Mistakes When Emigrating to Panama That You Must Avoid

One of the most common mistakes when Emigrate to Panama is not choosing the right visa for the purpose of your stay. Many foreigners start migratory procedures without being clear about the requirements or benefits of each type of visa, which can lead to delays or even the rejection of the application.

In 2025, Panama offers several options for Visa for foreigners, each designed for different profiles and objectives. The key is to select the most suitable one for your personal or professional plans.

Most Common Visas to Live and Work in Panama

• Permanent Residence Visa as a Friendly Country: Available to citizens of certain countries with friendly relations with Panama. Ideal for those looking to settle down indefinitely. It requires demonstrating a link to the country, such as local employment, investment or real estate.
• Investor Visa: Designed for foreigners who wish to do a investment in Panama. It accepts options such as real estate investments greater than $300,000 or opening businesses with substantial capital.
• Foreign Worker Visa: Issued to individuals hired by companies legally established in the country. The employer plays an important role in the process.
• Own Economic Solvency Visa: For those who can demonstrate substantial income from abroad. It doesn't require local work, making it suitable for retirees or digital nomads.

Key considerations before starting the process

Before submitting your application, make sure you comply with the Migratory Requirements Up to date and have all the documentation in order. This includes:

- Current passport
- Apostilled criminal record
- Bank certificates or proof of income
- Employment contracts or investment documents
- Official translations if the documents are not in Spanish

While some processes can be carried out on your own, count on the support of immigration lawyers in Panama can make a difference. They will help you choose the most appropriate visa category and avoid errors during Migratory Procedures.

In addition, regulations can change, so it's essential to be up to date. A mistake as simple as submitting an incorrect form can delay your migration for months.

In short, understanding the available visa options and choosing the right one is essential for Live and Work Legally in Panama. Choosing badly could mean starting the process all over again or facing sanctions. Therefore, being well informed before making a decision is the first step towards a safe and successful migration.

Another decision that many foreigners make upon arrival is to open a business, attracted by the ease of creating companies in Panama and its strategic role as a commercial hub in the region. However, to do so without understanding the local legislation It represents one of the Common mistakes when migrating to Panama and can lead to fines, tax problems or even the closing of operations.

Although the process for Open a company in Panama It is agile compared to other countries, it is important to follow the right steps and comply with all regulations. The requirements vary depending on the type of business, the legal structure chosen and the nature of the partners.

Essential legal aspects when setting up a company

The main points you'll need to consider include:

• Type of legal entity: The most common options are the Public Limited Company (S.A.) and the Limited Liability Company (SRL). Each one has different fiscal and operational implications.
• Business License: Almost all businesses require an operating license issued by the municipality where they will be located. Skipping this step may result in penalties.
• Public Record: Every company must be registered in the Public Registry of Panama, formalizing its legal existence.
• Tax Obligations: Register the company with the Directorate General of Revenue (DGI) to comply with taxes, invoicing and mandatory accounting reports.
• Restrictions for foreigners: Some business activities are reserved only for Panamanian citizens. It is essential to check if your business is within those allowed for foreigners.

Common mistakes to avoid

When starting your business, avoid these common mistakes:

- Create a company without having a legal and accounting advisor who knows the legal regulations for immigrants in Panama.
- Ignore immigration requirements if you plan to operate your own company yourself (some visas do not authorize direct business activities).
- Failure to properly register your employees or break local labor laws.
- Use generic constitution documents without adapting them to your type of activity or partners with whom you work.

In addition, many entrepreneurs make the mistake of opening a business bank account without first obtaining the license and the RUC (single taxpayer registration), which delays the procedures and generates unnecessary frustration.

The importance of professional support

Having legal guidance will not only help you comply with Requirements to open a company in Panama, but it will also provide a solid legal structure from day one. This is essential whether you represent a startup, a family business or an investment business.

In conclusion, opening your company in Panama is a great opportunity, but doing so without knowing the local laws can put your entire investment at risk. Before taking the first step, get informed, consult experts and create a legal basis that allows you to grow your business with security and peace of mind.

One of the most common mistakes when migrating to Panama is underestimating the cost of living. Many newcomers assume that everything will be cheaper than in their home countries, but the reality may vary depending on factors such as the area where they settle, the lifestyle they lead and the services they require.

El cost of living in Panama for immigrants can be affordable if you plan well. However, without a realistic budget, it's easy to encounter unpleasant surprises, especially in sectors such as income, private health or international education for those who migrate with their families.

Basic expenses you should consider

Before making the decision to move, make a financial plan that covers your main expenses. Here are some examples of the monthly average in US dollars:

• Rent: From $500 in peripheral areas to more than $2,000 in exclusive sectors such as Punta Pacifica or Costa del Este.
• Basic Services: Water, electricity, and garbage collection can reach $100 or more, depending on consumption.
• Internet and telephony: Residential packages range from $35 to $70 per month.
• Mobility: Public transport is cheap, but many foreigners choose cars, which involves maintenance, gas and insurance.
• Health: Panama has good medical infrastructure, but private insurance can cost between $60 and $300 a month, depending on age and coverage.

