Italian entrepreneurs in Panama: residence and business

Panama has become an ideal destination for those who want to start a business abroad, especially for European citizens such as Italians. In 2025, this trend continues to grow due to a combination of economic stability, strategic location and unique migratory advantages.

One of the main factors that attracts Italian entrepreneurs is the ease with which it is possible to establish a company and legalize your residence. With just a few basic formalities, Italians can get a residence permit taking advantage of the legal framework of Panama-Italy Agreement. This removes many of the barriers usually faced by investors in Latin American countries.

In addition to this migratory benefit, there are other key reasons why Panama is attractive:

• Strategic geographical location: Panama connects North America, South America and Europe through its canal and international airport. This makes logistics and trade easier.
• Dollarized and stable economy: By using the U.S. dollar as the official currency, exchange risks are eliminated and access to international banks is easier.
• Competitive tax regime: Panama offers tax incentives to foreign companies, especially if they operate from free zones or multinational headquarters.
• Growing market: With an expanding middle class, modern infrastructure and pro-investment policies, the country offers opportunities in sectors such as technology, tourism, logistics and real estate.

For the Italians in Panama, the cultural aspect also influences: there is an active Italian community, which facilitates integration and creates support networks for new entrepreneurs. Living in a cosmopolitan city like Panama City, with access to modern services and global connectivity, also adds points for those who want to combine lifestyle and business.

In short, start a business in Panama In 2025 it is a logical decision if we are looking for a dynamic environment, open to international investment and with legal tools that promote migration for Italians. All of this makes Panama not only a place to do business, but a solid option to establish and prosper in the long term.

El Panama-Italy Agreement is a bilateral treaty signed in 1966 that offers special benefits to Italian citizens who wish to settle or do business in Panama. Although it has been modified over time, in 2025 it is still one of the most advantageous migratory tools for Italians who want to undertake outside Europe.

This agreement allows citizens of Italy to request the permanent residence in Panama under preferential terms. Unlike other migratory processes that require high investment or business sponsorship, the Panama-Italy Agreement offers a more direct and less expensive path to legality and entrepreneurship.

Advantages of the Agreement for Italian entrepreneurs

Thanks to this treaty, Italians can obtain a residence permit which grants them rights similar to those of Panamanians in terms of work and investment. Here are some of the concrete benefits that make it a key tool to do business in Panama:

• A sponsor is not required to apply for residency: it is enough to present personal documents and meet minimum requirements.
• Possibility to work and undertake legally without the need for additional work permits.
• Access to tax and banking benefits equivalent to those of local citizens.
• Fast processing, with shorter approval times compared to traditional visas.

Who qualifies and what documents are needed?

To obtain residence in Panama while being Italian Under this agreement, some basic requirements must be met:

— Current Italian passport
— Apostilled criminal record certificate
— Declaration of economic solvency or letter of commitment to undertake
— Photographs, immigration forms and payment of official fees

Once the application is approved, the Italian citizen receives status of permanent resident and can open companies, hire staff, import assets or carry out investment approaches like any Panamanian.

In short, this legal instrument makes the Migration for Italians in Panama it will be more efficient and predictable. If you are exploring options for visa for entrepreneurs or do you want to start a project based in Latin America, the bilateral agreement represents a great competitive advantage.

Thanks to this policy of cooperation between Governments, start a business in Panama not only possible, but also accessible to Italians with a global vision and an entrepreneurial spirit.

Thanks to the Panama-Italy Agreement, Italian citizens have a simplified migratory route to legally settle in Panama. This facility has meant that the residence in Panama is a very accessible option for those who want to undertake, invest or simply enjoy a new quality of life in the country.

This treaty allows any Italian to request a Residence permit for economic or professional reasons, without the need to make a minimum investment as is the case with other types of visas. In addition, it grants rights similar to those of a permanent resident, making the migration process smooth and affordable.

What immigration requirements must Italians meet in 2025?

The process for obtaining the Panamanian residence for Italian citizens it's not complicated, but it does require a number of basic documents. The following are the most relevant steps:

• Current Italian passport: with a minimum validity of six months at the time of applying.
• Criminal record certificate from Italy: double and apostilled.
• Two passport-size photos: for the immigration file.
• Proof of financial solvency: It can be a bank account in Panama or documentation that shows constant income.
• Reason for staying: It may be the intention to start a business, invest or work in the country.

Once these documents are submitted to the National Migration Service, the applicant receives a temporary permit, followed by an approval for their permanent residence in Panama within approximately 3 to 6 months, depending on the case.

What advantages does this residence offer for Italian entrepreneurs?

In addition to the migratory benefit, this permit makes it easier to open bank accounts, create a company as a foreigner, and sign employment or business contracts. It is also important to mention that Italian citizens under this agreement do not need to apply for a specific work or investment visa, greatly simplifying the process for those who want Start a business in Panama.

