Over the last two decades, Panama has gained a strong reputation as a top relocation destination for people from around the world. Whether you’re 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 your 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 has changed in recent years, especially with the introduction of the Qualified Investors Residency program, which offers unique benefits to investors.

To better understand the enhancements brought by the Qualified Investor’s Residency program, let’s first briefly outline how standard rules apply to other programs. Then, we’ll delve into the advantages this innovative program has to offer.

Applying for 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. Your immigration attorney will handle the necessary paperwork and gather the required documents, a process that typically takes one to two weeks, depending on the specific residency category. Once the application is submitted, applicants will 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 a second time to collect their two-year residency permits. After this step, multiple return visas are no longer required. As provisional residents, they can choose to reside in Panama or travel abroad, as long as 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.

Overall, this process can be lengthy and involves multiple trips to Panama, incurring expenses related to flights, accommodations, and other costs.

Now, let’s explore what the Qualified Investor’s Program has to offer.

An innovative, fast-track path to permanent residency
On October 15th, 2020, Executive Decree 722 introduced an exclusive permanent residency option for Qualified Investors in Panama. This special category is designed for individuals seeking not only permanent residency status but also profitable investment opportunities.

With this residency permit, you can achieve permanent status in just 30 days from the moment you submit your application. The best part is that it eliminates the need for multiple trips to Panama. Moreover, it’s the only residency category that can be applied for entirely remotely, as long as the applicant ensures all necessary documents are properly authenticated by a Panamanian Consulate or carry an apostille seal.

Applicants and dependents will only need to make one visit to Panama, during which they’ll receive permanent residency cards and Panamanian IDs, along with a local tax number.

To maintain this status, the investment must be retained for at least five years. Once this period is fulfilled, one can even 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 that the applicant may have established.

Requirements
To qualify for this specific residency program, applicants are required to make an investment of at least USD 300,000.00 in real estate or the Panamanian stock market through a licensed broker. Alternatively, they can invest an amount of USD 750,000.00 in a Certified Deposit with any bank licensed in Panama.

As mentioned earlier, it’s crucial to maintain this investment for a minimum of five years, and our immigration authorities will verify this annually. Residency permits will be revoked for those who prematurely liquidate their investments.

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 feature 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 a Residency-By-Investment 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 the program’s ability to draw more investors in the future, as it continues to provide a compelling and attractive pathway to permanent residency.

By: Emilio Cornejo Vernaza LL.M

Founding Partner of PGS Attorneys and PGS Realty