relocation depends on getting the legal pieces right in the correct order. This checklist is built from what we at Paralelaw see consistently works — and the common missteps that turn smooth moves into multi-year cleanup projects.
Phase 1: Pre-Move Planning (6 to 12 Months Out)
1. Assess Your Residency Pathway
The first major decision is which visa fits your profile. Work with a Panama immigration attorney early to evaluate:
- Friendly Nations Visa: US and Canadian citizens qualify; best for professionals and investors under 60
- Pensionado Visa: for retirees with lifetime pension income of USD 1,000+ per month
- Qualified Investor (Golden) Visa: fastest path for HNW investors (USD 300,000+ real estate minimum through October 15, 2026)
- Reforestation Investor Visa: for clients with USD 80,000+ in qualifying forestry investment
Do not start liquidating assets at home before confirming which pathway fits you.
2. Review Tax Status with Cross-Border Counsel
US citizens remain taxable on worldwide income regardless of residency. Canadian residents can sever tax residency by becoming non-residents but must handle departure tax on unrealized gains.
Engage a cross-border tax advisor (CPA or accountant experienced with US expat or Canadian non-resident issues) six to twelve months before moving. Do not wait until after your move.
3. Plan for FBAR, FATCA, CRS
US persons face ongoing obligations including FBAR (FinCEN Form 114) for foreign accounts over USD 10,000 aggregate, Form 8938 for foreign financial assets above specified thresholds, and potential Form 3520/3520-A if using Panamanian foundations.
Canadians face T1135 reporting for foreign property over CAD 100,000 and CRS-based information exchange from Panamanian banks.
These are not optional and the penalties are substantial. Build a compliance workflow before moving.
4. Assess Your US/Canadian Estate Plan
Your existing will, trust, powers of attorney, and healthcare directives may not operate correctly after you become a Panama resident. Our Panama estate planning team can advise on whether you need updates or Panama-specific documents to complement your existing plan.
Phase 2: Visa Application (3 to 6 Months Out)
5. Gather Apostilled Documents
You will need apostilled copies of:
- Birth certificate
- Marriage certificate (if applicable)
- FBI background check (US citizens) or RCMP criminal record check (Canadian citizens)
- Police certificates from any country where you have lived more than 6 months in the past 5 years
Apostilles must be under 6 months old at filing. Order them well in advance but do not order too early.
6. Engage a Panamanian Immigration Attorney
By Panamanian law, immigration applications must be filed by a licensed Panamanian attorney. Engage counsel at least 90 days before your intended move date to allow proper document preparation.
7. Execute Your Qualifying Investment or Employment Offer
For Friendly Nations: employment contract, real estate purchase over USD 200,000, or USD 200,000 fixed bank deposit. For Golden Visa: USD 300,000+ in real estate or USD 500,000+ in Panama Stock Exchange securities or USD 750,000+ fixed deposit.
Funds must wire from international accounts with documented source of funds.
Phase 3: Banking and Corporate Setup (2 to 4 Months Out)
8. Open a Panama Bank Account
Plan for an in-person visit to Panama for the account opening interview. Bring reference letters, source of funds documentation, and a clear statement of how the account will be used. Our team can guide you through the full process of opening a bank account in Panama.
For operating businesses or investment activities, form a Panamanian corporation first and open a corporate account alongside the personal account.
9. Consider a Panama Corporation for Specific Purposes
A Panamanian corporation can be useful for:
- Holding real estate (though Golden Visa requires personal ownership)
- Operating a business with international customers
- Isolating specific assets for liability management
- Facilitating multi-currency international transactions
Not every expat needs a Panamanian corporation, but many benefit from one as part of an overall plan.
10. Plan for Wealth Management
If you hold investment portfolios in the US or Canada, check whether your broker can continue to service you as a non-US/non-Canadian resident. Many US brokers (Vanguard, Fidelity) have restrictions for non-resident clients. Plan transfers to international-friendly brokers well before moving.
Phase 4: Real Estate and Housing (1 to 3 Months Out)
11. Understand Panamanian Real Estate Before You Buy
Panama allows foreign ownership of most property on the same terms as nationals. Exceptions: maritime zones (Zona Maritima Terrestre) within 10 meters of the high tide line and certain border areas restrict foreign ownership.
Typical closing costs: 2% transfer tax, 0.4% registry fees, 1–2% attorney fees, plus notary fees.
