Permanent Residence Permit as a result of Real Estate investment by means of a Promise to Purchase agreement 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 real estate investment by means of a promise to purchase and sale agreement in Panama, under the following conditions:
- Eligibility Conditions: A foreign person who makes investments by means of a promise to purchase and sale agreement for the acquisition of a real estate property, for the sum of five hundred thousand dollars (US$500,000.00), made through a trust deposit managed by a local bank or trustee, licensed to operate in the Republic of Panama, shall be eligible to apply for the Permanent Resident Permit in the capacity of Qualified Investor.
During the first twenty-four (24) months following the entry into force of Executive Decree No. 722 of October 15, 2015, which was published in Official Gazette No. 29,136 of October 16, 2020, that is, until October 16, 2022, the investment on the account of real estate investment, either directly or by means of a promise to purchase and sale agreement, for the purposes of the Permanent Residence Permit, in the capacity of Qualified Investor, may be for the amount of three hundred thousand dollars (US$300,000.00), in the purchase of a real estate property in the Republic of Panama, which must be free from encumbrances. If the real estate has a higher value, the surplus may be financed by means of a mortgage loan granted by a local bank or financial institution.
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 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 of the promise to purchase and sale agreement of the real estate(s) duly registered in the Public Registry.
b. To provide original or authenticated copy of the trust agreement in which it must be established that the total sum given in trust shall be disbursed in partial payments related to the payment of the obligations assumed by the settlor on the occasion of the promise to purchase and sale agreement entered into with the real estate company, 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, in concept of 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 rights 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 in concept of deposit for repatriation, which must be provided with the application.
c. Suitable banking, financial or legal documentation that 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 the letter is issued abroad, the letter must be legalized by a Panamanian diplomatic or consular mission in the foreign service or apostilled, according to the Hague Apostille Convention.
• Duly legalized bank statement from the foreign bank or from a local bank, with authentication seals 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 as 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 the account of Real Estate Investment in Panama, please do not hesitate to contact us to the e-mail quijano@quijano.com
