Panama provides a travel‑document program that grants a passport — but not citizenship — to foreign nationals who open a local bank account and place a fixed‑deposit there. The passport offers visa‑free or visa‑on‑arrival access to more than 128 countries, making it one of the world’s most travel‑friendly documents.
How the program works
- Open a Panamanian bank account – the applicant selects one of the two nationalized banks and completes the account‑opening process, which typically takes a few weeks.
- Create a fixed deposit – the deposit must be locked for five years. The size of the deposit is calibrated to generate a monthly passive income of US $850.
- Obtain temporary residency – the fixed‑deposit income qualifies the holder for a special temporary‑residency category. Processing time is usually 2–4 months.
- Receive the passport – once residency is granted, the passport is issued within a few days to two weeks. The passport remains valid as long as the fixed deposit is maintained.
If the holder later wishes to retrieve the funds, the fixed deposit can be broken; the passport is then forfeited, but no financial loss occurs because the deposit continues to generate the US $850 monthly income.
Financial requirements
| Requirement | Detail |
|---|---|
| Fixed‑deposit amount | Approximately US $275,000 (based on generating US $850 per month). |
| Monthly income from deposit | US $850 (tax‑free under Panama’s territorial tax system). |
| Deposit term | 5 years (locked). |
| Bank choice | One of Panama’s two nationalized banks (specific institutions not named). |
The US $850 monthly income can also be combined with other passive‑income streams to meet residency thresholds in other jurisdictions.
Tax and legal considerations
- Panama operates a territorial tax regime: income earned abroad, including the fixed‑deposit interest, is not subject to Panamanian tax.
- The passport does not confer Panamanian citizenship; the holder’s nationality remains that of their home country (e.g., Chinese, Japanese, South Korean).
- The program is positioned as a legal “travel‑mobility” solution, not a means to evade home‑country laws. It is intended for legitimate travel and privacy purposes.
Practical use cases
- Travel mobility for nationals of countries that restrict dual citizenship – the passport provides an alternate travel document without altering the holder’s original nationality.
- Identity protection – frequent travelers, especially high‑net‑worth individuals, can use the Panamanian passport to keep their home‑country passport free of travel stamps and reduce surveillance exposure.
- Residency qualification – the US $850 monthly income can satisfy income‑based residency requirements in other countries, offering a pathway to additional long‑term stays.
Limitations
- No citizenship – the program does not grant Panamanian nationality; the holder’s official nationality remains that of their original passport.
- Residency documentation still lists the original nationality – any temporary or permanent residency obtained will reflect the holder’s home‑country nationality, not Panama.
- Passport validity is tied to the fixed deposit – breaking the deposit ends the passport’s validity.
Overall, the Panamanian passport‑by‑deposit scheme offers a rapid (2‑week) route to a high‑mobility travel document, provided the applicant can commit the required capital and maintain the fixed deposit for the stipulated term.
