Panama City
Panama Qualified Investor Golden Visa
Panama launched in 2020 a new Golden Visa named the Qualified Investor. The program provides permanent residence to approved applicants and their family members. The application process takes only a month, and after 5 years, investors are eligible for Panama citizenship. Panama will ask you to renounce your previous citizenship during your oath of allegiance. This renunciation is not legally binding in the US, and you cannot lose your American citizenship that way.
About Panama
Residency by Golden Visa
Panama is a popular destination for Americans and is home to a sizeable expat community. Panama has a territorial taxation system and only levies tax on income generated in Panama. Any income from abroad is free of tax.
Panama Crypto Environment
Panama charges no tax on cryptos (or other forms of capital gains) for non-Panama sourced gains. This Central American tax haven also offers numerous ways to gain permanent residency status.
One of the more well-known Bitcoin OGs, Eric Voorhees, now lives in Panama City after choosing this crypto-friendly country over other options.
Country Overview
Program Overview
Location
Central America
Population
4,000,000
Currency
Balboa
Language
Spanish
Capital
Panama City
Program Overview
Legal Status
Permanent resident
Mobility
EU (90 day in 180 days
)
Timeline
1 month
Min. Investment
300,000 USD
Physical Presence
1 visit
Factsheet Download
Download our free factsheet with more detailed information about this program.
Who Can Qualify?
The Panama Qualified Investors offers 3 investment options, with the real estate benefiting from a temporary reduction until the 15th of October of 2022. You must hold the investment for at least 5 years. The investor can invest personally or via a Panama corporation or Panama Private Interest Foundation held by the investor (100%).
Investment Requirements
There are also the following fees associated with the application:
- $5,000 application fees
- $5,000 as a repatriation bond
- Each family member will need to pay $1,000 for applications fees and an additional $1,000 as a repatriation bond
Real Estate
You must invest at least $300,000 in the purchase of real estate property. This amount will increase to $500,000 starting the 15th of October of 2022. You can use financing for the purchase of a property if the down payment is at least above the minimum investment amount.
Stock Market
You must invest at least $500,000 in the purchase of securities on the Panama Stock Market through any licensed Panamanian securities brokerage firm.
Bank Deposit
You must deposit at least $500,000 in a time deposit at a bank. The interest is tax-free.
Benefits
The Panama Qualified Investor program provides you and your family with permanent residence in the country. The process is quick, and you only must visit Panama at least once every 2 years to maintain your status. The weather in Panama is warm all year long and is a popular vacation destination. Panama City is the financial hub of Central America and has a strong banking tradition. It has also become home to a striving crypto community. The country has also developed many tax-free special economic zones for businesses.
Family
The principal applicant can include his or her spouse and unmarried children under the age of 25. Adult children will need to demonstrate enrollment into a Panamanian university. Parents and other adult children can apply for the Friendly Country Visa.
Requirements
Other than the investment, there are additional requirements an applicant and his family members must meet:
- All adult family members must present a Police Certificate from their country of residence
• All family members must produce a Health certificate stating good mental and physical condition.
- All family members must produce a Health certificate stating good mental and physical condition.
Panama Residency Application Process
The Panama Golden Visa application process takes 1 month for a decision. The time spent finalizing the real estate investment can lengthen the process. You can do everything from abroad via a power of attorney, but you will need to physically travel to Panama to collect your resident permit and give your biometrics. You will need to make the investment before applying and show every year that you remain in possession of your investment.
Day 0
- Verify eligibility
- Start client onboarding process with Global RCG.
- Global RCG helps you gather the required documents.
- Global RCG assists you in making your investment.
Day 1
Month 1
Year 5
Year 6
Mobility
Access to the US
As a Golden Visa applicant, you will receive a multi-exit visa allowing you to travel in and out of Panama. As an American, you can already spend 180 days in Panama without a visa. But your Panamanian resident permit will guarantee you entry into the country even during COVID-19 travel restrictions.
Once you become a Panama citizen, you can live and work freely in it as long as you desire.
The Cyprus passport provides access to over 150 visa-free worldwide, including Europe’s Schengen area, Singapore, Hong Kong, Russia and Brazil.
Access to the US
More and more Americans are considering renouncing their American citizenship for multiple reasons. They want to know how they can circle back to the US with their new citizenship. Panama is not part of the US visa-waiver program.
Panamanian nationals need a visa to travel to the US. Panamanian that want to manage a business in the US can apply for a US E-2 visa.
Panama citizenship is accessible after 5 years of residence. Panama does not recognize dual citizenship and will ask you to renounce your citizenship during the oath of allegiance orally. This oath is not binding in the US, and an American cannot lose his citizenship that way.
Taxation
Panama is a tax-friendly jurisdiction. The country has a territorial tax system. Meaning income sourced outside the country is free of tax. Crypto capital gains traded outside of Panama are tax-free. If you want to run a business in Panama, you can operate from one of the tax-free special economic zones. You can become a tax resident with 183 days of physical presence in Panama.
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