12. Rent Before Buying If Possible
We always recommend that first-time Panama expats rent for 6 to 12 months before purchasing. Each area of Panama (Panama City, Boquete, Coronado, Bocas del Toro, Pedasi) has distinct climate, culture, healthcare access, and expat community characteristics.
13. Due Diligence on Any Property Purchase
Engage a Panama real estate lawyer (separate from the seller’s attorney) to verify title, check for liens, review zoning, confirm improvements are registered, and ensure property taxes are current.
Phase 5: Healthcare (1 Month Out)
14. Secure International Health Insurance
Before moving, secure international health insurance that covers Panama. US Medicare does not cover you in Panama. Canadian provincial health insurance generally stops covering you once you are no longer a resident of your province.
Options include:
- International expat health insurance (Cigna Global, IMG, Bupa Global)
- Panamanian private hospital membership programs (Hospital Paitilla, Hospital Nacional, Pacifica Salud)
- Hybrid coverage combining international and local plans
15. Identify a Primary Physician in Panama
Panama has excellent private hospitals with US-trained, English-speaking physicians. Establish care within your first month of residence.
Phase 6: Arrival and First 90 Days
16. Complete Biometrics and Receive Residency Carnet
Upon arrival, complete any remaining immigration biometrics. Your residency card (carnet) is your primary Panamanian ID and must be carried.
17. Get a Panamanian Driver’s License
Foreign driver’s licenses are valid for up to 90 days. After that, you need to convert to a Panamanian license. The process is straightforward for US and Canadian licenses and requires a medical examination and vision test.
18. Register with Your Home Country Embassy
The US Embassy in Panama City and the Canadian Embassy in Panama maintain consular registration for citizens abroad. This facilitates emergency assistance and voting.
19. File Your First-Year Panama Tax Returns (If Applicable)
Most expats living on foreign-source income have no Panamanian tax filing obligation. But if you earn Panamanian-source income, own Panamanian real estate, or operate a Panamanian business, annual filings may be required.
20. Execute Panama-Specific Estate Documents
Consider Panamanian wills or a Private Interest Foundation as part of a layered Panama estate planning strategy. Panamanian documents work alongside (not as a replacement for) your home-country plan.
Common Mistakes US and Canadian Expats Make
Selling the House Before Getting Residency Approved: Residency applications can be denied or delayed. Do not commit to a one-way move until residency is confirmed.
Underestimating Banking Complexity: Opening a Panama bank account takes weeks, not days. Plan for this as part of your relocation schedule, not an afterthought.
Assuming US/Canadian Accountants Can Handle Cross-Border Tax: Most domestic accountants are not equipped for expat tax. Engage a specialist.
Not Updating Their Will and Powers of Attorney: Home-country documents may not operate as intended once you live abroad. Review with counsel.
Skipping the Visit to Panama Before Committing: Every expat who has done well in Panama visited multiple times first. Do not commit based on internet research.
Frequently Asked Questions
How long does the full relocation typically take?
From first consultation to fully settled in Panama with residency approved: 6 to 12 months is realistic for most clients. Rushing typically creates compliance issues later.
Do I need to give up my US or Canadian citizenship?
No. Panama allows dual citizenship, and the US and Canada allow their citizens to obtain additional nationalities. Citizenship is separate from tax residency, which has its own rules.
What about healthcare costs?
Private healthcare in Panama typically costs 30–50% of equivalent US care. Major hospitals in Panama City are JCI-accredited and deliver international-standard care. Healthcare costs are rarely a reason to avoid moving to Panama.
Can I keep my US or Canadian investments?
Yes, subject to each broker’s policies. Many US brokers restrict non-resident accounts, so planning is needed. Canadians have more flexibility but must consider departure tax implications.
What is the cost of living compared to the US or Canada?
Panama City is generally 30–40% cheaper than major US/Canadian cities for a comparable lifestyle. Smaller towns are 50–60% cheaper. The US dollar as legal tender eliminates currency volatility for Americans.
Start Your Panama Relocation with Confidence
A successful move to Panama is a legal project as much as a logistical one. At Paralelaw, we guide US and Canadian expats through every phase — from residency strategy through our Panama immigration attorney team to banking, real estate, corporate structuring, and ongoing compliance. We coordinate closely with your home-country advisors so the pieces fit together cleanly.
Get a free quote for your Panama relocation plan, or book a free consultation to map out the full process from where you are today.