Vale la Pena? Do Expats Really Need an E-Cèdula Card?

E-Cédula Panama

A few questions we receive pretty often: 

Does permanent residency in Panama come with a cédula?  Is there an additional cost?  Do you really need it?  

What is the difference between a “regular cédula” and an “E-cédula”?

​This short article will tell you everything you need to know.

The Cédula vs. the E-cédula?

A Panamanian cédula is essentially a national identification card with your photo. It includes a unique ID number that never changes for the rest of the holder’s life.  

The cédula is the primary document used by Panamanians for identification purposes. And it is used for everything from opening bank accounts to signing contracts, and even everyday transactions.  

And as a foreigner, once you have your permanent residency in Panama you will be eligible to get an “E-cédula” (sometimes also called a “Cédula E”).  The E-cédula is basically the same thing as a regular cédula, but it has a big blue “E” on it.  The “E” simply stands for “extranjero” or “foreigner”.  

So, a regular cédula is issued to Panamanian citizens, and an E-cédula is issued to foreigners who have achieved permanent residency in Panama.

Do I get an E-cédula as part of my Permanent Residency in Panama?

Yes, and no.  

What I mean is that your permanent residency status is what makes you eligible to get an E-cédula. But the E-cédula is not automatically provided. And it definitely isn’t the same thing. 

Here is how it works:  

Approval of Permanent Residency

When your permanent residency is approved, your attorney will be notified by the immigration office (more formally known as the “Servicio Nacional de Migración“). That’s when she receives 2 documents:

First – she receives a resolution approving your permanent residency.

This means that you can now make plans to go Servicio Nacional de Migración to take a picture for your permanent residency ID card. You can go ahead and do this at any time. And when you do go, you’ll walk out there the same day with a permanent residency ID card with your passport number stamped on it.

Second – she receives a letter addressed to Panama’s Civil Registration office (more formally known as the “Tribunal Electoral“) authorizing you to go in and get a cédula (if you wish).

But you’ll need to wait a couple of weeks for the information to make its way through the system from Servicio Nacional de Migración to the Tribunal Electoral.  Only then can you make an appointment to go to the Tribunal Electoral (with the letter in your hand) to take a picture for your E-cédula.  

The current cost of the E-cédula at the Tribunal Electoral is $100 USD (or $50 USD for women over 57 / men over 62).  And they will usually have it ready to be picked up around 8 days later. 

There are a couple of details there that I want to highlight here:

  1. The E-cédula is issued by the Tribunal Electoral, which is an entirely separate government institution from Servicio Nacional de Migración.
  2. The E-cédula is completely optional. With your permanent residency card from the immigration office, your permanent legal residency status in Panama is clear.
  3. You don’t have to engage an attorney or any third party to get an E-cédula. When the time comes, your attorney can give you everything you need to go get your E-cédula a couple weeks later.

    However, if you’d like some help with the process, then your attorney should be able to help you go to the Tribunal Electoral with you for a small additional fee.

What are the Benefits to Getting an E-cédula? 

A lot of folks swear that the E-cédula has given them access to more favorable treatment in Panama.  

For example, some people believe that local banks may prefer to see an E-cédula when it comes to opening new bank accounts or approving loans (and lending terms).  But this may be a misconception based more on the fact that more banks will open their doors to someone who has Panama residency (and who, therefore, will often also have an E-cédula).

I suppose it could be true that the E-cédula may contribute to a bit more perceived “legitimacy” of the holder in some transactions. But probably a “soft factor” at best.

However, the E-cédula does provide convenience. And these benefits are undeniable.  

Here is what I mean:

In the absence of an E-cédula, your ID in Panama will be tied to your passport. And your passport number changes every few years.

For example, your permanent residency card will have your passport number stamped on it.  So, each your passport expires you will need to update your permanent residency ID card to reflect the new passport number. 

Another example is your Panama driver’s license. If you don’t have an E-cédula, then your passport number will be stamped on your Panama driver’s license.  So, you’ll need to update the driver’s license each time you renew your passport. And remember, you really must get a Panama driver’s license if you plan to keep driving after you get residency in Panama.

A third example – what if you invest in real estate?  If you hold the property in your name, then your identifying information will appear in the public deed to show that you hold the property title – including your foreign passport number.

