Two reasons why I decided to write this article:

1. Panama has become a crypto mecca in just a few years. The crypto services here have burst. Similarly, Panamanian banks are becoming crypto-friendly, and as long as you have Panamanian residency, you can use all these services and bank accounts.
2. We have optimized the process of getting a Panamanian residency. Clients can choose whether to apply for residency through an employment contract at their Panamanian company (which we will set up for them) or another company (which we will also help them with). We have simplified the process for our Paraguayan and Uruguayan haves. Suppose they have residency in Paraguay/Uruguay and a cedula for at least 2 years. In that case, they just need an apostilled criminal record extract from that country (we will handle it).

Crypto in Panama on the rise

Panama is a crypto-friendly country, and unlike most other countries (like Paraguay), it has actual crypto-friendly legislation. Panama has territorial taxation, so if you have any crypto income outside of Panama, you don’t declare or tax it. Capital gains tax on crypto is officially zero.

Even though some Panamanian banks may close your account when you use P2P trading (especially if it involves money laundering or other criminal activity), they are generally friendly to crypto income you receive from an official Panamanian crypto exchange (unlike EU banks, which are certainly not crypto-friendly).

Unlike Paraguay or Uruguay, you can open a bank account without limits even if you don’t have income within the country – but you must carefully document your foreign income.

I’ve tried several Panamanian banks in combination with selling and buying cryptos and had no problem:

Banco General – Panama’s largest bank also directs all foreign payments outside Panama. You can open a bank account remotely on the Panamanian cedula through their mobile app. The advantage is that you can use their instant payment system built on QR codes, Yappy, which is universally accepted throughout Panama (in some places, they don’t accept credit cards, so you just pay with cash or through Yappy). Other Panamanian banks (e.g., Zinli) integrated Yappy too. They will issue you a local Panamanian Clave card or a basic VISA card as standard. Suppose you want a better card (like VISA Platinum). In that case, they have to verify you – you have to prove your regular foreign income (I spent almost 2 hours at Banco General for this, but I managed 🙂 You can then take advantage of many VISA Platinum benefits and discounts throughout Panama.

Other Panamanian banks I have tried are Zinli (a fintech startup) and Lafise. I could open both accounts within minutes with just a Panamanian cedula (which is a considerable improvement, as in the past, it was very bureaucratically challenging to open bank accounts at banks, even for residents).

The Zinli account can be recharged directly with crypto through the cryptofacil.io service. It works instantly, but there is a relatively high fee of 4% plus an extra 0.50 USD for each transaction. You can top up a maximum of 200 USD at one time (but you can do it repeatedly).

You can save if you use Binance P2P, where you can find deals selling USDT to USD for about 0.985 USD, a fee of only 1.5%. You can send the money straight to your Zinli or other Panamanian account. The transfer is also within minutes, but as I wrote, Panamanian banks (like Georgian or any other) may have a problem with Binance P2P transactions from random people.

Instead of Binance P2P, you can try its Latin American version, El Dorado, which works in Panama, Argentina, Bolivia, Brazil, Colombia, Panama, Peru, and Venezuela (unfortunately, not yet in Paraguay).

The best and, at the same time, the most popular crypto service and crypto app in Panama at the moment is Lulubit, which is the Panamanian equivalent of the famous XAPO. The USDT to USD selling rate was also 0.985 USD, a fee of only 1.5%. You got it officially from the exchange, and no Panamanian bank should have a problem with it. The only problem is that unless you have a bank account with Panama’s Canalbank (where Lulubit has an account), you won’t get it instantly, but only the next day.

Lulubit allows you to deposit USD fiat from any Panamanian bank to your accounts at Canal Bank or Banco Aliado, from US platforms (like PayPal, Wise, Payoneer, etc.), or almost any crypto (in the case of stablecoins, you can use Etherum, Solana, and Polygon blockchain), directly from another Lulubit user, or top up with Mastercard cards.

The exchange rates are nice. Withdrawals in fiat can be free to any Panamanian bank account (if it’s not Canalbank, it will take up to 24 hours) or to crypto or another Lulubit user. Lulubit gives you 4% annual interest if you hold DAI or 3% yearly interest if you hold USDT/USDC/ETH there.

