Panama Business Investor Visa
The Panamanian government has identified growing interest among foreigners in participating in the national market and settling in the country. In response, it has developed immigration programs such as the Panama Business Investor Visa, which facilitates enterprise creation and opens the path to residency.
This visa, aimed at entrepreneurs from other countries who wish to live and run a business in Panama, requires a financial contribution and certain legal requirements to be obtained. The team of immigration lawyers at Kraemer & Kraemer offer their experience and knowledge of Panamanian laws. With their specialized advice, investors can submit their application in accordance with the requirements of the authorities.
Overview
The Business Investor Visa allows foreigners to obtain residency by investment in Panama by creating a formal Panamanian company or holding a substantial share in one. It is a special alternative for entrepreneurs who wish to start operations in a growing market, taking advantage of the tax, logistical, and commercial benefits offered by the country.
Unlike other immigration programs, this visa is meant to attract capital, drive job growth, and support local businesses. It focuses on structured investments that have a clear impact on Panama’s economy.
Panama Business Investor Visa Requirements
To obtain a Panama Business Investor Visa, you must comply with certain documentation, commitment to a corporate contribution, and essential requirements:
- An investment in a company registered in Panama of at least USD 160,000 in share capital. This amount must be duly accredited by an audited financial statement and supported by official records.
- The company must be operational* and generate direct employment for at least five Panamanian citizens, who must be affiliated with social security.
- A copy of the company’s Articles of Incorporation and its respective inscription in the Public Registry.
- Certification from an authorized public accountant (CPA) validating the contribution made.
- Proof that the applicant is listed as a shareholder and legal representative of the company.
- Certificate of criminal record from the country of origin or residence.
- Personal documents such as passport, photographs, and official forms. Among others.
*Important: This Panama’s residency by investment program requires your business to operate, pay wages, and follow tax and labor laws. As a result, Panama benefits from real contributions to its economy.
Additional considerations
- The Business Investor Visa allows you to include immediate family members in the application. For each dependent, you must invest an additional USD 2,000 and provide:
- Letter of responsibility.
- Proof of kinship.
- Proof of address.
- Certificate of single status and studies, for those over 18 years of age.
- The Business Investor Visa grants a provisional permit valid for 2 years, during which time the investor must maintain their contribution, comply with the company’s tax and labor obligations, and demonstrate that the corporation operates in accordance with the law. After this period, the applicant may apply for permanent residence by investment, attaching the initial documents (except for criminal records and checks) and:
- Certificate of good standing from the company’s tax authority.
- Business income statement, detailing the applicant’s shares for a minimum of USD 160,000.
- Form 03 (MEF).
- Current certificate of good standing from the company’s social security authority.
FAQs about the Business Investor Visa
A: The money you invest is not directly taxed in Panama. In other words, you won’t pay taxes simply for moving or contributing these funds as capital to your company.
generates tax obligations. This includes the payment of income tax, ITBMS (VAT), and any other applicable taxes depending on the company’s economic activity. In addition, tax returns must be filed and proper accounting records must be maintained.
A: The cost varies depending on the case and legal fees, but in general terms, the following should be considered:
- An investment of at least USD 160,000 in a Panamanian company, either by forming a new business or purchasing a substantial share in an existing one.
- Government fee of USD 5,000 for the main applicant. This includes the immigration process and permanent resident status.
- A refundable repatriation deposit of $800 USD that must be submitted to the National Immigration Service.
- Notary, translation, and legalization costs for foreign documents.
- Legal fees.
A: During the provisional residency period (two years), investors are expected to stay in Panama most of the time, showing a real connection to the country and their company. Although there is no strictly defined number of days by law, prolonged or constant departures may negatively affect the application for permanent residence, as they could be interpreted as a lack of roots. It is recommended not to be absent for more than 6 consecutive months and to maintain continuous corporate activity, which helps strengthen the case before Panama Immigration.
A: Not directly. The country does not have a formal citizenship by investment program. However, after obtaining Panama residency by investment and living in the country continuously for at least five years, you can apply for Panamanian naturalization, provided that you meet the requirements established by law.
Contact us
Investing and legally establishing yourself in Panama is a unique and attractive opportunity. Given the diversity of immigration routes, specialized legal advice is key to a successful process. If you are ready to move forward or are looking for personalized guidance, contact the Kraemer & Kraemer team.