Panama is in Central America, connecting North and South America. It borders the Caribbean Sea to the east and the Pacific Ocean to the west, and is home to the Panama Canal, a key global shipping route. On October 15, 2024, Panama issued its latest qualified investor permanent residence law: investors who buy real estate worth USD $300,000 or more can apply for permanent residency for three generations of the family, and the authorities must process an application within 30 working days of submission. A flexible and efficient pathway to residency.
Country overview
| Item | Details |
|---|---|
| Location | Central America |
| Area | 75,500 km² |
| Population | About 4.46 million |
| Language | Spanish |
| Currency | U.S. dollar, crypto usage supported |
Tax advantages
- Corporate income tax: 25%
- Personal income tax: 0–25% (non-tax residents: 15%)
- Offshore company income tax-exempt
- Free trade zone companies exempt from import, income, sales and export taxes
- Dividends tax-exempt
- Offshore personal income tax-exempt
- No wealth tax, transfer tax or inheritance tax
- Rental income tax exemption for over six months
Trade advantages
- Shipping hub: the Panama Canal, a major global shipping route
- Air hub: direct flights to 90+ major cities in the Americas
- Trade agreements: more than 23 trade agreements with 60+ countries, including the U.S. and the EU
- Re-export trade: the Colón Free Trade Zone, the world’s second-largest free trade zone
Application requirements
Main applicant
- At least 18 years old
Eligible dependants
- Spouse
- Children under 25
- Parents of the main applicant
Keeping your residency
- The property must be held for 5 years; it can be sold afterward, as it is not tied to residency
- The PR card is permanent, with no renewal required
- Entry required once every 2 years
Benefits of Panama residence
- Established by law, with fast processing: a government-backed program with a review period of no more than 30 working days; a direct permanent residence program
- Simple requirements, the whole family together: no language or education requirements, and a clean criminal record is enough to apply; three generations can apply together
- Chinese-friendly, with low costs: Chinese people make up 7% of the population and Chinese New Year is a national holiday; two Chinese-language international schools are a popular choice for overseas Chinese families; living costs are relatively low
- Tax benefits and convenient banking: permanent residents can obtain an ID card, which is also the Panamanian tax number, and access various tax benefits; bank accounts can be opened in Panama, including remotely, and U.S. dollar assets are not subject to foreign exchange controls
- Lasting status, sellable property: the PR card is permanent with no renewal required, and children do not lose status when they age out; the property can be sold freely after 5 years without affecting residency
- A stepping stone to the U.S. and Spain: after 5 years of permanent residence you can apply for Panamanian citizenship; Panamanian passport holders can apply for a U.S. E-2 visa, and may have the opportunity to become Spanish citizens while keeping Panamanian nationality and its tax benefits
Application process
- Agreement Sign the service agreement.
- Property selection Choose a qualifying property.
- Background check Complete the background check.
- Bank account setup Open an overseas bank account.
- Legal authorization Sign a power of attorney (POA) for the lawyer.
- Investment completion Complete the real estate investment of USD $300,000 or more.
- Qualification and fees Confirm eligibility and pay the applicable fees.
- Application and decision Submit the residence application and await the decision.
Stay informed
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