Yes, you can open a bank account in Panama, but the process and requirements differ significantly from opening one in the United States

Panama's banking system welcomes non-residents and foreign nationals, and several banks actively market accounts to people outside the country. However, you will face stricter identity verification than a U.S. bank requires, longer processing times, and higher minimum deposits. Most accounts are opened remotely by mail and video call rather than in person, though some banks require you to visit a branch in Panama City at least once.

The main reason banks make this harder is that Panama is on international watchlists for financial oversight. Banks must follow U.S. and international anti-money-laundering rules even though they are not U.S. banks. This means they ask more questions about where your money comes from and what you plan to use the account for.

Whether opening a Panama account makes sense for you depends on what you need it for. If you are a U.S. citizen or resident, a Panama account does not reduce your U.S. tax obligations — you still report all foreign accounts to the IRS. If you are a business owner or freelancer paid in multiple currencies, or if you live outside the U.S. and need a stable banking option, it may be useful. If you straightforward want to avoid U.S. banking fees, a domestic account or an online bank usually costs less and takes less time.

Key Takeaways

  • Panama banks accept non-residents and open accounts remotely, but require more documentation than U.S. banks and typically have minimum deposits between $1,000 and $10,000.
  • You will need a valid passport, proof of address, and a statement explaining the source of your funds and the purpose of the account.
  • Processing takes four to eight weeks, and some banks require at least one in-person visit to a Panama City branch to complete the account setup.
  • U.S. citizens and residents must report Panama bank accounts to the IRS and are not exempt from U.S. income tax on account earnings.
  • Common reasons to open a Panama account include receiving international payments, holding multiple currencies, or banking outside your home country — not tax avoidance.

Which banks accept non-residents and what they require

The largest banks in Panama that openly accept non-resident accounts include Banco General, Banco del Istmo, and Banco Latinoamericano de Exportaciones (Bladex). Smaller private banks and offshore banking divisions also serve non-residents, though they typically require higher minimum deposits and cater to business owners or investors rather than individuals.

All of them require the same core documents: a valid passport, proof of your current address (a utility bill or bank statement dated within the last three months), and a completed account process form. You will also need to provide a statement of the source of your funds — this is not optional, and vague answers slow down processing. "I earn a salary" is acceptable. "I have money" is not.

Minimum deposits range from $1,000 to $10,000 depending on the bank and account type. Some banks offer checking accounts, some offer savings accounts, and some require you to choose. Monthly fees typically run $5 to $20, though some banks waive fees if you maintain a higher balance.

The documentation you will need to gather

Start by collecting these documents before you contact a bank: your passport (a color copy of the photo page and any pages with visas or stamps), a recent utility bill or bank statement showing your name and current address, and your tax identification number if you have one (your Social Security number if you are a U.S. citizen, or your country's equivalent).

Next, prepare a written statement explaining where the money in your account will come from. If you are employed, state your employer's name and your job title. If you are self-employed or a business owner, describe your business briefly. If you receive investment income or pension payments, say that. Banks use this to verify you are not moving money for illegal purposes — it is a compliance requirement, not a judgment about you.

You will also need to state the purpose of the account. Common answers include "to receive international payments for my business," "to hold savings in U.S. dollars," or "to manage expenses while living abroad." Be specific. "General banking" is too vague and will prompt follow-up questions.

Some banks ask for a reference letter from your current bank or employer, though this is less common for non-residents. A few require proof of professional credentials if you work in certain fields. Ask the bank directly what they need before you submit anything.

How the remote opening process works

Most banks begin the process by email or through their website. You fill out an process form online, upload scanned copies of your documents, and wait for the bank to review them. This stage takes one to two weeks.

If the bank approves your documents, they schedule a video call with you. During the call, a bank officer will ask you questions about your documents, verify that you are the person in the passport photo, and confirm the purpose of your account. The call usually lasts 10 to 20 minutes. Have your documents in front of you and answer directly — do not volunteer extra information.

After the video call, the bank sends you an account agreement to sign. Some banks require you to sign electronically; others mail you a physical copy to sign and return. Once they receive your signed agreement, they open the account and send you your account number and online banking login details. This final stage takes one to three weeks.

