Mexico vs Panama residency
Mexico and Panama are two Latin American residencies that retirees and founders often compare. Mexico grants temporary residence for up to four years on income, savings or property, with thresholds set in UMA days. Panama grants residence through Friendly Nations, a Qualified Investor route or a pensioner route, and taxes individuals only on Panamanian-source income.
Updated
Mexico taxes its residents on worldwide income, so the tax position differs as much as the residence rules. The Mexican thresholds below use the UMA value of MXN 117.31 valid from 1 February 2026.
| Criterion |  Mexico |  Panama |
|---|---|---|
| Main routes | Temporary residence (up to 4 years) on income, savings or property; permanent residence on a pension or savings | Friendly Nations (closed list of countries), Qualified Investor and pensioner |
| Income route | More than 680 UMA days a month (MXN 79,770.80), net of tax, over the last 6 months | Pensioner: lifetime pension of B/. 1,000 (USD 1,000) a month, plus B/. 250 a month per dependant |
| Savings or deposit route | Average monthly balance of 11,460 UMA days (MXN 1,344,372.60) over the last 12 months | Friendly Nations: B/. 200,000 fixed deposit for 3 years; Qualified Investor: B/. 750,000 deposit (B/. 500,000 at the two state banks) or B/. 500,000 in securities |
| Property route | Temporary residence: property worth more than 91,710 UMA days (MXN 10,758,500.10) | Friendly Nations: B/. 200,000 (USD 200,000); Qualified Investor: B/. 300,000 (USD 300,000) new or B/. 500,000 (USD 500,000) resale |
| Permanent residence | After 4 years of temporary residence, or on a pension of more than 1,140 UMA days a month (MXN 133,733.40) | Friendly Nations: after a 2-year provisional phase |
| Personal tax basis | Worldwide income for residents, progressive rates up to 35% | Territorial: Panamanian-source income only; 0% up to USD 11,000, 15% up to USD 50,000, 25% above |
| Processing time | Consular processing up to 10 working days (San Diego checklist) | Qualified Investor: up to 15 working days for the investment certificate and 30 working days for the SNM decision |
| Banking partners in our network | 0 | 1 |
- Main routes: Ley de Migración, articles 52 and 54, and visa guidelines of 25 July 2025 (Mexico); Servicio Nacional de Migración (Panama). As of 2026-10-25.
- Income route: Diario Oficial de la Federación, visa guidelines, and INEGI, UMA 2026 (Mexico); Servicio Nacional de Migración, retiree and pensioner permit (Panama). As of 2026-10-25.
- Savings or deposit route: Diario Oficial de la Federación, visa guidelines (Mexico); Servicio Nacional de Migración, Executive Decree 226 of 2021 and Executive Decree 17 of 2026 (Panama). As of 2026-10-25.
- Property route: Diario Oficial de la Federación, visa guidelines (Mexico); Servicio Nacional de Migración, Executive Decree 226 of 2021 and Executive Decree 17 of 2026 (Panama). As of 2026-10-25.
- Permanent residence: Ley de Migración and visa guidelines (Mexico); Servicio Nacional de Migración, Executive Decree 226 of 2021 (Panama). As of 2026-10-25.
- Personal tax basis: PwC Worldwide Tax Summaries, Mexico and Panama. As of 2026-10-25.
- Processing time: Consulate General of Mexico in San Diego (Mexico); Executive Decree 17 of 2026 (Panama). As of 2026-10-25.
General information, not legal or tax advice. Approval always rests with the institution or authority.
Our take
Mexico suits people with a steady income or savings who want to live there, start with temporary residence and move to permanent residence after four years, and who accept worldwide taxation once they are tax resident.
Panama suits investors and citizens of Friendly Nations countries who can commit capital, retirees with a lifetime pension of at least USD 1,000 a month, and people whose income is earned abroad, given its territorial tax. Tax residency in either country follows its own tests, not the residence card alone.
Questions
How much income do I need for Mexican residency?
For temporary residence, more than 680 UMA days a month, MXN 79,770.80 at the 2026 value, net of tax over the last six months. For permanent residence on a pension, more than 1,140 UMA days a month, MXN 133,733.40. Consulates check the figures against their own checklists.
Does Mexico or Panama tax foreign income?
Mexico taxes its residents on worldwide income at progressive rates up to 35%. Panama taxes individuals only on Panamanian-source income, at 0% up to USD 11,000, 15% up to USD 50,000 and 25% above. Tax residence in each country follows its own tests.
Where do I apply for Mexican residency?
Temporary and permanent residence start with a residence visa at a Mexican consulate, valid for up to 180 days for a single entry. After entering Mexico you request the residence card within 30 calendar days.
The jurisdictions in this comparison
- Mexico residency for founders and retireesMexican temporary residence is a permit of up to four years for foreigners who prove economic solvency at a Mexican consulate abroad; permanent residence follows after four years, or directly for qualifying pensioners. Since the visa guidelines of July 2025, thresholds are set in UMA days. It suits remote founders, retirees and investors.Learn more
- Panama residency for founders and investorsPanamanian permanent residence lets foreigners live in Panama indefinitely, reached through routes such as Friendly Nations, Qualified Investor or the pensioner visa. Since September 2026 the Qualified Investor route follows Executive Decree 17, which kept B/. 300,000 for new property. It suits founders, investors and retirees with income from abroad.Learn more
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