PanamaInvest conferences feature investment opportunities

Panama Invest is a cycle of conferences delivered by the government of the Republic of Panama to potential investors located in key global markets with the aim of disseminating information about business opportunities and attracting foreign investment to Panama. This year Panama Invest will start in Sao Paulo to be followed by Toronto, (Madrid, Tokyo, Munich, Rotterdam and will end with the second edition in the British capital of London.

Thus, under this favorable environment, Panama Invest seeks to showcase a variety of business opportunities for companies interested in setting up their operations in Panama, where the national government has identified important sectors for investment such as maritime services, logistics and transport, mining, tourism, financial services, among others. Moreover, Panama Invest will introduce the strategic function of Panama to serve as platform for the operations of enterprises in the larger Latin American region.

http://proinvex.mici.gob.pa/
http://www.panamainvest2011.com/
http://www.panamainvest.org
http://www.mici.gob.pa
http://www.impulsopanama.gob.pa/
http://www.camarabrasilpanama.com.br
http://es-es.facebook.com/pages/Agencia-de-Inversiones-de-Panam%C3%A1-PROINVEX/165595976815571
http://www.facebook.com/profile.php?id=100001526002538&ref=ts

A New Path for Panama

Journal of Perspectives on Business and Economics has articles on the issues facing Panama.

Volume 25, 2007

Introduction
by Ambassador William A. Eaton

Move Over, Florida: Retirement in Panama
by Allison Warshaw

Panama's Great Challenge: Reforming the Educational System
by Sabrina Harris

Poverty Reduction in Panama's Indigenous Communities
by Jennifer Schappert

Ecotourism in Panama
by Megan Brown

The Concrete Jungle: Panama's Construction Explosion
by Eugene Kiselev

Rethinking External Financing in Panama: Potential Catalyst for Economic Growth and Poverty Reduction
by Jonathan Kamenear

Panama in Transition: The Road to Democratic Legitimacy
by Rebecca Guzman

The Twenty-first Century Panama Canal: Post-Panamax or Post-Panama?
by Antonio Rothenbach

Free Trade and Panamanian Support for Agricultural Producers
by Giancarlo Rivero-Pellegrini

Colón: A Story of Its Own
by Rajan Khatiwada

Women in Panama: Navigating Upstream Against the Current
by Nayla Raad

Mr. Martinelli goes to Washington

Panamanian President Ricardo A. Martinelli visited Washington and met U.S. President Barck H. Obama.










Last year, Martinelli was interviewed by Fox Business News.

Panamapundit logs off

Panamapundit is the username of Sam Taliaferro in his Panama Investor Blog postings until his unfortunate passing away. In his blog he provided updates about business developments in Panama not readily available in English, analyzed from a pro-business perspective and his experience developing a resort community in Panama. He will be missed....

---

Samuel Walker Taliaferro VII

June 10th, 1952 – February 17th, 2011

Sam Taliaferro, devoted father and husband, developer, entrepreneur and cherished friend to hundreds of people around the world, passed away early this morning after a two year battle with cancer.

Words like "pioneer" and "visionary" are used frequently to describe successful people but few truly deserve those titles as much as Sam.

http://primapanama.blogs.com/_panama_residential_devel/2011/02/samuel-walker-taliaferro-vii.html#tp

---

An inventor by profession, Sam developed and patented numerous technologies used by fortune 100 companies throughout the world. He built a number of manufacturing operations to build these technologies, the last one in Costa Rica in 1995.

In 2000 he had an idea to create Valle Escondido, a residential resort community in the mountain highlands of Panama that would appeal to those looking for an exotic yet first world lifestyle. The small village where the project is located has become known throughout the world as a retirement/tourist hot spot due to his marketing efforts and the success of the development. It was rated the number one foreign retirement destination in the western hemisphere by the AARP in 2002 and one of the top five best lifestyle values in the world by Fortune Magazine in 2005. The success of the project lit the fuse that started the real estate boom (and bust) in Panama.

In 2005 Sam began writing the Panama Investor Blog which focuses on the country from an investors prospective and reaches people interested in Panama from all over the world. Current subscription is about 7000.

Sam and his wife Thalia also operate the Valle Escondido resort Golf & Spa located in the center of the residential project. The resort employs about 80 full time Panamanians and is one of the areas largest employers.

http://primapanama.blogs.com/_panama_residential_devel/who-is-sam-taliaferro.html

Are offshore structures for you?

