Panama—Italy Dual Residence: Requirements and Myths 2025

The Dual Residence Is the legal condition in which a person has valid residence permits in two countries simultaneously, without the need to give up their Original Citizenship. Not to be confused with the Dual Citizenship, which involves having two passports. Dual residency refers exclusively to the legal right to live and remain in both countries, without losing your immigration status in either of them.

In 2025, both Italy Like Panama allow dual residence, each under their own regulations. This means that, as an Italian or European citizen, you can obtain the residence in Panama Without renouncing your Italian citizenship or the benefits of your European passport.

In practice, having dual residence allows people to:

• Spending long periods in both countries legally.
• Enjoy specific tax benefits, depending on your tax status in each location.
• Have access to public services, home insurance, or other benefits related to immigration status.

Is it legal in 2025? Yes. Neither Italian nor Panamanian legislation prohibits a citizen from having legal residence in another country. The important thing, however, is to understand that the Residency And the Citizenship they are different concepts. Having Panamanian residence does not affect your legal status as a citizen of the European Union. For example, you can request the Tax Residency in Panama without altering your European citizenship — everything will depend on how you pay taxes and how long you physically reside in each country.

Citizenship vs Residency: A Key Difference

Many people believe that by obtaining a new residence, they are beginning a process of naturalization or dual citizenship. In reality, this is not automatic. La permanent residence in Panama It grants you rights to live, work and pay taxes in the country, but it doesn't grant you a passport or citizenship if you don't specifically request it and meet additional requirements.

For this reason, European citizens can live legally in Panama without compromising their European rights. And vice versa: to have residence in Italy does not prevent obtaining Panamanian residence.

For anyone interested in International Migration, especially between Italy and Latin America, this possibility opens doors to a flexible, legal and well-structured lifestyle.

If you have Italian citizenship and you are considering starting a process of legal residence in Panama In 2025, the news is positive: Panama offers one of the most friendly migratory regimes for European citizens, especially through the program known as Permanent Residence by Panama-Italy Agreement or Provisional Residence by Friendly Countries.

What do you need to start the process?

There are several legal paths, but the one most used by Italians is the “Panama-Italy Agreement” program, which allows Italian citizens to apply for permanent residence in Panama more easily. Key requirements include:

• Current Italian passport: must be valid for at least 6 months.
• Proof of economic link with Panama: it can be an employment contract, an investment in a local company or even the opening of a Panamanian company.
• Clean criminal record: both from Italy and from any country where you have resided in the last 2 years.
• Duly apostilled documents: to be valid before Migration Panama.
• Physical presence in Panama: to submit the application to the National Migration Service, usually with the help of a local lawyer.

Other alternative paths

In addition to the program of Friendly Countries, Italian citizens can also request:

• Residence for economic reasons: as a real estate investor or owner of a fixed-term account with defined amounts.
• Residence as a retired retiree: very common among European citizens over 55 years of age.
• Residency as a freelancer: for people who provide services from Panama to international or local clients.

Do you have to give up something from Europe?

No. Get a residence in Panama It doesn't require you to give up your Italian citizenship Or European passport. You still have the right to reside and move freely within the European Union. The only thing that changes is that you will now have a second place where you can legally establish residence.

This process is especially useful for those looking for options for International Relocation without legal complications, since Panama maintains stable treaties with EU member countries and is considered a reliable destination for qualified immigrants.

In short, if you are wondering How to obtain legal residence in Panama as an Italian, the path is clear and feasible, provided you have the right documents and reliable advice.

One of the most frequently asked questions when considering legal residence in Panama Is if this involves renouncing the European Citizenship. The answer, in most cases and especially for Italian citizens, is clear: There is no need to lose your European passport To get residence in Panama.

It is essential to understand the difference between Citizenship And Residency. To have Residence in Another Country Does not automatically alter your nationality, as long as the country of origin allows Dual Citizenship or multiple legal residences. Italy, like most countries of the European Union, It allows you to keep your citizenship Even If You Buy Tax Residence or permanent in other jurisdictions such as Panama.

La Panamanian Residence, in any of its forms (national, permanent or fiscal), It does not require renouncing your Italian citizenship. This means that you can benefit from the legal, economic and strategic flexibility of living between both countries without losing your rights as European citizen.

How is the preservation of the European passport guaranteed?

Here are some key practices for maintaining your European Union passport while you are settling in Panama:

• Avoid applying for Panamanian naturalization (citizenship) if your intention is only to reside, since residency alone does not interfere with your existing nationality.
• Keep your Italian documents, such as your passport and birth certificates, up to date from the nearest Italian consulate.
• Be sure to meet your minimum obligations as an Italian citizen, such as voting or declaring residence in the AIRE (Register of Italians Residing Abroad).

