PANAMA PROPERTY LAWS

The country is famous for its light tax burden. Income tax, for example, is based on a sliding scale, ranging from a minimum of 7% after the first $9,000 to a maximum rate of 27%. Regardless of your residency status, the tax only applies to Panamanian-origin income.

If you buy or build a new home, you will not pay property taxes for up to 20 years, nor will you pay taxes on foreign income. In 1994, Panama passed Law No. 8, the most modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean. Since the law was enacted, dozens of the world's largest hotel chains have moved to take advantage of it.

RESIDENCY LAWS IN PANAMA

There are different ways to obtain a residency permit in Panama and we will explain some of them below.Visa for friendly countries:

Citizens of any of the 50 countries considered Friends of Panama can move to the country with their direct relatives and acquire a Permanent Residency Visa much faster than with any other type of Visa. To qualify, the citizen must participate in the purchase of any existing corporation in Panama, incorporate a new corporation, or be employed in any professional services company in Panama.

ECONOMIC SOLVENCY VISA

There are 3 options to participate in this type of visa, created with the purpose of attracting wealthy investors:

Minimum investment of US$300,000 in capital assets (may be in real estate), and if you wish to incorporate others as dependents, you must invest an additional US$2,000 per person.

Minimum investment of US$300,000 in a 3-year Certificate of Bank Deposit.

The combination of the above two options: Investment in capital goods + a placement in a Certificate of Deposit bank, which sum up to US$300,000 or the equivalent in foreign currency.

BUSINESS VISA

To qualify for this type of visa, you must make a minimum investment of US$160,000 as part of the Capital Stock of a Panamanian Corporation. The investor may be a shareholder and/or officer.

RETIREE VISA IN PANAMA

Anyone over the age of 18, with a lifetime pension receivable annually or monthly of more than US$1,000 qualifies for this visa. If the person has economic dependents, an additional US$250.00 must be received. The annuity or pension can be paid by any private company, militia, government agency, corporation, bank, insurance company, trust, etc.

This type of Visa provides you with additional benefits, such as: discounts at movie theaters, in restaurants, hotels, pharmacies and concert halls, on flights with national airlines, as well as on other products and services.

INVESTOR VISA FOR REFORESTATION IN PANAMA

With the minimum investment of US$80,000 in a reforestation project certified by the Government of Panama, which implies a purchase of at least 5 hectares of land duly titled.

"MARRIED TO A PANAMANIAN CITIZEN" VISA

To qualify for permanent residency with this visa, you must genuinely marry (not a mock marriage) a Panamanian citizen.

VISA FOR SPECIALIST PROFESSIONALS

Foreigners who work for a Panamanian company as a Professional, paying social security taxes and possessing a Professional Degree or Professional License, can become permanent residents after 2 years of being a temporary resident.

PARENTS OF CHILDREN BORN IN PANAMA

The parents of a child born in Panama, will be able to opt for this type of permanent residency, once the child reaches 5 years of age.

REAL ESTATE LAWS

Buying real estate in Panama is a fairly safe investment for foreigners, who have the same rights as Panamanian citizens. These include property titles that are registered at the Public Registry, as well as in the United States and Canada.

The Panamanian Constitution establishes that property owned by foreigners shall be treated the same as that of citizens, as it is considered an inherent right per the provisions of the Constitution.

There are laws that protect foreign investments such as Law 54 of 1998 whereby provisions for the legal stability of investments are adopted.

As a result, the country's strategic geographical location, together with its stable rule of law and dollarized economy, continue to attract institutional and private real estate groups from all around the world.

LAWS FOR RETIREES

Panama is a rising star in attracting American and European retirees. The natural beauty of the country, the attractive residency programs, the history of acceptance of foreigners and the numerous financial benefits make Panama a premier retirement destination.

The Panamanian government has implemented several strategic policies that allow foreign retirees to take advantage of various benefits. There are many residency options in Panama, but the "Pensionado" visa offers some of the best financial incentives of any residency program worldwide. Retirees can fulfill their dream of living in a modern, tropical environment while maintaining a high-quality, affordable lifestyle. With an approved retiree visa, the following advantages are available:

• Importation of duty-free cars (every two years).
• Duty-free import of household goods up to US$10,000 in value as a one-time exemption.
• Numerous discounts on domestic purchases including:
• 25% discount on domestic flights, 15% discount on hospital services, 25% discount on water bills, 25% discount on electricity bills, 10% discount on prescription drugs, 50% discount on public events, among others.