Private Interest Foundations

The private foundations were born some years ago in Panama , in order to give the offshore users a new approach, a more civil and familiar approach.

They have the same Tax and Registry principles, but with a civil oriented system.

The foundations can sign and negotiate commercial contracts eventually and they are not subject to income tax when the income was produced outside Panamanian territory.

The Panama Private Foundation (hereinafter known as PIF) has its origins in the Law 25 of 1995, which in turn was inspired in the PGR or better known as the “Liechtenstein Persons and Company Act”, which contains one of the first references to the private non profit foundations. In Panama, this and the most recent innovations in the Anglo-Saxon Trust enabled the creation of the Private Foundation utilizing the best features and characteristics of both worlds.

A PIF is a legal entity that can be created by either a natural person or a corporation that later transfers part or all of his/her assets to the Private Foundation so they can be managed and protected in favour of the Beneficiaries.

Among the features of the Panamanian Private Foundations we find:

• Quick registration 24-72 hours;
• They provide a fiduciary structure for the orderly transfer and disposition of assets to beneficiaries upon the death of the Founder, keeping control of the assets during lifetime;
• They may be established to have effects from the date of their constitution or after the death of the Founder; According to Law 25 of 1995, inheritance laws that apply in the domicile of the Founder or the Beneficiaries, shall not be effective against the Foundations assets nor may these laws affect the validity or performance of the Foundations objectives;
• Foundations are established to carry the specifics goals set out in the Foundation Charter and may additionally undertake sporadic commercial activities, exercise rights pertaining to their holdings, own property, contract obligations and take part in administrative or judicial proceedings.
• A Private Interest Foundation should be established with a patrimony destined to fulfill its objectives, which shall be no less than US$10,000.00.
• Said patrimony may be increased by additional contributions of the Founder or third parties and does not have to paid in part or in full before the incorporation;
• The assets of the Foundation become legally independent and do not form a part of the private estate of the Founder. Such assets are not sizeable and may not be subject to any precautory action or measure, unless such action or measure pertains to obligations incurred or damages arising from the fulfillment of the Foundations objectives.

Notwithstanding the creditors of the Founder or of a third party shall have the right to contest the contribution or transfer of assets to a foundation when such transfer constitutes an act in fraud of the creditors. The rights and actions of such creditors shall lapse at the expiration of three (3) years, counted from the date of the contribution or transfer of the assets to the foundation was done.

According to article 27 of Law 25 of 1995, Private Interest Foundations are exempt from payment of any taxes, contributions, duties, liens or assessments of any kind arising from the acts of constitution, amendment or extinction of the same, as well as acts of transfer or encumbrance of the Foundations assets and the income arising thereof, when related to:

• Assets located abroad;
• Money deposited by natural or juridical persons whose income does not derive from a Panamanian source is not taxable in Panama for any reason;
• Shares or securities of any kind issued by corporations which income is not derived from a Panama source, or which are not taxable for any reason, even when such shares or securities are deposited in the Republic of Panama.
• The transfer of unmovable property, titles, certificates of deposits, assets, funds, securities or shares carried out by reason of the fulfillment of the objectives of the foundation or the termination of the same, in favor of relatives within the first degree of consanguinity or the spouse of the Founder shall also be exempted from all Panama taxes.

Among the most important uses of the Panamanian Private Foundations we find:

• Family and family office support
• For Tax purposes
• For the protection and management of assets
• For educational purposes Testamentary purposes
• For life annuity purposes
• For charitable purposes
• To receive and manage capital and titles
• For the purpose of serving as guarantee or collateral
• For the management of insurance.

We must comment that several or all uses mentioned above can be given to a particular PIF, there are no restrictions as to the objects or uses one PIF can be given. For example, one PIF can be created to protect assets, but also with a testamentary use or in any case, with all the above-mentioned uses. However, a PIF cannot engage in commercial or for profit activities as a day-to-day activity.

Panama

Panamanian offshore corporations are an easy vehicle to negotiate and close deals.
The simple and yet formal provisions of the Law, render the users to trust the system. The amendments necessary to close one deal are quickly done by registering them at the Public Registry Office, and since it is a government institution, the certificates and Apostilles are easy to obtain in order to sign a contract in a short period of time.

