The 5-Year Path for US Citizens Investing in Panama Real Estate

Overview of Panama Residency and Citizenship Programs

Many embark on the journey that is going from Panama residency to citizenship, and this is quite an adventure. Both residency and citizenship programs are becoming increasingly popular as people are looking for safer countries and Plan B strategies in the second quarter of the 21st century. 

It is, however, imperative to separate residency and citizenship and tell these programs apart. Therefore, we have prepared a specific guide about the programs and how to achieve citizenship. 

Benefits of Panama Residency and Citizenship

Why Move to Panama?

It is interesting to analyze how this country has become a hub for those who want to get residency or citizenship or do business in a foreign country. In Latin America, the country of the canal has become one of the most sought-after destinations, attracting people from all over the world. 

In our view, this is because Panama covers certain aspects that fulfill the needs of varied backgrounds, as we can analyze in detail below:

For Americans and Canadians

The country of the canal is ideal for US citizens or residents of high-tax jurisdictions and expensive countries. This is why relocating presents a deal that they are willing to make with their eyes closed: here they can obtain almost the same lifestyle that they have in Miami and other relevant cities around the world at less than half the cost. 

It is well known that Americans like to retire in Florida for the cheaper costs and warm weather. In this regard, Panama is offering even lower costs and interesting perks like the possibility to import a car duty-free or to bring your personal stuff without paying import taxes. 

Moreover, Panama has been smart in drawing retirees through programs like the Pensionado Visa, and expats from the US, Canada, the UK, and the EU through their Friendly Nations.

More information about residency

For Latin Americans

In your first visit, expect to notice the cosmopolitan environment in the capital city with many Russians, Americans, Argentinians, Venezuelans, Colombians, Spaniards, and Chinese. 

Particularly, you will find many expats from Latin American countries who look for a more stable economy and a stronger currency. Since Panama uses the US dollar as legal tender, they can escape volatility and avoid the inflationary issues that they find back home.

Global Mobility and Benefits of a Panama Passport

A Panamanian passport can be obtained only once the applicant obtains citizenship, which happens only through traditional naturalization methods. 

The reader should keep in mind that the fast-track migration only concerns residency, as citizenship can be obtained only after five years of permanent residency and physical presence in the country. 

Although there is a way to obtain a travel document through the Qualified Investor visa, this doesn't replace nationality. Even so, experts look into Panama for the possibilities they find inside the country, more than its global mobility options.

Investment Options for Panama Residency

Qualified Investor Program

The qualified investor is the program everyone talks about when discussing requirements for permanent residency. It is, on many occasions, compared to the European golden visas, but in no way can it be compared in terms of benefits and costs, as Panama is more convenient. Next, there is a list of the program's main advantages:

• Immediate permanent residency
• Cheapest investment pathway in Panama offering permanent residency
• One of the cheapest investment options in Panama overall
• More cost-effective than European Golden Visas
• More convenient than citizenship by investment programs
• Minimum investment of $300,000 in real estate
• Real estate doesn't have to be pre-approved by the government
• Relatively fast process
• Access to a dollarized economy
• Access to a supreme lifestyle and a low cost of living
• Possibility of using real estate as a personal residence or for long-term rental activities
• Outstanding real estate market offering state-of-the-art apartments with premium finishes and exclusive designs

Friendly Nations Visa

For the Friendly Nations Visa, the applicant must be from one of the countries considered friendly by the Republic of Panama. The second requirement is one of the most important ones because it stipulates maintaining a connection to the country. This can be done through a job contract, the incorporation of a company, or the purchase of real estate property for $200,000. 

In this case, the permits are granted for only two years with the possibility of renewal and eventually obtaining citizenship.

Retirement and Pensioners Residence Visa

This program targets retirees who have a pension of at least $1000 a month for life, regardless of their age. Thus, they can obtain immediate permanent residency together with their spouse and their children. For US citizens, this is one of the favorite visas because it comes with quite a particular combination of factors. 

For Americans, a $1000 pension is not that hard to obtain, yet this is very little money in the country of Uncle Sam. In the Central American country, this income goes way further, allowing them to afford a better lifestyle. 

Digital Nomad Residence Visa

The Digital Nomad Visa may not be the ideal path for those who want citizenship in the long term because it offers a shorter visa term. It is designed for digital nomads, providing a nine-month stay permit, while it is forbidden to work within the country.