A few banks require you to visit a branch in Panama City in person to set up the account or to sign documents in front of a notary. If this is required, the bank will tell you during the process process. If you cannot travel to Panama, ask whether they will accept a notarized signature from a notary public in your country instead.

What happens after your account opens

Once your account is active, you can transfer money into it from another bank account using an international wire transfer. The bank will give you wire instructions including their SWIFT code and your account number. Wire transfers from the U.S. typically take three to five business days and cost $15 to $50 depending on your sending bank.

You can also receive payments directly into your Panama account if you give the sender your account details and the bank's wire instructions. This is useful if you are a freelancer or business owner who receives payments from international clients.

Online banking access is standard. You can check your balance, view transactions, and transfer money between your own accounts through the bank's website or mobile app. Most banks offer online banking in English as well as Spanish.

Withdrawing money is straightforward if you are in Panama — you can use ATMs or visit a branch. If you are outside Panama, you can request a wire transfer back to another bank account, though this costs money and takes several days. Some Panama banks offer debit cards that work internationally, though fees for foreign ATM withdrawals are typically higher than U.S. bank cards.

Tax reporting requirements for U.S. citizens and residents

If you are a U.S. citizen or permanent resident, you must report your Panama bank account to the IRS. This is not optional, and the penalties for not reporting are severe.

You report foreign bank accounts on Form FinCEN 114, also called the Foreign Bank Account Report (FBAR). You file it with the Financial Crimes Enforcement Network, not the IRS directly. You must file an FBAR if you have a financial interest in or signature authority over any foreign account with a combined balance over $10,000 at any point during the year. The important date is April 15 (the same as your tax return), though you can request an extension.

You also report the account on your regular tax return using Form 8938 if your total foreign financial assets exceed a certain threshold — the threshold varies depending on whether you are single, married, and whether you live in the U.S. or abroad. Your tax preparer can tell you whether you need to file Form 8938.

Any interest or earnings in your Panama account are subject to U.S. income tax. You report this income on your tax return just as you would income from a U.S. bank account. A Panama account does not reduce your tax liability — it only changes where the account is physically located.

Reasons to open a Panama account and reasons not to

A Panama account makes sense if you receive regular payments from international clients or employers and want to avoid currency conversion fees, if you live outside the U.S. and want a stable banking option in a major financial center, or if you manage money in multiple currencies and need a place to hold them. It also makes sense if you are a business owner with operations in Latin America and need a regional banking hub.

A Panama account does not make sense if you are looking to reduce taxes (it will not), if you want to hide money from creditors or the government (this is illegal and banks will not help), or if you straightforward want to avoid U.S. banking fees (online banks in the U.S. charge less and open faster).

The time and documentation required mean that opening a Panama account is most practical if you have a specific, ongoing reason to use it. If you need a bank account for a one-time transaction, a wire transfer service or international money transfer company like Wise or OFX is usually faster and cheaper.

Frequently Asked Questions

Do I need to visit Panama in person to open an account?

Most banks allow you to open an account entirely remotely through email, document upload, and a video call. However, some banks require at least one in-person visit to a Panama City branch to sign documents or set up the account. Ask the bank during the process process whether an in-person visit is required.

How long does it take to open a Panama bank account?

The process typically takes four to eight weeks from the time you submit your process to the time your account is active and you receive your account number. Document review takes one to two weeks, the video call happens within the next week, and final account setup takes another one to three weeks.

Can I open a Panama account if I have a criminal record or bad credit?

Banks conduct background checks and will reject applications if you have a history of financial crimes, money laundering, or fraud. A poor credit history in the U.S. does not automatically disqualify you, but banks may ask more questions about your financial situation. Be honest in your process — lying about your background will result in rejection.

What is the minimum balance I need to keep in a Panama account?

Minimum deposits range from $1,000 to $10,000 depending on the bank. Some banks also require you to maintain a minimum balance to avoid monthly fees, though others waive fees if you maintain a higher balance. Check the account agreement for the specific bank you choose.

Can I use a Panama bank account to avoid U.S. taxes?

No. U.S. citizens and residents must report all foreign bank accounts and pay U.S. income tax on all worldwide income, regardless of where the account is located. Using a foreign account to hide income from the IRS is tax evasion and is a federal crime. A Panama account is a legitimate banking tool, not a tax shelter.