Directors of the companies do not necessarily have to be shareholders and vice versa. Panamanian companies are not bound to issue shares. Powers of Attorneys may or may not be registered in the Public Registry Office.

For over seventy five (75) years the Panamanian offshore corporations has been recognized worldwide as a suitable offshore vehicle and with the proper legal advice can be utilized in a diversity of structures to conduct international business, asset protection, and estate planning, among others.

Among the most important features of the Panamanian offshore corporations we can mention:

• Quick registration in 24 to 48 hours.
• The Panamanian offshore corporations can be registered notwithstanding the nationality of its directors or shareholders.
• The income produced by a Panamanian offshore corporations outside the territory of the Republic of Panama is exempt of paying Income Tax in Panama.
• The capital of the company does not have to be paid partially or fully at the moment of incorporation.
• There is no obligation to file annual reports, financial statements or sworn income declarations, always that the company does not generate Panamanian sourced income.
• Legal entities of any country can be appointed as directors, officer or shareholder.
• There is no obligation to undertake annual meetings of the Board of Directors or Shareholders.
• The directors and shareholders can meet in person, by Proxy, phone or by any other electronic means.
• Three (3) directors are required, either physical persons or legal entities of any nationality.
• The officers (usually a President, a Secretary and a Treasurer) not necessarily have to be directors and one person can occupy one or more or all offices.
• The officers can be either physical persons or legal entities.
• The shares can be issued in nominative or bearer form.
• In any case, the name of the shareholder is not required to be registered at the Public Registry, so confidentiality is ensured.
• The corporate books can be kept in any part of the world and can be managed by electronic files or program.
• A Panamanian offshore corporations can do transactions and own assets in any part of the world, without having the obligation to maintain assets in the Republic of Panama.
• The Panamanian offshore corporations can undertake any type of legal business activity in any part of the world.
• The use of the Apostille is permitted.

Among the most important uses of the Panamanian offshore corporations we can find:

• As a holding entity for shares, bonds, bank accounts, term deposits, investment projects or any other financial or commercial title.
• Owner of shares in other companies, be them Panamanian or foreign.
• Owner of property, such as apartments, lots, houses or any other asset, be them personal or real estate.
• Manager or promoter of international commercial transactions.
• International lease of aircraft, vehicles, machinery, vessels and others.
• Instrument to receive and deliver loans in cash or commissions for products and services.
• Marketing and promotion of products and services.
• Other financial or commercial activities.

Belize

Belize 's modern and up-to-date offshore legislation provides maximum flexibility in global asset protection and tax and investment planning.

Particular features of the Belize international business companies are:

• Registration is quite fast as you can have your company registered in one (1) hour.
• Conducts its trading and business outside of Belize.
• Tax exempt from, the payment of all forms of local taxation, the payment of stamp duties for transactions in respect of its shares and debt obligations or other securities.
• Absence of exchange control.
• Disclosure of the beneficial owner(s) is not required;
• share register may be inspected only by a shareholder;
• nominee shareholders and bearer shares are permitted;
• assets are protected from confiscation or expropriation orders or similar actions by foreign governments.
• Security and Confidentiality.
• Only the Memorandum and Articles of Association are required for public records;
• the registration and deregistration of Registers of Directors, Members, and Mortgages and Charges is optional.
• No minimum capital is required.
• No audit of accounts is required.
• No filing of annual returns is required.
• Only one shareholder and one director are required, who may be a legal entity.
• No company secretary is required.
• No annual general meeting is required, meetings may be held outside of Belize , and attendants may be present therein by telephone or other electronic means.
• Shares may be issued with or without par value and in any currency.
• Re-domiciliation into and out of Belize is permitted, registration in any foreign language is permitted.

Additional reporting compliance may be required from entities doing business with local clients inside said jurisdictions, as well as from shareholders and/or beneficiaries resident in some jurisdiction. Advice from a tax attorney and accountant in your country of citizenship and residence must be sought before using offshore entities.

