Illya Kun, Our Expert Partner in Panamanian Residency

One of our pillars is quality service and, to ensure that we offer it, we create working relationships with professionals and experts in their fields. Our goal is that our clients receive the best attention.

That is why, at Mundo, we are fortunate to have an excellent work team; our partners are really able to handle everything related to their areas.

In the case of obtaining residencies in Panama, Illya Kun is our expert. In this interview, he will show you all his knowledge about this, don’t miss it! Get to know the Mundo family little by little.

- Welcome, Illya, it is a pleasure for us to have you here. Could you tell our readers a little more about yourself?

Nice to be here. Let’s see, I studied Business & Administration (with a specialization in International Finance) and Risk Management of Financial Institutions at the “Sapienza,” in Rome, Italy.

Upon completion of my studies, I did my internship in an accounting firm in the same city and then offered my services as an external consultant for a Panamanian company.

At this moment, I offer consulting services for a large company such as Mundo and NTL, in addition to being the Residency Manager for the Panama Residency Program.

- Thank you very much for agreeing to be our permanent expert on Panamanian law, and welcome to Mundo!

Thank you for giving me the opportunity; it is a pleasure for me.

- Today we want to talk about immigration to Panama. Could you tell us about the lifestyle and opportunities that are available for all those interested in coming to Panama?

Currently, Panama is one of the few countries in the world that offers excellent investment opportunities supported by a stable political and financial system, as well as tools to develop your own business in a few days.

The official language is Spanish, one of the most spoken languages in the world, but also easy to learn. The local currency is practically the American dollar, although officially it is the balboa (they have an equivalent value).

It is a country full of natural resources where you can still develop many tourist projects at low costs such as whale watching, hotels on the beaches/mountains, restaurants, among others.

Any investment project related to tourism will be successful because they are much more affordable than in the U.S., in addition to the fact that the buildings include 24/7 surveillance and the temperature remains between 25 and 32 degrees Celsius throughout the year.

- Is it true that if a person makes his income outside of Panama (such as investments, bitcoin trading, consulting), they will pay absolutely no income tax in Panama?

Yes, it is true. Thanks to its system of territorial taxation, Panama does not apply taxes on profits produced abroad.

However, the person will pay taxes in the country where he or she produces or offers his or her services locally. This principle makes it particularly convenient to obtain tax residence in Panama for all citizens coming from countries with a global tax regime.

Even for citizens of countries that have signed the treaty against double taxation (Spain, Italy, Israel, France, Mexico, Portugal, United Kingdom, among others), it can be very beneficial to apply for tax residence in Panama thanks to the low local tax burden on profits: in their country of origin, they would pay only about 5%, depending on the treaty, the source of income and the type of profit, and 0% in Panama.

- That’s amazing! Is that why so many wealthy people are moving to Panama now?

Yeah, that’s right. We constantly receive requests from high net wort people who want to invest in a country with a very solid financial system made up of 90 banks that have correspondents all over the world.

Wealth protection is guaranteed by technical-legal tools, such as a corporation or private interest foundation, which are regulated by laws with a great reputation worldwide. Many law firms prefer to use Panama for its low costs and efficiency.

- We understand that there are at least 64 immigration options to Panama and that it is the easiest place to obtain residency in the world today. Is that true?

Yes, it is! Since the construction of the Canal, Panama has shown interest in cultural and business openness; in fact, it is a multiethnic country endowed with great human and intellectual skills thanks to the constant promotion of immigration laws for socio-economic purposes.

There are numerous options both for highly qualified professionals and for investors who want to contribute their capital for real estate and financial development. In addition, Panama is one of the few countries that grants the faculty to apply for the Panamanian citizenship in some cases until after 1 year of having obtained permanent residence.

- One of the most common ways to obtain residency is the friendly countries via, how does it work?

The friendly countries program was developed to encourage collaboration with the 50 countries that Panama considers strategic at the professional, commercial, and maritime levels.  It is one of the best proposals that guarantees permanent residence in less than 4 months.

Unlike other immigration options, it is not necessary to make an investment or have a university degree: it is enough to open a corporation to prove the intention to develop a business in Panama and a bank account to prove the economic solvency (with around USD 5,000).

The interested person, besides the passport and a second identification, will have to get his or her criminal certificate apostilled, a letter of work or income tax return, and a service bill. We take care of the rest.

- Certainly, it is an excellent option. Is there a new program in which a Panama passport is granted when putting USD 300,000 in the Banco Nacional de Panama? Tell us about it.

This is the retired renter program, an interesting option for people who want to get a second passport. It is a type of investment that can be made exclusively in the Banco Nacional de Panamá and has to guarantee a minimum income.

The amount to be invested will depend on the current market rate. At the moment, the minimum amount is USD 370,000. In order not to lose the passport, the investment must be kept for a minimum of 5 years, at the end of which the time deposit must be renewed for another 5 years.

