Panama welcomes expats and foreign investors with open arms. The Panama Permanent Residency Program accomplishes both by granting permanent residency by investment. Investing $300,000 in real estate qualifies anyone from 50 select countries for permanent residency in Panama. After October 2024, however, that amount will increase to $500,000. That means this type of visa is getting a little more expensive, which is something to consider.

This post will explore the Panama Permanent Residency Program for Qualified Investors. Read on to learn more.

What You Need to Know About the Panama Permanent Residency Program for Qualified Investors

The Program is Mutually Beneficial

The Ministry of Commerce and Industries (MICI) and the National Immigration Service (SNM) are key organizations for this program. During March and April 2024, they approved over $10 million from the Permanent Resident Program as investor certifications. Most of this money came from investors in the United States, Columbia, China, Germany, and Russia. Some investments also came from the Netherlands, Canada, Nicaragua, Spain, and South Africa.

Panama’s government uses the program to grow the economy, create jobs, and attract international investment. By any measure, the Panama Permanent Residency Program is a successful one. The General Directorate of Investor Services (DIGESI) is doing everything possible to tout this program and its benefits. And there is no doubt that it has been very beneficial to the country.

But how is it benefiting investors?

International investors can take advantage of the six key benefits of participating in this program.

1. Tax Advantages: Panama does not tax the income expats make outside Panama. That means you avoid double taxation since Panama doesn’t tax foreign income.
2. Business Opportunities: The government and economy are both stable. Panama has also built a business-friendly environment. These conditions make it the perfect place for entrepreneurs to establish new businesses and grow their current ones.
3. Travel Visa-free: A Panamanian passport allows you to travel to over 140 countries without a visa. Click here to see some other benefits of having a Panamanian passport.
4. Dual Citizenship: Becoming a citizen of Panama doesn’t mean renouncing citizenship from your country of origin. Panama also allows dual citizenship as long as your home country allows it.
5. Quality of Life: Panama is overflowing with natural beauty. The country has hundreds of miles of scenic coastline on the Pacific and the Caribbean. It also has vast swaths of lush jungle and mountainous terrain awaiting those who love adventure.

Cost of Living: Panama uses the US Dollar, so you have a stable currency. If you’re from the US, that means no worries about fluctuating exchange rates. You can also stretch your dollar further with Panama’s lower cost of living.

How does the Panama Permanent Residency Program for Qualified Investors work?

The Panama Permanent Residency Program for Qualified Investors allows foreign investors to attain residency immediately. Application processing generally takes about 30 days. It is an ideal option for people who already want Panamanian residency. For those who can do it, this is the most efficient and fastest way to get Panamanian residency.

There are two other ways to apply for this program outside the real estate requirement. You can invest $500,000 through Panama’s Stock Exchange or deposit $750,000 into any accredited Panamanian bank. All three options require holding the investment for at least five years. You must also visit Panama at least once every two years to maintain residency. The visa holder can apply for Panamanian citizenship after five years if they meet the minimum requirements.

Where Are the Best Places in Panama to Invest in Real Estate?

Panama offers a wide variety of attractive real estate options. If you want to invest in property in an urban, mountainous, or tropical setting, Panama likely has something for you.

Urban Living

Panama City is as modern as any of its counterparts in the US. It has modern amenities, luxury living accommodations, and the technology to connect its residents to the rest of the world. Along with the modern glamor and towering skyscrapers are historic neighborhoods dripping with charm and character. Here are some of the best neighborhoods for international investors to check out:

• Costa del Este will remind you of Miami. This upscale neighborhood caters to both residential and commercial properties. It has high-end shopping centers, comfortable corporate offices, and luxury residences.
• San Francisco could be a more economical option. Its high-rise apartments, quaint restaurants, and a central park with hiking trails and dog-walking spaces create a contemporary atmosphere.
• Marbella brings the luxurious lifestyle to the edge of Panama City’s financial centers. Entrepreneurs and executives will find this exclusive neighborhood uber-convenient near the city’s financial district and business hubs.
• Casco Viejo makes you feel like you’ve gone back in time. You can live in a colonial building on a cobblestone street near a vibrant city plaza. Spend your weekends and evenings browsing local boutiques and tasting the local fare at restaurants and cafes.

Beach Bumming

Are you thinking of purchasing property in Panama to escape the madness of city life? When you think about Panama, do you envision white, sandy beaches kissed by turquoise waters? There are amazing investment opportunities in Panama along the Caribbean and the Pacific Ocean. Here are some of Panama’s best beach communities:

• Bocas del Toro is a chain of islands off the Caribbean coast with a small section on the mainland. This Panamanian province is home to much biodiversity. You’ll find rainforest on the mainland and numerous reefs and sea creatures inhabiting the waters around the islands. Isla Colon is the main island and home to the province’s capital, Bocas Town. The capital has restaurants, shops, and nightlife. There is no shortage of beaches on the islands.
• Playa Venao is on the Azuero Peninsula on the Pacific Coast. It’s become more popular recently and is known for its stunning coral reefs, eclectic cuisine, and great surfing conditions.
• Playa Coronado was Panama’s first beach community and remains one of its best. It is a hub of the Pacific coast and is only an hour and a half drive from Panama City. But with its white beaches and warm surf, it might as well be a world away.

San Blas Islands is an archipelago of nearly 350 islands, with only 49 inhabited. They’re off Panama’s Caribbean coast, just east of the Panama Canal. These islands are more remote and difficult to reach but perfect for those seeking privacy and seclusion.

Mountain Towns

If the city and the beach aren’t your thing, Panama has many towns in the mountains. These towns offer diverse environments and a unique way of living. Here are some of the best.

• Boquete is ideal for those who want to live near other expats. It has a very comfortable climate, with average daytime temperatures of 80 F and nighttime temperatures of 65 F. Bouquet is also famous for its coffee plantations, which may offer other unique investment opportunities.
• El Valle offers the best of all three environments. It’s a mountain community with a mountain climate, but it is just a short drive from Panama City. El Valle is also close to an uncrowded, immaculate beach. With plenty of shopping plazas, restaurants, markets, and a healthcare clinic, El Valle offers a little bit of everything.
• Sora is adjacent to El Valle and offers upscale living. It is the kind of place people looking to take advantage of the Permanent Residency Program would find attractive. Most homes are in a gated community, many of which are weekend retreats for native Panamanians. The climate is similar to Boquete and El Valle, and the city’s noise is far away.

Are you considering moving to Panama and interested in purchasing property? The Panama Permanent Residency Program for Qualified Investors could be your ticket. At The Agency Panama, we specialize in the high-end luxury homes you must purchase to apply for the program. Please contact us to learn more about real estate investing in Panama. We will provide all the necessary information to decide what best suits your needs.

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