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The Panama Real Estate Investment Visa
Panama is one of the best countries to invest in Latin America. This small nation has had spectacular economic growth in recent years since the return of democracy in the late 1980s.
Its friendly business climate and sound investment opportunities are some of the reasons that this small country is one of our preferred destinations in Mundo Expert.
What makes Panama so special? In a nutshell, we will try to answer this question:
-Panama is the biggest financial center in Latam, with dozens of both foreign and national banks and financial firms offering its services to the rest of the region. If you are looking to operate in the whole region, Panama is the ideal option for being your main hub.
-A friendly business climate, which is fostered by a democratic government that allows foreign investment to grow and thrive.
-Political stability, something uncommon in Latin America, a region plagued with populist leaders that try to impose socialist agendas.
-Panama has the biggest Free Zone in the region. The Colon Free Zone was established in 1949 and is a successful experiment on what happens when you merge a great business potential with advantages for FDI.
Panama has been consistently rated as the best retirement destination in Latin America. A country with a low crime rate, sound business opportunities. In this article, we will present a great opportunity to obtain a Panamanian Resident Visa specially designed for real estate investors.
So let’s go on
The Panama Real Estate Investment Visa
At first sight, Panama City may look like Miami, the American city located in Southern Florida. In recent years this small country has built dozens of skyscrapers, glass towers that now shape the horizon of the city.
Economic prosperity has made the Panamanian real estate market to thrive in recent years. In order to facilitate investments and increase the FDI inflow, the government launched the Real Estate Investment Visa.
This program is great for Chinese, Russian, Colombian and other investors that are not from the countries included in the Friendly Nations Visa, as it allows them to obtain residency to those who invest at least 300,000 USD in real estate. The whole process can be completed in 30-45 days. You can also have a combination of both a real estate investment and an account in Panama that together make 300,000 USD. If the applicant has dependents, he or she will need to invest another 2,000 USD for each dependent (spouse, children, etc).
However, it's important to note that after October 15th 2022, the minimum required investment will rise to 500,000 USD, according to the press release of the executive decree number 722, which regulates this new type of visa. Good news is that a person can apply to the program through any contract that states the commitment of buying a property valued on at least 300,000 USD.
You should also check if your country of origin is included in the Friendly Nations Visa Program, which has a more affordable process that could save you significant amounts of money and time.
How to obtain a Panamanian Real Estate Investment Visa?
Obtaining the Panamanian Real Estate Investment Visa is a quick process that can be done in a few weeks with the proper advisors. You can apply if the property is titled under the name of the applicant or under a Private Interest Foundation founded by the applicant.
You will need to take the following steps in order to apply for the Panama Real Estate Investment Visa.
1.First of all you will need to get a certificate from the Panamanian Public Registry that states that the property is under the personal title of the applicant and is above the minimum threshold of 300,000 united states dollars, free of debts. In case the property is under the name of a Private Interest Foundation, the certificate must state that the applicant is either the Founder or a Beneficiary.
2.Register your passport at the Panama Inmigration Office. Once this step is done, you have up to 14 days to submit the documents to apply for provisional residency.
3.Present the application to the Panamanian Inmigration Department, which usually takes between three to six months to process a residency, therefore you will need a process card valid for six months.
4.Also you will need a multiple Entry-Exit Visa valid for six months, in case you need to travel abroad. If you do it without the visa, a 2000 USD fine will be applied.
5.In case everything goes fine and your visa is approved, you will be granted a 2-year Temporary Residency Visa.
The process of getting this visa can take between 30 to 45 days to complete. You will need a Panamanian attorney and all documents must be apostilled and have a certified translation (if needed).
A path for getting a Panamanian Passport
After five years as a Permanent Resident, the beneficiary can be eligible for applying to the Panamanian citizenship by Naturalization. It's important to say that not every permanent resident is eligible to become a citizen because the potential applicant would need to demonstrate strong ties with the country, spend significant amounts of time there and have a good knowledge of local culture and proficiency with Spanish.
Tax Residency and the REI Visa
Becoming a permanent resident by having a property can open a path for having a Panama tax residency. Panama has a territorial tax regime and that means that all dividends from stocks, bonds, real estate or any income generated abroad are not susceptible to taxes in Panama.
However, some conditions apply. You need to be in Panama for at least 180 days a year and prove you have strong personal and business ties with the country. Having an asset in the country can be a great start as it shows a clear connection with Panama.
At first sight it may seem that residing six months a year in Panama is not worth it. However, you will surely love it. Panama has a high standard of living and lovely weather all the year. If your budget is large enough, you could acquire a property in one of those fancy glass towers in Panama City, for just a fraction of the price it would take in Brickell, Miami.
What can we do for you?
Panama is the place where we started this dream called Mundo Expert. This small country has everything to be on the top 3 financial centers in the Americas, a country where hundreds of companies come to be the main hub for conducting its operations in the whole continent.
All this means that Panama will continue growing, and so will do its real estate market, which has been growing at an extraordinary 8% pace a year.
The government recently created this program that allows you to get residency by investing in real estate, and the best way to ensure this visa is by having the best advisors in the country. In Mundo we can help you in every step of the process of getting the Visa, as well other services as:
-Opening a Bank Account.
-Opening a company.
-Applying for Panamanian citizenship.
-Creating an E-money License.
We have explained everything you need to know to apply for it.
Now it's up to you. Apply now and become a Permanent Resident with Mundo Expert!
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