Overview of Panama Residency by Investment Program

The Panama residency program is one of the best in the world because it offers a straight path to permanent residency with a relatively easy investment. Although some thresholds are quite large, like $750,000 in a fixed term deposit, the real estate investment requires half that sum and provides eligibility for the country's residency.

Now, the concept of real estate is ample and can include everything from a trendy apartment downtown to a villa in the provinces or a timeshare. This is worth paying attention to, as in many programs, such as the Caribbean, these factors are clearly stipulated. They can define your eligibility when choosing an immigration program. 

Today, we analyze what happens in Panama. Does a timeshare qualify for Panama residency? Do the properties have to be government-approved? Do they have limitations when it comes to minimum price, type of property, development financing, or pre-sale? Let's find out throughout the article.

Benefits of Panama Residency by Investment

Indefinite residence status

When analyzing immigration through a property, it's good to compare Panama against other similar alternatives. Mundo likes to compare it to the golden visa, which usually involves real estate and provides residency, unlike the Caribbean and Sao Tome, which are downright citizenship programs.

One first looks at the price, which is much more accessible in the country of the canal. Besides, the Qualified Investor program offers immediate permanent residency. This allows you an indefinite legal stay for as long as you want and with flexible rules to maintain it. 

Flexible physical presence expectations

For approved applicants who need flexibility, especially when traveling, Panama is ideal. Once they are approved within the Qualified Investor framework, they can maintain residency for as long as they want by complying with a simple minimum physical presence requirement. Visiting for a few days every two years is sufficient. Moreover, the visa is flexible in terms of maintaining the asset, too. 

Since we like comparisons, let's see what happens with Dubai. In the emirate, investors must maintain the apartment to keep their resident status, while in Panama, it can be sold after a stipulated period.

Access to local banking and financial services

Panama has grown considerably as an international business hub, with its essence deeply rooted in the Canal. This growth has been accompanied by the development of an exceptionally advanced banking sector. One just needs to walk down Calle 50, the banking district, to notice how the impressive skyscrapers reflect this development. 

The city didn't only grow upwards, it also grew in the quality and reach of the banking services. With the sector mainly oriented towards excellent online banking and comprehensive services, it caters to both local and international clients.

Its decentralized system is also an advantage: Panama doesn't have a central bank. This means it can't print money, so the value is strictly driven by the market. This is one of the reasons for Panama’s low inflation rate over the years. 

Unrestricted real estate ownership

Other immigration programs, regardless of whether they offer citizenship or residency, facilitate the real estate pathway only with projects pre-approved by the government. This is what happens in Saint Kitts and Nevis, St. Lucia, or any of the Caribbean countries with a CBI program. We can see the same in Europe when it comes to residency, for example, with the Greek golden visa.

In the Hellenic Republic, thresholds depend on the property’s location and other requirements, such as a minimum surface area. Panama is much simpler than that, providing a straightforward path. 

Another key aspect to consider is foreign ownership. In the isthmus, your investment is secure as foreigners have exactly the same legal rights as any Panamanian citizen when it comes to owning property. There are some exceptions and considerations, as we have explained in detail in one of our recent articles. 

Inclusion of family members

You can add your closest relatives to the application. From the spouse to the children and the parents, family members can apply with the main applicant, although with certain restrictions. Children are considered eligible for dependents if they're younger than 18. After this age, they must be full-time students at the university.

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Eligibility for citizenship after 5 years

Lacking a citizenship by investment program, the direct path to citizenship is by obtaining permanent residency. Only by living in the country for five years as a permanent resident, with physical presence, can one apply for naturalization.

The process is quite simple, but it requires presenting several proofs of solvency and relinquishing any other previous nationality. Patience is important as the resolution can take from a few months to a few years, since it can only be signed by the president. 

Dollarized economic environment

The national currency, the balboa, has been pegged to the US dollar since its inception in 1904. The government only issues the Balboa in the form of coins, while all the banknotes used in regular, everyday transactions are U.S. dollars.

To sum up, people pay for groceries, dinner, utilities, or transportation in US dollars (in both banknotes and coins), and in Balboa (which only exists in coins).

It goes without saying that a US-dollar-based economy is a plus for expats. For Americans, this means they don't have to spend money on currency exchange fees. For other nationalities, it means access to a stable currency and the overall simplification of international transactions. 

Investment Options for Panama Residency Through the Qualified Investor

Real Estate Investment Route

You can become eligible for the Qualified Investor through a $300,000 investment. Even though initially the program was supposed to update this sum to $500,000, this never happened.

Although there are rumors about a possible update of this sum, so far, the minimum real estate investment is, and always has been, $300,000.

Currently, there are dozens of perfectly fine developments being constructed in the country of the canal, and many others already built and ready to be inhabited or rented out. 

The capital is where most of these projects are, but you can find them elsewhere as well. Mundo can help you obtain best-in-class units in the provinces, mainly in Boquete and Punta Chame. 

In simple words, there's a wide pool of real estate property options available in different types and zones. Most importantly, all of them can be used in your application if they meet the minimum threshold. Now a question arises: are all types of property eligible?

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Qualify for permanent residency in Panama: which types of property or ownership make you eligible?

Many are asking what types of property are eligible for the Qualified Investor. Do apartments, houses, villas, hotel rooms, vacation residences, or timeshare options qualify?

To find the answer, we should go to the very essence of the visa, that is, the executive decree that supports its legal framework. 

The law reads:

“The ones that will be eligible to apply for a permanent resident permit, as a qualified investor, are those foreign individuals that invest a minimum sum of $300,000 in the purchase of a real estate property in the Republic of Panama, which must be free of liens [….] They must submit a certificate from the Public Registry of Panama stating ownership, and a certificate from the national authority of land titles that states the value of the real estate”.

