Residency by investment is a long-standing mechanism used by many countries to attract capital, in exchange for specific advantages defined by each offering country. The history of residency or citizenship by investment in European countries, Canada, and Caribbean nations offers multiple examples of this practice.
Panama has maintained its own versions of these visas for several decades, the most recent being the so-called “Qualified Investor Visa”, approved by the Government of Panama in October 2020.
Why choose Panama for your residency by investment?
In a world marked by political uncertainty, economic instability, and constant regulatory changes, having a safe place to live and invest has become essential. Although Panama has also faced its own challenges in recent years, it continues to offer unique advantages for investors and families seeking stability and future opportunities:
Stable and business-friendly environment: Panama maintains an open economy attractive to foreign investment
Solid banking system: With broad experience and a wide variety of financial products, it is considered one of the most developed in the region.
Strategic and attractive locations: From dynamic urban centers to retirement destinations consistently ranked among the best internationally.
International compliance: Panama has been removed from the European Union’s grey list thanks to advances in transparency and anti-money laundering practices.
World-class connectivity: Its international airport and geographic location make it a natural hub with sustained growth.
A competitive option in the international landscape
While other countries have tightened the requirements of their residency-by-investment programs, Panama’s Golden Visa remains one of the most competitive, offering flexibility and attractive advantages for both investors and their families.
What role do trustees and trusts play in the “Golden Visa”?
The Permanent Resident subcategory as a Qualified Investor —known as the Golden Visa and created in October 2020— allows applicants to choose between three investment options:
- Real estate investment
- Stock market investment
- Term deposits in local banks
Within the real estate investment option, the applicant can additionally choose between:
- An already built property
- Property under construction, through the signing of a promissory purchase and sale agreement (“PSA”)
It is precisely in the case of purchasing property under construction where the trust plays a key role: the project developer and the buyer use a fiduciary structure that ensures the seriousness of the investment. The trustee (a regulated entity in Panama) administers the funds and ensures payments are applied in accordance with the contract, protecting the investor’s interests and providing greater legal certainty to the process.
In this way, the trust becomes a tool of confidence both for the foreign investor and for Panamanian authorities, verifying that the investment complies with the requirements of the Golden Visa.
Who reaches out to Assets Trust?
It can be either the foreign investor who is considering to opt for the Golden Visa and also the real estate developer, seeking to facilitate sales that come with this perk for the buyer.
What information must the parties provide?
Both the foreign investor (promissory buyer) and the real estate developer (promissory seller) must go through a Due Diligence process under legal regulations applicable in the Republic of Panama.
In addition, Assets Trust must receive a copy of the signed PSA and both parties adhere to a trust agreement that is already created and operating with its bank account, significantly reducing the times involved.
Who pays for the Trust?
In principle, it is a service that must be contracted and paid for by the investor, without this preventing the parties (investor and real estate developer) from reaching other agreements.
How are fees set?
Assets Trust will negotiate the fees in each case taking into account various factors such as the dates agreed in the payment plan for disbursements to the developer and will be agreed in writing.
What does the investor obtain?
Once all legal requirements and trust processes are fulfilled, Assets Trust issues the certification required for the investor’s application before the National Migration Service.
Who does the procedure before the National Migration Service of Panama
The investor must hire a licensed attorney in Panama to file the application in accordance with current legal requirements.
If you do not have a designated attorney, we can refer you to one we trust.
Our role in the process
This publication focuses on our fiduciary service for real estate investment, but we can also advise and provide referrals regarding the other modalities of the Golden Visa:
- Investment in the capital markets
- Term deposits with local banks
As a fiduciary company, Assets Trust has been authorized and supervised by the Superintendency of Banks of Panama since 1987. With nearly four decades of experience, we have participated as advisors in significant and complex local and international transactions.
Our commitment is to provide you with comprehensive and secure solutions, tailored to your specific objectives and needs.