Panama is not just a tax haven. With tax advantages that offer more than saving taxes.
Panama occupies a strategic position that has made it a melting pot since the time of the construction of the French Canal.
The canal is a key economic engine for it: every year more than 14,000 ships loaded with 300 million tons of merchandise, 5% of world trade, pass through it.
If you are considering doing import/export business in the region, Panama has a total of 20 Free Zones, of which 11 are currently active. Within these, there are 116 registered companies, mainly operating in the Corozal Free Trade Zone – Marpesca, S.A. (34), Panapark (23), and Albrook Free Zone (19).
And the Colon Free Zone with more than 70 years of existence is located on the Atlantic coast of Panama and after Hong Kong is the second largest free zone in the world.
The United States continues to be the main trading partner of this small country with a historic geopolitical role.
It’s a dollar-based economy, which means you’ll use dollars if you open a bank account there.
Panama’s banks are solid; they are liquid and well capitalized — unlike those in the West.
It is one of the easiest places in the world to establish a second residence. Depending on your nationality, the amount of your investment, or your higher education, you may opt for a temporary residence and then for an indefinite one.
Plus, you don’t need to live in Panama — which means you don’t have to own a home.
The most possible are that of Friendly Countries (in their Subordinate worker modality) and those of Foreign Professionals and Retirees.
Taxes are territorial, so you do not pay taxes for commercial activities carried out outside Panamanian jurisdiction.
Real estate is very affordable and will be even more so after Covid-19, which means it’s a great place to invest your money abroad in the form of real estate.
Those seeking quality, specialized medical care somewhere close to North America, consider Panama as the place to go for medical tourism.
It is only a few hours by plane from the United States and Canada. It is a strong and stable economy, and its health system is full of doctors trained in the United States, for example, in facilities such as Hospital Punta Pacifica, a branch of Johns Hopkins, or the Modern National Hospital in the heart of the city.
The Panamanian tropical climate is always warm, and although it can be a bit humid at times, it is stable most of the year, making it ideal for those who want to escape from cold climates.
What residencies can be applied for in Panama?
You can choose between two types of residences: permanent or temporary. Both require the same approval time which is 3 to 6 months.
The fastest, after meeting the requirements for each, are:
Residences for Retirees / Pensioners
If you are a retiree or pensioner from a government, entity, or public company and receive more than the US $1,000.00 per month for life, you qualify to be a permanent resident in Panama and you are also entitled to certain customs exemptions and discounts on public and private services for being retired.
· Permanent Residence as an Agreement of Friendly Countries
This residence is a modality in which more than 50 states are declared as “friendly nations of Panama”. Its citizens can apply and become permanent residents almost expeditiously.
To apply for this residence now one of the following parameters is required:
a. Invest in a property of 200 thousand dollars, which can be financed by a local bank
c. Employment contract with a Panamanian company.
d. Fixed term in a local bank with 200 thousand US dollars.
You will be granted residency for two years, and then reapply for the Definitive. Likewise, you do not need to live in Panama, in the case of those that do not require an employment contract, but you must enter the country at least every two years to maintain the status.
The countries on this list are 52: Germany, Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Cyprus, Costa Rica, Croatia, Denmark, Slovakia, Spain, United States, Estonia, Finland, France, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Monaco, Norway, New Zealand, Paraguay, Netherlands, Poland, Portugal, United Kingdom, Czech Republic, South Korea, Montenegro, Serbia, Republic of Marino, Singapore, South Africa, Sweden, Switzerland, Peru, Paraguay, and Uruguay.
This residence also gives you the option of applying for a work permit, like in friendly countries, without the need to have an employment contract with an employer.
• Residence by the Panama-Italy Agreement
Panama maintains an agreement with Italy since 1966 with which Italians, just because they are Italian citizens, can be permanent residents immediately in Panama, except for certain migratory payments that make it even more economical to opt for this type of Residence. It is the only residence if you are not a Pensionado/retired, with the possibility of becoming permanent in just 6 months.
• Residence of economic solvency
Three options are established within this program to access this modality created to attract investors:
1. Make a minimum investment of $300,000 in capital goods or real estate, to which you must add $2,000 if you must incorporate family members.
2. Make an investment of $300,000 in a bank certificate of deposit for a minimum term of 3 years.
3. A combination of the previous two where the investment in capital goods or real estate plus the bank deposit certificate reaches the sum of $300,000, you must also add $2,000 for each member of your family life.
• Foreign Professional Visa
If you work in a Panamanian company or corporation as a professional, pay your social security taxes, and hold a professional title or license (issued in your country of origin), you can obtain your permanent residence after 2 years of temporary residence.
You must first validate your university degree at the University of Panama, to be able to opt for this residence that is provisional for two years, and then opt for the definitive one. It only applies to bachelor’s, master’s, and postgraduate degrees, not too technical degrees, nor those that can only be carried out by Panamanians, such as law, medicine, architecture, engineering, etc.
• Residence for Parents of a Child Born in Panama
If a baby is born in Panamanian territory and is five years old at the time the application for this visa is submitted, both parents have the right to opt for permanent residence.
• Residency as a Reforestation Investor.
The reforestation program of the government of Panama grants a permanent residence visa to any person who decides to make a minimum investment of US $80,000, in at least five (5) hectares of land to apply for an approved forest plantation project. by said government.
If you wish to opt for Permanent Residence, the Investor must demonstrate the investment of USD 100,000.00, in reforestation or forest plantation activities, duly authorized by the Ministry of Environment.
If it is the case that the investment is USD 350,000.00 as a minimum, in reforestation or forest plantation activities, duly authorized by the Ministry of the Environment, you automatically obtain your permanent residence.
It is important that these procedures are carried out by a suitable Panamanian lawyer and experts in immigration procedures and visas in Panama since the conditions of the visas mentioned here may vary.
For more information, contact us.
