Friendly Nations Visa Panama: the dormant SA in 2026, real costs and obligations
You want the Friendly Nations visa via the SA route, but you have no desire to run a real business — you just want your residency, you live off your savings, your investments, your pension or income from abroad. Good news: it’s perfectly legal to keep your SA “dormant”. But that does NOT mean “forget the SA”. There’s a vital minimum of compliance to maintain, otherwise you risk ex-officio dissolution and visa revocation.
Table of contents
- The Friendly Nations visa since the 2021 reform
- The 3 routes and their real costs
- Why the SA is still the dominant option
- The “ghost SA” myth debunked
- What’s expected of your SA for the visa
- Total cost over 3 years: the real number
- FAQ
The Friendly Nations visa since the 2021 reform
Before Executive Decree No. 197 of 7 May 2021, the Friendly Nations Visa (“Países Amigos”) was considered one of the easiest in the world: you could get it in a few months with an “empty” SA or a simple USD 5,000 bank balance. Panama received hundreds of thousands of applications a year, many of which the administration considered abusive.
Since that reform, the conditions have tightened. For nationals of roughly 50 “friendly” countries (the European Union, the US, Canada, the UK, Australia, Japan, etc.), there are now three exclusive routes.
These routes are mutually exclusive: you must choose one and demonstrate that you meet its conditions.
The 3 routes and their real costs
| Route | Investment required | Total cost ~3 years |
|---|---|---|
| Incorporating a Panamanian SA | No fixed amount, but real economic activity or a credible structure | USD 8,000 to 15,000 |
| Buying real estate in Panama | Minimum USD 200,000 in value | USD 200,000 + ~USD 25,000 in fees |
| Fixed-term bank deposit | Minimum USD 200,000 locked for 3 years in a Panama account | USD 200,000 locked (recoverable) |
Decoding these figures: for the real-estate and bank-deposit routes, the capital is not “lost” — it stays yours, just immobilized. For the SA route, the cost is entirely consumed in legal and compliance fees.
Why the SA is still the dominant option in 2026
For 90% of applicants who aren’t able (or willing) to lock up USD 200,000, the SA route remains the most accessible option. It’s the one that dominates by volume in the official statistics of the Servicio Nacional de Migración.
Why?
- No significant capital needed: you can start with USD 5,000-10,000 for incorporation + initial fees
- Flexibility: the SA can be dormant (zero activity) or activated later whenever you want
- Bonus effect: you get a Panamanian legal vehicle that can serve many other purposes (e-commerce, consulting, real estate, holding)
- No lock-up: your capital stays available for whatever you want
The downside: you have to maintain the SA’s annual compliance, otherwise the visa is at risk.
US note: even a fully dormant SA is, for a US person, almost certainly a Controlled Foreign Corporation. You still owe the annual Form 5471 filing (and you must watch any passive income for Subpart F purposes) for as long as the SA exists — dormant or not. Budget your US accountant into the “real cost” of this route.
The "ghost SA" myth debunked
Many expat forums talk about a “ghost SA” — one you’d create just for the visa and then forget. That’s dangerous and false.
A ghost SA does not exist legally. Either your SA meets the minimum obligations and stays valid (status: “dormant”), or it doesn’t and slides toward ex-officio dissolution (status: “abandoned”). There is no third category.
The 4 possible states of a Panamanian SA:
| State | Characteristics | Visa status |
|---|---|---|
| Active | Revenue, employees, regular operations | Ideal |
| Dormant | No revenue but obligations met | Compatible |
| Abandoned | Obligations not met | Revocation risk |
| Dissolved (ex-officio or voluntary) | Recorded as inactive at the Public Registry | Negative impact if a temporary visa is in progress |
The target for the Friendly Nations visa is the dormant state. Not active, not abandoned — dormant: the SA whose obligations are minimal but strictly met.
What's expected of your SA for the visa
From the Servicio Nacional de Migración’s side, the SA must:
- Be actually incorporated (valid Pacto Social + RUC + Aviso de Operación)
- Be in good standing at the time of the initial application (tasa única paid, filings up to date)
- Demonstrate “plausible” economic activity — not necessarily profitable, but coherent
- Legally tie you in, either as a director or as a significant shareholder (>10% generally accepted, ideally >25%)
The trap: Migration never clearly says “your SA can be dormant.” It requires “economic activity.” In practice, an SA that:
- pays its tasa única every year (USD 300 before 15 July),
- renews its Aviso de Operación (before 31 January),
- files its annual Renta returns (before 31 March, even “at zero”),
- has a non-absurd corporate purpose in its Pacto Social,
- maintains an active resident agent,
is treated as an “SA in dormant activity” — distinct from an “abandoned SA”. And that’s enough in the vast majority of checks.
