Off-Plan Property – What is it?

Property Panama investment involves purchasing real estate before the construction is fully completed. In Panama, this typically means buying a property while it’s still in the planning stages or during the initial construction phases. This strategy offers a unique opportunity to secure prime real estate at potentially lower prices, with the possibility of significant appreciation by the time the project reaches completion.

Understanding the Off-Plan Market in Panama

The off-plan property market in Panama is particularly attractive to investors looking to capitalize on the country’s rapid development and economic growth. As one of Central America’s most dynamic economies, Panama offers a thriving real estate market that appeals to both local and international investors.

When purchasing off-plan in Panama, you’re essentially committing to buy a property based on architectural plans, renderings, and the reputation of the developer. This requires a level of trust in the project and the developer, but the potential rewards, such as significant capital appreciation, can be substantial.

The Benefits of Off-Plan Property in Panama

1. Lower Initial Costs: One of the main attractions of off-plan properties is the opportunity to buy at a lower price compared to completed units. Developers often offer discounts and favorable payment plans to early buyers.
2. Capital Growth Potential: As construction progresses, the property’s value typically increases. By the time the project is completed, the market value could be significantly higher than the initial purchase price.
3. Customization: Buying off-plan allows you to choose specific features, finishes, and layouts, tailoring the property to your preferences.
4. Modern Amenities: New developments in Panama often come with state-of-the-art amenities and sustainable building practices, making them attractive to future buyers or tenants.

Off-Plan Property Panama: The Risk of Investment

While off-plan properties can be lucrative, they come with certain risks that need careful consideration:

1. Project Delays: Construction timelines can be delayed due to unforeseen circumstances. Weather, material shortages, or regulatory approvals, potentially pushing back the completion date.
2. Market Fluctuations: Real estate markets can be unpredictable. If the market dips before the project is completed, the value of your investment might be lower than anticipated.
3. Developer Risk: The success of an off-plan project heavily depends on the developer’s reliability. A strong reputation and a history of delivering quality projects on time are crucial.
4. Limited Tangibility: Buying off-plan means committing to a property that exists only on paper. It requires confidence in the blueprints and trust that the final product will meet your expectations.

Typical Costs and How It Works

When purchasing an off-plan property in Panama, the process typically begins with selecting a project and securing a unit through an initial deposit. The payment plan is usually structured as follows:

• Reservation Fee: 5% to 10% of the purchase price, payable upon signing the preliminary contract or reservation form.
• Down Payment: 10% to 20% of the purchase price, due within 15 to 30 days after signing the purchase agreement.
• Progress Payments: 30% to 50% of the purchase price is paid in several installments, linked to specific construction milestones, such as:
  • Laying the foundation (approximately 10% of the purchase price)
  • Completion of the structural framework (approximately 10% to 15% of the purchase price)
  • Completion of the facade (approximately 10% to 15% of the purchase price)
  • Interior finishes/technical installations (approximately 10% to 15% of the purchase price)
• Final Payment: The remaining balance (approximately 20% to 30% of the purchase price) is paid upon key handover or when the property is registered in your name.

Example Investment in Costa del Este

Costa del Este is one of Panama’s most sought-after neighborhoods, renowned for its modern infrastructure and high-quality living standards. A typical off-plan investment in Costa del Este might involve a project like the “Arcadia” building, slated for completion by the end of 2023. Units in this development range from 70 to 76 square meters, with prices starting at $276,000. This area is particularly attractive due to its strategic location, proximity to business hubs, and high rental demand.

Off-Plan Property Panama: Key Considerations Before Buying

1. Developer Reputation: Research the developer’s track record. Have they completed similar projects successfully? Speak to past clients or visit their previous developments if possible.
2. Location: The location of the property is vital. Consider proximity to amenities, transportation links, and future development plans in the area. A well-chosen location can significantly enhance the value of your investment.
3. Contract Details: Ensure that the contract is detailed and clear, covering aspects like payment schedules, delivery timelines, and penalties for delays. Legal advice is strongly recommended to safeguard your interests.
4. Exit Strategy: Consider your long-term goals. Are you looking to rent the property, sell it upon completion, or use it as a vacation home? Understanding your exit strategy will help guide your investment decisions.

Expert Legal Support for Foreign Buyers

Navigating the legal landscape of off-plan property investments in Panama can be complex, especially for foreign buyers or those purchasing remotely. To ensure a smooth transaction and protect your interests, our licensed Panamanian lawyer, Karen, is available to assist with all legal aspects of your investment. We help our clients by:

• Contract Review: We thoroughly review the developer’s contract, highlighting any risks or unfavorable terms.
• Risk Management: Karen will clearly explain the potential legal pitfalls and provide strategies to minimize these risks.
• Tailored Advice: We offer personalized advice based on your specific circumstances, ensuring you make informed decisions throughout the process.

With our expertise, you can invest with confidence, knowing that your legal rights are protected and that you have a trusted partner to guide you through the complexities of the Panamanian real estate market.

