This is an update to an article we published last year about Panama’s Qualified Investor Visa. We are posting it again with some updates, because the laws around this alluring residency program are scheduled to change on October 15, 2024. Beyond that date, the minimum threshold investment in real estate will increase by more than 60%. This means that it will become much more difficult to qualify.
Panama’s Qualified Investor Visa
Sometimes referred to as Panama’s “Golden Visa”, the Qualified Investor Visa program allows foreign investors to obtain permanent residency in Panama with a qualifying minimum investment in real estate, the Panama Stock Exchange, a “CD” or “Time Deposit” with a local bank.
The Qualified Investor Visa is one of just a few investor visas that still offers a direct path to permanent residency in Panama. Not only that – this residency program offers an expedited application process that can be executed in just 30 days. And while the other visas require the applicant to spend 3-5 business days in Panama to launch the application process, investors can apply for the Qualified Investor Visa through their attorneys before even arriving to Panama.
Requirements to Qualify
The primary requirement is an investment that meets any one of the following criteria:
- Purchase of a real estate property in Panama with an equity investment of at least $300,000 USD.
The property must have been acquired prior to submitting the application. And while the property can be purchased with a mortgage, the investment must include an equity investment that meets the $300k threshold. It’s also important to keep in mind that the investor must hold the property for a minimum period of 5 years (so no flipping of the real estate). - Purchase of securities in the Panamanian Stock Market for more than $300,000 USD.
The investment must be through a licensed Panamanian brokerage firm, and it must be maintained for a minimum period of 5 years. - Certificate of deposit (“CD” or “Time Deposit”) of at least $750,000 USD with a bank in Panama.
The CD must be made before submitting the application, it must have a minimum term of at least 5 years and it must be free of encumbrances. And good news – the interest generated is not taxable in Panama!
This visa purports to incentivize larger single foreign investments, and the minimum investment amount must be satisfied by a single investment. For example, the acquisition of 2 or 3 real estate properties with a combined value of just over $300,000 would not qualify.
However, everything else about the Qualified Investor Visa is pretty flexible.
- The investment can be held in the applicant´s own name, or through a company or private interest foundation, just as long as the applicant is the sole shareholder or beneficiary of that entity.
- A spouse or dependent family member can piggyback on the residency application with just a nominal increase in government fees.
- The investor does not even have to be physically present in Panama to submit the application.
- Once the complete application package is submitted, the processing time is just 30 days. This is because the residency is processed through an exclusive immigration office setup within the Ministry of Commerce and Industry.
Upcoming Changes to the Requirements
The minimum investment threshold for the Qualified Investor Visa was set to increase to $500,000 USD in October 2022. However, shortly before the change went into effect President Nito Cortizo signed an executive decree extending the current investment threshold of $300,000 USD through October 2024. This was likely encourage continued foreign investment as Panama emerged from the Covid-19 lockdowns, so there is no guarantee that this will be extended again.
If you have invested at least $300,000 USD in Panama real estate and still haven’t applied for residency, then you should consider doing so before October 2024!
Not only that – you may be able to apply even if you are still in the process of making a qualifying real estate investment. If your property is under contract (with a signed promissory purchase-sale agreement), then you can deposit the threshold investment amount in the custody of a local bank or trust to go ahead with the application for the Qualified Investor Visa.
Residency Term
Applicants who qualify for this Visa will obtain permanent residency in Panama. No two-year provisional residency, and no second application process.
If you want to compare the Qualified Investor Visa with other residency programs that offer a direct path to permanent residency, then be sure to read our articles on the Retirement and Pensioner (“Pensionado”) Visa and the Panama-Italy Treaty Visa.
Bottom line?
The Qualified Investor Visa is the cream of the crop among Panama residency programs. It offers an expedited, direct path to permanent residency that can be executed in just 30 days. Investors can even initiate the process through their attorneys before arriving to Panama
The biggest hurdle is the high-value single equity investment requirement. No doubt about it – $300,000 USD is an expensive ticket. But many investors choose this option because it offers the fastest, easiest and most direct path to lifetime residency in Panama. And after the minimum threshold investment increases in October 2024, it will become much more expensive to qualify for this one.
If you are considering an investment in Panama that meets the criteria outlined here, then you should consider applying for residency through the Qualified Investor Visa program as an added benefit. You can email me at info@theindependentlawyer.com with any questions about how to apply and qualify.
