The new passport law in Panama for investors serves as further proof that the Panamanian government is keen to provide attractive residency programs and additional benefits for individuals who choose to invest in the Latin American nation.
The law was passed in the National Assembly and authorizes issuing a special passport for foreigners who obtained permanent residence in Panama in the category of Qualified Investor. This is an immigration program that allows long-term real estate, financial, and bank deposit investments. The main goal is to facilitate Panama’s position as one of the most attractive countries in the world in terms of residency.
The law is already approved, but it is not yet in force and is waiting for the issuance of a regulatory decree. This document will confirm all the details of the regulation, the procedure, the cost, and all the administrative documents necessary to obtain a special passport. When this government measure goes into effect, it will make it possible for foreign investors who have already become qualified investors of Panama and have obtained a permanent residence permit to also obtain the special passport.
The passport law for Panama points out that this new special passport, which will be issued by the Directorate of Immigration, is not a document that can be issued or applied for by an investor who wants to obtain Panamanian nationality. It will be valid for the period established in the immigration permit held by the foreigner. The new passport law in Panama also states that the same passport can be requested by the investor’s dependents.
It is also worth noting that the new document is an identity card and a mobility document, and does not have any other functions other than the name inscribed in it. The passport regime in Panama is a residence regime, so the new special passport also has a residency permit. All documents issued within the new law are official documents of Panama and are international, so the recipient can use them both in Panama and when traveling abroad.
Qualified Investor
As noted above, the Qualified Investor residency program is one of the most efficient and easiest-to-meet Panama Permanent Residency options. There are three types of investments that allow you to become a Panama permanent resident: real estate, securities, and fixed-term bank deposits.
Real Estate Investments in Panama
In the framework of real estate investments, investors are required to invest a minimum of US$300,000 in real estate free of liens. The investment must be held for a minimum term of five years.
Real Estate under Construction
The new law in Panama, as well as the Qualified Investor Program, also takes into account the option of real estate investments in the pre-construction or development phase. Under this option, a foreign investor is eligible for a Permanent Residency in Panama by signing a Purchase and Sale Agreement of at least US$300,000, free of liens. For the construction investment project, a Qualified Investor can choose one of the following methods:
Depositing a special fund in a trust administered by a Panamanian bank, or other fiduciary institution licensed by the Panama Monetary Authority to perform trust administration.
Paying in full to the developer or promissory vendor for the purchase and sale of real estate during the construction phase, even if the unit has not yet been completed and segregated.
In this way, the Qualified Investor program encourages the construction of new buildings and real estate development in Panama, thus contributing to its economic development and creating new jobs.
Investments in Securities
Qualified Investors who wish to become Panama permanent residents through financial instruments are required to invest a minimum of US$500,000 in securities. All such investments should be made through one or more brokerage houses licensed by the Superintendency of the Securities Market.
Investments in Bank Deposits
The third way to obtain a permanent Panama residence as an investor is to make a bank deposit of at least US$750,000 for a term of at least five years. The foreign national may invest their money in the banking system of Panama with a fixed-term bank deposit.
Panama: An Extremely Competitive Destination for Global Investors
The new special passport is another example of Panama’s attempts to be one of the most competitive investment destinations in the region. Panama boasts world-class infrastructure, such as the Panama Canal, modern logistics and port capacities, and a wide network of free trade zones. In addition, Tocumen International Airport, often called the “Hub of the Americas,” has direct flights to more than 80 cities around the world, making Panama a convenient place to travel and live for foreign investors and their executives.
Panama’s tax system and legislation, which provides high predictability and investment security, also play an important role in Panama being an extremely attractive jurisdiction. The tax regime in Panama is a territorial one, which means that only income earned on the territory of Panama is taxed. Moreover, the American territory also stands out for its political and economic stability, being a “dollarized” economy, and providing high protection for private property. These features make Panama one of the most attractive countries in the western hemisphere for global investors.
Building Confidence
Panama’s new passport law for investors is another important step in building investor confidence. The amendment to the Immigration Law is an opportunity to create a more complete residency system that is more integrated with the current requirements of international mobility. The Panamanian authorities realized that a quality residence regime is not only low fees, a favorable tax system, and investment protection. For example, today’s professional investor needs additional incentives that will simplify their work on a day-to-day basis.
In order to help individuals and organizations make an informed decision and obtain Panama residency in a Qualified Investor Program, leading law firms, such as Dentons, offer professional services. Dentons Panama teams can help a Qualified Investor prepare a package of investment documents, have it verified, obtain a permanent residence permit, and complete all the procedures with the Panama Passport Authority.
The time of the new passport law in Panama is coming, and the country is becoming an increasingly attractive gateway for the international business community. For all those investors who are looking for a solid, prosperous, and safe place to park their money, Panama now also offers the world’s key to unlock doors.