Earlier this month, we posted an article with a comprehensive Guide to Panama’s Investment Visas. While our articles usually get a fair number of “clicks”, this article prompted quite a few people to send us direct messages asking about some of the specific investor visa options that we included in the list.
And there is one visa in particular that seems not to have been on many people’s radar: the Self-Economic Solvency Investor Visa.
Most of the questions we received were from people trying to compare the Self-Economic Solvency Investor Visa against the Friendly Nations Investor Visa and the Qualified Investor Visa (AKA the “Panama’s Golden Visa”). And this makes sense because these 3 residency programs all have similar (but fundamentally different) investment options and requirements.
We actually wrote about the Self-Economic Solvency Investor Visa in one of our first articles when we launched our website. Here’s a link if you want to go back and read that over-view.
But in this article, we’re going to compare and contrast the Self-Economic Solvency Visa against the Friendly Nations Visa for Investors and the Golden Visa. And in doing so, we’ll tell you why the Self-Economic Solvency Investor Visa may offer a solution for many would-be Panama residents.
Who Can Qualify?
Before diving into how to qualify, let’s talk about who can qualify for these programs.
The reason that the Friendly Nations Investor Visa is so popular is that it offers a path to legal residence status in Panama based on a relatively low minimum investment amount. But the Friendly Nations Investor Visa is only available to passport holders from +56 countries designated as having “friendly” diplomatic relations with Panama. We process tons of these visas for clients from places like Canada, the US, Israel and different parts of Europe. Actually, passport holders from Mexico, Peru, and Argentina can also qualify. But there are massive numbers of would-be Panama residents who have passports that aren’t currently on the “Friendly Nations” list.
So, the first thing to know is that the Self-Economic Solvency Visa and the Panama Qualified Investor Visa are NOT limited to applicants holding specific passports. Actually, these are available to anyone who can produce a clean enough police record and who can afford to make the qualifying investment!
Path to Permanent Residence Status
Another key metric of comparison is the paths that these visa programs offer to obtaining permanent residency in Panama.
Both the Friendly Nations Investor Visa and the Self-Economic Solvency Visa are similar in that qualifying applicants will initially be granted a 2-year temporary residence permit, and then they can apply for a permanent residency visa when the temporary residency expires. Meanwhile, the Panama’s Qualified Investor program offers immediate permanent residency status.
The direct path to Panama residency could be a relevant consideration for anyone who who has their eye on eventually getting a Panamanian passport. Currently, foreign residents are eligible to apply for Panamanian citizenship through naturalization only after they have held permanent resident status for at least 5 years. So the Golden Visa allows a 2-year head start to global investors working toward a second passport.
Types of Investment Opportunities and Minimum Investment Amount
This is where these 3 investor visa programs are similar, but fundamentally different. The comparison is best viewed in a table:
A couple of things to note here:
- Friendly Nations is the only one of these that allows you to meet the minimum investment requirement using debt. The Self-Economic Solvency Visa and the Golden Visa both require that you bring the required investment as equity. In fact, you will even need to provide bank statements showing US$300k in new money coming into Panama by wire transfer.
- You can still finance your property acquisition under the Self-Economic Solvency Visa and the Golden Visa, but you need to have invested the minimum requirement as equity. So, a US$ 300k property acquired using a US$ 100k mortgage would not qualify for the Self-Economic Solvency Visa, but a US$ 400k property acquired with a US$ 100k loan + US$ 300k in equity would qualify.
- All 3 of these visas will allow you to meet the minimum real estate investment requirement with multiple properties. But the Self-Economic Solvency Visa is the only option that allows you to mix a real estate investment with a fixed-term deposit. So, if you already bought a US$250k property, then you could make up the difference with a $50k CD. And interest rates are pretty good right now.
- The Friendly Nations Visa and the Self-Economic Solvency Visa require that you have taken title of a property registered at the minimum US$ 200k or US$ 300k value. But for the Golden Visa, you can qualify based on a signed promissory purchase-sale agreement (prior to closing) so long as you have brought the required equity to Panama and have it sitting in trust with a licensed local bank.