A not-insignificant advantage is that you can apply for a Lulubit Mastercard (for $40), which you can use to pay and spend your crypto anywhere (they only send it to a Panamanian address).

My only problem is that you can only deposit/withdraw $5,000 monthly. It is enough to live comfortably in Panama, but sometimes, you need more.

Our Panamanian dude, Peter Bešina, is also active in Panama. He runs a network of Bitcoin ATMs there (you can find them at the Panama International Airport, for example). Here’s more information about his project, ParallaPTY.

Current conditions for obtaining temporary and permanent residence in Panama

There are several ways to apply for residency in Panama: purchasing a property worth at least 300,000 USD or documenting your employment contract in a Panamanian company. The latter is the most popular option, so I will only analyze this option in the following article.

Similar to Paraguay, Uruguay, or other countries, in Panama, you must first apply for temporary residency for two years and then apply for permanent residency for an indefinite period before expiration. You are exempt if you are an Italian citizen; special legislation applies, and you can immediately apply for permanent residence.

Requirements for obtaining Panamanian permanent residence

All adult applicants for residency need:

• A current apostilled criminal record extract from your home country (the Panamanian legal translator has to translate it officially in Panama; only if there is no court translator from your language can you apply for an exception and have the translation into Spanish done in your home country).
• If you have been a permanent resident in another country (for example, Paraguay) for at least 2 years, an apostilled criminal record extract from that country only (we can arrange this for you remotely) and proof that you are a permanent resident there (cedula, driver’s license) will be sufficient. The advantage is that this document is in Spanish, so there is no need to translate it.
  
• Suppose you are or have been married/divorced. In that case, you need an apostilled marriage certificate and/or divorce certificate issued in the country, no more than 6 months old (note that unlike in Paraguay, a marriage certificate/divorce certificate in Panama has a validity of 6 months, and you present both when applying for temporary and permanent residency). We will arrange for its translation into Spanish in Panama.
• Proof of employment in a Panamanian company—employment contract (either yours, which we must set up in advance, or another one
  
• A valid passport (at least 6 months before expiration).
• 8 passport photos.

Suppose you are applying for residency for yourself only, with no other dependents. In that case, the situation is much easier because you do not need a birth certificate or a bank account in Panama.

On the other hand, if you are applying for residency for your spouse, children, or parents, you need to provide the following:

• Apostilled birth certificates of dependents (children, wife, to clarify the family connection).
• Before applying for Panamanian residency, you must open a Panamanian bank account, deposit a minimum of US$5,000 (a social guarantee that you will care about your family), and obtain a certificate, the so-called “Carta bancaria.”

Important note: Opening a Panamanian bank account can be the most challenging part of immigration. You need one as a family, so we recommend arriving in Panama at least one week before applying for residency. We open bank accounts for our clients at Banistmo, with whom we have a good relationship.

To open a bank account in Panama, you need:

• “Source of income,” proof of your income translated into Spanish
• “Reference letter,” confirmation that you have a bank account with another bank (we recommend at least two of these confirmations)
• A “Utility bill” proves that you are paying for electricity, utilities, etc.
• Valid passport (at least 6 months before expiry)
• Cash of 5000 USD that you put there

Suppose you are applying for Panamanian residency as a couple. In that case, the easiest way is to file two independent applications (as independents), which, although a bit more expensive, will simplify the process considerably – you won’t need birth certificates or a bank account in Panama.

A certificate of employment with a Panamanian company is necessary for applying for Panamanian residency. The minimum wage in this company is 850 USD/month (we recommend 1000 USD/month). As an employee, you should pay the municipality a fee of 50 USD/month (600 USD per year).

To apply for residency, you do not currently need a certificate of employment from the Panamanian Labor Office, nor do you need to pay social or health taxes. Similarly, there is no need to document the receipt of a monthly salary into the employee’s account. Also, regular fees to the municipality are not verified.

Should this change in any way in the future and the Immigration Office start verifying these things, we will inform our clients in advance.

Timetable of necessary visits

The timetable varies depending on whether you are applying for residency alone or with other dependents (children, spouse). If the latter, you must arrive for your first visit to Panama at least 1-2 weeks before applying for temporary residency. They must approve opening a bank account, and you must deposit $5,000 in cash.

