PERMANENT RESIDENT PERMIT AS A QUALIFIED INVESTOR

June 14, 2024

(Executive Decree No.722 of October 15, 2020 and

Executive Decree No. 109 of October 13, 2022)

Who can apply for this Permanent Resident Permit?

This permanent residence permit for economic reasons is granted to those foreigners who maintain investment activities in the Republic of Panama. To demonstrate the purpose of establishing residence in accordance with this subcategory, the applicant must make an investment in the Republic of Panama in the amount of US$.500,000.00 from a foreign source that may be in a personal capacity or through a legal entity, as long as he/she is the final beneficiary of said legal entity.

Similarly, foreigners who wish to apply for this permanent resident visa for the purchase of real estate during the first forty-eight months after the entry into force of this Executive Decree No. 722 of October 15, 2020, or rather before October 15, 2024, the investment must be at least in the amount of US$.300,000 from foreign investment for the purchase of a real estate in the Republic of Panama. We clarify that, if the property has a higher value, the surplus can be financed through a mortgage loan. Once forty-eight months have elapsed since the Decree entered into force, the amount of foreign investment must be US$.500,000.00.

These applications may be submitted prior to the entry into the national territory of the applicant and his dependents, through a special proxy. As long as the filiation process is completed in the Immigration Registry of the National Migration Service.

Documents required for the procedure:

Certification issued by the Ministry of Commerce and Industries, through the National Migration Service, containing the details of the investment and the general data of the person who maintains ownership of it. It must contain the general data of the applicant and, if it is through a legal entity, that it proves that the applicant is the only final beneficiary.
Special power of attorney to the firm that processed the application.
Request brief that is drafted by LEGALIA PANAMA.
Complete copy of the passport apostilled or authenticated.
Apostilled or authenticated national criminal record check valid for six (6) months.
Five (5) passport-size photos.
Payment of FIVE THOUSAND DOLLARS (US$5,000.00) to the National Migration Service.
Payment of FIVE THOUSAND DOLLARS (US$5,000.00) to the National Treasury.
Health certificate
Personal Background Affidavit Form.
In the case of dependents:
- Certificate proving kinship: marriage or birth (authenticated and translated);
- Notarized Letter of Responsibility;
- Letter of Authorization in case of presenting only one of the parents;
- Payment to the National Treasury for ONE THOUSAND DOLLARS (US$1,000.00) for each dependent;
- Payment to the National Migration Service for ONE THOUSAND DOLLARS (US$1,000.00) for each dependent;
- Dependent of legal age and under twenty-five (25) years of age to present a certificate of singleness and studies.
To apply for the Permanent Residence Permit, as a Qualified Investment, the applicant must prove that they have made one of the forms of investment detailed below:
- For real estate investment: the sum of FIVE HUNDRED THOUSAND DOLLARS (US$500,000.00) must be invested in the purchase of real estate in the Republic of Panama, which must be free of encumbrances.
  - Certification from the Public Registry of Panama that proves ownership;
  - Certification from the National Land Titling Authority that certifies the value of the property.
- By reason of Real Estate investment through a promise of sale contract: an investment must be made by means of a promise of sale contract for the acquisition of real estate, for the sum of FIVE HUNDRED THOUSAND DOLLARS (US$500,000.00), made by means of a trust deposit managed by a bank or fiduciary of the locality, licensed to operate in the Republic of Panama.
  - Authenticated copy of the promise of sale contract of the real estate property(s) duly registered in the Public Registry;
  - Provide the original or authenticated copy of the trust agreement in which it must be established that the entire amount given in trust will be disbursed in partial payments related to the payment of the obligations assumed by the settlor on the occasion of the promise of sale entered into with the real estate company.
- For investment through a licensed Securities House approved by the Superintendence of the Securities Market of Panama: make one or more investments through a licensed Securities House approved by the Superintendence of the Securities Market of Panama, for a minimum amount of FIVE HUNDRED THOUSAND DOLLARS (US$500,000.00) in securities of issuers, whose business affects the national territory through the Panama Stock Exchange, for a term of five (5) years.
  - Certification issued by the Securities House with a license approved by the Superintendence of the Securities Market of Panama, stating the name of the investor, amount of the investment, the details of the securities held, as well as the entity that safeguards the securities;
  - Authenticated copy of the resolution granting the entity a Brokerage House license, issued by the Superintendence of the Securities Market of Panama, where the applicant’s investment account is maintained;
  - Certification issued by the Superintendence of the Securities Market of Panama in relation to the registration of the securities corresponding to said investment.
- For Investment in Fixed Term Deposit in the Banking Sector: open a fixed term deposit for an amount of SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS (US$750,000.00) or more, free of encumbrances, in a qualified Panamanian bank, for a term of five (5) years.
  - Copy authenticated by the issuing bank of the fixed-term certificate of deposit, indicating its holder, the value and the term of the document;
  - Certification from the bank stating the existence of the deposit, its holder, the value, the term, that it is free of encumbrances and that the funds come from a foreign source.
- One of the following as proof that the funds used for investment from abroad.
  - Letter from a foreign or local bank, certifying the sending of funds. If the document is issued abroad, it must be legalized by the Panamanian consulate or by means of an Apostille;
  - Foreign bank account statement, duly stamped and legalized. o Notarized letter issued by the recipient of the funds, or original bank certification confirming the deposit or transfer and that the funds come from a foreign source.

Explanatory note:

The application for a Permanent Resident Permit as a Qualified Investor must be resolved within a period of no more than thirty (30) business days, from the receipt of the documents.

It is important to mention that foreigners who wish to take advantage of the benefits of this permanent resident visa must maintain the investment for a minimum period of five years. If the investment ceases or ceases to exist before the completion of this term, the permanent residence granted by the National Migration Service may be informally cancelled. It should be noted that investors will be verified by the competent regulatory institutions in which the investment is verified.

Legal basis:

Executive Decree No.722 of October 15, 2020 and Executive Decree No. 109 of October 13, 2022.