Why consider moving to Panama for investment and living?

Advantages of Panama in the current global situation

Panama, although it rarely makes the news, has many positive aspects, especially in the current world situation. There is an atmosphere of tranquillity here, and the quality of life meets high European standards.

Economy and security of Panama

According to information from Ivan Barkhatov, an independent expert with Sotheby's International Realty, Panama is experiencing aneconomic stabilityandupscale banking services. If comparisons are made with other countries, Panama has a significantly lower crime rate than the UK, and in the overall world rankings it ranks between Italy and Ireland.

The level of education and health care, both in public and private institutions, can also be considered high.

Main sectors of the economy

Panama's national economy is based on the famousPanama Canalwhich is its most important element. Other key sectors are:

• banking industry;
• insurance;
• tourism business.

Panama has strong economic and cultural ties to the United States, making it attractive to people interested in relocating or doing business with American companies. Moreover, Panama is considered one of the oldest tax havens in the Caribbean, where income earned outside the country is not subject to taxation. Residents also have the ability to reduce their U.S. taxable base by up to$160,000 annually.

Population and foreigners

Panama's metropolitan area is being actively built up, and with a population of approx.4.4 million peopleThe number of foreign citizens here is equal to850,000. This means that almost 20% of the population is made up of foreigners. Most of them come from:

• USA
• Canada;
• Mexico;
• European states.

The Russian-speaking community in Panama is small, numbering less than 1.5 million7 thousand peoplebut it is characterized by great cohesion and an active lifestyle.

Investment program and obtaining a residence permit

Regarding the investor residency program, Panama offers three main options for those who wish to do so:

• Buying real estatefor the amount of 300 thousand dollars or more. Although it was originally planned that this amount would increase to 500 thousand from October 2022, the authorities decided to extend the current conditions for another two years.
• Investing in securitiesPanama or tropical forest conservation funds with a minimum investment of $500,000 or more.
• Opening a depositin a Panamanian bank with a starting amount of $750,000 or more.

It is important to clarify that all of these assets can be returned and the minimum hold period isfive years. If the applicant makes an investment under the program, his or her spouse and children will also be able to apply for a residence permit.

When opening a refundable deposit, starting from the amount in$370,000.The applicant has a chance to obtain a Panamanian passport, which allows travel without a visa to more than140 countries. This document can be obtained regardless of whether a person is a permanent or temporary resident.

The validity period of the passport isfive yearsIn this way, Panama creates an attractive environment not only for tourists, but also for those who plan to make serious investments in the country. Thus, Panama creates attractive conditions not only for tourists, but also for those who plan to make serious investments in the country.

After submitting all the necessary requests, a person has a chance to become a citizen of Panama and obtain a standardized passport of that country. This program is in high demand: more than 4,600 visas for foreign investors were issued in 2021, and a similar level is expected in 2022. However, interest in Panama continues to grow and as a consequence the conditions for residency are becoming more stringent. Already by the fall, an increase in the minimum requirements for real estate investments is foreseen.

Increased interest in Panama

Ivan Barkhatov, an independent expert at Russia Sotheby's International Realty, notes that not only has interest in Panama increased over the past six months, but also the number of people who have actually moved from Russia. This is due to the fact that travel to Europe has become much more complicated, and many investment programs of the European Union are closed to citizens of the Russian Federation. In this situation, the advantages of Panama increasingly outweigh the disadvantages associated with long flights and the peculiarities of the local mentality.

Investment opportunities in Panama

The most tempting options for Russian investors in Panama are:

• acquisition of residential real estate;
• deposit placement.

These methods, in my observations, are the most understandable and attractive. Real estate in Panama can offer good liquidity, and deposits provide returns ranging from2 to 4 percentper annum. Moreover, there is also the possibility of obtaining a credit line on the same terms.

Conditions for obtaining an investment residence permit

The investment residence permit program covers all types of real estate, the value of which starts from300 thousand dollars. When it comes to residential options in Panama, the choice is really vast. For example, a modest apartment can be purchased for about$80,000.while a villa can cost anywhere from300 to 500 thousand dollars. Quality properties, such as two-bedroom apartments in a convenient assisted living neighborhood, are priced in the range of .$350,000 to $500,000.

Luxury real estate prices

Prices for luxury apartments in Panama City can be as high asthree million dollarsand for a luxury villa in the suburbs with private access to the sea, the price can increase toten million dollars.

