Panama has a well-developed, service-based economy. The government’s residence by investment program is an opportunity for global investors to contribute to the tropical maritime nation’s development while acquiring residence status and the investment opportunities that come with the program. Under this program, high-net-worth individuals can make a contribution to the country and become Panamanian residents in 30 days or four–six months (depending on the investment option chosen), with the possibility to acquire citizenship after five years.

Panama golden visa requirements

To qualify for residence, applicants are required to select one of the following three investment routes:

·        Qualified Investor

In Investments must be held for at least five years to maintain permanent residence status. Additional government fees for the main applicant and dependents apply.

One of the following options:

o   Real estate investment of USD 300,000

o   Stock exchange investment of USD 500,000

o   Fixed-term deposit of USD 750,000 in the banking sector

Friendly Nations

For citizens of one of Panama’s ‘friendly nations’ (contact us for the latest list of friendly nations).

One of the following options:

o   Real estate investment of USD 200,000

o   Fixed-term deposit of USD 200,000

o   Employment by a company in Panama for residence by labor reasons

   Forestry Investor

Investment in a company that has a forest registry with the Ministry of Environment.

One of the following options:

o   Real estate investment of USD 100,000

o   Investment of USD 100,000 in teak reforestation. This option grants two years of temporary residence, after which the applicant can apply for permanent residence

o   Investment of USD 350,000 in teak reforestation. This option grants immediate permanent residence.

Procedures and time frame of the Panama golden visa

Applications must include completed application forms and should be accompanied by the appropriate fees and supporting documents, including details and the source (abroad) of the investment funds and the investor’s general data. Depending on the investment option chosen, the following documentation will be required: certificates from the Panama Public Registry, the National Authority of Land Ownership, the Securities House, and a license and/or registration certificate from the Panama Stock Exchange, as well as authenticated copies of the resolution granting the entity keeping the invested securities and a copy of the time deposit certificate.

Once the initial due diligence checks have been completed, then the application can be submitted. After further due diligence checks, the applicant can fulfill the requirements and the application may be approved.

The processing time for the residence application from the submission of the application to its approval is 30 days under the Qualified Investor route, or four–six months under the Friendly Nations and Forestry Investor routes.

Applications must include completed application forms and should be accompanied by the appropriate fees and supporting documents, including details and the source (abroad) of the investment funds and the investor’s general data. Depending on the investment option chosen, the following documentation will be required: certificates from the Panama Public Registry, the National Authority of Land Ownership, the Securities House, and a license and/or registration certificate from the Panama Stock Exchange, as well as authenticated copies of the resolution granting the entity keeping the invested securities and a copy of the time deposit certificate.

Once the initial due diligence checks have been completed, then the application can be submitted. After further due diligence checks, the applicant can fulfill the requirements and the application may be approved.

The processing time for the residence application from the submission of the application to its approval is 30 days under the Qualified Investor route, or four–six months under the Friendly Nations and Forestry Investor routes. 

Panamanian citizenship following residence by investment

Successful clients can apply for Panamanian citizenship after five years of residence. Citizens of some Latin American countries and Spain may acquire citizenship after one–three years.

Register an Offshore Company in Panama

Step 1: Choose a company name: The first step in registering an offshore company in Panama is selecting a unique company name that is not already registered. The chosen name should not be similar to any existing Panamanian company and must comply with the regulations set by the Public Registry of Panama.

Step 2: Engage a Registered Agent: To register an offshore company in Panama, it is mandatory to engage the services of a registered agent. A registered agent will facilitate the registration process, assist with the necessary documentation, and act as a liaison between your company and the Panamanian authorities.

Step 3: Determine the Company Structure: Panama offers several company structures for offshore businesses, including Private Interest Foundations (PIFs) and International Business Corporations (IBCs). Consider the advantages and characteristics of each structure to determine the most suitable option based on your business objectives and needs.

Step 4: Prepare the Required Documentation: To register an offshore company in Panama, you will need to gather and prepare the necessary documentation. The typical documentation includes:

 a. Articles of Incorporation: This document outlines the company's purpose, share capital, and internal regulations.

 b. Certificate of Good Standing: If incorporating a company that already exists, you may need to provide a certificate of good standing from the jurisdiction where the company is currently registered.

 c. Passport Copies and Proof of Address: Provide passport copies and proof of address for all directors, officers, and shareholders.

 d. Notarized Power of Attorney: This document authorizes your registered agent to act on your behalf during the registration process.

Step 5: Submit the Application to the Public Registry of Panama: Once you have prepared the necessary documentation, your registered agent will submit the application to the Public Registry of Panama. The application includes the company's Articles of Incorporation, along with the required fees and supporting documents.

Step 6: Pay the Required Fees: As part of the registration process, you will need to pay the applicable fees to the Public Registry of Panama. The fees vary depending on the type of company and the services provided by your registered agent.

Step 7: Obtain the Certificate of Incorporation: Upon successful completion of the registration process and payment of the fees, you will receive a Certificate of Incorporation from the Public Registry of Panama. This certificate serves as legal proof of your offshore company's existence in Panama.

Step 8: Fulfill Ongoing Compliance Requirements: After registering your offshore company in Panama, it is crucial to comply with ongoing obligations and requirements. This includes maintaining proper accounting records, filing annual tax returns, and adhering to any other obligations outlined by the Panamanian authorities.

In Conclusion, registering an offshore company in Panama can provide entrepreneurs with significant advantages, including tax benefits, asset protection, and enhanced privacy. By following the step-by-step guide outlined above and working with a reputable registered agent, you can successfully navigate the process of registering an offshore company in Panama.

It is essential to consult with legal and tax professionals to ensure compliance with all applicable laws and regulations. With the right guidance, you can establish a successful offshore company in Panama and capitalize on the benefits it offers.