Relocation Must Know Guide: Panama FAQ about Residency

When finishing another year there's nothing like having a clear perspective of the past with eyes to the future. In this sense, this relocation must-know guide will be helpful for those who are planning to move.

Moving is challenging even if it is in the same city, so, when we take it to an international level, it must be addressed cleverly and cautiously.

Luckily, the Mundo team is very connected to Panama, actually, many of us live here or have lived here for many years and we understand Panama in depth. We hope this Panama FAQ will help you if you are considering this country for 2025.

Panama FAQ about Residency and Relocation

Relocation FAQ: Where is Panama?

When living in Panama you may hear it is referred to as the “isthmus of Panama”. The country is located in an isthmus which is a small territory (narrow and shaped as a strip) connecting two larger masses of land. 

The country's position is strategic because it is right at the intersection between Central and South America. To the West, it borders Costa Rica, and to the east, Colombia. However, the border between Panama and the latter is covered by a dense jungle whose harsh conditions don’t allow the construction of roads or any other type of land transportation. 

Speaking about location is a good excuse to talk about the weather. The average is 80 or over 80° Fahrenheit throughout the year, alternating with rainy and dry seasons. Even though it's a tropical location, the heat is not as unbearable as in other regions. For starters, there is air conditioning in all public and private venues, and the sunset is early (around 6:00 PM) which prevents the concrete from getting too hot and thus helps lower the feels-like temperature. 

Relocation FAQ: Are There Residency Programs Without Investment?

At Mundo, we have discussed Panama's residency programs in detail. The good news is that there are many and they fit different needs. The answer to the above question is simple: there are residency programs without investment.

There's a professional visa, for example, which requires you to prove that you are a professional of value in the Republic of Panama. The catch is that some professions can only be carried out by Panamanian citizens. Law, medicine, and veterinary, for instance, are some practices that are restricted only to Panamanians.

Another outstanding option is the Friendly Nations, however, it is focused on citizens of certain countries. To apply you don't need an investment, but you need to be from one of these countries which include Canada, The US, the UK, Ireland, and Australia.

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Relocation FAQ: What Is the Best Approach for Residency with Investment?

It may surprise you how many residency options are available in Panama, each of them performing well although at different levels. In this relocation must-know guide we want to highlight what we consider to be the best one in all aspects, but first, let's briefly go through the options.

Investment in teak land: although there are different thresholds, it starts at $100,000. This is a good choice if you want to make a low investment or obtain a temporary visa. When it comes to the investment per se, it is profitable but only after 25 years when the trees grow and provide the wood.

Qualified investor through stock market vehicles or bank deposits: The Qualified Investor is one of our favorite programs. This is why it couldn't be left out of this relocation FAQ. It provides three investment pathways: real estate, bank deposit, or investment in the Panamanian stock market.

The two last ones require a minimum investment of $750,000 and $500,00 respectively, and they entail safe investments in a stable economy and healthy political context.

But for the sake of this relocation must know tips, we must say that our favorite option is real estate, to such an extent that we will present a dedicated paragraph.

Relocation FAQ: Why Real Estate Is the Best Approach to Residency?

For starters, the minimum threshold is only $300,000, and this, in Panama, means a lot. When looking at the prices in New York, Paris, Miami, or Sidney, this may not seem like a big deal. Nonetheless, the real estate market in Panama has outstanding prices. To put it in simple words, with that kind of money you can acquire a luxury unit with a view, in the city center, in the best neighborhoods, or even by the beach yet one hour away from the city. 

As you can see, this is an outstanding living option but that's not it: many of the projects we offer come with a short-term rental license, which is not simple to get on your own, thus constituting a profitable investment. Moreover, we can offer rental management services at excellent prices.

Relocation FAQ: Is Panama a Tax-Free Country?

It's important to get this straight: Panama is not a tax-free country. When diving into Panama FAQ this is a common inquiry, and aggressive advertisement can lead to misunderstandings. Panama taxes all income perceived inside the country including salaries, dividends, and everything else. 

The good news is that it presents relatively lower fees than other jurisdictions, hence its reputation as a business hub. An excellent advantage is that it has a territorial tax system, which means foreign income is not taxed. Nonetheless, it's vital for this relocation must know guide to understand that taxpayers must declare their foreign assets even if they're taxed at a zero rate, and that the income must be perceived abroad.

Relocation FAQ: What Can I Expect Realistically from Lifestyle in Panama?

Panama is one of the oldest cities in the Americas having been founded in 1519. This caused the city to grow and develop before modern urbanization standards were applied. This means it's not a pedestrian-friendly place and the public transportation is way below the European and American standards. Thus, to move around in Panama you should have your own car and ideally two or three cars per family depending on the needs.

Traffic jams are very serious at rush hour, which can be frustrating, but if you consider this in advance you can avoid this hassle.

On the other hand, the capital city has excellent shopping, dining, and entertainment options, several outdoor places to jog and exercise, and an unbelievable, cosmopolitan atmosphere.

Disclaimer: this article presents a Panama FAQ guide according to Mundo's view and experience. Nonetheless, this article should not be taken as migration or financial advice. Before making any important migration decisions, consult with a certified professional and make sure to conduct proper research about the country.

Mundo’s Relocation Must-Know Guide on Panama

We hope this guide has helped you answer your relocation FAQ and Panama FAQ. If you're planning to relocate and are considering Panama, you probably have many more questions, and this is understandable.

Luckily, our Mundo team is proud to have lawyers, advisors, and realtors with keen expertise when it comes to Panama.

Moreover, you can contact us about other affairs like banking abroad, international companies, investments, trusts, and similar tools. Don't hesitate, contact us today, and start your relocation process.

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