Common Complaints About Off-Plan Buying in Panama

While investing in off-plan properties in Panama can be rewarding, there are some common complaints and risks to be aware of:

1. Hidden Costs: Buyers sometimes encounter unexpected costs that were not disclosed upfront. It’s crucial to thoroughly review all financial aspects of the purchase agreement.
2. Legal Issues: Navigating Panama’s property laws can be complex. Issues like unclear titles or disputes over property ownership can arise.
3. Scams: There have been instances of fraudulent activities. Such as developers selling the same property to multiple buyers or misrepresenting the project’s progress.

Off-Plan Property Panama – Final Thoughts

Investing in off-plan property in Panama offers an exciting opportunity to be part of the country’s rapid development. While it requires careful planning and due diligence, the potential rewards can be substantial. By choosing the right project, working with a reputable developer, and utilizing expert legal support, you can secure a high return on your investment. Enjoy the benefits of owning property in one of the most promising markets in Latin America.

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Introduction

Panama Golden Visa: In a world of increasing uncertainty, having a second residency or citizenship is more valuable than ever. Panama, with its stable economy and welcoming environment, has emerged as a top destination for those seeking a secure Plan B. The introduction of Panama’s Golden Visa in October 2020 has made this process even more attractive, offering a fast-track to permanent residency with minimal hassle. This article will guide you through everything you need to know about Panama’s Golden Visa, from its benefits to the application process, and how it compares to other visas.

What is Panama’s Golden Visa?

Panama’s Golden Visa is a special residency program designed to attract foreign investment into the country. It allows investors to gain permanent residency status in Panama in exchange for a qualifying investment. One of the most appealing aspects of this visa is that it does not require the applicant to travel to Panama to complete the process. Instead, the application can be handled entirely through a Panamanian lawyer.

Why Choose Panama’s Golden Visa?

The Golden Visa stands out among residency programs for several reasons:

1. Priority Processing: Applications submitted under this program are treated with the highest priority. Ensuring faster processing times compared to other visa categories.
2. Fast Approval: The visa can be processed in just 30 days. Making it one of the quickest routes to residency in Panama.
3. No Physical Presence Required: Unlike many other residency programs worldwide, Panama’s Golden Visa does not require you to visit the country to apply.
4. Lifetime Residency: A one-time application grants you lifetime residency, as long as you maintain your investment for at least five years.

Comparison with Other Panama Visas

Panama offers several residency options, but the Golden Visa is unique in its simplicity and efficiency. For instance, the Friendly Nations Visa also offers a path to permanent residency, but it requires two rounds of applications and physical presence in Panama. In contrast, the Golden Visa demands only a single application and can be completed remotely.

Investment Requirements

To qualify for Panama’s Golden Visa, applicants must make a foreign-sourced investment in Panama. There are three main investment options:

1. Real Estate Investment: You must invest at least $500,000 in Panamanian real estate. This is an increase from the previous $300,000 requirement before November 2022.
2. Brokerage Firm Investment: Another option is to invest a minimum of $500,000 in a Panamanian brokerage firm.
3. Fixed Deposit in a Panamanian Bank: A third option is to place a fixed deposit of at least $750,000 in a Panamanian bank.

It’s important to note that these investment options cannot be combined; you must choose one.

Details on Real Estate Investment

If you opt for real estate, here are the specifics you need to know:

• Minimum Investment: The property must have a minimum value of $500,000.
• Property Status: The property must be titled (not a “Right of Possession”).
• Ownership: You can purchase the property in your name or through a corporation or foundation, provided you are the ultimate beneficial owner.

The property purchase must be completed before submitting your visa application, and all related documents must be properly notarized.

Required Documentation

To apply for the Golden Visa, you’ll need to prepare several documents:

1. Passport: A full notarized copy of your passport.
2. Police Clearance Certificate: This must be obtained from your home country, showing no criminal record in the U.S.
3. Medical Certificate: Issued by a licensed Panamanian doctor.
4. Application Fees: $5,000 for the principal applicant and $1,000 for each dependent.
5. Proof of Investment: Documentation supporting your investment in Panama.

All non-Panamanian documents must be apostilled and translated into Spanish to be accepted by Panamanian authorities.

Why Panama?

Panama offers a unique blend of modern infrastructure, economic stability, and a peaceful lifestyle. It’s a country that welcomes foreign investors and offers them a safe environment to live, work, or retire. With its excellent connectivity, both in terms of transport and technology, Panama is an ideal choice for those looking to establish a secure second home.

The Golden Visa not only provides a hassle-free path to permanent residency but also opens the door to a wealth of opportunities in one of Latin America’s most vibrant economies.

Conclusion

Panama’s Golden Visa is a compelling option for anyone looking to secure permanent residency in a stable, friendly country without the need to travel. With its fast processing times, lifetime residency benefits, and multiple investment options, it’s a program worth considering for your future.

