Program Overview
We are proud to present the Panama Qualified Investor Visa as one of the finest options in the world to obtain residency. Canadians and Americans often look for second citizenships and Plan B migration, but they often overlook an opportunity that's right before their eyes: Panama. Let's explore this nation that allows a fast-track entry in exchange for an investment.
What is the Panama Residency by Investment Program?
The migration landscape can be intricate to navigate if you don't have a clear map. Through our articles, we intend to provide you with this map, so you understand your options clearly. When we mention the residency by investment program, we usually refer to the Qualified Investor Visa, but this doesn't mean it's the only one.
Established in 2021, QI is the simplest and most innovative path to permanent residency, mirroring, in a way, European golden visa initiatives. A program called Reforestation Visa also offers a fast track to permanent migration; however, it entails a more complex type of investment and a long time waiting for ROI.
Program Type
These two are the only programs that we can officially call “by investment”. Others can also involve real estate, yet not as the main entry. In such cases, a real estate can be used to lower the minimum income or to prove a financial connection.
Investment Options & Minimum Costs
With that said, we introduce a table showing the different investment alternatives and the corresponding visa.
Minimum investment | Investment type | Requires an extra condition | Program |
100,000 | Teak Land | No | Reforestation |
| 100,000 | Real estate | Having a lifetime pension | Pensionado |
| 200,000 | Real estate | Being from a friendly country | Friendly Nations |
300,000 | Real estate | No | Self solvency |
| 300,000 | Fixed-term deposit | No | Self solvency |
| 300,000 | Real estate | No | Qualified investor |
350,000 | Teak Land | No | Reforestation |
500,000 | Stock market | No | Qualified investor |
| 750,000 | Fixed-term deposit | No | Qualified investor |
The above table shows us that the purchase of a property is not always enough. In the friendly nations, for example, you need to be from a specific country, and, when it comes to the retirement program, you must have a pension.
Qualified Investor Visa
The program is highly celebrated for its direct path to a permanent presence in the country under a legal resident status. Through an investment of $300,000 in real estate, the applicant and the family obtain a permanent visa in only a few months. It contemplates other entries as well, with much higher thresholds of 500,000 and 750,000 in the stock market or a fixed deposit.
Even though more expensive, these two can be ideal for those who prefer those sectors or those who are not planning a consolidated physical presence in the country.
Friendly Nations Visa
This approach is ideal for the lucky ones who are part of the friendly nations list. By proving their nationality, they can obtain resident status, buying property for $200,000 (100,000 less than QI). Since the main requirement is having financial connections, it's also possible to apply by incorporating your own company and hiring yourself (including salary and all payments stipulated by law). It's worth noting that the permit is issued initially for 2 years with the possibility of renewal.
Retiree / Pensionado Visa
In Mundo’s view, the best path to a permanent resident status is pensionado. It requires a $1000 monthly pension for life. If you have it, this is definitely the cheapest way to obtain permanent residency.
Furthermore, since it recently allowed the possibility of obtaining a work permit, it has become unbeatable. It also facilitates a wide array of benefits and discounts that help maintain a great lifestyle and keep expenses low.
Advice from one of Mundo’s Experts: "In my view, Panama has done a great job in creating opportunities for expats. At one point, the friendly nations granted permanent status. That is over now. Yet I believe that the qualified investor is even a better option. Yes, it is more expensive, but on the other hand, it shakes off the tight corset of the “50 lucky ones”.
Today, there is no better investment visa in the world than Panama, at least when it comes to residency. If you ask me about citizenship, I may recommend other programs, but for residency, nothing beats Panama".
Reforestation Visa
Reforestation gives you entry through two possible options: 100,000, granting a temporary permit, and 350,000, granting a permanent one. The visa stipulates an investment in teak land, with the wood collection estimated to be in 25 years. We introduce it as a very specific option that can give you easy access if you don't qualify for friendly nations or don’t have 300,000 at the moment.
