Panama, a small but thriving country in Central America, has gained popularity among international investors seeking to establish residency through real estate investment. Boasting a strategic geographic location, a robust economy, favorable tax incentives, and a high quality of life, Panama presents an attractive destination for those looking to secure residency and explore new opportunities. In this article, we will delve into the benefits and requirements of obtaining residency in Panama through real estate investment.
Real Estate Investment Requirements
There are a few Residency-By-investment options in Panama, ranging from investing in reforested land to buying commercial or residential properties in any part of the country.
Investing in reforested land may grant the applicant either a two-year residency, and the right to opt for permanent residency, when investing USD 100,000 or a permanent one straight away, when investing USD 350,000.
On another hand, to qualify for a Residency under the Friendly Nations Residency program, investors must purchase a property in Panama with a minimum value of $200,000. The property can be residential, commercial, or a combination thereof, and it will first grant a two-year residency, and the right to opt for permanent residency, afterwards.
Finally, our Qualified or Golden Investor’s Residency program will also grant permanency immediately, when investing USD 300,000 in any sort of real estate, this amount will be increased in October, 2024, though.
Streamlined Residency Process
Panama’s residency process is relatively straightforward and efficient. Once the real estate investment is made, applicants need to submit the required documentation, including proof of investment, a police clearance certificate, and a medical certificate. The entire process typically takes three to six months, and successful applicants are granted permanent residency in Panama, when applicable.
Benefits of Residency in Panama:
- Economic Stability: Panama boasts a rapidly growing economy and political stability, making it an attractive destination for business and investment opportunities. The country’s thriving banking sector and booming real estate market contribute to its economic strength.
- Tax Advantages: Panama offers enticing tax incentives for residents, including a territorial tax system. Under this system, individuals are only taxed on income generated within Panama, providing a favorable environment for entrepreneurs and investors.
- High Quality of Life: Panama offers a high standard of living, with modern infrastructure, excellent healthcare facilities, and a vibrant culture. From cosmopolitan cities to picturesque beaches and lush rainforests, Panama offers a diverse range of lifestyle options for residents.
Real Estate Investment Potential
Investing in Panamanian real estate not only serves as a means to residency but also presents attractive investment opportunities. The country’s real estate market has experienced steady growth, particularly in key areas such as Panama City and beachfront properties. The demand for luxury residential developments, commercial spaces, and rental properties continues to rise, making it an opportune time for investors.
Obtaining residency through real estate investment in Panama provides a gateway to a host of advantages, including economic stability, favorable tax incentives, and visa-free travel opportunities. Panama’s streamlined residency process, combined with its thriving real estate market and high quality of life, make it an enticing choice for those seeking a fresh start or new investment horizons. As always, it is advisable to consult with legal and financial professionals to navigate the process smoothly and ensure a successful transition to residency in Panama.
Our constant advice when it comes to these types of investments is to always hire legal representation from day ONE, guaranteeing you an uncomplicated, straightforward transaction.
By: Emilio Cornejo Vernaza LL.M.
Founding Partner of PGS Attorneys and PGS Realty