By Emilio Cornejo
Over the last two decades, Panama has gained a strong reputation as a top relocation destination for people worldwide. Whether they are a retiree, an executive from a multinational corporation, or a digital nomad, Panama has become a welcoming place to call home.
Its strategic location, robust economy, stable political climate, safety, and diverse society, among other key factors, make it an appealing choice for starting anew or enjoying well-deserved retirement.
Although Panama has offered various residency options in the past, the traditional application process could sometimes be daunting, often requiring multiple visits to government offices. However, this changed with the introduction of the Qualified Investors Residency program, which offers unique benefits to investors.
To better understand the enhancements the Qualified Investor's Residency program brings, it’s important to first understand how standard rules apply to other permanent residency programs when comparing its advantages.
APPLYING FOR THE TWO-YEAR PERMANENT RESIDENCY IN PANAMA
Except for two specific residency programs (Pensioners and the Italian Friendship Treaty program), most residency categories in Panama initially provide applicants with a two-year permit, which can later be upgraded to permanent residency.
To begin the residency application process, applicants and their dependents must make an initial visit to Panama. An immigration attorney can handle the necessary paperwork and gather the required documents, which typically takes one to two weeks, depending on the specific residency category. Once the application is submitted, applicants receive a temporary residency ID along with a Multiple Return Visa, allowing them to leave the country as needed during the application process.
Applications are reviewed and approved within three to six months. At this point, applicants and their dependents must return to Panama again to collect their two-year residency permits. After this step, multiple return visas are no longer required. Provisional residents can choose to reside in Panama or travel abroad if they return before their two-year residency expires.
Before the initial two-year permit expires, provisional residents can apply for permanent residency, which involves a similar process to the provisional one. This requires a third visit to file the application and a fourth visit to collect permanent residency IDs for both applicants and dependents.
A fifth visit is necessary for those interested in obtaining a Panamanian ID, which can serve as a tax number.
This process can be lengthy and involves multiple trips to Panama, incurring flights, accommodations, and other expenses.
FEATURES OF THE QUALIFIED INVESTORS’ PROGRAM
This program offers an innovative, fast-track path to permanent residency.
On Oct. 15, 2020, Executive Decree 722 introduced an exclusive permanent residency option for Qualified Investors in Panama. This special category is designed for individuals seeking permanent residency status and profitable investment opportunities.
With this residency-by-investment (RBI) permit, applicants can achieve permanent status within 30 days from the moment they submit their application. The best part is that it eliminates the need for multiple trips to Panama. Moreover, it’s the only residency category that allows a fully remote application as long as the applicant ensures a Panamanian Consulate properly authenticates all necessary documents or carries an apostille seal.
Applicants and dependents only need to make one visit to Panama, during which they receive permanent residency cards and Panamanian IDs, along with a local tax number.
The investment must be retained for at least five years to maintain this status. Once this period is fulfilled, one can apply for Panamanian citizenship, provided some other requirements are met, like demonstrating substance in the country, the time spent in Panama, and any other ties the applicant may have established.
REQUIREMENTS TO APPLY FOR PANAMA’S INVESTOR VISA PROGRAM
To qualify for this specific residency program, applicants are required to make an investment of at least $500,000 in real estate or the Panamanian stock market through a licensed broker. Alternatively, they can invest $750,000 in a Certified Deposit with any bank licensed in Panama.
It's crucial to maintain this investment for a minimum of five years, and Panamanian immigration authorities will verify this annually. Residency permits are revoked for those who prematurely liquidate their investments.
For those interested in real estate investments, there's a temporary reduction in the investment threshold until October 2024. It allows applicants to qualify for the residency permit with a minimum investment of $300,000. An additional advantage of this option is that investors can submit their application before obtaining the property title, provided they make the minimum required investment to the seller or developer in advance.
This aspect has sparked considerable interest among individuals looking to invest in real estate projects at an early stage. The investment can be managed by a Trustee, ensuring that payments are made according to a specified schedule while allowing for the early submission of the residency application once the trust is funded with the required minimum amount.
AN ATTRACTIVE RBI PROGRAM FOR ALL
Over the past three years, the Qualified Investor's Permanent Residency program has gained immense popularity among individuals worldwide. Its unique features, such as offering a swift path to permanent residency, enabling remote application, and providing multiple investment choices, make it a standout option for those seeking an RBI program.
Interestingly, a significant number of applicants opting for this program come from specific countries that have access to alternative residency programs with lower investment requirements. Despite having the option to invest less and spend less on legal expenses, these applicants choose to invest a higher sum and incur additional costs. They do this because they value the opportunity to attain permanent residency at an expedited pace, involving considerably fewer visits to the country.
This decision speaks volumes about the program's appeal and efficiency. It clearly demonstrates its ability to draw more investors in the future as it continues to provide a compelling and attractive pathway to permanent residency in Panama.
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