---

Contact Us through our website, by email, Bitwine or Skype

Webcam Panama banking center

Online video chat by Ustream

Retirement: Why Panama Is the New Florida

Murdock and Johnson on the beach near their home in San Carlos Jeffrey Salter/Redux


Michelle Conlin

Prospective retirees: Panama wants you. The pitch? A plane ride just 21/2 hours from Miami enables the newly poor to swap a wretched retirement in the U.S. for one befitting a royal in the balmy Central American nation. Cash out! Emigrate! Feel rich! Panama—the new Florida.
Spin aside, Panama is increasingly popular among retirement-age types looking to hedge against—or skip out on—the recession. The Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, says the chief factors prodding professional-class Americans to flock to Panama include its First World health care available at Third World prices and the country's pensioner program, which offers some of the deepest retiree discounts in Latin America. Seniors get up to half off on nearly everything, including movies, motels, doctors' visits, plane tickets, professional services, and electric bills. Expats also pay no tax in Panama on foreign income. Nor are they required to pay property tax for the first 20 years.
The fact that a luxe beachfront manse can be had for the same price as a dump in Daytona doesn't hurt, either. "We would have been looking at $3 million in Miami," says Jon Nickel of his 3,000-square-foot oceanfront penthouse in Panama City. Nickel and his wife, Gretchen, bought the place in late 2007 for $250,000, right after Nickel retired from his corporate law job in Portland, Ore., and sold the family's mortgage-free home for $800,000.
The skinny isthmus—nearly all coastline, with a mountain range slicing through the middle—boasts some of the best weather and lowest crime rates in Latin America. Other draws include guilt-free conspicuous consumption, with laughably low prices—by gringo standards—on splurges such as a day of beauty ($10) and a maid ($15 a day).

...

That's not to say life there suits everyone. Things in Panama movereallyslowly. A repairman who says he will be right over might show up days later. Water and electricity service can be spotty. In Panama City, drivers treat stop signs as a mild suggestion. "It takes a little bit of balls to retire here," says Matt Landau, a New Jersey native who is the founder of Panama City-based online portal The Panama Report. "This is not for type As. It's not your turnkey Florida retirement."
Still, boomers who have recently relocated to Panama say they feel as if they have figured out a successful geographic arbitrage. When Stephen Johnson and Linda Murdock were living in Aromas, Calif., they used to moan half-jokingly about how they'd have to retire to Barstow—the armpit of the Mojave Desert, with summers in excess of 100 degrees and winters that can dip below freezing.
Stephen, 63, retired as an executive of the Salinas Valley Solid Waste Authority in June 2008. His wife, Linda, 57, owned a dog-food business.

The pair had watched several friends retire on depleted cash cushions. Many weren't fully eligible for Medicare and wound up spending 50% of their income on health care. The couple's retirement agita was worsened by the fact that they got a late start building equity. "We bought our first house when I was 40 and Steve was 46," says Linda. "We knew we would never have our house paid for by retirement."
Over late-night pinot noir on their patio, they started talking about moving to a developing nation to stretch their money further. They had discovered Panama on a trip there in 2004 and saw it as a bargain-basement paradise. The low cost of living appealed to Steve, whose pension amounted to 40% of his pre-retirement income of $150,000. The surf-perfect weather lured Linda, who took up the sport on her 50th birthday.
CRACKS IN PARADISE
Johnson and Murdock are now known as the gringos who live in the house with the red door. They bought their newly remodeled 1890 hacienda near the beach in San Carlos for $100,000 cash. They moved in last year and rented out their California ranch house. The rent covers the carrying costs on that house.
But Panama isn't only about the beach. The Boquete region in the mountains—Panama's answer to Boulder, Colo.—boasts loads of U.S.-style gated retirement compounds. The big draws of the area are tennis and golf. For those who are more interested in urban amenities, Panama City, which is by the sea, is sprouting yoga studios, bohemian boutiques, health-food stores, and artsy coffee houses.
Still, there are tradeoffs in this seemingly easy life. "Paradise is just a place you visit," says Johnson. "If you live here, you begin to see the cracks." Those include the three months it took them to get their driver's licenses—a process that involved blood tests, a hearing exam, and lines that make a U.S. Motor Vehicles Dept. seem like a fast-food joint.
But Johnson and Murdock have no major complaints, and Panama is certainly better than the Mojave. Murdock surfs—every single day—and says Johnson looks 20 years younger since retiring. They both love the way their dog can run on the beach without a leash and the fact that their doctors, many of them schooled in the U.S., happily give out their cell-phone numbers and actually answer when called. And their social life is far more active than it was in Aromas. They go out with new friends, a blend of expats and natives, almost daily, often for evenings of fish tacos and endless margaritas—for $20. "We have more time," says Johnson. "And apparently we have more money."

