The Self-Economic Solvency Investor Visa allows foreign investors to obtain residency in Panama with a qualifying investment.
While the minimum investment threshold is a bit higher than the Macro Business Investor Visa or the Friendly Nations Investor Visa, this is a popular option for investors because the requirements are straightforward and flexible and it’s not limited to specific nationalities.
Requirements to Qualify for the Self-Economic Solvency Visa
Applicants for the Self Economic Solvency Visa can qualify with a minimum investment that meets any one of the following criteria:
- An equity investment of at least $300,000 USD in the purchase of a real state property in Panama;
- A minimum 3-year certificate of deposit (“CD” or “Time Deposit”) of at least $300,000 USD in a bank in Panama; or
- A combination of 1 & 2.
The third option makes this investor visa unique. Investors who purchase real estate that does not satisfy the minimum threshold of $300,000 USD can make up the difference with a CD.
There are a couple of important details to take into account when structuring an investment for this investor visa:
- Only equity invested in real estate will be counted toward the threshold.
For example, a $300,000 USD property purchase financed with a $100,000 USD bank loan would not qualify, but it could be supplemented with a $100,000 USD certificate of deposit.
On the other hand, a $400,000 USD property purchase financed with a $100,000 USD bank loan would qualify.
- The applicant can hold the real estate property:
- in his own name;
- in a Panamian corporation such as an S.A.(“Sociedad Anónima”) of which the applicant is a shareholder; or
- in a local private interest foundation (“PIF”) of which the applicant is the founder and beneficiary.
- A Time Deposit cannot be held in a corporation or in a private interest foundation. Rather it must be in the applicant´s own name.
However, the good news is that the interest that the CD generates is not taxed here in Panama.
Residency Term
Applicants qualifying for this investor visa will initially obtain residency for 2 years and may then apply for permanent residency.
Applying with a Spouse or Dependents
The Self-Economic Solvency Visa can also be extended to a spouse, with an additional investment of $2,000 USD for each additional applicant.
Compared to the Qualified Investor Visa
If you have researched Panama’s different investor visa options, you may be wondering why anyone would go with the Self-Economic Solvency Visa instead of the Qualified Investor Visa. After all, the Qualified Investor Visa also requires a $300,000 USD equity investment, but it offers a direct path to permanent residency via an expedited 30-day process. So why would anyone consider the Self-Economic Solvency Investor Visa?
Well, for one thing, the Qualified Investor Visa is a good bit more expensive than the Self-Economic Solvency Visa. It also has to be paid all in one go, while the costs of the Self-Economic Solvency Visa are spread over a couple of years.
Not only that, applying for the Qualified Investor Visa on the basis of a Time Deposit requires an investment of $750,000 USD (compared to just $300,000 USD for the Self-Economic Solvency Investor Visa. And the Qualified Investor Visa doesn’t allow the applicant to mix and match a real estate investment with a Time Deposit to reach the threshold.
Bottom line?
The Self-Economic Solvency Visa requires applicants to meet a minimum investment threshold of $300,000 USD, which is slightly higher than some of Panama´s other investor visas. But what makes the Self-Economic Solvency Visa an attractive path to residency is the flexibility to meet the threshold with an investment in real estate and/or a time deposit.
It is also important to structure your investments in the right way to qualify, and this is another area where a good lawyer can likely help out!
Be sure to check out the different residency options on The Independent Lawyer website. And if you think the Self-Economic Solvency Visa might work for you, then let me hear from you!