If you’re interested in learning more about Panama’s Golden Visa or need assistance with the application process, feel free to reach out to us. We’re here to help you every step of the way.

For more information reach out to Karen Dorcy.

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Opening a Panamanian Corporation as a Foreigner: Benefits, Process, and Strategic Considerations

Abstract

This paper provides an extensive guide to establishing a corporation in Panama as a foreigner, highlighting the advantages of Panama’s legal, financial, and business environment. It outlines the legal requirements, benefits, and step-by-step process of incorporation. Additionally, it offers a detailed comparison of various corporate structures available in Panama, helping investors choose the most appropriate one for their specific needs. The paper also includes insights from real-life applications and a future outlook on the business landscape in Panama.

Introduction

Panama has long been a popular destination for foreign investors due to its strategic geographic location, economic stability, and favorable tax environment. The country’s flexible legal framework, along with its growing economy, makes it an attractive option for establishing a corporation. This paper serves as a comprehensive guide for foreigners seeking to incorporate in Panama, providing insights into the process, benefits, and strategic considerations. Additionally, it includes an in-depth discussion on choosing the best corporate structure for foreign investors, integrating real-life examples and forward-looking trends to assist potential investors in making informed decisions.

Chapter 1: Understanding the Panamanian Corporate Landscape

1.1. Overview of Panama’s Economy

Panama’s economy is characterized by its significant growth over recent decades. Fueled by the Panama Canal, the key global trade artery that is contributing substantially to the nation’s GDP. The country’s service sector, particularly banking, logistics, and tourism, plays a crucial role in its economic stability. Panama’s dollarized economy further strengthens its financial stability, making it a preferred destination for foreign investment.

1.2. The Legal Framework for Corporations in Panama

Panama’s corporate legal framework is primarily governed by Law 32 of 1927, which allows for the formation of various corporate entities, with the Sociedad Anónima (S.A.) being the most popular among foreign investors. The legal system in Panama is designed to be business-friendly, offering robust protections for corporate privacy, straightforward incorporation procedures, and minimal capital requirements. The flexibility of Panama’s legal framework enables foreign investors to tailor their corporate structures to meet their specific business needs.

Chapter 2: Why Choose Panama for Corporate Formation?

2.1. Tax Advantages

Panama operates under a territorial tax system, where only income generated within Panama is subject to taxation. This means that foreign-sourced income is entirely tax-free, making Panama an attractive jurisdiction for international business operations. Additionally, Panama has signed numerous double taxation treaties. Preventing the same income from taxation in more than one jurisdiction, further enhancing its appeal to global investors.

2.2. Business Privacy and Confidentiality

Panama is renowned for its strict privacy laws, which protect the identities of business owners and investors. Corporations can employ nominee directors and shareholders, ensuring that the true owners remain anonymous. Although the use of bearer shares has been regulated, Panama still offers a high level of privacy for business owners, making it an ideal location for investors concerned with confidentiality.

2.3. Ease of Doing Business

Incorporating a business in Panama is a relatively straightforward process, with many companies being established within a week. There is no requirement for the physical presence of the shareholders during the incorporation process, which makes it convenient for foreign investors. Additionally, Panama offers modern banking facilities that support seamless international transactions, making it easier for businesses to operate on a global scale.

2.4. Political and Economic Stability

Panama boasts a stable political environment, underpinned by a strong, growing economy. The country’s consistent growth rates, low inflation, and use of the U.S. dollar as its currency contribute to its economic stability. This stability provides a secure environment for foreign investors, reducing the risk of doing business in Panama.

2.5. Access to Global Markets

Panama’s strategic location at the crossroads of the Americas, along with its control of the Panama Canal, provides unparalleled access to global trade routes. The country’s free trade agreements with major economies, including the United States and the European Union, further facilitate access to international markets, making it an advantageous location for businesses looking to expand globally.

Chapter 3: The Process of Opening a Panamanian Corporation as a Foreigner

3.1. Pre-Incorporation Requirements

Before incorporating a company in Panama, foreign investors need to prepare several essential documents, including a valid passport, proof of address, and professional references. Additionally, Panamanian law requires all corporations to appoint a resident agent—a legal representative based in Panama. The company name must be unique and verified through the Public Registry of Panama. Investors may also need to open a corporate bank account and prepare the initial capital for the corporation.

3.2. Incorporation Steps

The incorporation process in Panama involves several key steps:

• Drafting and Signing the Articles of Incorporation: The Articles of Incorporation define the company’s purpose, share structure, and management framework. These documents must be signed by the founders and notarized by a Panamanian notary.
• Appointing Directors and Officers: A minimum of three directors is required for a Panamanian corporation, and they can be of any nationality. The corporation must also appoint officers (President, Secretary, Treasurer), who may be the same individuals as the directors.
• Defining Share Structure and Issuance: Panama allows for flexible share structures, including the issuance of bearer shares. However, bearer shares must now be held in custody by an authorized custodian, ensuring compliance with international regulations.
• Registering with the Public Registry: The corporation’s formation documents must be filed with the Public Registry of Panama. This step officially establishes the company as a legal entity.
• Opening a Corporate Bank Account: A corporate bank account is essential for managing the company’s finances. Panamanian banks require an initial deposit and standard due diligence documents.
• Obtaining Necessary Permits and Licenses: Depending on the nature of the business, additional licenses or permits may be required from local authorities or government agencies.