What about taxes or legal requirements?

In addition to the everyday cost, don't forget the expenses related to your legal status. Processes of Panama visa, work permits or residence in Panama may involve immigration fees, official translations and legal fees. Also, if you plan Open a company in Panama, you'll need to consider fiscal and administrative expenses from day one.

Many foreigners don't consider these additional burdens in their initial budget, which can lead to financial stress or hasty decisions. If you are considering a visa for foreign entrepreneurs in Panama, consult specific requirements with a specialist in immigration attorneys in Panama, since some visas require proof of minimum income or investment.

A financial plan allows you to make informed decisions, negotiate better conditions, and avoid relying on unforeseen resources or going into debt. Be clear about the costs associated with living in Panama is essential for a successful and smooth integration.

Another common mistake when migrating to Panama is not researching properly. What is the Best Area to Live based on your profile, needs and budget. This can directly impact your quality of life, security, mobility, and opportunities for social or professional connection.

Panama is a very different country. Although capital concentrates many opportunities, not all areas are the same or offer the same benefits. There are sectors more suitable for families, others for single professionals, retirees or entrepreneurs. Making the wrong choice may mean paying more than the bill, dealing with daily traffic problems, or living in a poorly connected area or with limited access to services.

The best areas for foreigners to live in Panama

During the processing of your residence in Panama, it is advisable to explore different areas before renting or buying property. Here are some of the most popular among the foreign community:

• The Crab: Central area, known for its multicultural environment, gastronomic offer and excellent connectivity. Ideal for young professionals or couples.
• East Coast: Modern, secure and with high level services. Highly valued by executives and families with children in international schools.
• Pacific Point: One of the most exclusive sectors. Modern towers with ocean views, security and proximity to hospitals and shopping centers.
• San Francisco: Mix of urban and residential life. It has parks, supermarkets, cafés and quick access to the southern corridor.
• Clayton: Surrounded by green areas, excellent for those seeking tranquility, international offices and proximity to bilingual schools.
• Boquete and Coronado (outside Panama City): Ideal alternatives for retirees or those looking for a quieter life surrounded by nature, with established international communities.

Understanding which area best fits your lifestyle helps you avoid financial and logistical errors. For example, if you work in the city but decide to live in the suburbs to save on rent, you could end up spending more on transportation and wasted time in traffic.

Another important factor is safety. Although Panama is a relatively safe country, not all areas are the same. Avoid making hasty decisions without visiting areas beforehand or without the support of local advisors who understand the context.

As a final recommendation: before committing to a long contract, consider renting temporarily while getting to know the city and surrounding areas better. This way, you can adjust your plan without pressure and make decisions that favor your long-term integration and stability.

A good choice of residence enhances your experience from the start. In the next section, we'll look at another crucial aspect: how to open a Bank Account in Panama as a foreigner, one of the steps that many forget when starting their new life in the country.

One of the common mistakes when migrating to Panama is to assume that opening a bank account will be a simple and fast process. Although Panama is a globally recognized financial center, its banking system has strict regulations, especially when it comes to opening accounts for foreigners. Not understanding the Banking requirements in Panama it can lead to delays, rejections or even limit your options to settle and do business in the country.

If you plan to live, work or start a business in Panama, having a local bank account will be essential to receive payments, pay for services and manage your finances efficiently. Here's how to do it right and what mistakes to avoid.

What type of account do I need as a foreigner?

Banks in Panama offer Personal and corporate accounts. If you are a resident or are in the process of obtaining your visa, you can request a personal account. For entrepreneurs or investors, a business account will be necessary, especially if you are Opening a Company in Panama.

Keep in mind that while not all banks require legal residency to open a personal account, some do. Choosing the right bank based on your immigration status is key to avoiding complications.

Documents required to open a bank account in Panama

The documents that banks usually request include:

• Valid passport and certified copy
• Bank reference letter from your country of origin and/or Panama
• Certification of income (employment contract or affidavit of income)
• Public service receipt or proof of address
• Bank application form and personal interview

Some banks may require additional documentation, especially if your financial activity is considered to be high-risk or if you don't yet have formal residence.

Common mistakes when opening a bank account

Between The most common errors You will find:

• Do not validate if your bank of origin has relationships with Panamanian banks, which can complicate international transfers
• Do not submit a bank or financial letter that justifies your income
• Choosing a bank without knowing its policies towards non-resident foreigners
• Attempt to open accounts with incomplete or outdated documentation

In addition, it is important to know that many Panamanian banks require a minimum deposit to keep the account active, and charge fees for inactivity or maintenance.

Tip: Plan this process in advance

If you are in the process of obtaining residence in Panama or as soon as you arrived in the country, it is best to consult with a legal expert or contact banks before finding out their specific requirements. Some foreigners combine this process with their immigration process or with the creation of a company, which can expedite the approval of the account.

Remember that without a local bank account, it will be difficult to pay for rent, basic services or even meet investment requirements. Proper advice can save you a lot of trouble in the long run.