#Panama 🇵🇦 #BDS_ImmigrationAlert: Ecuador Formally Added to Panama’s Friendly Nations Visa Subcategory

The Republic of Panama, through the Ministry of Public Security, has enacted Executive Decree No. 16 of August 31, 2026. The Decree formally adds the Republic of Ecuador to the list of countries that maintain friendly, professional, economic, and investment relations with Panama, allowing Ecuadorian nationals to apply under the Friendly Nations Permanent Resident immigration subcategory.

The decision was adopted as an act of diplomatic reciprocity following Ecuador’s removal of Panama from its list of tax havens and has the strategic objective of attracting foreign investment and highly qualified professionals to stimulate key sectors such as logistics, maritime trade, and tourism.

The Decree establishes that Ecuadorian applicants must complete a two-year provisional residence period before obtaining permanent resident status, and they must secure a separate work permit from the Ministry of Labor and Workforce Development (MITRADEL in Spanish).

The regulatory framework governing the Friendly Nations subcategory has evolved through several legal provisions that provide the basis for the new Decree:

• Executive Decree No. 416 (June 13, 2012): Originally established this immigration subcategory to attract investment and talent from countries with close ties to Panama.
• Executive Decree No. 226 (July 20, 2021): Amended the procedural framework by introducing an additional oversight mechanism. It established a two (2)-year provisional residence period as a prerequisite for obtaining permanent resident status, enabling authorities to verify applicants' declared investments and economic activities.
• Technical Opinion A.J.-MIRE-2026-014839: Issued by Panama’s Ministry of Foreign Affairs, it recommended the inclusion of Ecuador based on the international law principle of diplomatic reciprocity.

For corporations operating in Panama, this reform significantly expands access to technical and executive talent from Ecuador under a regularization process that is streamlined compared to traditional immigration categories. It also facilitates the mobility of key personnel and strengthens Panama’s position as an operations hub for Andean companies.

Executive Decree No. 16 is a matter of public policy and took effect on the day following its publication in the Official Gazette. It was signed on August 31, 2026, by President of the Republic José Raúl Mulino Quintero and Minister of Public Security Frank Alexis Ábrego.

At BDS Asesores Panama, our team of labor and immigration experts is ready to assist you with your corporate immigration needs.