You must visit Panama two times to apply for temporary residency, the first for one week (5 working days) and the second for two working days as soon as you are approved for residency (within 6 months of the first visit). The permanent residence application is similar to the temporary residence application— you must visit Panama two times too, the first for one week (5 working days) in the 21-24 months of your temporary residence and the second for two working days immediately after your permanent residence is approved.

Before arriving in Panama, avoid public holidays when no one works there.

Detailed schedule of visits:

1. Visit to Panama (5 working days) – Application for temporary residence

• Sunday – you will arrive in Panama
• Monday ( your presence is required) – you will visit our lawyers in the morning with all the necessary documents and sign a power of attorney to ensure they will fully represent you throughout the immigration process. In the case of dependents, you will sign a ‘Carta de responsibilidad’ where you declare that you undertake to pay the costs to all your dependants in Panama (children, spouse).
• Tuesday (your presence is not required) – our lawyers will register your passports with the immigration department.
• Wednesday (your presence is not required) – our lawyers submit your application for your application for temporary residence.
• Thursday (your presence is required) – the Immigration Department takes your photo.
• Friday – you leave Panama.

If you are applying for residency for yourself and your dependents (family), you must arrive in Panama at least one week before, open a bank account, and deposit $5,000 there.

2. Visit Panama (2 working days) – obtain a temporary residency card

The immigration office approves temporary residency in 6 months, usually 4 months. If you are not in Panama, you must provide our lawyers with a ticket receipt (booking number) stating that you have left Panama. They can collect the temporary residence resolution (“resolucion de residencia”) for you.

Immediately after that, you can come to Panama a second time (within two years) and apply for a residency card (you need to take a photo for this). It is best to arrive within a year since your residency is approved. You can also come within two years and combine the second visit (picking up your temporary residency card) with a third visit to Panama (applying for permanent residency with no time limit). In this case, we recommend arriving at least 1-2 weeks before applying for permanent residency.

3. Visit to Panama (5 working days) – application for permanent residence without time limit

Within 21-24 months of your temporary residency approval (within 6 months of your first visit), you must come to Panama another time to apply for permanent residency. You no longer need an apostilled criminal record or birth certificate when applying for permanent residency.

However, you need a current apostilled marriage or divorce certificate no more than six months old.

If you are applying for permanent residency for dependants (family), then again, as in the first case, you need proof that you have a bank account (“Carta Bancaria”) in Panama with a deposit of USD 5,000 (which you can re-use from the first visit).

If you miss the visit on that date, applying for permanent residency in the 25th-30th month is possible. Still, in this case, there is a fine of 50 USD/month, so if you would like to apply for permanent residency in the 30th month of your temporary residency, there is a total fine of 300 USD.

Unfortunately, this is no longer possible after the 30th month of your temporary stay.

• Sunday – you arrive in Panama.
• Monday (your presence is required): You will visit our lawyers in the morning with all the necessary documents and sign a power of attorney that will allow you to fully represent yourself throughout the immigration process.
• Tuesday (your presence is not required – our lawyers will register your passports at the immigration department.
• Wednesday (your presence is not required) – our lawyers submit your application for permanent residence.
• Thursday (your presence is required) – the Immigration department takes your photo.
• Friday – you leave Panama.

Suppose you are applying for permanent residency with dependents (family). In that case, you already have a bank account open (from the first visit), so you only need to come for five business days (one week) for the third visit.

4. Visit to Panama (2 working days) – obtaining a permanent residency card

It takes up to 6 months to be approved for permanent residency, usually approved in 4 months. If you are not in Panama, just provide our lawyers with your ticket confirmation (booking number) that you have left Panama. They can pick up your permanent residency resolution  (“resolucion de residencia”).

After that, you can come to Panama a fourth time (within a maximum of two years) and apply for a permanent residency card.

Then, our lawyers will prepare the document for you to ask for your Panamanian cedula. Once it is approved (it takes 3 weeks), you can come to Panama a second time and apply to the Supreme Court (“Tribunal Electoral”) for an official Panamanian cedula. You don’t need a Panamanian cedula to operate in Panama  – you can use your Panamanian residency card for everything. However, your residency card contains your passport number, which expires over time. Applying for a Panamanian cedula over time is a good idea because it does not have your passport number.

