Panama News

Minimum amounts for investment visas are increased

As announced in a previous posting, regulations for Immigration Law were being drafted. Executive Decree 320 of 2008 was published this week and gives the fine print for the Immigration Law enacted in early 2008.

Effective August 26, the main changes from current practice would be:

- Tourists may remain in the country only for 90 days, with only those with an original period under 90 days being able to ask for an extension to complete the 90 days when justified (Art. 21),
- Foreign workers within the 10% maximum must have a salary of US$850 monthly to apply for residency and work permit (Art. 79), up from US$500,
- Foreign executives representing foreign multinationals under the WTO Marrakech-round visas must have a salary of US$1000 monthly to apply for residency and work permit (Art. 92), up from US$500,
- Investor permanent visas may only be granted after having asked for three 2-year temporary visas for a total of 6 years (Art. 95),
- Agricultural visa minimum investment is raised to US$60,000 (Art. 96), up from no minimum,
- Forestry temporary visa minimum investment is raised to US$60,000, up from US$40,000, with an additional requirement of 10 hectares purchased (Art. 100),
- Forestry permanent visa minimum investment is doubled to US$80,000, with an additional requirement of 20 hectares purchased (Art. 180),
- Small-business investor visa is eliminated,
- Macro-business investor visa minimum investment is raised to US$160,000, up from US$100,000, with an additional requirement of 5 Panamanian full-time workers (Art. 185, 188),
- Self-solvency investor visa minimum investment is increased to US$300,000, up from US$100.00, left in Panama bank account for 3 years (Art. 192).
- Self-solvency investor visa minimum investment alternatives include also real estate for which at least US$300,000 is paid for, free of mortgage (Art. 193) or a mixture of a 3-year deposit and mortgage-free real estate up to a combined minimum of US$30,000 (Art. 194),
- Self-solvency investor visa real estate may be held under a Private Foundation which founder or beneficiary is the applicant,
- The minimum return on a Panama National Bank CD for the Rentista visa is increased to US$2,000 monthly, up from US$750 (Art. 196),
- Pensionado minimum income is raised to US$1,000, up from US$500, or a mixture of US$100,000 in directly-held Panama real estate (Art. 200 - it does not specify if the property is free of mortgage),
- Pictures must show the face of the applicant (no full burkha pictures) (Art. 245),
- Tourists must enter with passport having no less than 3 months of duration (Art. 255),
- Multiple-entry permits may be issued for up to 5 years, up form 2 years (Art. 262).

The final text of the 2008 Immigration Regulations and Law can be downloaded in PDF files (Yahoo registration required):
http://groups.yahoo.com/group/Live_in_Panama/files/ED320_08Migracion.pdf
http://groups.yahoo.com/group/Live_i...8Migracion.pdf

More about the new Panama Immigration Law in:
"Collapse" at Immigration offices
30-day countdown to new Immigration law requirements
Immigration and Visas
Regulations for Immigration Law are being drafted
2008 Immigration Law finally published


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More...

GordonS

What is the reasoning behind toughening the rules? Too much money laundering? Too many scams? I'd like to hear a few opinions.... thx

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Gordon and Randy,
Canada

MRWOOHOO

I guess there is enough business coming into Panama that they can be a little more choosy? If you have enough money that it needs to be laundered then you can still afford Panama. Guess I cannot blame Panama for increasing the standards. When you think about it, most of the actual increases probably have some relation to inflation as well. At least the 90 day is still there, PHEWWW!!!!!!!

ford007

Not much problem with the Agricultural visa. Most of us will be investing more than 60K anyway. Regulations for the Tourist Visa is a bit tough though. New rules mean we won't be able to extend it and will have to apply again if the 90 day period is expired. Well.. all this said... 90 days will be enough for most of us.

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Queensland Bulls

Will

Sorry for the double posting but theres no way to delete it!

Will

This is a real BUMMER !

Some of the financial requirements have more than doubled.

I was planning to put $40,000 down as was the previous requirement then having enough left to purchase a house. Now I have to show 1000 per month income as opposed to 500 and come up with another 60,000!