Conlin is the editor of the Working Life Dept. at BusinessWeek.
Full text at businessweek.com ...

Panama Arbitration Panel Rules in Favor of Foreign Property Buyers

A decision from a Panama arbitration panel upholds rights of foreign property buyers against local real estate developers.

Panama City, Panama ---- The Panama Center of Conciliation and Arbitration rendered an interesting decision regarding a purchase contract involving local companies as sellers and U.S.-resident foreign nationals as buyers of an apartment in Panama City. The decision is an exception to a string of abuses committed by local developers against foreign investors.

The economic group which developed and sold the residential apartment project and its individual architect as member of said economic group were condemned indistinctly to pay to the foreign promissory buyers the price of the property plus interest until the actual day of its payment, as remedies for damages caused by the defendants for an unilateral breach of the contract, with bad faith being found in their behavior.

The promissory sellers failed to communicate the promissory buyers when the construction of the project began in order to collect the second installment of the purchase price of a condo unit, as required by a promise contract which only stated “second payment must be made 30 days after construction begins”.

Instead, the sellers disposed of the condo unit and sold it to a third party –when the promissory buyers were on time to make the second payment. The promissory buyers later received a letter from the developer informing of their unilateral decision to end the contract because payments were not received in a timely manner which allowed for early termination. The developer offered to return the deposits only if the promissory buyers signed a liability waiver.

Lombardi Aguilar & Garcia in Panama served as legal counsel for the promissory buyers. The legal team of the firm included Guadalupe Martinez-Casas, an attorney with experience in international arbitration cases before fora such as the Court of Arbitration for Sport (CAS) in Lausanne, Switzerland. Ms. Martinez-Casas is a foreign law consultant in Argentine law, who previously served as attorney at the Buenos Aires firm of Llerena & Asociados. She is a graduate of Universidad Latina de Panamá (MBA), Universidad Torcuato di Tella (LLM and Economics), and Universidad de Buenos Aires - UBA (LLB).

About Lombardi Aguilar & Garcia
Lombardi Aguilar & Garcia was created as an alternative for clients worldwide who seek fast, innovative and effective solutions to their legal problems. The firm currently provides services to individual and corporate clients in Panama as well in the Americas, Europe and Asia. Its partners maintain a commitment with professional ethics and social responsibility by participating in the board of directors of groups such as the Panama Bar Association, the German and the American Chambers of Commerce (AMCHAM) of Panama, and the Association of Chinese-Panamanian Professionals (APROCHIPA).

The firm centers its law practice in private client services and asset protection (Private Interest Foundations, Trusts), business structures (Offshore Corporations), tax planning, real estate and e-commerce. It also advices in areas of Law such as Corporate, Commercial, Intellectual Property, Maritime, Tax, and Immigration Law as well as related litigation that may arise.

For more information, contact +507 340-6444, +507 66388707, e-mail aaguilar (at) nysbar.com, or see: Lombardi Aguilar & Garcia http://www.laglex.com/

Keywords: Panama, real estate, property, investment, litigation


###

---

Receive press releases from Lombardi Aguilar & Garcia: By Email
RSS Feeds:

---

See also Lawsuits against developers increase
.

