How to obtain Panama’s qualified investor visa?

According to Jaime Paz Rodriguez, partner of Quijano y Associates, Colombia has reported great interest in the processing of this migratory category.

With the purpose of promoting economic reactivation plans, Panama joins the countries that have made their migratory permits more flexible, as in the case of Costa Rica, in order to promote the mobility of foreign citizens who invest in the country.

At the end of the first year of the pandemic, a decree was issued creating the category of ‘Permanent Resident for Economic Reasons’, specifically for making investments in the territory:

• At the real estate level, the acquisition of real estate for US$300,000.
• Investment in the stock market for US$500,000.
• Investment in banking for an amount of US$750,000.

Jaime Paz Rodriguez, partner at Quijano & Associates, explains that this has been very well received. “We have seen people with interest throughout Latin America, especially from Colombia. Regarding the real estate investment, for example, through a purchase agreement, it was stipulated that the investment amounts to US$500,000 as of October. The State is evaluating if it is possible to extend this until the end of the year”, he indicated.

According to Paz Rodriguez, this category, colloquially known as the ‘VIP visa’, has received excellent response from Latin America, especially Colombia.

“We have seen a significant volume of people with interest in this type of visa from all over Latin America, especially Colombia. This is for reasons of (political) transition and opportunity for their investments. In return, they have seen Panama as a country with legal security, a stable and open government and in itself as a good opportunity to consider in their future plans”.

In view of the context, Quijano & Associates has launched a unit called Relocation Services, which concentrates various practices, including real estate, banking and finance, tax and immigration. The firm’s initiative, in addition to serving the market, is an innovative step in terms of legal services and business management.

Next, Jaime Paz Rodríguez, a specialist in real estate law, highlights the areas of opportunity and challenge regarding this residence permit and other facilities in immigration matters. The VIP visa can be processed in 30 days, according to the lawyer.

Why has Panama become an attractive residence destination?

Jaime Paz Rodriguez: While we are addressing the investment visa, the application for a retirement visa or pensioner visa, as we usually call it, is also a very frequent modality in the migration plans and projects we attend to. Both trends are based on several factors surrounding Panama as a destination.

On the one hand there is the privileged geographical position, the tropical climate and environment. In addition, the use of the dollar as a transaction currency, and the fact that it is a Central American region free of natural disasters. These are the main factors of attraction for both types of visa.

In the case of the pensioner visa, required mainly by citizens of Europe, the United States and Canada, there are added benefits such as discounts on a variety of services and a tax exemption on the importation of household goods.

In the case of the VIP visa, decisive factors include political and legal security and stability; the world-class logistics platform, the Panama Canal; having an international banking and financial center, as well as stability in the investment regime.

What immigration opportunities are available for people interested in making investments in the country?

In terms of investments it is possible to obtain a permanent residency through the qualified investor visa. This is through a fixed-term deposit investment in the Panamanian banking sector, a real estate investment or real estate investment through a promise of sale contract in the territory or investments made through the Stock Exchange.

An aspect to emphasize is the very short time in which it is processed: in only 30 days one has the permanent residence. After obtaining this category it will not be obligatory to remain in Panama, something that does occur with the provisional residences, which must be renewed.

What must be proven is that the investment must be durable and sustained within a period of 5 years. That is to say, not to acquire a property and immediately liquidate it and its equivalent to the investments made in banking or in the stock market. That and the obligation to prove that the investment comes from foreign funds, by means of documentation, whether it is a copy of a check, certification of a foreign bank, title of acquired property, etc.

In the case of legal entities, what are the special regimes that exist to attract investment and the relocation of companies to Panama?

One of the most successful strategies to increase investments is the adoption of laws that facilitate the establishment of companies that receive tax, immigration and labor benefits aimed at promoting the development of specific economic activities. These laws are intended to increase investment, employment generation, relocation of companies, transfer of technology and knowledge, and consumption of goods and services, which are important for the growth of the country’s economy.

The following are the main ones:

• Free Trade Zones: within these zones infrastructure is developed as well as the operational organization and administrative management necessary to establish companies from all over the world, whose activities are the production of goods, services and high technology.
• Colon Free Zone: founded in 1948, it is an area of 1,064.5 hectares and has an efficient port and airport infrastructure with access to several air, sea, rail and highway routes. Currently, more than 3,000 companies use its facilities and services for export and re-export, import, sales, marketing and distribution activities.
• The Multinational Enterprises Regime for Manufacturing-Related Services, aimed at new companies that want to take advantage of the incentives or for companies that are currently registered under the headquarters of multinational enterprises (SEM) regime.
• We cannot fail to mention Panama’s new legislation on Public-Private Partnerships, which is expected to articulate investment between the public, private and financial sectors, as well as boost the economy through job creation and quality infrastructure.

What growth opportunity has Quijano & Associates foreseen to launch a business unit focused on relocation services? What are the medium and long term objectives of this unit?

As we handle an international clientele, the unit was created to serve the European and North American markets, especially in terms of retirement visas. But experience has pushed us to serve other markets, such as Latin America and, at the same time, to promote other types of visas, such as the one granted when making investments.

The interest that has been triggered, mainly by the real estate industry, to move and live here or to be able to rent and then migrate in a less traumatic way was an important indicator to strengthen the services.

At the unit we offer a comprehensive service around the person’s migration project. This involves various services that include making use of the important commercial alliances we have with leading companies in the real estate market, for example. In this way, we help the client in everything that moving to another country or migrating to Panama represents.

The original interview was conducted in Spanish, and may be read in Lex Latin’s website: https://lexlatin.com/entrevistas/como-obtener-la-visa-de-inversionista-calificado-en-panama-o-visa-vip-de-panama