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Five reasons why you should get the qualified investor visa in 2023
If you want to invest in Panama, 2023 is the best year. If you're wondering why, here's a piece that describes five reasons why Panama residency by investment is your best option.
This country is famous for having variety, flexibility, and simplicity when it comes to visa programs. The opportunity has been open for foreigners since Panama became a powerful international hub in the past two decades. Its good predisposition toward foreigners is understandable if we consider that this has been the bridge of the world since the Panama Canal was inaugurated in 1914.
But things got even better when, in 2020, the government announced what we call the “Panama golden visa”, since it can be compared with these types of programs in Europe. We are talking about investment residency in Panama through the Qualified Investor Visa. 2023 can be the year to change your life.
5 (main) reasons why to get a Qualified Investor Visa: 2023 and beyond
Reason 1 – Get a unique investment
Having real estate in Panama is beneficial from every point of view. We're talking about a great investment with amazing return possibilities. Let's imagine two scenarios:
You live in a country with highly unstable currency
Let's take Argentina as an example of an economy that nobody wants for their country. With its currency being highly volatile it also has a serious inflation problem, being the second G20 country with the highest inflation in 2022.
By investing in a property in Panama, you can get Panama residency by investment and obtain a passive income in U.S. dollars. Although the official legal tender is the Balboa, it's pegged to the American currency. As a result, in 10 years you can have an extra income from your property.
You live in a country with a high cost of living
If you're from the United States, you probably want a better life quality at lower costs, especially when it comes to medical care. Invest in Panama through the Qualified Investor Visa as a strategy for your future. By moving to Panama, you access a simpler environment where costs are much lower, and education and health are more accessible. This strategy works best if you generate income abroad since you don't pay tax for this income. However, as an American you'll have to renounce your citizenship to be absolutely free of tax, otherwise, you will be subject to worldwide taxation as per US law.
It's worth noting that income derived in Panama, or received in Panama, is taxable. Paying zero tax is practically impossible since you will need cash for your daily needs, but combining these factors will definitely help you reduce the burden. If that is the case, find a Panama real estate for sale and apply for this visa.
Reason 2 – Get immediate permanent residency
If your main objective is to get a second residency or citizenship, the Panama golden visa is a great option. When compared with other Panama visas it has unique advantages: it's available for citizens of all the world and grants immediate permanent residency. This is a great option if you want to move right away or if you want to have a second residency that's flexible, as you can maintain it by only visiting the country a few days a year.
You also have the possibility to become a citizen in only five years, however, you have to live in the country throughout this period. Besides living for five years in the country as a permanent resident you'll have to take a test in Spanish language and Panamanian geography and history. If you want more direct citizenship without visiting requirements, then what you're looking for is a CBI in, for example, the Caribbean.
Reason 3 – Possibility to live in an amazing country
Through this program, you can live in Panama 100% legally and have the same rights as natural citizens except for suffrage. Investment residency in Panama allows you to enjoy a beautiful country. The capital is full of high-end restaurants, bars, hotels, malls, and plenty of entertainment options. Life in Panama is unique since you walk the streets to find people from all over the world living together in peace, hence, it's an ideal environment for personal growth and development.
The Panamanian people and culture are exquisite from its delicious traditional meals to the national holiday parades throughout the month of November. You'll find very few events as colorful, fun, interesting, and unique as this one.
Reason 4 – Possibility to organize your affairs in a tax-efficient way
Panama is one of the few countries that have territorial taxation. This means what it means: if you live in Panama, you don't pay taxes for your foreign-derived income. However, this needs to be understood correctly. Instead of being a magical solution, this is a powerful strategy that requires planning and dedication.
First, you can access this benefit only if you live in the country for at least six months each year. Also, only foreign income is free of tax. Everything generated inside the country or received within the country is taxed according to Panama legislation. Nonetheless, the income tax is lower than in most countries. Contact our experts for more information.
It's also vital to consider that you may be subject to tax in other countries: if you're an American citizen, you will be taxed for your worldwide income unless you give up your passport. If you have a business in a certain country, you may be taxed there. Following the example of Argentina, you won't be taxed here unless you spend six months of the fiscal year in the country.
However, tax residency is a complex matter that involves where you have your personal interests which can be understood as family, business, connections, and history. So, before making any decisions make a consultation with an expert in global taxation.
Reason 5 – Get residency with a lower investment by applying in 2023
Originally, the Qualified Investor Visa had a minimum investment of $300,000. This sum was supposed to be raised in 2022 to 500,000. Nonetheless, the government decided to keep this 300,000 requirement for another two years. This means that 2023 is the best time to apply because by October 2024 the minimum will be $500,000.
Mundo helps you find Panama real estate for sale so that you can get investment residency in Panama
There's not much left to say except what Mundo can do for you. We work with many jurisdictions, and Panama is one of our specialties. Besides having an office here, a large part of our staff, including our management, has lived here for several years doing business, raising families, and making a living.
Contact your Mundo expert to find the best Panama real estate for sale in your particular case. They’ll help you find a good option that also qualifies for Panama residency by investment. If you want to get the Qualified Investor Visa, 2023 is your year as the minimum amount will be increased soon.
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