And if you are living in Panama, then there are every-day implication as as well:

In the absence of an E-cédula you should technically carry your passport with you at all times.  That’s a pain in the ass in and of itself. And it also increases the likelihood that you may lose your passport.  And then – after you go through the hassle of getting a new passport – you will have to update all your other documents as well!

So, one of the more tangible reasons people get the E-cédula is that it gives an original Panamanian ID number that never changes. And an E-cédula also means that you no longer have to carry your passport with you – even for domestic flights in and around Panama!

A Right of Passage

This is just my perspective – but apart from the convenience factor, I think most people decide to get the E-cédula because it is sort of a symbolic step for those have relocated to Panama. An E-cédula demonstrates that you belong… you’re recognized. Your identity is no longer primarily tied to your travel documents, but rather to your local documents. And that makes you a regular around here – and a local, of sorts. 

Bottom Line?

The E-cédula card is not mandatory, but it offers significant benefits for expats looking to simplify their lives in Panama. Having a unique ID number on your driver’s license and other documents that never changes is certainly more convenient than your passport number, which changes every time you renew it (or lose it).  And it also communicates to local institutions that you are established for the long term here in Panama.  

The E-cédula is a small step with substantial impact. And considering all the complexities of relocation, having an E-cédula can make your transition smoother and more efficient. If you’re contemplating settling in or have questions about your residency status, this could be key to unlocking a more comfortable life in Panama.

Did you find this article helpful? Did we miss anything important? Write to us at info@theindependentlawyer.com.

The Independent Lawyer
The Independent Lawyer

The Reforestation Visa - Investor Visas

There are a few different paths to residency available to foreigners investing in government certified reforestation projects in Panama:

  1. With a minimum investment of $80,000 USD qualifying applicants can obtain residency for 5 years.
  2. With a minimum investment of $100,000 USD qualifying applicants can obtain residency for 2 years, but are then eligible to apply for permanent residency.
  3. With a minimum investment of $350,000 USD qualifying applicants can directly obtain permanent residency through a fast-tracked process.

Qualified Investor Visa - Investor Visas

The Qualified Investor Visa is the only investor visa that offers an expedited process to directly obtain permanent residency in Panama.

To qualify, an applicant must make an investment that satisfies the following requirements:

  1. An equity investment of at least $500,000 USD in the purchase of a a real state property in Panama. The property must be free of any mortgage or lien.
  2. An investment of at least $500,000 USD in Panama Stock Market, through a Panamanian securities brokerage firm.
  3. A minimum 5-year certificate of deposit (“CD” or “Time Deposit”) of at least $750,000 USD in a bank in Panama.

The options above cannot be mixed and matched to satisfy the minimum investment threshold amount. The funds must also originate from outside of Panama to qualify.

Self Economic Solvency Visa - Investor Visas

The Self Economic Solvency Visa offers residency to foreigners who make a qualifying minimum investment in Panama, which include:

1. An equity investment of at least $300,000 USD in the purchase of a real state property in Panama.

2. A minimum 3-year certificate of deposit (“CD” or “Time Deposit”) of at least $300,000 USD in a bank in Panama.

3. A combination of 1 & 2.

This is a good option for someone who has already purchased real estate which does not quite satisfy the minimum investment requirement.

Spouses or dependents can also obtain residency with an additional investment of $2,000 USD for each additional applicant. Qualifying applicants will initially obtain residency for 2 years and may then apply for permanent residency.

Friendly Nations Visa (FNV) - Investor Visas

The Friendly Nations Visa (FNV) offers one of the fastest and straightforward paths to residency for citizens of nations designated as “friendly” to Panama.

The minimum investment is $200,000 USD as equity in the purchase of a real state property in Panama or a minimum 3-year certificate of deposit (“CD” or “Time Deposit”) in a bank in Panama. Applicants who qualify can also obtain residency for their spouse or dependents with an additional investment of $2,000 USD for each additional applicant.

Applicants qualifying for the Business Investor Visa will initially obtain residency for 2 years and may then apply for permanent residency. The FNV also affords foreigners the opportunity to apply for a work permit in Panama.

Check whether you are likely to qualify by choosing which nation has issued your passport, or contact us to request a quote.