3.3. Post-Incorporation Compliance

Once incorporated, Panamanian corporations must adhere to several ongoing obligations:

• Annual Maintenance Fees: Corporations are required to pay an annual franchise tax and renew their commercial license.
• Tax Reporting: Even though Panama operates on a territorial tax system, all corporations must file annual tax returns, regardless of whether they owe taxes.
• Regulatory Compliance: Corporations must submit annual reports to the Public Registry, maintain accurate accounting records, and comply with any industry-specific regulations.
• Corporate Meetings and Resolutions: Annual general meetings of shareholders are required, during which directors are elected, and significant corporate decisions are made. These meetings and their resolutions must be properly documented.

Chapter 4: Making the Decision: Choosing the Best Corporate Structure for Foreign Owners

4.1. Overview of Corporate Structures in Panama

Panama offers various corporate structures suitable for foreign investors, each with distinct characteristics:

• Sociedad Anónima (S.A.): The most popular structure for foreign investors, offering limited liability to shareholders and flexibility in management and ownership.
• Limited Liability Company (LLC): Similar to the S.A. but with simpler management requirements, making it ideal for smaller businesses or those seeking a straightforward operational model.
• General Partnership (Sociedad Colectiva): In this structure, all partners have unlimited liability and share in the management responsibilities.
• Limited Partnership (Sociedad en Comandita): Hybrid structure, it´s including general partners with unlimited liability and limited partners whose liability is restricted to their capital contributions.
• Private Interest Foundation: Although not a corporate structure, it is often used for asset protection and estate planning. It is suitable for investors seeking to protect personal or family assets.

4.2. Key Considerations for Foreign Investors

When choosing the right corporate structure, foreign investors should consider several key factors:</ p>

• Liability Protection: The extent of liability protection varies across different corporate structures. Investors should assess their risk tolerance and choose a structure that aligns with their liability preferences.
• Taxation: Although Panama’s territorial tax system is generally favorable, specific tax obligations can vary depending on the chosen structure and the nature of the business activities.
• Management and Control: The level of control investors wish to retain over the business can influence their choice of corporate structure. For instance, an S.A. offers more flexibility in management compared to an LLC.
• Compliance Obligations: Different structures have varying levels of compliance and reporting requirements. Investors should choose a structure that aligns with their capacity to meet these obligations.

4.3. Step-by-Step Guide to Choosing the Right Corporate Structure

To select the most appropriate corporate structure, foreign investors can follow this step-by-step guide:

1. Assess Business Goals: Clearly define your business objectives and the role the Panamanian corporation will play in achieving them.
2. Evaluate Risk Tolerance and Compliance Capacity: Consider the level of legal protection you require, as well as your ability to comply with ongoing regulatory obligations.
3. Choose the Right Structure: Make an informed decision based on your assessment, keeping in mind your long-term business strategy.

Chapter 5: Future Trends and Strategic Considerations

5.1. Impact of Global Economic Changes

The global economic environment is constantly evolving, with changes in trade policies, international tax regulations, and economic shifts influencing the attractiveness of various jurisdictions. Investors should stay informed about these trends and consider how they might affect their business operations in Panama.

5.2. Regulatory Developments in Panama

Panama’s regulatory environment is also subject to change, particularly in response to international pressure regarding transparency and tax compliance. Investors should monitor these developments and ensure that their corporate structures remain compliant with both local and international laws.

5.3. Strategic Growth Opportunities

As Panama continues to grow as a hub for international business, new opportunities are emerging in sectors such as technology, finance, and logistics. Foreign investors should explore these sectors for potential growth and consider how their Panamanian corporation can leverage these opportunities.

Conclusion

Establishing a corporation in Panama offers numerous benefits for foreign investors, from tax advantages and business privacy to access to global markets. By understanding the legal requirements, choosing the right corporate structure, and staying informed about future trends, investors can effectively capitalize on Panama’s favorable business environment. This paper has provided a comprehensive guide to help foreign investors navigate the process of opening a Panamanian corporation, equipping them with the knowledge needed to make strategic decisions.

References

• • Panama Corporate Law: Law 32 of 1927. (Accessed from official legal resources)
  • Global Tax Guide: Panama. (Various sources)
  • Economic Reports on Panama: Recent publications from global financial institutions.
  • Local Business Insights: Consultations with Panamanian legal and financial experts.

