Panama: new permanent residency by investment
Today Mundo presents excellent news for citizens from China, Venezuela, Russia, Colombia, and other countries as well, especially those that aren´t included in the friendly nations visa. The Panama national government announced the creation of a new Panamanian residency program.
Before this program was approved, the only way of acquiring direct permanent residency was through the friendly nations visa, thanks to which with a simple procedure a person can acquire permanent residency in Panama in only a few months. However, like we have described in our country focus, this program is only available to citizens of certain countries that are considered to have special “friendly” relations with Panama.
Other programs are available for residency through investment or other means, but only offering residency for a limited time after which the residency can be renewed.
Now, however, the permanent residency is available for everybody and can be acquired in as little as three months. This new program offers immediate permanent residency to those who invest 300,000 USD in real estate.
Acquiring permanent residency and a property at the same time paves the way to your Panama tax residency (because the property shows a clear connection to the country). With a properly established tax residency in Panama, all your dividends from stocks, bonds, real estate or any other income including pension or salary that are generated abroad are not taxed in Panama. This is, of course, under certain conditions. You need to reside in Panama for at least 6 months a year and prove you have personal and business ties to the country. In order to prove these ties, a property in the country is a great start.
On the other hand, I can assure you that living in Panama for 6 months a year is no sacrifice. On the contrary, you are going to want to live here all year long. If you have any doubts, I invite you to read this article, in which I share my own experience arriving in Panama, acquiring residency, and living here for many years.
A new program – a new opportunity
According to the press release of the executive decreet number 722 of October 15th 2020, in order to apply to this new program, foreign investors must invest in real estate properties for a minimum of 300,000USD to acquire Panamanian residency. This is the requirement for the first 24 months after the release of the decree, after which the minimum requirement investment will rise to 500,000USD.
The good news is that the properties that qualify for the program are not only ready and properly finished properties. A person can also apply to the program through any contract which states the commitment of buying or selling property or through the incorporation of a trust that will guarantee the purchase of a real estate property.
Luckily, Mundo has for a long time now partnered with one of Panama´s best developers, meaning we can offer a great package of real estate + permanent residency.
Through our developer, you can acquire a ready to use property or you can only make a down payment after which you will finance the rest of the property. This will also help you to create a property portfolio and obtain permanent residency.
After you acquire your property or your property development project with our developers, then our lawyers will help you acquire your permanent residency. We have had a strong presence in Panama for a long time now and have very reputable partners and sponsors in Panama, who are highly experienced in all Panamanian financial services including foundations, corporations, free zones, all kinds of residencies, citizenship, financial license, tax residency in Panama, and tax advice.
Mundo has many projects available in Panama, all you have to do is contact us to get information on the investment that is more suitable for you.
Today we want to highlight one of our favorite projects which offers a unique combination between a relaxed beachfront lifestyle and the advantages of the city.
This project is located only 50 minutes away from Panama City, a world class capital and highly developed financial and banking center, and very close to Coronado, on the coast of the Pacific Ocean.
This modern complex is made of two towers of 28 and 21 levels, respectively. Here you will find 1, 2, and 3-bedroom apartments ranging from 7 to 132 square meters.
From your apartment you will have a fantastic view to the ocean and the mountains and great entertainment options. The project will also have a complete social area with restaurants, open and covered terraces, sun deck, bar, multipurpose sport grip for basketball, volleyball and tennis courts, gym, sauna, children´s playrooms, kids pool, infinity pool, and direct beach access.
For more information about this project, please click here to read our article.
Other investment options
Real estate investment is not the only investment option available under this new program. Other available investments include the purchase of securities in Panama´s stock market for a minimum amount of 500,000USD and the establishment of bank fixed deposits for a minimum of $750,000. These securities should have a direct incidence in the national territory.
All investments must be held during a minimum period of five years so that the investor can get immediate permanent residency after the process has been completed. The period of acquiring residency after the investment has been made it´s surprisingly short. It is estimated that only 30 days after the investment has been made, the applicant will receive the permanent residency status.
One of the advantages of the coronavirus pandemic and lockdowns is that the remote possibilities have increased for many areas (tuition, legal processes, medical consultation, etc.), solving with remote procedures or online interviews what before required personal presence, travel expenses and took more time. The migration and finance areas are not the exception.
Another novelty that comes with this program is that for the first time it will be possible to apply from abroad. The investment can be made from a foreign country through a local lawyer and then travel to Panama only to finish the residency process.
Once the applicant is in the country, he or she will have to continue with the process according to the laws and requirements of the National Migration Service of the Republic of Panama. Thus, the investor will rest assured that the process is going accordingly and in compliance with the migration laws of the country.
Why to invest in Panama
Strong and stable economy
Thanks to the Panama Canal and to the policies implemented by the government, Panama has experienced an important grow in GDP, between 7% and 10% in the last decade. Thus, the Panamanian economy has become one of the fastest to grow in Latin America.
The expansion of the Panama Canal inaugurated in 2016 and the project of the metro construction are only some of the highlights of a thriving economy, undoubtedly the best of the region.
Thanks to its unique geographic location, to its developed an secure banking system and to its business friendly environment, Panama is one of the most important business hubs not only in Latin America but in the whole world.
An outstanding feature you will find in Panama is that it has one of the major engineering works of the whole 20th century and that is the Panama Canal.
Up until today, the Canal is an enormous source of profit for Panama in a direct and indirect way, from the ships that go through the canal to all the job positions and industries that are possible and that develop thanks to it. It provides millions of dollars in revenue and allow for massive employment opportunities. Thanks to the Canal expansion in 2016, the traffic has significantly increased, allowing the transit of bigger vessels.
Tourism was actively developed during the last 5 years, due to some interesting incentives released by the government for visitors and retirees. Panama is considered to be one of the best places to retire in the world thanks to its low cost of living, peaceful environment and migration incentives.
But Panama is not only attractive for retirees but also for tourism in general. Visitors that come to Panama fall in love with the country, with its colorful colonial neighborhood Casco Antiguo, with its vibrant nightlife in El Cangrejo or Calle Uruguay, and with its amazing landscapes and entertainment opportunities.
Over the past decade, tourism has bloomed into a major services sector for Panama. In 2015, over 2.5 million visitors came to Panama, which is an impressive achievement for a small country with a population of only 3.5 million. Tourists came from all parts of the world: 40% from North America, 40% from the Central American region, and the remaining 20% from Europe and South America.
This industry accounted for more than 135,000 jobs in 2015, which represented 7,5% of total employment in Panama. Lately, tourism has been a key driver in GDP growth and one of the fastest growing sectors in Panama’s economy (along with commerce, construction, and banking).
Dollar based economy
Panama is one of the few countries in Latin America that uses the US dollar as their currency. This is very convenient both for travelers and residents as the former don´t need to worry about the exchange rates, and the latter enjoy a strong economy and are protected from the inflation issues that strike Latin America. Also, this means that Panama doesn’t have central bank and doesn’t issue its own currency based on nothing like many other Latin American countries do. Panama doesn´t have hyperinflation issues nor does it have devaluation problems like many of its neighbors.
Active nightlife and excellent life quality
In Panama you will have the life quality of a first world capital, with excellent nightlife options, great medical centers with bilingual doctors, many of them educated abroad, excellent gastronomic offer with international cuisine, seafood, local exotic dishes and restaurants of all kinds and from different countries like Argentina, Russia, Middle East, Chinese, Japanese and many others.
If you want to seize this amazing opportunity of acquiring permanent residency with only one investment and a simple procedure, please contact us and ask for a consultation with our experts.
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