Panama: Qualified Investor Residence Program Revised Under New Decree

A new decree in Panama has revised its Qualified Investor permanent residence program rules to restrict and clarify certain requirements. Highlights include: 

• • Distinction of property types. It distinguishes between the minimum value of first-sale property investments (at PAB 300,000) and secondary-market property (at PAB 500,000), where previously, there was no such distinction; 
  • Stricter rules for sources of funds. It strengthens the requirements concerning the source and traceability of investment funds, which must belong to the applicant and cannot include gifts, donations or other gratuitous third-party transfers;  
  • Stricter rules for legal entity ownership. It requires more detailed documentation regarding ownership and control for investments held through a legal entity; 
  • New option pathways. It adds a new qualifying option for the program consisting of a PAB 500,000 five-year fixed-term deposit with Banco Nacional de Panamá or Caja de Ahorros. It also introduces a process designed to streamline applications through the Ministry of Commerce and Industry for Qualified Investor residents and their dependents applying for Panamanian citizenship after five consecutive years of residence. 
  • Stricter ongoing investment verification rules. It provides a more detailed and formalized compliance framework for ongoing proof of investment rules, including annual evidence before the anniversary of the immigration approval, and more specific documentation for promissory-sale structures. 

Foreign nationals should seek advice before structuring or committing to an investment, particularly a real estate purchase, under this program, to ensure it qualifies under the revised rules.  
 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.