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Residence and Citizenship in Panama |
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Forestry Investments leading to Immigrant Investor Status |
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Corporate and Fiduciary Service |
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More about Panama |
Panama is a well-established international financial centre and a secure jurisdiction for tax-free companies and private foundations. It also offers very attractive conditions for tax-free residence and – after a residence period of five years – citizenship. Panama is also one of the most important jurisdictions for international commercial ship registrations.
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The official language of Panama is Spanish, but English is widely spoken in the business community. With a population of just under 3 million, the mainstay of the economy are services, mainly banking, commerce and tourism, which account for about three quarters of the country’s GDP. In 1821 Colombia, which at that time included Panama, gained independence from Spain. Panama was then part of Gran Colombia. In 1903, with the support of the USA, Panama declared its independence from Colombia. Panama is now a stable democracy and has one of the world’s freest economies, on par with countries like Australia, Ireland and the Netherlands. |
Panama is a land bridge between Central and South America, where wildlife as well as cultures meet and mix. Panama is home to more bird species than in all of North America, and its population is very diverse. At the same time it also has the most modern capital city of the region and the highest per-capita income of the Central American countries.
The Panama canal, one of the world’s greatest engineering landmarks, is the largest employer in the country. The canal extends about 80 kilometers from the Caribbean side to Panama City on the Pacific. Each year more than 12,000 ships use the canal. In 1999, the Panama Canal, which until then was under the control of the USA, was returned to Panama. However, the USA retains the right by treaty to defend the canal in the interest of its national security.
Panama has a sound infrastructure. Telecommunications, postal and courier services, banking and other key services are efficient and of a very high standard. There are good flight connections throughout America. Panama’s capital is a modern city with a cosmopolitan flair, a large banking district, a large variety of restaurants and a diverse population.
Tax-free Residence
Panama is one of the most attractive locations for residence in America.
Panama offers the possibility to acquire residence status, either as
a financially independent person/retiree or as an investor.
As an investor, permanent residence status may be obtained through a very efficient, straight-forward programme on the basis of a US$ 40,000 investment in a government-approved reforestation project. This immigrant investor status qualifies for Panamanian citizenship and a citizen's passport after five years of residence.
As a retiree one can acquire non-immigrant residence status on the basis of a term deposit with the Banco Nacional de Panama (National Bank of Panama), for a minimum period of five years, which must generate a monthly interest of not less than US$ 750. Under this programme, a Panamanian non-citizens passport can be obtained right away by the person obtaining such residence status. Although this residence status does not lead to citizenship and the passport issued on this basis is clearly a non-citizens passport, it may nevertheless be a very attractive option for someone who wishes to reside in Panama and/or simply wishes to obtain an alternative travel document.
All residents of Panama enjoy a privileged tax status as in principle only local-source income is taxed. As long as the resident abides by the rules of the respective residence permit, the resident permit holder need not spend any particular time actually residing in Panama.
Panama City - First world amenities in Central America
Tax-free Companies and Private Foundations
The Government of Panama has actively sought to attract foreign business with attractive incentives, including generous tax breaks, aimed at international investors and entrepreneurs. Panama is an excellent jurisdiction to establish tax-free companies and private foundations.
Panama also has an important shipping register and is one of world's preferred jurisdictions for the registration of large commercial vessels.
Some of the many advantages of Panama include:
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Economic stability, strategic location, English- and Spanish-speaking environment |
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Very good international flight connections, in particular also to the United States |
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First-class infrastructure in Panama City |
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Unspoiled nature, beautiful beaches, rich culture |
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US Dollar is the official currency |
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One of the world's leading banking centres |
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Attractive lifestyle |
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Attractive conditions for residence |
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Possibility to obtain a passport immediately, citizenship after five years |
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Tax-free environment for business and residence |
Further Information
Through its office in Panama City, Henley & Partners provide a complete range of services, including the incorporation and administration of Panamanian companies and foundations, advice and assistance regarding the different residence programmes and the purchase of real estate.
The specialised services of Henley & Partners are also a resource and complement to other consulting and law firms. We can help other firms and their clients with the unique and specific details required by the immigration process under one of the various programmes, we advise and assist with regard to real estate purchase Panama, including reforestation projects, and provide fiduciary services involving Panamanian legal entities. Please contact us for more information.