Panama Economy Stays Strong - Bucking World Trends

Panama Economy Stays Strong - Bucking World Trends
Date: 2008-09-18 Panama's economy will continue to grow, say analysts, resisting the global downturn led by US economic woes. "The strong economic performance of the last few years continues, despite the deteriorating global environment," said International Monetary Fund (IMF) officials last week in a public statement. "Panama was one of the fastest growing economies in the world in 2007 with real growth rising to 11.2 percent, following an average growth rate of nearly 8 percent in 2004-06 ... Growth in 2008-09 is projected to slow somewhat, to about 8 percent, with the Canal expansion and related investment activities partially offsetting the effects of higher oil prices and the slowdown in the U.S. and the global economy." The IMF has also upped predictions for Panama's economic growth to 8.3 per cent for this year, up from a more modest estimate of 7.7 per cent in April's World Economic Outlook report. "Despite a deteriorating external environment, economic prospects are favorable," concluded IMF board directors, "thanks to the Canal expansion project and associated investment, as well as improvements in competitiveness reflected in expanding export services such as tourism, communications, and transportation." IMF directors commented that Panama's financial sector has not been negatively affected by the global financial turmoil, noting the 'remarkable turnaround' in the non-financial public sector as well; these factors, combined with the strong economic growth, contributed to Panama's improved credit rating from Standard and Poors earlier this year, earning the country a BB+ (stable). Analysts at Deloitte Touche Tohmatsu, a global auditor, also estimate an increase of 8.5 to 9 per cent growth for Panama in 2008, in their Economic Perspectives 2008 report, "marking the sixth consecutive year of strong growth". According to the latest report by Indesa, a Panamanian advisory and financial services firm, the economy is expected to grow 8.4 per cent in 2008 and nearly 10 per cent in 2009, putting Panama at the forefront of economic growth in Latin America , along with Uruguay and Peru, which posted first quarter growth results of 11 and 9.2 per cent respectively. Panama's 2007 gross domestic product (GDP) topped $19.7 billion in 2007, and is projected to surpass $24 billion this year. The driving sectors in Panama are construction, mining, financial services, transport and telecomnunications, and hospitality. Last year, both construction and mining grew by 19.6 per cent apiece according to Indesa, offsetting smaller gains in the manufacturing and agricultural sectors. In fact, it is Panama's service-based economy that has allowed it to weather rising oil prices, as well as its proximity to the US, where economic uncertainty has travelers opting for nearby leisure destinations. Panama is emerging as a significant business and tourism destination in the region for travelers from both North and South America, with the Tocumen airport acting as a regional hub between the continent's major cities. In a report issued by the Panamanian government, authorities estimate the tertiary or service sector accounted for nearly three-quarters of the country's GDP in 2006. "In the past three years (2004, 2005, and 2006), the tertiary sector has developed significantly, with growth rates of 6.8 per cent, 9.4 per cent, and 9.3 per cent," indicated the Panama Trade Policy Review to the World Trade Organization. "Mention should be made of the Colon Free Zone and of the hotel and restaurant subsector, which grew by more than 10 per cent. Other components of the sector also trended upwards significantly, such as financial intermediation, wholesale and retail commerce, and real estate. "The high percentage of GDP that this sector represents and has represented in the past, shows that Panama is a service-oriented economy. In 2006 the sector accounted for 74 per cent of GDP." The external sector has also been a strong economic driver, with the export of goods averaging five per cent annual growth between 1997 and 2006, reaching more than $1 billion USD. By 2006, the net export of goods and services represented one third of Panama GDP. Despite the fact this year's numbers are down from 2007, which saw record growth levels of about 11 per cent, the overall positive trend is in stark contrast to regional predictions. The Economist estimates the mid-term trend for Latin America to average out at 3.9 per cent in 2012, while the IMF predicts a much better performance for Panama. "The medium-term outlook is promising, supported by the canal expansion and other large construction projects," noted the IMF's board of directors last year in a public statement. "For 2007-10, staff projects average annual real GDP growth of about 6.5 per cent, [and] inflation of 2.25 -2.75 per cent." IMF officials commended Panamanian authorities on governmental spending 'restraint' and improved tax collection in reducing public debt and creating a sound basis for economic growth. Declining unemployment, plummeting from 13.6 per cent in 2003 to 7.3 in 2007, was also cited, as was the positive impact of the Panama Canal expansion, expected to be completed in 2013 at a cost of some $5.5 billion. "The project is expected to boost GDP growth and job creation, both directly and by stimulating related industries," noted IMF officials. The Latin Business Chronicle has also placed Panama at the top of its Latin Business Index, thanks to $1.8 billion in direct foreign investment (DFI) in 2007. Panama beat out Chile, which saw more than $14 billion in DFI in 2007, taking the top spot for the higher proportion of investment to its GDP. Inflation, which has typically been very low for Panama thanks to a currency pegged to the US dollar, has risen in step with the recent devaluation of the US dollar. While 2007 saw an increase over the previous year, going from 2.5 per cent to 4.2 cent, Panama's inflation remained well below all other Latin American countries, which averaged 7.75 per cent. However, inflation reached nearly nine per cent in May of 2008, which the IMF largely attributes to rising food and fuel costs.