Investment strategies

Ivan Barkhatov also emphasized that in Panama it is quite easy to invest during the construction phase, providing the possibility of exiting in two years with a profit of25-30%. This is one of the promising investment strategies.

In Panama, opening a bank account is possible as soon as you arrive in the country, and the whole process takes only a couple or three days. If it is more convenient for you to solve issues remotely, it will take about a week to process such an account. For foreign citizens who wish to invest in real estate and do not need a visa, there is an opportunity to conduct the transaction completely online. However, a physical meeting in Panama will still be required to process a residence permit (TPL).

Real estate in Marbella

Marbella, located in the capital of Panama, is a beautiful resort area where real estate transactions are actively taking place. The process of acquiring objects is divided into several main stages:

• Real Estate Reservations:It is necessary to book the property of interest. If there is a high interest in the object, the seller may request a deposit, which usually ranges from 10 to 15 thousand dollars. If the deal does not go through, the deposit will be returned in full.
• Passing a bank check:The next step is to go through the bank identification procedure (KYC). This requires a number of standard documents such as a valid passport, proof of legal source of income and residence address.
• Contract drafting:After the successful completion of all procedures, a contract of sale is drawn up and the first payment for the property is made, usually in the amount of 30% of the total cost.
• Contract Registration:This is followed by registration of the contract and payment of the remaining 70% of the value of the property. After these actions are completed, the new owner receives the title and can use the property as he or she sees fit - either independently or with the help of a management company.

Obtaining a residence permit

If you need to obtain a residence permit, you will need to submit additional documents confirming that you have no criminal record, as well as a medical report on the health of all family members included in the application. Over the last five years, the processing time for residence permit requests has been significantly reduced: many procedures can now be performed electronically, which allows you to meet the two to three months deadline for collecting and submitting the necessary documents.

Investments in the San Blas Archipelago

In the San Blas Archipelago in Panama, if you have family members listed on your application, the minimum amount to invest will increase by $2,000 for each relative. A deposit must also be made with the public treasury:

• $5,000 for the primary applicant;
• $1,000 for each dependent.

In addition, you will need to pay a fee to the immigration office - $5,000 for the primary applicant and $1,000 for each dependent.

The process of obtaining a residence permit

Although investments and real estate purchases can be made remotely, obtaining a residence card will require a visit to Panama to submit biometric data. This usually takes three to four days. For Eurasian citizens, this may mean a long flight, so it is worthwhile to wisely combine the trip with a vacation. The time factor does not play a role, as Panama has a warm and comfortable climate all year round.

Permanent residence and citizenship

After one year of residence in Panama, you can apply for permanent residency (Permanent Residence) and after five years you can apply for citizenship. It is important to remember that in order to achieve these goals, you will need to reside in the country permanently and center your life on Panamanian soil. To do this, you will need to document your long-term residency by submitting documents such as utility bills and certificates that your children are enrolled in local educational institutions.

Conclusion

As I conclude my reflection on the benefits of living and investing in Panama, I would like to emphasize that this place is capable of providing unique opportunities for Russians looking for new horizons. Despite Panama's absence from the global news headlines, it probably creates exactly the kind of laid-back atmosphere that attracts many expats. I myself have been struck by the quality of life here, which is in no small part comparable to European levels.

Benefits of living in Panama

Panama is not only an oasis of stability and security, but also a favorable starting point for business, thanks to its designated tax preferences and access to one of the most reliable banking systems in the world. Here you can find not only a comfortable place to live, but also a wide range of investment opportunities.

Investment opportunities

Particular attention should be paid to the acquisition of real estate, which remains the most affordable way of obtaining residency status and further citizenship. Every day the number of Russians seeking to settle in this sunny and friendly corner of the world is only growing.

• Reliability and safety
• Developed banking system
• Favorable tax conditions
• High quality of life

I see people choosing more familiar ways of investing - through real estate and profitable deposits. This is a really sensible and safe move in the context of the instability we are seeing in other countries.

Panama's investment program

Panama's investment program is accessible and transparent, and I am sure that each of you will be able to find the best option for yourself and your family among the many offers. Whether it's obtaining a passport or the opportunity for effective capital growth, Panama opens the door to a new lifestyle where safety and comfort are top priorities.

I truly believe that this island of opportunity can become not only a new homeland for you, but also a true home.