Panama requires regular visits every 2 years to maintain permanent residency. Since Panama City is an international hub, if you travel a lot, this won’t be hard to accomplish. In this case, it just means entering the country on your cedula and exiting on your cedula simultaneously.

Advantages of Paraguay over Panama

• Paraguay has not signed the CRS (automated reporting system), nor is it planning to. Paraguayan banks (unlike Panamanian banks) don’t send anything anywhere. But they have monthly limits of $1,000, as long as you don’t have local income in Paraguay. You can have uncapped accounts in Panamanian banks even without local income.
• Paraguay is the only country with territorial taxation where you can get tax residency without living there most of the time in a year (more than 183 days). You just need to register with the Paraguayan Tax Office (SET) and complete monthly declarations. You must live in Panama most of the time / have a permanent home to obtain residency. So Paraguay is ideal for digital nomads who need a tax residency “somewhere” without living anywhere most of the time.
• In Paraguay, it is possible to get a temporary/permanent residence through our express service along with a biometric cedula in just one visit (in Panama, you must make two trips—the first to apply for residency and the second to apply for a residency card).
• To obtain residency in Paraguay, one does not need a bank account or to make a deposit for dependents.
  
• Obtaining a driver’s license in Paraguay is significantly easier than in Panama.
• You only need to visit Paraguay once every 3 years to maintain permanent residency. Panama needs to be visited once every 2 years, which may not be a problem as Panama is an international hub.
• Paraguay is a member of Mercosur; the Paraguayan cedula will get you into all the core Mercosur countries if you don’t need a visa to go there as a citizen (Argentina, Brazil, Uruguay, Bolivia). But Panama has already become an associate member of Mercosur (so Mercosur citizens, not residents, can get there on their cedula).
• Paraguay is not on any blacklist. As of 28.2.2025, Panama is on the EU blacklist of countries that do not cooperate on tax issues and are not sufficiently transparent (which may not be an explicit disadvantage 🙂
• Paraguay is about 2-3 times cheaper than Panama.

Advantages of Panama over Paraguay

• Once your foreign income is verified, you can immediately open a Panamanian bank account with no limits (you don’t have to have a local Panamanian income like in Paraguay) and apply for premium VISA Platinum or Signature cards.
• Unlike Paraguay, Panama has territorial taxation for businesses in addition to individuals (so Panamanian businesses, unlike Paraguayan businesses, don’t have to pay any taxes on foreign income). Opening a Panamanian company is easy. Opening a bank account for a Panamanian company in Panama is considerably more difficult until the company does business there. Therefore, we recommend a Panamanian company when you are 100% “crypto-only” and thus do not need a bank account. Panamanian tax residents can, just as well as Paraguayan tax residents, own a US LLC company (for EU and non-US customers) or a Gibraltar company (for US customers). Even if it has territorial taxation, a Panamanian company is more bureaucratic to maintain than a US LLC.
• The Czech Republic and Panama have signed a double taxation treaty, so it may be advantageous to use a Panamanian firm to invoice Czech clients (who pay you crypto:-) Slovakia and most other countries in the world have not signed a double taxation treaty with Panama, so there is a risk of withholding taxes there, similar to Paraguay—list of countries that have signed a double taxation treaty with Panama.
• Panama is significantly more crypto-friendly than Paraguay—it has crypto legislation and does not have a “capital gain tax” on crypto. Similarly, any crypto transactions outside Panama are not declared or taxed. Panamanian banks are more crypto-friendly than Paraguayan banks and have no problem accepting withdrawals from Panamanian crypto exchanges. Similarly, Panama has many crypto exchange services and a relatively dense network of Bitcoin ATMs.
• Panama doesn’t have a central bank; it uses US dollars, which makes it more immune to potential hyperinflation.
  
• Panama has beautiful beaches and mountains!

If you are interested in Panamanian temporary or permanent residency, please contact us. We will be happy to help you with the whole process, both in Panama and in Paraguay or Uruguay.