Total cost over 3 years: the real number
Over 3 years (the typical span before getting the permanent permit), the 3 routes compare like this in real cash flow:
Dormant SA route
Annual compliance: USD 1,100-1,500/year × 3 years = USD 3,600-4,500 spent (entirely consumed, no recovery).
Real-estate route
Purchase USD 200,000 + registration, taxes and notary ~USD 25,000 = USD 225,000 immobilized, but value preserved (recoverable on resale, with potential capital gain).
Bank-deposit route
USD 200,000 locked for 3 years on a fixed-term deposit. Fees almost nil. Modest Panamanian interest (2-3%/year) that more than covers the fees. 100% recoverable at the end. But USD 200,000 immobilized.
For someone who doesn’t have USD 200,000 to lock up for 3 years, the dormant SA route remains the cheapest in real cash flow — which is what makes it the dominant option.
A realistic 2026 breakdown of the USD 1,100-1,500/year of dormant-SA compliance:
| Line item | Low end | High end |
|---|---|---|
| Resident agent (firm) | USD 400 | USD 800 |
| Contador, dormant SA (annual) | USD 400 | USD 700 |
| Annual tasa única | USD 300 | USD 300 |
| Aviso de Operación renewal | USD 20 | USD 50 |
| SA bank account (optional) | USD 0 | USD 200 |
Annual total: between USD 1,120 and 2,050 depending on configuration. Most well-optimized dormant SAs run between USD 1,100 and 1,500/year.
Frequently asked questions
Do I really need a contador if the SA is dormant?
Yes — legally mandatory. The contador is the only person authorized to sign the annual Renta return, even when it’s “at zero”. The format for a dormant SA is minimal: flat annual fee of USD 400-500. The contador signs and stamps.
Do I need a bank account for the dormant SA?
No, not necessarily, and it’s often counterproductive. Panamanian banks (Banco General, Banistmo, Multibank) close accounts automatically after 6-12 months without a transaction. You pay inactivity fees for nothing. Our recommendation: no SA bank account during the temporary-visa phase (2 years), then open one later if you decide to activate the SA.
How long should I keep the SA active after getting the permanent visa?
Default recommendation: 1-2 years after receiving the permanent residency card, then you can dissolve cleanly. If you’re aiming for Panamanian naturalization (5 years after the permanent card), keep the SA active until you obtain citizenship.
What if I travel 8 months a year outside Panama?
No problem for the SA itself — there’s no physical-presence condition for the SA. It’s your residency visa that has minimum-stay conditions (generally at least 1 day every 2 years so you don’t lose permanent residency). The SA’s obligations can be handled 100% remotely with your resident agent and contador.
If I miss the tasa única or the Renta, what happens?
One year forgotten: regularization possible with USD 500-800 in penalties. Two years: Migration may ask for justification at visa renewal. Three consecutive years without the tasa única = ex-officio dissolution of the SA by the Public Registry. And then it’s very serious for your visa: the legal basis of your residency disappears.
My lawyer tells me I need to open an SA account. Is it mandatory?
No. Many firms push you to open an SA account at incorporation because it’s a billable service (USD 200-500 of “assistance”). For a strictly dormant SA, that account is useless in 80% of cases. You can always open one later if you activate the SA.
Inside Panama's Memo #4
What you've just read is the summary of chapter 1 of the memo. The next 9 chapters detail: the vital minimum to stay compliant (5 annual obligations), the SA bank-account question, the 2 traps that cost people their visa, how long to keep the SA after the permanent permit, how to dissolve cleanly, how to reactivate, and the special case of SAs held by several people (sisters, couples, partners).
- 29 pages, PDF + mobile HTML format
- Exact annual calendar with precise dates and costs
- Template meeting minutes for voluntary dissolution
- Detailed comparison of the 3 Friendly Nations routes
This article was published on 20 May 2026 by the founders of Inside Panama, a brand of LAS FUNDADORAS HERMANAS S.A. (RUC 155776412-2-2025). For information only. The exact conditions of the Friendly Nations visa are set by Executive Decree No. 197 of 2021 and may change. Always verify with your Panamanian lawyer before any official step.
Going further: The Friendly Nations Visa explained · Open your SA with Kraemer & Kraemer · Selling or dissolving your SA · Dormant vs active SA · The annual Accounting Records obligation