Disclaimer

The information provided is intended for general guidance on selecting a Panamanian corporate structure. It does not substitute for professional legal or financial advice. Please consider the following:

• • • Professional Advice Required: The recommendations are based on general scenarios and common corporate structures. They do not constitute legal or financial advice. Consult a qualified lawyer or financial advisor for personalized recommendations.
    • General Information Only: The tool provides insights into commonly used corporate structures to assist you in understanding your options. These suggestions may not fit your specific needs. Always seek professional advice to ensure the chosen structure aligns with your business objectives and legal requirements.
    • Accuracy and Completeness: We strive to offer accurate and up-to-date information, but we cannot guarantee the completeness or suitability of the advice provided. The information may not reflect the latest legal or financial developments.
    • Liability: We are not responsible for any decisions or actions taken based on the information from this tool. Final decisions regarding the corporate structure will be made in consultation with legal and financial experts.
    • Data Protection: We are committed to protecting your personal information. Data collected through the survey will be used solely for providing recommendations and will not be shared with third parties without your consent.
    • Consult a Professional: For detailed, accurate, and legally sound advice, consult with a licensed attorney or financial advisor who can provide guidance specific to your circumstances.

By using this tool, you acknowledge that you understand and agree to the above disclaimer. If you have any questions or need further assistance, please contact us directly. The recommendations are based on common solutions and may not be the best fit for your needs. Always consult with a legal professional before making any decisions.

We are happy to help.

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In today’s unpredictable world, having a Plan B for residency is more than just a safety measure—it’s a strategic move towards a secure and fulfilling future. Panama, with its unique blend of modern amenities and tropical allure, offers an attractive alternative for North Americans. This guide provides a deep dive into the process of securing a visa and residency in Panama, delivering quality information akin to a seasoned consultant’s advice.

Why Panama is the Optimal Choice for Your Residency Plan B

Panama has become a beacon for those seeking a residency that offers both financial benefits and a high quality of life. Here’s why it’s the perfect Plan B option:

Tax Benefits and Financial Incentives

Panama’s tax system is designed to protect expatriates’ wealth, offering tax exemptions on foreign-sourced income and positioning itself as an ideal tax haven for your Plan B.

Connectivity and Business Opportunities

As a global banking hub, Panama provides a strategic location that serves as a gateway for international business, travel, and connectivity.

Panama’s Residency Visa Programs: Your Pathway to Plan B

Panama offers a variety of visa programs to cater to different needs, making it accessible for North Americans to find their fit.

The Pensionado Program: A Gateway for Retirees
The Pensionado visa is tailored for retirees, providing permanent residency along with a suite of discounts and benefits, with a manageable pension requirement.

The Friendly Nations Visa: A Bridge for US and Canada Residents
This program is specifically designed for citizens from the US and Canada, facilitating a seamless transition to Panamanian residency through investment or banking options.

The Process: How to Secure Your Residency in Panama

The journey to obtaining residency in Panama is known for its simplicity and efficiency. Here are the steps to follow:

1. Identify the Suitable Visa: Choose the visa program that aligns with your goals.
2. Prepare Your Documents: Assemble all necessary documentation, including financial records and legal clearances.
3. Engage a Legal Expert: Work with a multilingual lawyer like Karen Dorcy, who can navigate the process in English, German, or Spanish.
4. Submit Your Application: Apply through the proper channels with the help of your legal counsel.
5. Relocate and Integrate: Once approved, plan your move and begin your new life in Panama.

Life in Panama: What Awaits You

Panama promises a lifestyle that balances modern conveniences with natural beauty. It’s a country that offers a warm welcome to North Americans, with a cost of living that allows for a comfortable and enjoyable life.

Why North Americans Are Choosing Panama

North Americans are drawn to Panama for its economic resilience, the ease of integration, and the sense of community among expatriates. The country’s safety, natural beauty, and the government’s welcoming residency programs make it an ideal Plan B destination.

Your 5-Step Summary to Establishing Plan B

1. Evaluate Your Needs: Understand what you seek in a Plan B.
2. Explore Visa Options: Find the visa program that suits you.
3. Gather Necessary Documents: Prepare all required paperwork.
4. Consult with Karen Dorcy: Get expert legal guidance.
5. Plan Your Relocation: Make the move and start anew in Panama.

Your Legal Navigator

Karen Dorcy is your expert in Panamanian residency, offering services in English, German, and Spanish. Her expertise ensures that your transition to Panamanian residency is smooth and stress-free.

• Book a free 20 minutes Call

Frequently Asked Questions (FAQs)

FAQ 1: What are the financial requirements for obtaining residency in Panama?

Answer: The financial requirements vary depending on the residency program. For the Pensionado visa, you need to prove a lifetime pension of at least $1,000 per month. For the Friendly Nations Visa, you either need to demonstrate economic ties to Panama, such as owning property or having a local bank deposit, or you can establish a Panamanian corporation with the intention of doing business in the country.

FAQ 2: How long does the residency process take in Panama?

Answer: The timeline can vary, but generally, the process can take anywhere from 3 to 6 months from the time of application submission to the issuance of permanent residency. It’s important to work with a knowledgeable lawyer like Karen Dorcy to ensure all documents are correctly prepared and submitted to expedite the process.