- The minimum investment requirement for the Golden Visa program is increasing to US$ 500k in just a couple of months. But the Self-Economic Solvency Visa will still allow you to become a Panama resident based on a US $300k investment.
- If you are plannint to qualify for any of these residency visa programs based on a real estate investment, then you’ll want to bookmark this article about How Does a Real Estate Transaction in Panama Work?
Applying with Dependents
All 3 of these Panama investor visa programs will allow the main applicant to obtain residency for his spouse and dependent children. But the additional requirements vary a bit between the programs.
Friendly Nations Visa for Investors:
If you are applying with a dependent spouse or children, then you’ll need to include a reference letter from a local bank showing that you have at least US$ 5,000 on account. This is to demonstrate that you, as the main applicant, have the financial resources to support the applicants you are claiming as dependents. The fact that you are applying with dependents has zero impact on the minimum investment requirement to qualify.
Self-Economic Solvency Investor Visa:
Just like the Friendly Nations Visa, the Self-Economic Solvency Visa also requires the main applicant applying with dependents to produce a reference letter from a local bank showing that you have at least US$ 5,000 in the account. However, the minimum investment requirement also increases by US$ 2,000 for each dependent. So, if you are applying with a spouse and child, then you will need to demonstrate at US$ 304k property purchase and/or a certificate of deposit.
Qualified Investor (“Golden”) Visa:
Under this program, you’ll need to make additional payments of US$ 2,000 to the Panamanian government for each dependent. But the minimum investment requirement remains the same.
Residency Application Process
The other key metric when comparing these programs is the application process itself.
For the Friendly nations Visa for Investors and the Self-Economic Solvency Visa, the application process is basically the same. We will prepare everything in advance of your arrival to make things efficient. But to actually start the application process, you will need to come to Panama for a minimum of 5 business days. There isn’t a ton for you to do during those 5 business days, but we will have your passport. So you won’t be able to hop onto a flight for a quick trip to Medellín.
By day-5, you will go into Panama’s immigration office to take a picture for your provisional residency card. This will allow you to remain in Panama, and to come and go as you please, during the approx. 6 months it takes for your 2-year residency visa to be processed and approved.
Panama’s Qualified Investor Visa works a bit differently. The whole process is executed at a one-stop shop in Panama’s Ministry of Commerce (the “MICI”), and we start the process in the MICI by certifying that your investment meets the criteria before you even arrive to Panama. Once your investment is certified, we submit your application package to a special division of the immigration office within the MICI – again before you even have to have arrived in Panama. They should then issue a resolution approving your permanent residency within 30 days, and only then will you need to come to Panama to take a picture for your permanent residency card.
It is because of this streamlined VIP process that Panama’s Qualified Investor Visa is often referred to as the “Golden Visa”. But it is also the most expensive application process, with a minimum of US$ 10k in payments to the Panamanian government.
Bottom Line?
The Friendly Nations Visa for Investors and the Golden Visa both have their perks, but they don’t work for everybody. While the Golden Visa offers lots of conveniences, it is a luxury visa option. And this is reflected in the cost of the application process as well as the minimum investment threshold, which is increasing to US$500k in October of 2024. And while the Friendly Nations Visa offers a relatively accessible minimum investment requirement, the program simply isn’t available to would-be applicants who don’t have a qualifying passport.
This is why we really like the Self-Economic Solvency Visa and think it deserves more attention. At US$300k, it involves a bigger investment than the Friendly Nations Visa. But we like the fact that you can mix and match a real estate investment with a fixed-term certificate of deposit with a local bank. So, anyone who has already made an investment in Panama real estate that doesn’t meet the US$ 300k threshold can make up the difference with a CD.
Moreover, the Self-Economic Solvency Visa is free of passport discrimination. Anyone who makes the qualifying investment(s) can become a Panamanian resident.
We’d love to hear your feedback about what you liked (and even what you hated) about this article. Write to us at info@theindependentlawyer.com.