This Visa for Italian entrepreneurs in Panama It is ideal if you plan to establish a commercial operation, whether in the form of a restaurant, consulting, e-commerce or professional services.

As a general recommendation, it is essential to have adequate legal advice during the process, to ensure compliance with all requirements and avoid errors in documentation or timing.

Once residency is obtained, the doors are open to explore the climate of business in Panama, take advantage of its dollarized economy and its international treaties that facilitate both imports and exports.

Panama offers a dynamic and constantly evolving business environment, making it fertile ground for foreign investment, especially in strategic sectors driven by regional economic growth and free trade agreements. For the Italian entrepreneurs, there are multiple industries with high return potential in 2025.

What are the best sectors for Italians who want to start businesses in Panama?

Choosing a suitable sector is key to the success of any business. Las foreign investments in Panama in 2025 tend to be concentrated in industries where there is demand, attractive margins and government support. Some of the most promising sectors are highlighted below:

• Tourism and hospitality: Panama expects a full recovery in tourism with the expansion of air routes and international promotion. Boutique hotels, niche tourism agencies and dining experiences are booming.
• Digital Technology and Services: There is a growing demand for technological solutions, from web development to digital transformation consulting.
• Logistics and international trade: Thanks to the Panama Canal and its geographical position, this is one of the most robust sectors, ideal for import, export and transport companies.
• Professional Services: Lawyers, architects, designers, financial advisors and sustainability experts find interesting opportunities in a market that is highly open to foreign talent.
• Sustainable agro-industry: With greater environmental awareness, organic products, agro-exports and hydroponic crops have high potential.

Competitive advantages when starting a business in Panama as a foreigner

In addition to identifying a profitable sector, Panama offers advantages that facilitate the management and growth of a business:

First, its economy is dollarized, reducing exchange risk and facilitating financial planning. It also has a territorial tax system, where it is only taxed on income generated within the country, which is very beneficial for digital or international business models.

Second, its strategic location allows access to both North and South American markets. This is ideal if you are looking for business alliances in neighboring countries or if you plan to distribute products or services regionally.

Third, there are free zones such as Panama Pacifico or the City of Knowledge, where ventures can benefit from tax exemptions, simplified permits and institutional advice.

Finally, the multicultural and pro-business environment facilitates talent recruitment, networking and access to innovation and business development events.

Once the appropriate sector has been defined and the business model validated, the next step is to correctly execute the formalization process. Next, we will examine the Requirements to open a company as an Italian in Panama and what steps to follow in a clear and efficient way.

Once obtained the residence in Panama as an Italian citizen, the next natural step for many entrepreneurs is to formalize their project by creating a company. Thanks to Panama-Italy Agreement, the procedures are much more accessible to Italian citizens, eliminating many of the bureaucratic barriers faced by other foreigners.

Choosing the Right Legal Structure

The first step for start a business in Panama as a foreigner is to define the legal structure of your company. The most common option is Public Limited Company (S.A.), used by both Panamanians and international investors for its flexibility and ease of operation. There are also other figures such as the Limited Liability Company (SRL) or the sole proprietorship, depending on the type of business and number of partners involved.

Register the company with the authorities

Once the structure has been defined, you must:

• Choosing a business name and verify their availability in the Public Registry of Panama.
• Drafting and protocolizing the social pact before a Panamanian notary. This document contains the statutes, share capital and data of the partners or shareholders.
• Register the company in the Public Registry, which legally formalizes the existence of the entity.

Thanks to the bilateral treaty, the Italians in Panama registered under the Agreement do not need Panamanian partners to set up a company. This allows you to maintain full control of the business in a legal manner.

Get the Operation Notice

Any company that wants to operate legally in Panama needs a Notice of Operation, which is processed before the Ministry of Commerce and Industries (MICI) through its online system. This document authorizes the commercial exploitation of a specific economic activity in Panamanian territory.

Tax and employment registrations

As part of the Key steps to start a business in Panama, it is mandatory to:

• Register the company with the Directorate General of Revenue (DGI) to obtain the RUC (Single Taxpayer Registry) and comply with tax obligations.
• Register the company with the Social Security Fund if you are going to hire employees.
• Legalize accounting books and minutes, if applicable.

Consider opening a bank account

Although it is not a mandatory requirement for company registration, opening a corporate bank account helps to better manage business finances and is commonly requested by suppliers or investors. Each bank has its own policy, but having a legal immigration status (such as permanent residence in Panama) speeds up the process.

Legal and accounting advice in Panama: a strategic decision

Navigating this entire legal and administrative process, while simplified for Italians, can be confusing at first. For this reason, many immigrants choose to have the support of lawyers specialized in business in Panama or experts in foreign investments in Panama 2025. Adequate advice not only reduces risks, but it also allows us to take full advantage of the benefits that Panama offers in this new business phase.

In short, opening a company as an Italian resident in Panama can be achieved in a few weeks if the right processes are followed, and constitutes an excellent strategy for those looking for living in Panama with an active and legal source of income.