FAQ 3: Can I work in Panama with a residency visa?

Answer: Yes, certain residency visas allow you to work in Panama. For example, the Friendly Nations Visa grants you the right to work in the country. However, it’s essential to obtain a work permit alongside your residency visa to be legally employed in Panama.

FAQ 4: Do I need to renounce my current citizenship to become a resident of Panama?

Answer: No, Panama allows dual citizenship, and you do not need to renounce your current citizenship to obtain residency in Panama. This makes it an attractive option for those seeking a Plan B without giving up their original nationality.

FAQ 5: Is it mandatory to live in Panama full-time to maintain residency?

Answer: No, it’s not mandatory to live in Panama full-time. However, to maintain your permanent residency status, you should visit Panama at least once every two years. This requirement is subject to change, so it’s advisable to consult with your legal advisor for the most current information

Find more information in about this topic in our Spanish and German Blog:

Panama Plan B Guide in Spanish
Panama Plan B Guide auf Deutsch

The post Establishing Your Plan B in Panama: A Guide for North Americans appeared first on Private Office.

Digital Nomad Visa Guide 2024: Are you a European digital nomad eager to explore new horizons, immerse yourself in vibrant cultures, and work remotely from exotic destinations? Look no further than Panama, where the allure of the Panama Digital Nomad Visa beckons with affordability, extended stays, and enticing tax exemptions. Launched in response to the changing work landscape accelerated by Covid-19, this visa caters specifically to the rising population of digital nomads and freelancers.

Why Panama for European Digital Nomads?

Panama offers a wealth of opportunities and amenities for European digital nomads seeking both adventure and productivity. From its bustling urban centers to its tranquil beaches and lush rainforests, Panama provides the perfect backdrop for remote work and exploration. Here’s why Panama should be your next digital nomad destination:

1. Panama Digital Nomad Visa: The Panama Digital Nomad Visa allows you to stay in Panama for up to nine months, with the option to renew for an additional nine months. With minimal income requirements and tax benefits, this visa provides the flexibility and freedom to live and work in Panama hassle-free.
   • Duration: Enjoy a nine-month visa with the option to renew for an additional nine months.
   • Fees: Pay a $250 charge for the National Immigration Agency and a $50 visa card fee.
   • Minimum Income: Demonstrate an annual income of $36,000.
   • Tax Benefits: Experience zero income tax on earnings from outside Panama.
2. Co-working Spaces: Panama City, the vibrant capital of Panama, boasts a thriving co-working scene, with spaces like CoLAB Panama and The Business Hub providing modern facilities, high-speed internet, and a supportive community of fellow digital nomads. These co-working spaces offer the perfect environment for productivity and collaboration, ensuring that you can work efficiently while exploring everything Panama has to offer.
3. Internet Connectivity: Reliable internet connectivity is essential for digital nomads, and Panama delivers on this front. Whether you’re working from a beachside cafe in Bocas del Toro or a co-working space in Panama City, you can count on fast and reliable internet to keep you connected to your work and your world.
4. Language: While Spanish is the official language of Panama, English is widely spoken, especially in tourist areas and business settings. This makes Panama an accessible destination for European digital nomads, allowing you to navigate the country with ease and connect with locals and fellow travelers.
5. Safety: Safety is a top priority for digital nomads, and Panama is known for its relatively low crime rates and welcoming atmosphere. Whether you’re exploring the vibrant streets of Panama City or relaxing on the pristine beaches of Bocas del Toro, you can feel safe and secure knowing that Panama prioritizes the well-being of its residents and visitors.

Panama Digital Nomad Visa Application Process:

Applying for the Panama Digital Nomad Visa is relatively straightforward compared to other countries. Here’s an overview of the application process:

1. Visa Type: The Panama Digital Nomad Visa, distinct from a typical working visa, caters to individuals working outside Panama, supporting global remote workers in leveraging the country’s enticing offerings.
2. Requirements: Applicants must fulfill criteria such as a valid passport, remote work profile, minimum income proof, valid medical insurance, clean criminal record, and evidence of foreign work or self-employment.
3. Income Requirements: Demonstrate a consistent monthly income of $3,000 or an annual income of at least $36,000 to ensure sustainability.
4. Application Documents: Prepare essential documents, including a valid passport, certified copies, passport-size photos, proof of remote work, income certification, employment affiliation documents, health insurance certificate, clean criminal record certificate, and more.
5. Application Process: Follow a comprehensive step-by-step guide, including document preparation, consultation with an immigration lawyer, completing the application, fee payment, submission, and patiently waiting for approval.
6. Renewal Process: Extend the visa after the initial term by adhering to financial requirements and maintaining remote work status.
7. Validity: The Panama Digital Nomad Visa is initially valid for nine months, with the option to extend for another nine, providing a total potential stay of 18 months.
8. Cost: The application involves a $250 evaluation fee and an additional $50 charge for the official visa card. Consider potential legal fees and incidental costs.
9. Taxation: Panama’s territorial tax system ensures minimal income tax for digital nomads, who primarily earn from foreign sources.
10. Application Processing Time: Approximately 40 business days for processing, ensuring an efficient application process. Apply well in advance to account for potential delays.

