The Legality of Vaping in Panama

It’s sleek, its modern.  It’s elegant, just like you.  But can you bring your vape to Panama?  Will you be able to re-restock once you are here?  This article is about the legality of vaping in Panama. If you’re into this sort of thing then congratulations – you’ve got another adjustment to figure out as part of your relocation!

Legality

First, a quick disclaimer that these types of regulatory frameworks are not my typical area of practice.  Legalese is a mostly legal blog, and this article that is meant to be light, informative and entertaining more than to impart a fully developed legal opinion.  

I’ll aso clarify this article is not about marijuana vapes.  The evolving laws around the cannabis landscape in Panama would be an interesting article, but it is beyond the scope of this particular article. 

Rather, this article is about your standard, more benign “smoking alternative” types of vapes.  Your e-cigs, Juuls, suburban soccer-mom type of vapes.  These have gotten popular around the world, including in Panama. 

Last year, Panama’s president signed a new law regulating vapes.  Here are the main points:

  • The new law prohibits the sale and import of all vaping and heated tobacco products, with or without nicotine.
  • The law does NOT criminalize use.  But it bans vaping in any place where smoking tobacco is not allowed. Smoking is prohibited in all indoor public places, indoor workplaces, public transportation and terminals, outdoor sporting venues and pretty much everywhere that isn´t your house.
  • The new law also prohibits internet purchases
  • The law does NOT prohibit exports to other countries, or the reshipping of products in Panama destined for export to third countries.

So vaping is NOT illegal in Panama, but you should be careful about where you do use it outside of the home.  And vaping enthusiasts will probably prefer to buy their apparatus, cartridges and any other vaping accessories before coming to Panama as there isn’t a legal channel for buying them locally or on the internet for shipment to Panama.

The law does not specifically speak to the legality of entering Panama with a vape for personal use, but the logical interpretation of what the law DOES say is that you probably can.  And in any case, lots of people do.  However, be sure to check your airline’s policy as most of them will say that you need to carry your vape in your carry-on luggage.

Is vaping socially acceptable in Panama?

You will see signs in restaurant establishments and restrooms asking you to refrain from vaping, but you will also see people vaping around town.  Not tons, but you definitely see people.     

Vaping in public also seems to be more prevalent among foreigners and locals of higher social status.  That is probably because those people either brought the vape and/or the habit from outside of Panama.              

I have never seen someone act bothered by other people vaping, and I have never seen someone called out for vaping in the presence of others. I am sure it probably happens, but I would say there isn’t a lot of sensitivity around vaping in Panama.

Could you buy vaping products in Panama?

I say could you (not can you, and not should you), because imports and sales of vaping products in Panama is prohibited.  However, such transactions do take place… in the darkest alleys of the most blighted areas around town.

That’s just a joke.  In fact, there is a pretty extensive supply in Panama of all different kinds of vapes – with nicotine and without nicotine… peach flavored, strawberry flavored, and sour gummy worm flavored (probably), etc.  Again, these transactions are not legal, but the risk of getting in trouble as a buyer is probably pretty low in terms of probability and severity.

As I said, this is not an area of the law that I practice.  Maybe there are other Panamanian lawyers out there making a fortune defending foreigners for their personal use vape charges. It could be a niche market.  All I am saying is that I do not hear about those stories.      

But keep in mind that it is a grey market.  And apart from the potential health risks already associated with vaping, there are probably some additional risks that arise from informal supply chains and a lack of regulation.  Also, keep in mind that the price markups in any grey market are usually a bit ridiculous. 

Bottom Line?

The new law does not prohibit vaping in Panama, as long as it occurs in a permitted area such as a private residence. But the new law also does not really offer a clear, legal channel for obtaining vape products for personal use.  It does say that importing vape products for sale in Panama is illegal, and it also prohibits buying them online. 

Noticeably, the law does not specifically address bringing them into Panama for personal use. A natural interpretation then is that it is permitted, but make sure you comply with airline policies as well.

And this is the type of law that is likely to change from time to time.  So depending when you are reading this, then check with Google in case the rules may have evolved a bit.

If you liked this article, then be sure to check out the rest of my growing (mostly) legal blog: Legalese.

The Reforestation Visa - Investor Visas

There are a few different paths to residency available to foreigners investing in government certified reforestation projects in Panama:

  1. With a minimum investment of $80,000 USD qualifying applicants can obtain residency for 5 years.
  2. With a minimum investment of $100,000 USD qualifying applicants can obtain residency for 2 years, but are then eligible to apply for permanent residency.
  3. With a minimum investment of $350,000 USD qualifying applicants can directly obtain permanent residency through a fast-tracked process.

Qualified Investor Visa - Investor Visas

The Qualified Investor Visa is the only investor visa that offers an expedited process to directly obtain permanent residency in Panama.

To qualify, an applicant must make an investment that satisfies the following requirements:

  1. An equity investment of at least $500,000 USD in the purchase of a a real state property in Panama. The property must be free of any mortgage or lien.
  2. An investment of at least $500,000 USD in Panama Stock Market, through a Panamanian securities brokerage firm.
  3. A minimum 5-year certificate of deposit (“CD” or “Time Deposit”) of at least $750,000 USD in a bank in Panama.

The options above cannot be mixed and matched to satisfy the minimum investment threshold amount. The funds must also originate from outside of Panama to qualify.

