Panama: Everything You Need To Know In 2025

Acquiring a second citizenship is typically a later step in any go-offshore plan.

Most people start with residency… and at a later point may seek citizenship in the country where they have residency.

Not everyone is interested in the idea of getting a second passport. Understand, though, that this can be the single most powerful option for creating options, not only for you but also for your children—as second citizenship grants a permanent right to live and work in the country, and you pass it on to your descendants.

Panama allows you to apply for naturalization after five years of permanent residency. This means you can apply five years after you’re approved for the Golden Visa permit. If you qualify for residency under one of the investment options that require renewals before getting permanent residency, it’s important to note that your timeline doesn’t start when your temporary residency is first approved—but when you receive permanent residency.

Panama does allow for dual citizenship if you’re born with Panamanian citizenship. If you’re naturalized, you’re meant to renounce all previous citizenships. For someone looking to give up their current citizenship (for example, renouncing your U.S. citizenship so that you no longer have obligations to the IRS), that’s not a problem. However, most people are looking to hold multiple passports.

Panama doesn’t specifically require proof of renunciation, so most people who get naturalized don’t bother giving up their previous citizenships… and the reality is that it probably doesn’t matter. Just be aware that if you do that, it’s possible to have your Panama naturalization revoked.

Don’t expect to have your Panama passport quickly once you apply for naturalization. It can take a year or more to be approved for naturalization. One friend of mine waited more than two years from applying to getting his passport.

Once you have a Panama passport, you’ll be able to travel to 144 countries without getting a tourist visa in advance. That’s a good number, but 65 other countries have more countries they can visit without a visa. The countries that most people would want to visit—most of the Americas and Caribbean as well as Europe—are included in the 144 countries as well as some Asian and African countries.

All in all, a Panama passport is a great travel document… once you get it.

A few years ago, Panama began requiring a test before issuing a driver’s license. Before that, you simply asked for a license and got one. No training necessary. Your fellow drivers on the road, therefore, didn’t use turn signals—presumably they didn’t know they were supposed to. They didn’t stop at Stop signs or even, often, at red lights. They turned right from the far left lane across three lanes of traffic, again without signaling. They drove on the shoulder, across the median, on the sidewalks. They ran into each other all the time.

Despite the new requirements that would-be drivers take a class and pass a test, little has changed. The difference is that there are significantly more vehicles on the road than in 2008. The country’s exploding middle class means more people can afford a car. The streets, meantime, remain as narrow, the parking as limited. Traffic jams are epic.