How to obtain residency in Panama in 2024?

If you’re wondering how to obtain residency in Panama in 2024, it’s because access to low-tax European countries is becoming increasingly difficult due to the overcrowding of foreigners obtaining these visas or residency permits. An example is the closure of the NHR regime in Portugal, which, although still available for scientists, has been closed to most entrepreneurs.

This measure has been taken with the aim of reducing the attractiveness of the country to foreigners and, at the same time, decreasing real estate prices. As a result, Portugal is no longer a viable option for most people.

Why obtain a residency permit in Panama?

Absolute control in Europe: Embracing authoritarianism

Moreover, Europe is extremely controlled, and in most cases, a European country means a place with high taxation and little freedom. Even now, privacy is scarcely observed. But imagine what it will be like in several years with the new EU agreement reached in early 2024.

For those who don’t regularly follow legislative changes, the EU decided to monitor all citizens very meticulously, so all movements will be tracked.

If you want to schedule a call to obtain your residency permit in Panama, you can do so here.

Absolute control in Europe: They will control your money and your freedom

Now, if you think that cryptocurrencies could function as a more private method of payment. With the new regulation, any cryptocurrency provider must conduct compliance checks on their customers for any transaction amounting to EUR 1000 or more.

Moreover, some EU countries now have a maximum limit for cash payments, while others do not. For example, Cyprus has no limit. With this new rule, all EU countries must establish a maximum limit of up to EUR 10,000.

A person conducting occasional cash transactions between EUR 3,000 and EUR 10,000 will be investigated. How exactly transactions of EUR 3,000 will be treated is still unknown; it will be regulated in detail by each country separately, but one thing is certain: we will have even less freedom than we have now.

We have also become accustomed to the fact that all EU countries have registers of the ultimate beneficial owners of companies, and now comes another register: an EU register of the ultimate beneficial owners of real estate.

So, to summarize, the minimal freedom and privacy we have in Europe now will be even smaller in the near future.

If you want to schedule a call to obtain your residency permit in Panama, you can do so here.

Reasons to become a resident in Panama

For these reasons, as well as the reason of low or no taxation, many people are moving from Europe and heading to Latin America, which is currently experiencing an economic boom, with attractive real estate prices for those who wish to invest and at the same time benefit from favorable tax treatment in a jurisdiction with low or no taxation to conduct business.

Today we will talk about why being a resident in Panama. Panama is not only famous for the Panama Papers.

Have you ever wondered why so many wealthy individuals, who can definitely afford the best accountants, tax lawyers, and advisors, choose Panama to open companies, to invest?

Simply because it is a stable economy where you can have both: skilled personnel and zero taxes.

Many choose Panama for its tax Residency

Panama is not the only country in the world that offers zero taxation if certain conditions are met. Mauritius, for example, also offers it. But the problem there, although the country itself is incredible, is it’s very difficult to hire someone, the service is not as fast as in most island countries, and due to its specificities, not many people want to physically live there.

Panama is just the opposite. The corporate culture here is quite good, so it’s easy to maintain European business standards when working with Panamanians. Additionally, there’s no language barrier for Spanish speakers. But if you need to do business in English, it won’t be a problem either.

Moreover, the country itself is safe, has good weather, and therefore many want to transfer their fiscal residency to Panama.

So, how can you obtain a residency permit in Panama?

The most popular visa types are:

1. Pensioner; and
2. Golden visa or investor visa.

These two visas are issued faster; you just need to submit an application and you will be granted a permanent residency permit in Panama without the need to live there. The only obligation to maintain this residency permit is to visit Panama at least once every two years.

What does that mean? If you can’t move to Panama now but plan to do so within a couple of years, you can secure your right to obtain a residency permit in Panama now and continue living in Spain or any other country.

Since directly granting a permanent residency permit is something we see slowly disappearing in Latin America. Let’s take Paraguay as an example.

Previously, permanent residency permits were also issued directly to anyone wishing to move there, but now you need to live in Paraguay for at least a couple of years to apply for it. The same thing can happen in Panama. Having a residency permit will not entail the obligation to pay taxes there. It’s simply securing a Plan B for your future.

Another popular visa is the Friendly Nations visa.

So, let me tell you more details about each type of these visas.

Requirements to obtain residency in Panama

Requirements to obtain residency in Panama as a pensioner

Some of the requirements to obtain residency in Panama as a pensioner are that you are entitled to move if your pension is higher than USD 1,000 per month. In this case, there is no requirement to prove your other savings or purchase real estate.

In case the pension is lower, somewhere between USD 750 and USD 999, but you have some savings and can purchase real estate in Panama with a value of at least USD 100,000, you are still eligible to meet the requirements to obtain residency in Panama with a pensioner residency visa.

Your spouse can accompany you as a dependent, even if they are younger. There is no limitation that the spouse you are bringing under the pension visa also has to be of a certain age. The practical difference is that Panama offers citizens or foreigners living in Panama certain discounts, for example, for tickets, pharmacies, medical services, etc.

In the case of the dependent spouse you are bringing as a pensioner, who is younger and not a pensioner themselves, they will not be granted those discounts, but the moment they reach retirement age, they will automatically get all those benefits too.

There are no age restrictions, but there are gender restrictions. Panama does not recognize civil or same-sex marriages. Therefore, in this case, you would need to apply separately for each of you.

Also, make sure that your income, which you receive, the USD 1,000 I mentioned earlier, is genuinely a pension. In the case of Panama, it’s important. In case you have some income in the amounts I mentioned, but it’s not a lifelong pension, you will not meet the requirements to obtain residency in Panama.

As mentioned, this pension is issued permanently, so you don’t have to renew it unless you are absent from the country for 2 years or more. The entire application procedure is done very quickly, so in less than 6 months, you will have a permanent residency permit there.

Requirements to obtain residency in Panama as an investor

A golden visa or investor visa is an excellent opportunity for those who have money, want to invest it, and wish to be issued a residency permit in the shortest possible time, the permanent residency permit is issued in a period of up to 3 months.

The minimum investment amount now is USD 300,000. In October 2024, this amount will be increased to USD 500,000. A benefit of this option is that you are not required to purchase only personal use real estate. You can buy, for example, two properties and rent them out. The use of the property after purchase is not limited at all. You can live there, rent out long-term, or on Airbnb, without any limitation.

Requirements to obtain residency in Panama with the Friendly Nations visa

Unlike a pensioner or golden visa, the Friendly Nations visa is available only to citizens of 50 countries. Most of the countries on the list are from Europe, of course, Spain is also on the list, as well as some countries from Latin America. The Friendly Nations visa provides temporary residency permission for 2 years. The application takes around 5-6 months.

There are three main options to obtain this visa:

1. Buy real estate for a minimum of USD 200,000;
2. Open a fixed-term bank deposit of 3 years in Panama of USD 200,000. This option we definitely wouldn’t advise, as you cannot use the money in the account. The real estate market in Panama is stable, and if you invest USD 200,000 in real estate now, it’s most likely that in three years the asset value will increase. Therefore, real estate investment is definitely a better option.

And the last and most popular way to obtain a Friendly Nations visa is:

3. Obtain a job offer from Panama. So this can also be created with your newly established company. You would need to obtain a business license and a work invitation letter from the company. For any business-oriented person, you should also note that if the business structure is organized correctly, it’s possible to have the entire structure at a zero tax rate. So there are no taxes on business income at all.

After two years, an application for a permanent visa can be submitted. If granted, then a permanent resident card in Panama is issued.