Self Economic Solvency Visa - Investor Visas

The Self Economic Solvency Visa offers residency to foreigners who make a qualifying minimum investment in Panama, which include:

1. An equity investment of at least $300,000 USD in the purchase of a real state property in Panama.

2. A minimum 3-year certificate of deposit (“CD” or “Time Deposit”) of at least $300,000 USD in a bank in Panama.

3. A combination of 1 & 2.

This is a good option for someone who has already purchased real estate which does not quite satisfy the minimum investment requirement.

Spouses or dependents can also obtain residency with an additional investment of $2,000 USD for each additional applicant. Qualifying applicants will initially obtain residency for 2 years and may then apply for permanent residency.

Friendly Nations Visa (FNV) - Investor Visas

The Friendly Nations Visa (FNV) offers one of the fastest and straightforward paths to residency for citizens of nations designated as “friendly” to Panama.

The minimum investment is $200,000 USD as equity in the purchase of a real state property in Panama or a minimum 3-year certificate of deposit (“CD” or “Time Deposit”) in a bank in Panama. Applicants who qualify can also obtain residency for their spouse or dependents with an additional investment of $2,000 USD for each additional applicant.

Applicants qualifying for the Business Investor Visa will initially obtain residency for 2 years and may then apply for permanent residency. The FNV also affords foreigners the opportunity to apply for a work permit in Panama.

Check whether you are likely to qualify by choosing which nation has issued your passport, or contact us to request a quote.

Business Investor Visa - Investor Visas

The Business Investor Visa is available to investors and entrepreneurs investing in a business in Panama.

To qualify, an applicant must invest a minimum $160,000 USD investment in capital stock of a Panamanian company.

Applicants who qualify can also obtain residency for their spouse or dependents with an additional investment of $2,000 USD for each additional applicant.

Applicants qualifying for the Business Investor Visa will initially obtain residency for 2 years and may then apply for permanent residency.

Panama Citizenship

Once you have obtained permanent residency and held it for a period of 5 years, you can apply for Panamanian citizenship (and then a passport).  If you are also married to a Panamanian or have children with a Panamanian parent, then you can apply after holding permanent residency for just 3 years.

Please contact me if you have questions or would like to discuss the application process and requirements.

Short-Stay Visa

With solid infrastructure and direct flights all around the hemisphere, Panama has become an increasingly popular destination for freelancers and remote workers doing business outside of Panama. The main requirements are:

1. Remote workers should provide a contract setting forth the employees main functions being performed abroad for a foreign company doing work on an international level. However, self-employed free-lancers can also apply.

2. Applicants should demonstrate an annual income of at least $36,000 USD (or $48,000 USD per family).

Qualifying digital nomads can obtain a 9-month residency, extendable to 18 months. And if you fall in love with Panama and want to talk about permanent residency after that, then I help you with longer-term residency options.

Family Regrouping

There are a few different residency options available to applicants with family ties to Panama. Some of the main options are as follows:

1. Married to a Panamanian​

The main requirement is a real, legal and valid marriage with a Panamanian citizen.  Qualifying applicants may apply for a permanent residency.

b. Panamanian Children

The parents of a child who a.) was born in Panama and b.) is over five years old may apply for permanent residency in Panama.

c. Dependents of a Panama resident

Generally speaking, a foreigner who has qualifies for residency in Panama can also obtain residency for their spouse and dependents.  The requirements will vary depending on the type of residency visa.

Investor Visas

Panama has created several different residency options to incentivize foreign investment. These visas offer several different paths to short-term or permanent residency based on different types of investments and minimum investment amounts.

The following Investor Visas are covered here (click each one for details):

  1. Business Investor Visa (min. investment of $160,000 USD)
  2. Friendly Nations Visa (min. investment of $200,000 USD)
  3. Self-Economic Solvency Visa (min. investment of $300,000 USD)
  4. Qualified Investor Visa (min. investment of $500,000 USD)
  5. Reforestation Visa (min. investment varies)

Retirement & Pensioner Visa

Often referred to as the Jubilado (Retired Person) Visa because of its popularity among retirees, this is also a fast and affordable path toward permanent residency for applicants who qualify.

In fact, anyone over age 18 can apply so long as they satisfy the 2 main requirements:

1. A pension or annuity paying a minimum of $1,000 USD per month.

The annuity or pension can be paid by a private company, military, government agencies, corporations, a bank, an insurance company, or a Trust.

2. The pension or annuity must provide a lifetime benefit.

Qualifying applicants can obtain residency for their spouse as well, but the pension or annuity benefit should cover an additional $250 per month.

As an added benefit, the Pensioner Visa also grants discounts at restaurants, hotels, movie theaters, pharmacies and domestic airlines, making it a popular option for clients on a fixed income. The Pensioner Visa also affords foreigners the opportunity to apply for a 3-year, renewable work permit in Panama.

Friendly Nations Visa

Citizens from nations designated as “friendly” to Panama can obtain a residency visa for themselves and their family.

Applicants qualifying for the Friendly Nations Visa (FNV) will initially obtain residency for 2 years, and may then apply for permanent residency.

The FNV also affords foreigners the opportunity to apply for a work permit in Panama.

The FNV involves offers a very straightforward process and is one of the most affordable paths to residency in Panama for those who qualify.

Work Permits

For foreigners who wish to obtain a work permit to seek employment in Panama, there is a separate application process that begins only after having obtained residency.

Generally, anyone who has held residency in Panama for 10 years can apply for a work permit. However, there are much shorter and more direct processes to obtain a work permit depending on which visa process the applicant pursued to obtain residency.

Please contact us if you have questions or would like to discuss the application process and requirements.