Real Estate Investment Route

It is interesting to point out that, even though there are two investment programs, only one of them offers a real estate path. The following visas allow you to obtain residency through real estate:

Pensionado visa: minimum real estate investment of $100,000

By purchasing a property of $100,000, the expat can apply with a minimum lifetime pension of only $750 (instead of $1000)

Friendly Nations: minimum real estate investment of $200,000

As stipulated in article 3, Executive Decree 226 from 20th July, 2021, citizens from friendly countries can apply through a real estate investment of at least $200,000. 

Qualified investor: a minimum real estate investment of $300,000

Finally, Qualified Investor is the only program that purely represents residency through real estate because investment is the main requirement. In the two previous cases, other conditions have to be met.

In the graphic below, readers can see the different real estate thresholds and details about eligibility.

Requirements for Panama Residency and Citizenship

General Requirements for Residency

All programs grant permits, most of them with a chance of obtaining citizenship after five years of residency. The main requirements are to be in good health, be older than 18, and have no criminal record.

Specific Requirements for Each Investment Program

Documents Required for Application

• Power of attorney allowing a Panamanian lawyer to present the papers for you
• Three photographs
• Copy of the passport (all pages) duly notarized
• Clean criminal record
• Health certificate
• Oath stating identity history
• A cheque paying $250 to the national treasury
• A cheque paying $800 to the national migration service as a repatriation insurance
• Job contract by a Panamanian entity stating
• the position, the salary, and the responsibilities (specific to some visas)
• Certificate from the public registry proving the purchase of a property (specific to some programs)
• Certificate issued by a bank proving a fixed-term deposit on behalf of the applicant (specific to some programs)
• Letter assuming responsibility for each dependent (if applying with dependents)
• Proof of family relation with the spouse or the children (if applying with dependents)
• Certificate issued by an educational institution stating full-time studentship regularly (for dependent children older than 18)

Application Procedures for Panama Residency and Citizenship

Step-by-Step Application Process

All the processes start with a consultation. At this early stage, the Mundo expert will assess your case and eligibility. You will pay a portion of the legal fees and begin the process by gathering documents and completing the forms. 

The process will require two visits from you. You will have to be physically present in the country to submit the application and receive a temporary resident card, and you will have to come back approximately three to four months later to obtain your permanent resident card.

Even though it takes two visits, these are short as everything else is prepared and followed up in advance. 

Processing Times for Applications

The following graphic shows the processing times for each stage. In general, the process takes approximately 6 months, depending on the case and the program.

Disclaimer: the procedure and the timings may vary depending on the case and the program. The Mundo team can't assure the above-mentioned timings. All information in this article may be outdated at the time of reading or may not apply to specific cases. This article doesn't constitute legal or migration advice. 

Family Inclusion in Panama Residency and Citizenship Applications

All programs allow the applicant to add the spouse and the children. When it comes to children under 18, there are no restrictions, while older children will have to study full-time at the university, and they are only accepted until the age of 25. 

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Frequently Asked Questions about Panama Residency and Citizenship

What are the primary benefits of obtaining residency in Panama?

Panama is a unique pearl when it comes to resident permits, as it offers a variety of programs and plenty of options to obtain this status relatively fast and at low costs. Even the most expensive of Panama programs ($750,000 in a fixed deposit) is highly competitive against the European Golden Visas because it grants immediate permanent residency. 

Can my family be included in my application for Panama residency?

Yes, but only the closest relatives (spouse and children).

Is dual citizenship allowed in Panama?

No

What is the minimum investment required for Panama residency?

For a two-year permit, the minimum investment is through the Reforestation Visa, and it's $100,000. For an immediate permanent resident status, the minimum investment is $300,000 in real estate through Qualified Investor. 

How long does it take to process an application for Panama residency?

The minimum time is 6 months; however this may change according to the circumstances because every case is different. 

Final thoughts on Panama for residency and citizenship

All in all, we can conclude that the country of the canal is ideal for residency, while not the best for citizenship. As for citizenship, you will have to relinquish your previous nationality, and you will have to follow the same naturalization path as in any country, with language and history tests and a physical presence commitment. 

The path to becoming a resident, on the other hand, is exceptionally flexible and accessible, with minimum stay requirements to maintain the status. Furthermore, programs like the Qualified Investor allow you to obtain immediate permanent residency and a travel document, which might be a good alternative to a second citizenship. 

The Mundo team has ample expertise when it comes to the above-mentioned programs and citizenship by investment in other jurisdictions. We can help you navigate the process as swiftly as possible until you achieve your goal. 

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