Business Investor Visa - Investor Visas

The Business Investor Visa is available to investors and entrepreneurs investing in a business in Panama.

To qualify, an applicant must invest a minimum $160,000 USD investment in capital stock of a Panamanian company.

Applicants who qualify can also obtain residency for their spouse or dependents with an additional investment of $2,000 USD for each additional applicant.

Applicants qualifying for the Business Investor Visa will initially obtain residency for 2 years and may then apply for permanent residency.

Panama Citizenship

Once you have obtained permanent residency and held it for a period of 5 years, you can apply for Panamanian citizenship (and then a passport).  If you are also married to a Panamanian or have children with a Panamanian parent, then you can apply after holding permanent residency for just 3 years.

Please contact me if you have questions or would like to discuss the application process and requirements.

Short-Stay Visa

With solid infrastructure and direct flights all around the hemisphere, Panama has become an increasingly popular destination for freelancers and remote workers doing business outside of Panama. The main requirements are:

1. Remote workers should provide a contract setting forth the employees main functions being performed abroad for a foreign company doing work on an international level. However, self-employed free-lancers can also apply.

2. Applicants should demonstrate an annual income of at least $36,000 USD (or $48,000 USD per family).

Qualifying digital nomads can obtain a 9-month residency, extendable to 18 months. And if you fall in love with Panama and want to talk about permanent residency after that, then I help you with longer-term residency options.

Family Regrouping

There are a few different residency options available to applicants with family ties to Panama. Some of the main options are as follows:

1. Married to a Panamanian​

The main requirement is a real, legal and valid marriage with a Panamanian citizen.  Qualifying applicants may apply for a permanent residency.

b. Panamanian Children

The parents of a child who a.) was born in Panama and b.) is over five years old may apply for permanent residency in Panama.

c. Dependents of a Panama resident

Generally speaking, a foreigner who has qualifies for residency in Panama can also obtain residency for their spouse and dependents.  The requirements will vary depending on the type of residency visa.

Investor Visas

Panama has created several different residency options to incentivize foreign investment. These visas offer several different paths to short-term or permanent residency based on different types of investments and minimum investment amounts.

The following Investor Visas are covered here (click each one for details):

  1. Business Investor Visa (min. investment of $160,000 USD)
  2. Friendly Nations Visa (min. investment of $200,000 USD)
  3. Self-Economic Solvency Visa (min. investment of $300,000 USD)
  4. Qualified Investor Visa (min. investment of $500,000 USD)
  5. Reforestation Visa (min. investment varies)

Retirement & Pensioner Visa

Often referred to as the Jubilado (Retired Person) Visa because of its popularity among retirees, this is also a fast and affordable path toward permanent residency for applicants who qualify.

In fact, anyone over age 18 can apply so long as they satisfy the 2 main requirements:

1. A pension or annuity paying a minimum of $1,000 USD per month.

The annuity or pension can be paid by a private company, military, government agencies, corporations, a bank, an insurance company, or a Trust.

2. The pension or annuity must provide a lifetime benefit.

Qualifying applicants can obtain residency for their spouse as well, but the pension or annuity benefit should cover an additional $250 per month.

As an added benefit, the Pensioner Visa also grants discounts at restaurants, hotels, movie theaters, pharmacies and domestic airlines, making it a popular option for clients on a fixed income. The Pensioner Visa also affords foreigners the opportunity to apply for a 3-year, renewable work permit in Panama.

Friendly Nations Visa

Citizens from nations designated as “friendly” to Panama can obtain a residency visa for themselves and their family.

Applicants qualifying for the Friendly Nations Visa (FNV) will initially obtain residency for 2 years, and may then apply for permanent residency.

The FNV also affords foreigners the opportunity to apply for a work permit in Panama.

The FNV involves offers a very straightforward process and is one of the most affordable paths to residency in Panama for those who qualify.

Work Permits

For foreigners who wish to obtain a work permit to seek employment in Panama, there is a separate application process that begins only after having obtained residency.

Generally, anyone who has held residency in Panama for 10 years can apply for a work permit. However, there are much shorter and more direct processes to obtain a work permit depending on which visa process the applicant pursued to obtain residency.

Please contact us if you have questions or would like to discuss the application process and requirements.