In order to acquire Panamanian nationality, it is necessary that the National Immigration Service has previously granted the foreigner permanent residence by means of a reasoned decision, either for labor or investment reasons, for family reunification or due to some special policy.

Once the permanent residence has been acquired, according to the National Constitution, the following may apply for Panamanian nationality by naturalization:

1. Foreigners with five consecutive years of residence in the territory of the Republic if, after having reached their legal age, they declare their will to naturalize, expressly renounce their nationality of origin or the one they have and prove that they have the Spanish language and basic knowledge of Panamanian geography, history, and political organization.
2. Foreigners with three consecutive years of residence in the territory of the Republic who have children born in it, of Panamanian father or mother or spouse of Panamanian nationality, if they make the declaration and present the proof mentioned in the previous paragraph.
3. The nationals by birth of Spain or of a Latin American State, if they fulfill the same requirements that in their country of origin are demanded to the Panamanians to naturalize, that is to say those countries with which a Reciprocity Agreement exists.

The countries with which Panama has Reciprocity Agreements according to years of residence in the national territory are:

1. One (1) year of permanent residence: Colombia and El Salvador.
2. Two (2) years of permanent residence: Argentina, Ecuador, Spain, Honduras, Mexico, Nicaragua, and Peru.
3. Three (3) years of permanent residence: Uruguay.

On the other hand, it is important to keep in mind that it is not enough only to prove that the years of residence in the country have been fulfilled, but it is also necessary to demonstrate that there are economic, professional and/or family ties that unite the foreigner with Panama, as well as to meet the public security requirements necessary to opt for Panamanian citizenship by naturalization.

Once the National Immigration Service has verified that the foreigner meets the public security requirements and the Security Council has given its approval for the applicant to be granted Panamanian citizenship, the foreigner must appear before the Electoral Tribunal of Panama to take a knowledge test on the history and geography of Panama, after passing the knowledge test, the approval process will continue, which culminates with the delivery of the Naturalization Papers and the issuance of the personal identity card and Panamanian passport.