It is also advisable to check with the Italian embassy or consulate if you have a particular case (for example, if you plan to apply for Panamanian citizenship later or change your usual center of life).

Fiscal residence and citizenship: different legal figures

Many Confuse Tax Residence with citizenship. You Can Get Tax Residency in Panama without losing your Italian citizenship, provided that you properly report and plan your tax situation in both countries. It is not mandatory to “become” a Panamanian citizen to benefit from its tax system.

In conclusion, You can legally live in Panama as a resident without giving up your European passport. With a clear strategy and regulatory compliance, you'll have the best of both worlds: your rights as an EU citizen and the advantages that Panama offers in terms of climate, lifestyle and taxation.

When it comes to Dual Residence Between Panama and Italy, there is a lot of confusing or incorrect information circulating. These misunderstandings can lead to risky legal decisions or missed opportunities. Here we explain the Most Common Errors Faced by those who try to establish a Double International Residence without clear information.

Myth #1: “I must renounce my European citizenship to reside in Panama”

As we mentioned before, this It's Not True. La Italian citizenship Is compatible with the permanent residence in Panama. The Panamanian permit authorizes your stay, but It does not replace your nationality.

Myth #2: “Residency and Citizenship Are the Same Thing”

This is another common mistake. La Residency allows you to live legally in a country that is not your own, while the Citizenship implies political and national identity rights. Panama offers several residency options that do not involve or require applying for local nationality.

Myth #3: “If I live outside Italy, I automatically lose my European passport”

Living abroad does not affect your citizenship, as long as you fulfill your obligations as an Italian citizen abroad. To do this, simply register with AIRE and keep your documents up to date.

Other common errors when applying for dual residence

• Failure to correctly report the change of address to the Italian authorities via consulate.
• Choosing the wrong visa in Panama (for example, a tourist visa when the ideal would be an investor, pensioner or economic solvency visa).
• Suppose that dual residence automatically implies “double taxation”. In many cases, Panama and Italy have mechanisms to avoid paying taxes twice.

Myth #4: “You can't have tax residency in Panama if I still have ties to Italy”

In reality, the concept of Tax Residence depends on several factors: where you live more than 183 days a year, your vital center of interests, sources of income, and others. Many European citizens establish Tax Residency in Panama with proper planning, even maintaining property or family ties in Europe.

Avoiding these mistakes can make the difference between a smooth transition and a complicated migration experience. It is always advisable to seek well-informed advice from both Italian and Panamanian contexts—to ensure legal compliance.

Now that we have debunked some common myths about having dual legal residence, we can explore why so many European citizens are considering this international strategy, not just for personal flexibility, but for their Tax, mobility and quality of life benefits.

In addition to the legal possibility of maintaining the residence in Panama Without Giving Up Your European passport, one of the main reasons why citizens Italians consider this option to be the unique combination of tax benefits and quality of life offered by both countries.

Strategic Tax Opportunities

One of the biggest attractions to establish Tax Residency in Panama is their territorial tax system. Unlike Italy, which taxes your global income if you are a tax resident, Panama only taxes what is generated within its territory. This can be a determining factor if you generate international income, such as:

• Digital or remote businesses from outside Panama
• Real estate or financial investments abroad
• Other sources of passive income originating outside the country

This means that, if you are legally resident in Panama (and you comply with tax requirements), you can structure your income so that you reduce your tax burden, completely legally.

In contrast, Italy has a more complex and demanding tax system, so many people value the possibility of keeping a Secondary Residence from the point of view of mobility, access to the local health system or family issues, while managing their financial lives from Panama.

How do you know if you are a tax resident of Panama?

Tax residence does not depend solely on a residence permit. Criteria must also be met such as:

• Spend more than 183 days a year in Panamanian territory
• Not having active tax residence in another country
• Be duly registered with the Directorate General of Revenue (DGI)

Consulting with a tax lawyer in Panama can help you clearly define your situation and avoid errors that generate double taxation or penalties.

Lifestyle benefits and geographical flexibility

Beyond fiscal issues, the Panama-Italy dual residence allows access to a different quality of life, adapted to different stages of the year or personal moments:

In Panama, you find:

• Tropical Climate All Year Round
• Lower cost of living than in large European cities
• Good air connectivity with Latin America and the US. UU.
• Growing international community

In Italy, preserve:

• Access to the European healthcare system
• Closeness to family members and social networks
• Possibility to travel freely around the European Union
• Easy to return to personal or professional changes

For some, living part of the year in one country and part in another represents true international freedom. The key is to understand the legal differences between Legal Residence, Tax Residence And Citizenship so as not to take unnecessary risks.

In short, if you have Italian citizenship and you're considering setting up a permanent residence in Panama, you don't need to give up your European identity. On the contrary, you can design a more efficient life and business structure, with a solid legal base in both countries.