On August 31, 2026, Panamanian President José Raúl Mulino signed the Executive Decree No. 16, officially adding Ecuador to the list of Panama’s Friendly Nations.
This measure grants Ecuadorian citizens access to a specific immigration pathway to establish residency in Panama, marking a significant shift in a bilateral relationship that has endured years of tension and is now entering a new era of cooperation.
A Bilateral Change With History
Ecuador’s inclusion in Panama’s Friendly Nations category was not an isolated event. It is the result of a process of diplomatic normalization that unfolded in several stages.
- In August 2025, Ecuador removed Panama from its list of tax haven jurisdictions.
- In December 2025, Panama repealed the Cabinet Decree No. 13 of 2012, which imposed retaliatory measures against Ecuador and maintained bilateral tension for nearly a decade.
- The Executive Decree No. 16 is the third step in this process and has direct implications for Ecuadorian citizens interested in settling in Panama.
In early September 2026, Presidents Mulino and Noboa met in Guayaquil to discuss a wide-ranging bilateral agenda, including a partial trade agreement currently under negotiation, regional electricity interconnection projects, security cooperation, and a circular migration mechanism for Ecuadorian workers in sectors such as agriculture, aquaculture, and fishing.
What is the Friendly Nations Category?
Panama’s Friendly Nations category was established in 2012. It is a special immigration pathway the Panamanian government reserves for citizens of countries with which it maintains significant economic, political, or cooperative ties. With Executive Decree No. 16, Ecuador now qualifies for this category.
Ecuadorian citizens are eligible to initiate the process of obtaining temporary residency in Panama for a period of two years. Upon fulfilling that requirement and meeting the corresponding criteria, they may apply for permanent residency, giving them the right to a Panamanian ID card.
How Ecuadorian Citizens Can Qualify
Depending on the applicant’s profile and objectives, there are different ways to apply under the Panama’s Friendly Nations category.
- For employment reasons: This option applies to applicants who have an employment relationship with a Panamanian company. Additionally, it is necessary to obtain a work permit from Panama’s Ministry of Labor and Labor Development. It is important to note that residency under this category does not replace the work permit, which must be processed separately.
- Through real estate investment: A minimum investment of US$200,000 in a property in Panama is required, which can be made in one’s own name or through a legal entity. The transaction can be financed through a local bank.
- Through a fixed-term deposit: A minimum investment of US$200,000 in a Panamanian bank is required, with a minimum term of three years.
In all cases, residency may include dependents, subject to specific documentation and requirements. The Panamanian Immigration Office may, at its discretion, request additional information.
Benefits are not automatic. They are granted only after an application meets established security, documentation, and financial justification requirements.
OMC Group: Immigration Services in Panama
OMC Group offers informational and administrative support to Ecuadorian citizens and their advisers who wish to evaluate the residency options available in Panama under the Ecuador Friendly Nations Panama category. Our team at the Panama office provides accurate, objective information on the applicable procedures, documentary requirements, and stages of the immigration process, so that you and your qualified advisers can make well-informed decisions.
Please note that OMC Group and its affiliates do not provide legal, tax, or investment advice. The information in this article is for informational purposes only and should not be used or considered as advice. Immigration requirements are subject to change at the discretion of Panamanian authorities. Before initiating any immigration proceedings, please consult your legal advisors.