Conclusion:

Panama presents a promising opportunity for European digital nomads, providing a specialized visa, vibrant co-working communities, a high quality of life, and a favorable tax system. Whether you’re drawn to the bustling energy of Panama City, the tranquil beaches of Bocas del Toro, or the serene mountains of Boquete, Panama offers endless possibilities for remote work and unforgettable experiences. So pack your bags, grab your laptop, and embark on your next digital nomad adventure in Panama. The world is yours to discover!

Sources:

• Digital Nomad Wikipedia
• GOB Panama

Find more information in about this topic in our Spanish and German Blog:

• Digital Nomad Guide in Spanish
• Digital Nomad Guide auf Deutsch

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As an expat living in Panama, you’ve undoubtedly experienced the unique charm and opportunities this beautiful country has to offer. Panama’s stunning landscapes, vibrant culture, and thriving business environment make it an attractive destination for individuals and families from around the world. However, when it comes to your long-term financial and legal planning, the international dimension can bring a new set of challenges to the table.

One aspect of planning that often goes overlooked but is of paramount importance for expats is international estate planning. This is especially critical when considering that your successors may live abroad, and the intricacies of international laws can significantly impact the distribution of your assets. Let’s delve into why international estate planning in Panama should be a top priority for expatriates.

Understanding the Significance:

• Legal and Cultural Differences: Panama, like any other country, has its unique legal and cultural norms surrounding estate distribution. Understanding these differences is crucial to ensure your assets are passed on according to your wishes within the legal framework of your host country.

• Tax Implications: Expats often find themselves subject to the tax laws of both their home country and Panama. International estate planning helps you minimize the tax burden on your heirs by leveraging relevant tax treaties, exemptions, and deductions.

• Protecting Heirs Abroad: If your heirs are living abroad, complications can arise regarding the administration of your estate. Proper estate planning ensures that your assets are accessible to them without undue legal hurdles.

The International Estate Planning Essentials:

Here’s a brief overview of the essential components of international estate planning for expats in Panama:

1. Will and Testament: Draft a will that complies with both Panamanian law and the laws of your home country. This document will specify how you want your assets to be distributed.
2. Trusts: Consider setting up trusts to protect and manage your assets. Trusts can be a versatile tool for international estate planning.
3. Tax Planning: Work with tax professionals who are well-versed in both Panamanian and your home country’s tax laws to optimize your financial situation.
4. Healthcare Directives: Ensure your healthcare and medical preferences are documented in case you become incapacitated.
5. Digital Assets: Remember to include provisions for your online accounts, digital assets, and passwords in your estate plan.
6. Guardianship: If you have minor children, specify guardianship arrangements in your estate plan to avoid potential custody disputes.
7. Professional Advice: Seek advice from legal and financial experts with experience in international estate planning. They can guide you through the complexities and provide peace of mind.

In conclusion, international estate planning in Panama is a necessity for expats, particularly when you consider the global reach of your assets and the international lifestyles of your heirs. Ensuring your assets are distributed according to your wishes while navigating the legal complexities of multiple countries is essential for long-term financial security and peace of mind. If you’re an expat in Panama, make international estate planning a priority to protect your legacy for generations to come.

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The way we work is evolving rapidly, and remote work has become a popular lifestyle choice for many professionals around the world. Recognizing this trend, Panama has introduced the Remote Worker Visa, offering an exciting opportunity for individuals seeking to work remotely in a beautiful tropical setting. In this blog article, we will delve into the details of Panama’s Remote Worker Visa and highlight the benefits it provides for digital nomads and remote professionals.

Panama’s Remote Worker Visa: Embracing Location Independence Panama’s Remote Worker Visa is designed to attract location-independent professionals and digital nomads who wish to work remotely while enjoying the country’s rich culture, natural beauty, and favorable tax environment. Let’s explore the key aspects of this visa program:

