Today's comment is from Christoph Zollinger, a Panamanian lawyer specializing in residency and visas.
Dear A-Letter Reader:
Welcome! Though only a couple hours flight from the US, Panama boasts a unique geographical location that's far away from the US's financial bureaucracy. And once you experience the modern infrastructure of this bustling financial center, the country's impressive tax advantages and low cost of living, you may even want to stay.
If you're interested in making Panama a second home, Panamanian immigration laws provide a wide range of possibilities for foreign investors and retired persons looking for a secure environment to live comfortably.
If you're planning to retire soon, you may want to consider Panama. In accordance with Law 9 of 1987, regulated by Decree 62 of the same year, retired or pensioned foreigners may come to Panama with their dependents and establish residence. The main requirement is to be retired or pensioned by a foreign government, international organization or from the private sector with a monthly income of US$500.00 plus an extra US$100.00 per each dependent. Also, those who have accumulated wealth may qualify to reside in Panama as rentier retirees. The requirement for rentier retirees is a monthly income of US$750.00 from interests generated by a fixed term deposit in the Banco Nacional de Panamá for a 5-year period. According to the current interest rates the amount to be deposited in order to generate the required monthly income is US$203,000.00
According to this law, the holder is entitled to duty free importation of household and personal items up to a total of US$10,000.00, duty free importation of one motor vehicle for personal or family use every two years and exemption from payment of any deposit, charge or immigration right related to the application for this visa.
Rentier retirees, their spouses and children under the age of 18 all can be granted special passports. Using this Panamanian passport signifies residence in Panama rather than nationality. Also, it's important to mention that all duty free imported items must be for the exclusive use of the visa holder and his family. None of such articles may be sold, leased, given as collateral or any kind of guarantee, nor judicially sold, unless the respective taxes have been fully paid or a three-year period since importation has elapsed.
According to immigration Law 16 of 1960, foreigners may move to the Republic of Panama as immigrants provided they have a record of good conduct. Also, foreigners who have capital to invest in the country may engage in commercial activities (except retail sales), apply for a visa, establish as Panamanian residents and eventually obtain citizenship. This is why investor visas fall within the category of immigrant visas.
The self-supporting investor visa allows investors immigrant status if they invest in a fixed term deposit account in a local bank, in real estate property or in a combination of both. The investment alternatives are: a) having a fixed term deposit in a local bank with at least US$200,000.00; b) having real estate property in the applicant's name which is valued at US$200,000.00 or more; or, c) having a real estate property in the applicant's name which should be valued at least US$80,000.00 and a fixed term deposit at a local bank with at least US$120,000.00. The only possible setback is that property cannot be held through a corporation, which is normally recommended for many reasons.
Immigrant visas extend to both the applicant's spouse and children under the age of 18. After 5 years of permanent residence in the Republic of Panama the immigrant may apply for citizenship.
I look forward to your visit so I can welcome you to Panama.
Christoph Zollinger JD
Mossack & Fonseca Co.
http://www.mossfon.com
Editor's Note: Christoph Zollinger will be speaking at The Sovereign Society's Total Wealth Symposium May 17-20. Click here to learn more: http://www.isecureonline.com/reports/191STWS/E191G192/