Has 2020 made you consider an offshore investment or are you looking to relocate to another country?
Well, look no further than Panamá. As of 2020, any foreign citizen looking to invest or move to Panamá can now obtain permanent residency in the country if he/she makes an investment in real estate, Panamanian stocks and bonds, or opens a time-deposit account in a local Panamanian bank.
In the midst of the COVID pandemic, the Panamanian government put into effect a new law, Decree Law No. 722 of October 15th, 2020, in order to help stimulate economic recovery, geared towards foreign investment. With this new law, the government announced the creation of the new program of permanent residency for qualified foreign investors.
Investors may qualify via:
Real Estate Investment:
By investing in either finished properties or new projects, with an investment of $300,000 for the first 24 months of the law, and afterwards with a minimum investment of $500,000. Investors must use outside funds for the minimum amount required and can obtain a mortgage for the difference in a Panamanian local bank. For projects under construction, investors can sign a promise to purchase for the property and have the funds transferred into an escrow account, until the purchase can be completed, in order to guarantee the transaction. All properties must be mortgage free at the time of the investment.
Stocks or Bonds:
With an investment in one or more security titles in the Panamanian Stock Exchange totaling a minimum of $500,000 with an established brokerage firm in Panamá. The investments must maintain a minimum lifetime of 5 years to be eligible to apply under this program.
Investors can also obtain the residency by opening a time-deposit account with a value of $750,000 or more in a local Panamanian bank, with a minimum term of 5 years. The funds deposited must be unencumbered.
The investor can apply from his/her home country and make the investment with funds outside of Panamá, as long as they do the legal paperwork with a Panamanian lawyer, and can complete the process once they enter the country. The process is expected to culminate in 30 days once the application is introduced in the Ministry of Commerce. All investments must last a minimum of 5 years to be applicable.
As part of our growing RE/MAX team in Panama, I can help you to identify and acquire the perfect property in order for you to qualify for this new residency program.
I look forward to helping you realize your dream move to Panama!