The Republic of Panama lies in the northern part of South America and is home to approximately 4 million people. It is a high-income economy, with much of its revenue generated from the canal tolls alongside tourism and banking. The World Economic Forum ranks Panama among the topmost competitive Latin American countries. Moreover, the country maintains significant geopolitical importance and has contributed to the formation of several international organizations, such as the World Health Organization and the United Nations.
Because of its economic, political, and cultural health, many people are interested in the country – quite a few of them are interested in the capacity of investors. For such persons, the government has launched its Golden Visa Program that offers some of the most simple terms in any residence/citizenship by investment scheme. To know more, you should read the pointers mentioned below about Panama’s Golden Visa Scheme.
General Investment Criteria
As the name speaks for itself, investors are eligible for the scheme only upon certain investments. Under Panama’s Qualified Investor Permanent Residency, the applicants have three investment options:
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- The investors can initially invest USD 300,000 in any real estate property in the country. The said threshold will be raised to USD 500,000 from 15th October 2022.
- Another option is in securities, where the investor can invest USD 500,000 in the country’s stock market. However, the investment will have to be made through a licensed securities brokerage firm in the country.
- Or, investors can deposit USD 750,000 in any licensed bank in the country.
It must be noted that additional expenditure will be incurred owing to the addition of any dependent in the application.
Addition of dependents
The preceding point clarifies that dependents can be added to the application. However, there are restrictions on who the dependents can be as per the scheme. The applicants can add only the following to the application:
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- Spouses
- The parents of the main applicant
- Children who are minors
- Any minor who has been taken under guardianship or custody.
- Children beyond 18 years to the application provided they are under 25, unmarried, and attending university or any other higher education institution.
- Relatives with disabilities.
Documents to be furnished
A stack of documents will have to be prepared for the process. Some of these documents have been mentioned below:
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- Original as well as a copy of the whole passport of the main applicant and the dependents added to the application.
- A Police Clearance Report from the country of residence or origin. The report must show that the main applicant and his dependents are over 18 years old and have a clean background.
- An affidavit affirms that the personal details provided are accurate.
- Documentary proof that the applicant is financially capable of managing his expenses during his residence in the country.
- Evidence of kinship includes marriage certificates, adoption certificates, and whatnot.
- Copy of the personal identity document of the country of origin or residence.
Transition to Citizenship
Upon successful application, the applicant receives a permanent residency permit. The said permit is valid for five years, during which the applicant must come to the country at least every two years. They must own their investments for five years and cannot sell them. Only after five years of legal residence in the country can they apply for citizenship by naturalization. For the said process, the applicant will undergo a test on Spanish and Panama’s history, geography, and civil rights. Kindly note that Panama does not officially recognize dual citizenship.
Benefits of Panama’s Golden Visa
A successful application can pave the way for multiple benefits. These benefits include:
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- Panama’s program provides a fast-track route to citizenship.
- The scheme does not mandate a very strict physical presence requirement.
- The country maintains a very flexible tax structure.
- The application process is fast.
- Panama is one of the best-performing economies in the region and offers excellent residential benefits.
- It is a secure country.
- Panama is bountiful with natural sceneries, a warm climate, and a high-income lifestyle.
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