1. Eligibility and Requirements: To be eligible for the Remote Worker Visa, applicants must meet certain criteria, including proof of employment or a remote work contract with a foreign company, a minimum annual income of $36,000, and health insurance coverage. Additionally, applicants should provide a clean criminal record certificate and undergo a medical examination.
2. Visa Benefits: Obtaining the Remote Worker Visa opens up a world of benefits for remote professionals. These include:a. Legal Residency: The visa grants legal residency status in Panama, allowing individuals to live and work in the country for up to 18 months, with the possibility of renewal.b. Tax Advantages: Panama offers favorable tax policies, including exemptions on foreign-source income, making it an attractive option for remote workers seeking tax optimization.c. Flexibility: Remote workers can enjoy the freedom to work from anywhere within Panama, whether it’s from the comfort of their home, a coworking space, or even while exploring the country’s stunning landscapes.d. Cultural Immersion: Panama’s rich cultural heritage, vibrant cities, and breathtaking natural wonders provide an immersive experience for remote workers seeking inspiration and a change of scenery.e. Networking Opportunities: Panama has a growing community of digital nomads and remote professionals, offering ample opportunities to connect, collaborate, and build relationships with like-minded individuals.
3. Lifestyle and Cost of Living: Panama’s remote worker visa opens the door to a high-quality and affordable lifestyle. The country boasts a pleasant tropical climate, beautiful beaches, and diverse landscapes. The cost of living in Panama is generally lower than in many North American and European cities, offering remote workers the chance to enjoy a comfortable lifestyle without breaking the bank.
4. Infrastructure and Connectivity: Panama has made significant investments in infrastructure, ensuring reliable and high-speed internet connectivity throughout the country. This is vital for remote workers who depend on a stable internet connection to carry out their professional responsibilities seamlessly.

Conclusion: Panama’s Remote Worker Visa presents an exciting opportunity for individuals seeking to embrace the freedom of remote work in a vibrant and welcoming country. With its attractive tax policies, favorable cost of living, diverse landscapes, and robust infrastructure, Panama is well-positioned to cater to the needs of digital nomads and remote professionals. If you’re dreaming of combining work and adventure in a tropical paradise, the Remote Worker Visa might be the perfect gateway to make that dream a reality.

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Panama has been considered through years as one of the most popular destinations in Central America.  The country is not only well known for its nature, beautiful beaches, and Canal, but also for being one of the strongest economies in Central America. Therefore, seeking new ways to promote the country, the Republic of Panama has launched the Executive Decree No. 198 of May 7th, 2021, which main aim is to promote the country as destination for remote workers or digital nomads.

The executive decree has created a short-term visa that grants a provisional residence of nine months to the applicant with a one-time extension of nine additional months.

The main requirements to apply for the visa include:

To be eligible for this visa, applicants must prove a minimum yearly income of US$ 36,000. The income must come from a foreign source and prove of it must be provided through bank statements or bank certifications.

1. Completed application form, which includes the commitment of the applicant to assume the costs to return to their home country or destination,
2. Three passport photos,
3. Certified passport copies,
4. Non-criminal record from the country of origin or residence of applicant,
5. Affidavit of personal background,
6. Good health certificate,
7. Health insurance policy which must include coverage for the period of stay in Panama,
8. Affidavit of non-acceptance of any work or service offer to carry out business in Panama,
9. Proof of existence of the foreign company in the place where it is registered.
10. Letter of employment on company letterhead, signed by the legal representative, stating the position and functions exercised by the applicant, monthly income, work modality (remote), and commitment to assume the expenses of return or repatriation to their country of origin in case of being necessary.
11. Bank certification or bank statements that prove the applicant’s income comes from a foreign source.
12. If the applicant is self-employed, it will be necessary to prove ownership of a company registered outside of Panama and a sworn statement describing the business activity, services, clients, and revenue. 
13. Payment of US$ 250 in favor of the National Immigration Service.
14. Payment of US$ 50.00 for the Visa Identity Card

For more information on this, contact us at dorcy@fischer-cie.com

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Partners: companies under this law must be constituted from 2 to 5 partners with domicile in Panama.  The partners will remain as the beneficiaries of the company and can only be natural persons who are not involved in another entrepreneurship company.

Resident Agent: traditional corporations in Panama required a lawyer as a resident Agent who will be the contact between authorities and the company.  However, entrepreneurship companies are exempted of this requirement.

Capital: The minimum share capital required is five hundred dollars US$ 500.00.

Taxes: Entrepreneurship companies are exempted of annual corporation tax (tasa única annual). Income tax will also be exempted within the first two years of constituting the company.

Online procedures: Once a public deed which record the constitution of an entrepreneurship company has been duly written and notarized, the registration process and other procedures for its legal operation can be done online.

Other benefits:

• There is an exemption from using Fiscal printers.
• Discounts up to 50% on import duties of supplies and raw material that are required for the creation of innovative products, services or processes.
• The same benefits and incentive given to micro and small companies will be provided to entrepreneurship companies.

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Through Executive Decree No. 722 of October 15, 2020, the Republic of Panama created the Qualified Investor Visa which grants Permanent Resident in the country.

With this decree, permanent residence is granted in a single stage to those foreigners who invest a minimum amount between of US$500,000.00 and US$ 750,000.00 from a foreign source, personally or through a legal entity.

The foreigner, through his attorney, may initiate the residency application process without necessarily having entered the country. Once the Applicant arrives in Panamanian territory, it will be necessary to completes the affiliation process to be able to issue any Migration Identity card.

The procedure will be handled by a special office (Single Window), designed to deal with these requests within a period of thirty (30) business days.

For more information on these issues, please contact.

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