How to Obtain Permanent Residency Through Investment in Panama

Por: Ayleen Quintero – Asociada

The Qualified Investor Residence Permit was created through Executive Decree No. 722 of October 15, 2020, and is a migration category that grants permanent residency in Panama to foreigners who invest a minimum of five hundred thousand dollars (US$500,000.00) from abroad, under one of the four (4) modalities that we will explain later. However, it is important to highlight that this Decree also provided for an exception allowing applicants to apply for this residency with a minimum investment of three hundred thousand dollars (US$300,000.00), provided that the applicant chooses one of the modalities related to investment in the purchase of real estate. This exception will only be available until October 15, 2022. The modalities under which one can apply for this category are: Real Estate Investment, Real Estate Investment through a Purchase Promise Contract (both for an investment of US$300,000.00, only until October 2022), Investments through a Securities Brokerage (US$500,000.00), and Investment through a Fixed-Term Deposit in the Banking Sector (US$750,000.00). Under this category, we can state, among other general requirements and conditions, that the most important points to demonstrate within the application are:

• Proving that the funds come from a foreign source.
• The investment must be maintained for a minimum of five (5) years, which will be verified annually.

How long does it take to get permanent residency under the Qualified Investor category? The application for Permanent Residency under the Qualified Investor category is approved within a period of no more than thirty (30) business days and will allow the foreign applicant to obtain the permanent resident card issued by the Electoral Tribunal of Panama, which will be the new identity number in Panama for all approved Qualified Investors.   How long does it take to get permanent residency under the Qualified Investor category? The application for Permanent Residency under the Qualified Investor category is approved within a period of no more than thirty (30) business days and will allow the foreign applicant to obtain the permanent resident card issued by the Electoral Tribunal of Panama, which will be the new identity number in Panama for all approved Qualified Investors. After obtaining Permanent Residency, how long must I wait to apply for Panamanian nationality? Naturalization or the process of obtaining the Carta de Naturaleza is the procedure that allows permanent residents to apply for Panamanian nationality and thus obtain the right to hold a Panamanian passport. This process can be carried out once the foreigner meets one of the following conditions:

1. Foreigners with five consecutive years of residence in the Republic who, after reaching adulthood, declare their intention to naturalize, expressly renounce their original nationality or any other nationality they hold, and prove that they have knowledge of the Spanish language and basic knowledge of Panamanian geography, history, and political organization.
2. Foreigners with three consecutive years of residence in the Republic who have children born here to a Panamanian parent or a spouse of Panamanian nationality, if they make the declaration and provide the proof mentioned in the previous point.
3. Nationals by birth of Spain or a Latin American state, if they meet the same requirements in their country of origin that Panamanians must fulfill to naturalize.

Based on the above, we will present a summary of how many years nationals from some Latin American countries must wait, according to each case. How long must I wait to become Panamanian if I am from…? One year: Colombia and El Salvador Two years:

• Argentina
• Chile
• Costa Rica
• Ecuador
• Spain
• Guatemala
• Honduras
• Mexico
• Nicaragua
• Paraguay
• Peru
• Uruguay

All other countries not mentioned can apply for naturalization after 5 years. After obtaining permanent residency, what obligations do I have? Regarding the resulting immigration obligations, the main obligation will be to visit Panama before two (2) years have passed outside the country. Otherwise, the permanent resident will lose their residency and will either need to start a new process or request the reactivation of Permanent Residency; however, this process has its own conditions and proof documents that must justify the relevant reason for the foreigner’s failure to enter the country during this period.