In October 2024, industry experts expected the price of real estate under the Panama’s Qualified Investor Visa (QIIP) to increase from $300,000 to $500,000. Instead, the Panamanian government decided not to complicate conditions for investors, but to make them even more attractive. So, the requirements for investing in real estate do not change — $300,000. And also, when purchasing real estate under construction, applicant now may transfer funds directly to the developer, provided that the company gives a bank guarantee. To stimulate the growth of the real estate market, the requirement for transfer to an escrow account for such transactions was abolished.
Panama’s Qualified Investor Visa is a “Golden Visa” for investors, which allows you to immediately obtain permanent residence, bypassing the stage of a residence permit. The applicant will be required to visit Panama once. The entire process takes about 4 months. After receiving a visa, the requirements for stay are minimal — one visit to the country every two years to maintain status.
This Panama’s Qualified Investor Visa program offers a fast-track path to permanent residency. This type of visa allows to live, work, and study in Panama.
Panama is a leading banking and financial center in Latin America and has more than 60 banks. The reason for this is the favorable tax system, i.e. banks do not pay any taxes on profits received from foreign sources. This means banks can invest globally and not have to pay local taxes for it. This opportunity firmly established Panama’s status as the banking center of Latin America. In fact, Panama is often called the Switzerland of Latin America.
Panama’s Qualified Investor Visa. Investment options
1/ Purchase of real estate – $300,000 (investment amount will increase to $500,000 in October 2024).
Note that investors can submit application without title deed only confirming payment to the developer or seller. So that is possible to invest in real estate under construction.
2/ A Panama securities in the stock market – $500,000.
3/ A deposit in an approved Panama bank – $750,000.
All investment options mentioned above have a must hold period of 5 years.
Key benefit
Someone would say that key benefit of the QIIP is eligibility to apply for citizenship after 5 years of residence. Looks as a very attractive option as Panama’s citizenship gives a right to travel to 140+ countries without a visa including Schengen zone (European countries). However, almost none of the investors will reach citizenship, since it will be necessary to physically spend most of the time in Panama for 5 years, as well as renounce all other citizenship when undergoing naturalization.
By obtaining permanent residence in Panama, you do not become a tax resident. There is no worldwide income tax, low capital gains taxes, inheritance taxes and estate taxes.
