Panama has unveiled a groundbreaking immigration reform that, for the first time in the country’s history, creates a clear pathway to permanent residency for international students who have spent more than six consecutive years studying within its borders.
The newly published executive decree marks a decisive shift in Panama’s long-standing migration policy, which previously restricted foreign students to one-year renewable permits tied strictly to their academic enrollment. Under the old system, even those who had lived and studied in the country for many years remained indefinitely classified as temporary residents, with no structured route to settle permanently.
The new policy changes that reality.
Under the reform, foreign nationals who can demonstrate more than six consecutive years of academic study in Panama are now eligible to apply under a newly established Permanent Resident subcategory designed specifically for long-term students. Applicants must provide formal certification from a recognized Panamanian educational institution confirming continuous study exceeding six years, or official documentation showing they held temporary student residence permits for the same duration, issued by the National Immigration Service.
While most standard permanent residency requirements remain in place, the government has introduced a significant concession: qualifying applicants will be exempt from paying the mandatory repatriation deposit, a financial guarantee traditionally required from migrants and often viewed as a barrier to long-term settlement.
Importantly, the process does not grant immediate permanent residence. Instead, eligible students will first receive a two-year provisional residence permit. After successfully completing this probationary period and maintaining compliance with immigration laws, applicants may then apply for full permanent residency under the new student-based category. Authorities say this phased approach allows for proper oversight while offering students a realistic and attainable pathway to long-term integration.
Special provisions have also been outlined for minors. Applicants under the age of 18 must file jointly with both parents, with one parent providing written consent from the other, or through a legally appointed guardian, in line with Panama’s family and child protection regulations.
Panama’s move comes amid growing global competition for skilled talent and long-term human capital. Long known as a strategic bridge between North and South America — and home to the world-renowned Panama Canal — the country has increasingly diversified its economy and expanded its appeal to international investors, retirees, and multinational corporations through programs such as the Friendly Nations Visa and the Pensionado scheme.
However, despite a rising influx of students from Latin America, Europe, Asia, and Africa, Panama’s immigration framework had historically treated international students as strictly temporary residents. The new decree signals a recognition of the value these students bring to the country’s academic institutions, workforce, and broader economy.
By creating a structured path to settlement for those who have already invested years of their lives in Panama’s education system, the government is positioning the country as a more competitive destination for global talent — and sending a clear message that long-term commitment to Panama will now be met with opportunity.