(Photo opposite: Panamanian Immigration) The laws to obtain Panamanian residency can be very complicated as they change constantly. Recently, the Panamanian government changed the residency laws: look for the laws to change again after the May 2009 presidential election. The biggest change in the new laws is the increase in the amount of money needed to obtain a residency visa. For example, before the new laws were implemented retirees needed to prove that they had at least $500 a month in fixed income; that number has now gone up to $1,000. Anyway, here are the specifics on the new Panamanian residency laws:

1. Economic Solvency Visa

This visa is divided in three categories:

1.1 With a Certificate of Deposit you can apply for this visa by opening a certificate of deposit account in your name for a minimum of three hundred thousand United States Dollars (USD$300,000.00) at the National Bank of Panama or any other local bank for a minimum of three (3) years. The CD account must be free of fiscal obligations. The account will be confirmed by a letter provided by the bank where you opened the CD account, specify the account number and attach a certified copy of the Certificate or Contract of Deposit. If the client opens the CD account in the name of a Private Interest Foundation, the client must appear as the Founder and Beneficiary Owner of the Foundation. If the client has companions, they should be appointed in the articles of incorporation of the Private Interest Foundation.
1.2 Purchasing Real Estate in your name or in the name of a Private Interest Foundation in Panama for a minimum of three hundred thousand United States Dollars (USD$300,000.00), and property has to be free of fiscal obligations. This will be confirmed by presenting a certificate of good standing from the Registry Public that confirms that the property is in the name of the person applying for a visa.
1.3 Mixed Investment: meaning you can invest in Real Estate and also open a CD account, both adding up to a minimum investment of three hundred thousand United States Dollars (USD$300,000.00).

2. Forestry Visa: This visa will be granted to foreigners investing in reforestation activities approved by the National Environmental Authority. Investors can invest in their own name or through a corporation. The land investment has to be at least 20 hectares with a minimum price of eighty thousand United States Dollars (USD$80,000.00). If purchasing in the name of a Corporation, the visa can be requested for two foreign investors, as long as each of the investors can prove they made a minimum investment of eighty thousand United States Dollars (USD$80,000.00) each. If there are no proofs the visa will be cancelled and the investor will be forced to leave the country. If the investor is bringing companions, the investment goes up two thousand United States Dollars per companion. This can be verified by a local banking reference.
3. Big Investor Visa: This visa is for foreigners willing to invest a minimum of one hundred and sixty thousand United States Dollars (USD$160,000.00) per applicant, each being a member of the board of directors and share holders of the same corporation. The corporate deed and shares will confirm that the minimum investment of each one of the investors is one hundred and sixty thousand United States Dollars (USD$160,000.00). The corporation can only operate legal activities that are not reserved for Panamanians. If bringing companions the investment has to be increased to two thousand United States Dollars (USD$2.000.00) per companion. This can be confirmed by a local bank’s letter of reference. Also, the corporation must employ five (5) Panamanians per applicant at full time hours and generating a salary that won’t be less than the minimum wage established by law and specifying the position and activity of each one of the employees. The corporation must register its employees in the Panamanian Social Security and pay its obligations to this entity.
4. Pension Visa: Foreigners who can apply for this permit are receiving a retirement or pension from a foreign government, international organization or private company and enter Panama to reside and have sufficient economic solvency to cover their own survival expenses and the expenses of their companions while in the country. The monthly retirement check cannot be less than one thousand United States Dollars (USD$1,000.00) and has to be granted for a lifetime.
5. Retiree Visa: This visa is for foreigners who enter Panama and have retired from an active life and can prove a two thousand United States Dollar (USD$2,000.00) income generated by interest of a Certificate of Deposit Account with the National Bank of Panama or Caja de Ahorros (another local bank) for a minimum of 5 years and free of any fiscal obligations. This has been established in law No. 9 of 1987 and its regulations.
6. Permanent Contract Visa: This visa is for foreign employees that have been contracted permanently to work in any of the following projects:
• Panama Canal
• People contracted by a Panama-Pacific area developer, operator or agency with 10% regular employees.
7. Investor in the Panama-Pacific Economic Area: This visa is for foreigners willing to invest over two hundred and fifty thousand United States Dollars (USD$250,000.00) in the Risk Capital of Panama-Pacific corporations, or in Developing/Operating companies of this area.
8. Processing Zone Visa: this visa is for foreigners who can prove a two hundred and fifty thousand United States Dollar (USD$250,000.00) investment from a corporation duly authorized to promote and operate in an Export Processing Zone or in a Corporation established in one.
9. Call Center for Export: Foreigners investing in a Call Center to promote export services.
10. Panama Film and Audiovisual Industry Visa: This visa is for foreigners investing a minimum of one hundred and fifty thousand United States Dollars (USD$250,000.00) in the Film Industry.

The Real Estate Market In Panama

The Panamanian real estate market has slowed – it’s almost at a full stop. There are few buyers coming into the market right now. A few Latin Americans and Spaniards are still buying but for the most part there are very few people buying houses right now in Panama. The biggest buyers in the Panamanian real estate market are Panamanians. Foreigners who put down 20% or 30% on their condos and apartments two or three years ago are now asking themselves whether or not they will be able to pay the remainder.

Even though there are few buyers construction continues in some places in Panama such as along the Pacific Coast and Panama City. Most property owners are now focusing, not on selling property, as much as renting property: houses, apartments and condos in safe neighborhoods. The prices in the rental market have gone sky high. Renting an apartment in Panama City used to be a very affordable thing to do, but now the prices on apartments have shot upwards – the prices don’t reflect the salaries most people in Panama receive. It’s not surprising to hear people say that 60 to 70 per cent of their salary goes to housing. Why the high cost? Everyone wants to rent their property to a rich foreigner, and the hope is that more and more rich foreigners will appear in the country to work and live. What kind of rich foreigners? Foreigners who pull large salaries from international organizations such as the UN, or large international companies like Procter & Gamble.

The higher prices in housing and everything else has led to a spike in crime. Crime and prices will be of central importance to voters in the 2009 election.

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