Panama is considered the hub of the Americas, it is a tropical jewel in Central America, with a very good quality of life. With access to first world services, with a sophisticated banking system, with the dollar as its legal tender, and with the Pacific and Atlantic Ocean less than an hour away.

During the past two decades, Panama has been making efforts to attract high-net-worth individuals (HNWIs) to reside in Panama, says Ivan Lau de LeÓn, managing partner for investment immigration specialist Aliant in Latin America and head of the Panama practice.

The latest legal reform for this purpose has been Executive Decree 109 of 2022, that amends Executive Decree 722 of 2020 which created the Qualified Investor Permanent Resident.

Broadly speaking, this status may be granted to any foreign individual who invests $500,000 of foreign source in Panama, either directly or through a wholly owned entity.

Permitted Investments

There are three possibilities to comply with the regulation in order to apply for the Visa. 

Real Estate: The purchase of a "free and clear"  real estate in Panama valued in $500,000 is eligible to obtain this visa. If the real estate value is higher, the investor may finance the portion above $500,000 with a local bank , and mortgage said asset but only for said portion.

Interestingly, it is also permitted to apply for this visa, that a Promissory Purchase Agreement is signed, provided that the $500,000 are held in a trust, managed by a local bank or trust company , that will pay for the real estate in instalments, and the Promissory Purchase Agreement in order to comply with the regulation for this visa, must be registered at the Public Register Office of Panama, so that it is shielded in order to comply with immigration regulations.  

However, if the purchase is not executed, the visa will be revoked. 

Securities: The acquisition of securities listed on the Latinex  (formerly known as Panama Stock Exchange), through a local broker dealer , is also eligible to obtain this visa. 

Certificate of Deposit: The opening of a fixed deposit in the amount of $750,000 at a local bank  is also eligible for this visa. This investment must be free of any liens.

In all cases, the investment must be held for at least 5 years.

By Ivan Lau de LeÓn, managing partner for investment immigration specialist Aliant in Latin America and head of the Panama practice.