In simple words, the real estate must be duly registered in the Panama public registry, and it has to be under the applicant's name or under a company of which the applicant is the ultimate beneficial owner. 

Hence, apartments, land, or houses in any part of the national territory are perfectly viable. When it comes to timeshare property, it is initially out of the picture. Nevertheless, at the moment, there is an opportunity to apply by owning shares in hotel suites in a state-of-the-art project in downtown Panama City.

It’s also possible to apply with a project still under construction. In this case, the applicant must pay the whole amount of the investment upfront and present a promise of purchase signed by both the developer and the buyer. In this case, the certificate is presented once the property is built and duly registered.

Securities Investment Route

A further and more expensive route is investing in the local stock market. The minimum sum is $500,000 in one or several vehicles. With this path, applicants have to present a letter from the investment firm stating exactly the securities listed under the applicant's name, plus proof that this firm is duly licensed to operate in Panama. The securities must be maintained for at least five years.

Fixed-term Bank Deposit Route

Permanent residency through a bank fixed-term deposit is probably the easiest entry but also the most expensive one, with a minimum of $750,000. Like the above example, the minimum term to maintain the deposit is five years. 

Mundo’s expert opinion by our CEO, Liliya Soboleva: “I’ve lived in Panama since 2011, and the country’s growth from that moment to our days has been truly impressive. Back then, Casco Viejo was just a colonial neighborhood, far from the city center, and I barely went there. Now, I go twice a week to think and work on the most creative parts of my business. 
Today, there are plenty of real estate projects to buy here in Casco Viejo, which is a UNESCO heritage site, and many other areas in the city center and the provinces, all of them with exquisite designs and modern amenities”.

Other Investment Options 

Friendly Nations 

The advantage of the Friendly Nations is that it offers a much lower threshold: $200,000 for real estate and $200,000 for a fixed-term deposit. Nevertheless, the program is only available to citizens of countries that are considered friendly (see the list below).

List of Friendly Nations: 

• USA
• Canda
• UK
• Belgium 
• Ireland
• France
• Bulgaria
• Germany
• Luxemburg
• Spain
• Italy
• Cyprus
• Greece
• Hungary
• Croatia
• Czech Republic 
• Malta
• Poland
• Slovakia
• Slovenia
• Romania
• Latvia
• Estonia
• Lithuania
• Sweden
• Denmark
• Netherlands
• Finland
• Australia
• Japan
• South Korea
• Singapore
• Costa Rica
• Mexico
• Brazil 
• Chile
• Uruguay
• Argentina
• Paraguay 

Disclaimer: the information provided in this article can change at anytime due to factors outside of our reach, hence, it can be outdated at the time of reading. This article doesn't constitute legal or migration advice. Up-to-date information will be provided only through formal consultations. 

Reforestation visa: temporary residency

The alternative to the Qualified Investor Visa is not Friendly Nations: it’s reforestation. This is the only other official residency by investment program, and its bifurcation into temporary and permanent residency makes it more flexible.

The minimum contribution for a temporary residency is $100,000 in land to plant teak wood. The land must be used only for this purpose, and after planting, the wood can be collected in approximately 25 years.

Reforestation visa: permanent residency

Through the same program and under the same conditions, you can obtain permanent residency. It requires a larger investment (investing in more land), which is stipulated at $350,000.

Qualified Investor vs Reforestation

A quick glance at the said visas helps us answer several questions. What's the difference between them? Which one is more convenient? Please see the table below.

Eligibility Requirements for Panama Residency

Requirements for Main Investor

The main investor must be of impeccable character (not have any criminal record) and in good health. A police record and a medical certificate are required. The funds must come from abroad, and the applicant must prove the lawful origin of such funds. Finally, they will have to present financial solvency for each dependent, and a sworn declaration in which they declare themselves capable of supporting them. 

Requirements for Family Members

Children, parents, and spouses can apply freely. Children older than 18 must be full-time students at the university and financially dependent on the main applicant. 

Step-by-step application process

Frequently Asked Questions

What is the minimum investment required?

For permanent residency, the minimum threshold is $300,000 in real estate, whereas for temporary residency, the minimum investment is $100,000 in teak land. 

How long does it take to obtain residency?

Between 30 and 60 days since the moment of application.

Can family members be included? 

Yes. Spouse, children, and parents can apply together with the main applicant. 

Do I need to live in Panama full-time?

No. The program stipulates a flexible minimum stay requirement. The resident should visit once every two years for at least a week. 

Is knowledge of Spanish required?

No. 

What happens if I sell my investment?

Investments must be maintained for five years, after which they can be sold without losing resident status. 

Can I open a bank account in Panama as a resident?

Yes. Actually, once you become a resident, opening a bank account is almost as easy as if you were a Panamanian. In line with this, Mundo can help you open a bank account in only a few hours. 

Do timeshares qualify for the investment visa?

Although the legislation asks for a titled property, currently, there's an option to apply through hotel shares in downtown Panama City. In this case, the hotel issues a certificate stating that you have made an investment of the stipulated amount.

Obtain permanent residency with Mundo: Who we are

We are a company dedicated to providing services and tools for the global investor and citizen. Our team is located in different jurisdictions, and, besides, we have a physical office in Panama. In the country of the canal, we also enjoy close connections to the best real estate developers and are master brokers of the prestigious Mercan Group. 

This puts us in a unique position in which we can help you acquire real estate and obtain permanent residency safely and straightforwardly. Browse through our site and social media and get to know us. When you are ready, send us a message: we'll be ready to assist you in whatever area you need help with.

Contact the Mundo team