Permanent Residency as a Qualified Investor created by Executive Decree No. 722 of October 15, 2020
Is Panama really an attractive option for foreign investors?
Recently, Executive Decree No. 722 of October 15, 2020, created the subcategory of Permanent Resident as a Qualified Investor within the category of Permanent Resident for Economic Reasons.
This new migratory subcategory aims to attract foreign investors who contribute to national development through new investment modalities, such as investments through Securities Houses, real estate investments or fixed-term deposits.
Currently there are other countries such as Portugal and Spain, which have very attractive programs known as “GOLDEN VISAS” where through an investment similar to or less than what Panama is requiring in the new Executive Decree No. 722 of 2020, permanent residency and even citizenship can be obtained after meeting certain requirements and time. However, through this new program, Panama offers the option of obtaining a permanent residence in a term of approximately one month and with a simplified procedure, which is undoubtedly a comparative advantage over other jurisdictions.
The investment options that are proposed in this new migratory subcategory are similar to those of the countries that are ahead of us in the promotion of this type of program. It is important to mention that before the enactment of the Executive Decree under study, there was already the Economic Solvency program that currently allows obtaining permanent residence after two years if the investor makes an investment of US$300,000.00 in a real estate property, in a Fixed Term or with a combination of both and also that of Specific Countries. viable for certain nationalities.
Therefore, it is interesting to ask what novelties does the aforementioned Executive Decree incorporate?
Firstly, investment through a locally licensed Securities House is created as a new option. The minimum amount of investment under this modality is US$500,000.00 in securities of issuers whose businesses have an impact on the national territory through the Panama Stock Exchange and whose commitment is maintained for at least five years.
The second novelty is the option of investment in real estate through a promise of sale contract made through a trust managed by a bank or fiduciary with a license to operate in Panama. The minimum investment amount is also US$500,000.00. During the first twenty-four months of entry into force of the Executive Decree, the investment may only be US$ 300,000.00.
Thirdly, the investment option is introduced through a fixed-term deposit, through an investment of US$ 750,000.00, free of encumbrances and valid for a period of five years.
Another important novelty introduced by this Executive Decree is that the application for the procedure may be submitted without the applicant and dependents traveling to Panama, through a special proxy, under the commitment that prior to the granting of any card, the applicant and dependents travel to Panama and comply with the affiliation procedure.
The Single Window for investments of the Ministry of Commerce and Industries is also created for the presentation of these procedures.
For this type of visa, the costs are much higher than the existing options. The applicant must pay US$ 5,000.00 per migratory category and US$ 5,000.00 for the right of repatriation. For each dependent, they must pay US$1,000.00 for migratory category and US$1,000.00 for repatriation.
We conclude that this new migratory subcategory is an attractive option to attract new types of investment to Panama, since it is not restrictive by nationality and introduces an expedited and simplified procedure. The only thing that will have to be evaluated or reviewed eventually are the amounts of the investment and costs of the procedure, to adapt to the market and achieve our objective as a country.
For more information about the procedure, write to us at info@legaliapanama.com
By: Licda. Alexandra Kourany Moltó
Founding Partner of the firm LEGALIA PANAMA