Digital Nomad Visa
Officially known as the remote worker visa, supported by Law 3, Executive Decree 320, Article 1, this program is ideal for digital nomads and perpetual travelers: They can get a sense of what life is like in Panama. There's no investment for the remote worker visa. Its main requirement is having an income of at least $3000 a month derived from foreign sources. Because of its limitations (only 9 months of a stay permit and the impossibility to work in the country), this isn't the ideal choice for those who are planning a long-term connection with the country of the canal.
Eligibility Requirements
Who Can Apply for the Panama Residency by Investment Program?
Both investment programs have ample eligibility, allowing all foreign citizens to apply. All applicants must be in good health and have a clean criminal history.
Eligibility Checklist and document checklist
Here is a list of documents and general eligibility across all programs. This information is provided as a general overview; however, each program has specific conditions.
- Having a clean criminal history
- Being in good health
- Proving relationship with the dependents (children or spouse)
- Having a lifetime pension (only for pensionado)
- Being from a friendly country (only friendly nations)
- Having a $3000 monthly income (only remote worker)
- Three passport-sized photos
- Sworn affidavit
- Power of attorney
- Copy of insurance policy (only some programs)
- Certificate of a registered real estate owned by the applicant (only some programs and situations)
- Letter of the company providing the pension (only retirees with a pension from private sources)
- Certificate of the existence of the company providing the pension (only retirees with a pension from private sources)
Application Process
How the Application Process Works
In most cases, the process is carried out remotely except for two moments: when you submit your application and when you receive approval. The migration office usually takes three months to review applications, and before that, approximately 3 weeks are required to gather all documents.
Naturally, some actions, like buying property or establishing a company, require a longer time, and they depend much on the person's urgency. Some may want to take several months to choose the right property, while others may prefer to obtain a resident status faster.
Processing Time
Physical Presence Requirements
During the application, the investor must visit the country twice. Once the migration status is granted, they can maintain it with minimum stay requirements and visiting for a few days every two years.
Disclaimer: the information provided in this article may be inaccurate or outdated at the time of reading. Before applying for a migration program, make sure to consult with certified professionals. This article doesn't constitute migration or legal advice.
Benefits of Panama Residency by Investment through Qualified Investor
Permanent Residency Available Immediately
QI grants an immediate permanent status, which makes it one of the best programs in the country and worldwide. It surpasses even European golden visas, which ask for higher sums with permits limited to only a few years.
Family Inclusion
The spouse and children are allowed as dependents as long as you prove your relationship to them and provide proof that you are economically solvent to support them. Children older than 18 must be full-time students at the university.
No Minimum Stay Requirement
While there is a minimum stay requirement, it is quite flexible: only a few days every two years will suffice.
Territorial Tax System
If you're officially a tax resident in Panama, you don't pay taxes on your foreign income. It's worth noting that, to be considered a tax resident, you must spend at least 6 months a year in the isthmus. Also, this doesn’t exempt you from tax responsibilities in other jurisdictions.
Citizenship Timeline and Requirements
Citizenship can be obtained after five years of being a permanent resident and providing the following:
- Certificate of retirement (which can be real estate properties or capital invested in a business)
- A work letter and proof of having social security payments up to date
- Permanent resident card
- Copy of the passport
- Medical certificate
- Resignation to the previous nationality and a manifestation of acquiring Panamanian nationality by free will
- Pass an exam of basic knowledge about the electoral court
Final thoughts about Panama Residency and Qualified Investor
Today, we can look at Panama as an expat hub, an excellent retirement destination, and a vibrant business environment. Luckily, programs like Qualified Investor give us a one-way ticket to becoming a permanent part of such a prosperous country.
We can help you
Mundo has a team of experts, especially focused on the country of the canal. We also have an office with an on-site team in the bustling Central American capital. We can help you open a bank account, incorporate a company, establish a foundation, and apply for investment migration. Ask us about citizenship by investment, because we can help you obtain it in the Caribbean countries, Vanuatu, and São Tomé and Príncipe.
This, combined with our trustee services, real estate advice, and several other tools for the international investor and global citizen, can be what boosts your strategy forward.
