Permanent Residence Permit on the account of Investment in Fixed Term Deposits in the banking sector in Panama
By means of Executive Decree No. 722 of October 15, 2020, the Permanent Resident Permit in the capacity of Qualified Investor is created on the account of an investment made in a fixed-term deposit in a banking institution in Panama, under the following conditions:
- Eligibility Conditions: A foreign person shall be eligible to apply for the Permanent Resident Permit, in the capacity of Qualified Investor, who makes an investment in the opening of a fixed term deposit(s), for a minimum amount of seven hundred fifty thousand dollars (US$750,000.00), in any bank with a general license authorized to operate in the national territory, and that such deposit has a minimum term of validity of five (5) years. This deposit must be free of all encumbrances.
2) Eligibility Certification: The Ministry of Commerce and Industries, through the Investment Promotion Directorate, shall certify before the National Immigration Service that the investment meets the required parameters, and thus process the Permanent Residence Permit, in the capacity of Qualified Investor. Said certification must contain the details of the investment and the general data of the person who maintains the ownership thereof; which must correspond with the general data of the natural person requesting the residence permit, either because he has made the investment directly in a personal capacity or indirectly through a legal entity of which the applicant is the sole final beneficiary of the shares of the legal entity.
3) Main requirements: The main requirements for the presentation of the application is that the investment has been made with resources coming from a foreign source, and it may be made in a personal capacity or through a person in which the applicant is always the final beneficiary of the shares of the legal entity that holds the investment. In addition, the following must be provided:
a. Authenticated copy by the issuing bank of the fixed term deposit certificate, indicating its holder, the value, and the term of the document;
b. Certification from the bank stating the existence of the deposit, its holder, the value, the term, that it is free from encumbrances, and that the funds come from a foreign source; and;
c. Certification of eligibility issued by the Ministry of Commerce and Industries referred to in point 2 above.
4) Additional requirements: In addition to the main requirements and other general requirements requested by the National Immigration Service, the following must be provided:
a. A payment of five thousand dollars (US$5,000.00) in favor of the National Treasury, as a fee for the application of the migratory process, and another payment of five thousand dollars (US$5,000.00) in favor of the National Immigration Service as a repatriation deposit, both of which must be provided along with the application for the Permanent Residence Permit, in the capacity of Qualified Investor.
b. In the event that the application includes dependents, it must bear for each dependent, a payment of one thousand dollars (US$1,000.00) in favor of the National Treasury, in concept of fees for the application of the immigration process, and another payment of one thousand dollars (US$1,000.00) in favor of the National Immigration Service as a deposit for repatriation, which must be provided with the application.
c. Suitable banking, financial or legal documentation which demonstrates that the applicant made the investment and that the funds used come from abroad, which must be proven by providing one of the following documents:
• Letter from a bank abroad or a local bank, certifying the sending or receipt, respectively, of the funds. If issued abroad, the letter must be legalized by a Panamanian diplomatic or consular mission in the foreign service or apostilled, in accordance with the Hague Apostille Convention.
• Duly legalized bank statement from the bank abroad, or from a local bank, with authentication stamps from the issuing bank, which demonstrates the transaction of the sending of the funds.
• Notarized letter, issued by the recipient of the funds, or original bank certification confirming the deposit or receipt of the transfer made, certifying that the funds for the investment were transferred from a foreign account.
5. Estimated process time: The application for the Permanent Resident Permit in the capacity of Qualified Investor must be resolved within a period not exceeding thirty (30) working days, counted from the time of receipt of the application, through the Special Process Window of the National Immigration Service.
6. Presentation of applications prior to the entry into the national territory: Applications may be submitted prior to the entry into the national territory of the applicant and his dependents, through his attorney-in-fact, with the obligation that prior to the issuance of any immigration card, the process of affiliation in the Register of Immigrants of the National Immigration Service is complied with.
For any consultation or additional information on the requirements and costs related to the obtaining of the Permanent Resident Permit on account of Investment in Fixed Term Deposits in the Banking Sector in Panama, please do not hesitate to contact us to the e-mail quijano@quijano.com