This type of immigration permit is temporary and will not grant the client Panamanian citizenship. Technically, it is a travel document that can be used as an alternative to the original passport, in case of loss or expiration. There are some countries that grant access with this passport without the need for a visa, but it is advisable to consult the embassy of the country before traveling.

- Tell us about another popular program, the pensionado visa. Can you get discounts on health, travel, food, and entertainment by having a pension?

That’s right, Panama is a country that always tries to support retirees through tax incentives and discounts of up to 50% on products and services. This visa for retirees is aimed at everyone who receives a lifetime pension of more than USD 1,000 per month from a public or private entity or a cooperative, with no age or nationality limits.

The minimum monthly amount can be reduced to USD 750, in case the retiree buys a house with a minimum value of USD 100,000.

Of the discounts you mentioned, we can highlight 30% on public transport, between 30 and 50% in hotels, 25% in restaurants, between 15 and 20% in hospitals and medicines, 25% in the consumption of electricity, water, and telephone. In addition, there is provision for exemption from tax on the import of personal goods in a container.

As if this were not enough, a new draft is currently being evaluated in the National Assembly that will guarantee even more benefits for retirees.

- Wow, so many discounts! Is there really no age limit?

I know, from the name it is very hard to believe, but anyone over 18 years old who meets the requirement of having a pension of at least USD 1,000 will be an ideal candidate for this visa.

- Excellent news. And what about the investor visa? Can you get a residency when you buy an apartment?

Yes, it is possible to make an investment in real estate or a time deposit, or also a mixed investment in any bank in Panama.

In the case of investment in a time deposit, the law requires a minimum duration of 3 years. In relation to the investment in real estate, it does not necessarily have to be in an apartment or a house, but also in a piece of land.

The minimum capital is USD 300,000; the clients will first obtain temporary residence and, after 2 years, they can apply for permanent residence in Panama.

Many times, in cases of personal emergencies, clients can negotiate with the bank to receive a personal loan so as not to withdraw the capital in advance and lose the interest accumulated to that date.

- We understand that if you invest USD 160,000 in a business, you can also get a residence, is that right?

Correct, this is a type of immigration permit aimed at investors in large companies with a minimum capital of USD 160,000 from abroad. Said company must have operations in Panama and must hire at least 5 Panamanian employees.

The client will receive a temporary residence permit for 2 years and can then renew it for another 5 years. It is a type of procedure that does not depend on the nationality of the applicant, but it is quite complex and has a higher cost than others.

- Are there good business opportunities in Panama? For example, we heard that if a person has a tourism business, they can be exempt from taxes for 10 years within Panama.

Of course, you can. Panama offers many tax benefits, such as the one you just mentioned and especially for innovative projects in the agricultural and tourism sector, the pillars of the Panamanian economy.

Many foreign companies see potential in Panama as a natural resource for excellence. The export of tropical fruits, aromatic cocoa, and the most sought-after coffee in the world are just some examples. Also, the Caribbean and Pacific archipelagos are one of the most visited tourist destinations by travelers.

- Is it difficult to obtain a tax residency by having a business in Panama or living there?

On the contrary, obtaining a tax residence in Panama is relatively easy. The general rule requires the applicant to spend at least 183 days in the Panamanian territory, but it also leaves room to prove his/her economic center of vital interest by investing in a home or creating an operating company without having to spend 6 months in Panama.

- What would be the least known migration options?

Among other migration options in Panama, we can mention:

• Investment of USD 80,000 in plantations for reforestation
• Agreement between Italy and Panama, very similar to friendly countries
• Temporary visa for executives of the branch of a parent company abroad.

- Finally, we understand that Panama and China have signed several agreements to improve investment and immigration, how do you think this will affect Panama in the short and long term?

It is estimated that from these new treaties, the total investment will be almost USD 4 billion, which is contributing to the development of the Panamanian economy. China remains one of Panama’s largest trading partners due to the consistent transit of ships through the Panama Canal.

At this time, agreements have already begun on large projects, such as the port for cruise ships on the Pacific Ocean side, the natural gas processing plant on the Caribbean side, and the evaluation of the railroad section from Panama City to the City of David arriving in Costa Rica.

In the long term, Panama will continue to be a strategic point for China, as it represents a platform to reach the Latin market. In addition, the Chinese community in Panama organizes numerous cultural and business exchange fairs to strengthen economic development.

However, the trade war between the U.S. and China could partially slow down trade growth between the two countries.

- Again, thank you for agreeing to be our expert on Panama. Will our readers be able to contact you if they have any questions? We understand that you have been kind enough to offer them a free 20-minute consultation.

I am more than happy with this new partnership! Yes, that’s right, clients will be attended verbally free of charge during that time, although I recommend that they to come to our office to meet us personally and discuss the options.

Illya Kun is our new expert partner in obtaining residences in Panama, one of the ideal territories for trade and investment. He is the right choice for you if you want to find the right visa.

At Mundo, we help you protect your legacy, see it for yourself by contacting us and receiving our quality service provided by professionals like Illya Kun.

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