This new amendment will prevent alot of retireres from immigrating.

Costa Rica is looking better and better.

BEL-AIR

I have to agree...

ford007

Oh my god!!! I didn't noticed that one. This one really is the spoiler. It will be really difficult for the retirees to come up with such an amount. Many will chose for Costa Rica, I fear.

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Queensland Bulls

panama pirate

These laws are always changing. Check back in a week or a month and you may find something different...seriously!

Will

Yea, you're right Pirate.

But, with infracture being built and constantly improved upon, multi million dollar developments having been completed and other phases being implentented, the Costa Rican Colon holding it's ground, more and more turistas arriving every year and the keen interest in property, million dollar+ homes having been built and more in construction, etc,etc, I doubt very much that the requirements would be loosened.

Quite the opposite, if anything as you say the requirements change often but when was the last time they loosend them verses raised the bar, seriously?


Cheers

crisella74

Pensionado minimum income is raised to US$1,000, up from US$500, or a mixture of US$100,000 in directly-held Panama real estate (Art. 200 - it does not specify if the property is free of mortgage)
Maybe I am reading this wrong but doesn't it mean that you have to have one or the other.. as in if you are showing a 1.000$ income you don't need a 100,000$ investment? It depends on the home country I imagine but most pensions are above 1,000 I think.

Will

Hi,

Yes, more or less.

A couple of months ago it was $40,000, of which I have been told by quite a few knowledgeable people, some of whch have gone this route to aquire Pensionado status, that it was required as a deposit if you can call it that.

It was intended to last for a period of either 3 or 4 years. (Sorry I get confused between Panama and Costa Rica but they both work the same way) anyway, of the 40,000 you were required to w/draw 500 per month. That is comfortable, especially for a person not expecting to be able to earn any more income for the rest of their lives and they could always spend more and probaly did.

Panama of course want you to spend it locally to help the economy and it could be spent on anything even putting it right back into the bank the next day.

So, you essentially have to do both but is only one deposit held in escrow or CD of which pays from what I hear 2 -3% interest, if your lucky. The main reason is of course they want to make sure you are able to support yourself during your stay of 3 years.

I am looking for the whole legislation to define the mixture statement and how this can be used if and when finding property to purchase there.

Since you are still required to withdraw monies monthly, now 1,000 per month, I took the "US$100,000 in directly-held Panama real estate" to mean possibly OR buying say, 1,2,3... of whatever small parcels of land OR 100,000 as PART of a larger parcel of land worth more than 100,000 OR to be used as a downpayment on something worth more than 100,000, etc.

One will still have access to the money. That is my main concern. It is a large jump from 40,000 to 100,000 but for me personally, I intend to purchase property but not everyone wants to buy and 100,000 is a good amount of money to tie up for some folks that are undecided abut buying.

I think its alot to do with the shock factor and such a large jump at once knowing that now you require more than twice as much to really give it a shot.

Theres no gaurantee one will get residency or end up staying after all.

BEL-AIR

- Agricultural visa minimum investment is raised to US$60,000 (Art. 96), up from no minimum,
- Forestry temporary visa minimum investment is raised to US$60,000, up from US$40,000, with an additional requirement of 10 hectares purchased (Art. 100),
- Forestry permanent visa minimum investment is doubled to US$80,000, with an additional requirement of 20 hectares purchased (Art. 180),


Could a person purchase one of these then build a house on this land legally? That would not be so bad then... Or am I wrong in reading this?

No-Non-Sense-Matt

I don't think so. These are usually TEAK reforestation projects. That being said: there's a world of difference between what's "legal" and what's enforced.

Matt

crisella74

Ok, that's a whole different issue then, I thought you only have to show you receive a pension of 1,000$, not to have a deposit from you can redraw money monthly.

BEL-AIR

Agricultural visa minimum investment is raised to US$60,000 (Art. 96), up from no minimum,

Maybe not the forestry visa, but with the agricultural visa, why could I not put a house on this property and kill two birds with one stone.. jajajajajaj

It is getting expensive other wise...