Registering property in Panama

The World Bank Doingbusiness site has surveys which examine the steps, time, and cost involved in registering property in Panama.

STANDARDIZED PROPERTY
Property Value: 244,500
City: Panama City

Registration Requirements:

No:	Procedure	Time to complete:	Cost to complete:
1*	Obtain a non-encumbrance certificate at the Public Registry Office	2-3 days (simultaneous with procedure 2)	$30
2*	Obtain a certificate of good standing from the General Cadastral Office	15 days (simultaneous with procedure 1)	$5
3	A lawyer prepares the sale agreement	2 days	$ 200 (lawyer’s fees)
4	Payment of the Transfer and Capital Gains Taxes	2 days	2% of property value transfer tax + 10% capital gains tax
5	Notarization of the sale agreement and preparation of the public deed	2 days	$100
6	The public deed is filed and recorded at the Public Registry Office under the name of the buyer	7-10 days	0.25% of property price (registration fee) + $5 for filing + $10 for analyzing the document
7	A copy of the recorded deed is filed at the Cadastral Office to record the new buyer and the new value for tax purposes	15 days	no cost

* Takes place simultaneously with another procedure.

Procedure 1.

Obtain a non-encumbrance certificate at the Public Registry Office

Time to complete:

2-3 days (simultaneous with procedure 2)

Cost to complete:

$30

Comment:

Parties
obtain a certificate of non-mortgage and non-litigation before starting
the transaction. This certificate is obtained at the Public Registry
Office.

Procedure 2.

Obtain a certificate of good standing from the General Cadastral Office

Time to complete:

15 days (simultaneous with procedure 1)

Cost to complete:

$5

Comment:

The
seller must obtain a certificate of good standing with the cadastral
value from the Treasury, which relates to the property tax to be paid
by owners. This certificate can be requested by any third party
interested, and must have the lot number and the page number (document
number), issued by the Public Registry Office. Note that land with a
value under $30,000 is property tax exempt. Property Tax may increase
as high as 2.10% annually based on the cadastral value.

Procedure 3.

A lawyer prepares the sale agreement

Time to complete:

2 days

Cost to complete:

$ 200 (lawyer’s fees)

Comment:

A
lawyer usually prepares the sale agreement (it can also be prepared by
a real estate broker). In any case, the sale agreement -called the
Minuta- needs to be stamped by a Panamanian lawyer prior to being
executed in a public deed. The sale agreement should mention that there
are no mortgages or limitations on the property. The documentation
shall include: Non-encumbrance certificate (obtained in Procedure 1)

Procedure 4.

Payment of the Transfer and Capital Gains Taxes

Time to complete:

2 days

Cost to complete:

2% of property value transfer tax + 10% capital gains tax

Comment:

Prior
to filing and recording the public deed at the Public Registry Office,
the Transfer Tax should be paid (if it’s not exempt by any particular
reason established by law) at the Ministry of Economics and Finance, by
the seller. Transfer tax: 2% of the price of the transaction or the
cadastral value, whichever is higher. There is no VAT in Panama for
transfers of property
As of 7/2006, at this time the seller must also pay 10% capital gains
tax, regardless of how long he has owned the property.

Procedure 5.

Notarization of the sale agreement and preparation of the public deed

Time to complete:

2 days

Cost to complete:

$100

Comment:

The
notary notarizes the sale agreement and prepares the public deed. All
transfers of property must be notarized or made into a public deed
before filing for recording at the Public Registry Office. The
documentation shall include: Sale agreement (prepared in Procedure 3)
Receipt of payment of the transfer tax (obtained in Procedure 4)
Certificate of good standing with the cadastre (obtained in Procedure
2)
Good standing certificate with water utility services (show that
payments are up to date)

Procedure 6.

The public deed is filed and recorded at the Public Registry Office under the name of the buyer

Time to complete:

7-10 days

Cost to complete:

0.25% of property price (registration fee) + $5 for filing + $10 for analyzing the document

Comment:

The
public deed is filed and recorded at the Public Registry Office under
the name of the buyer. The registration fee is paid at the National
Bank in favor of the Public Registry Office. The bank has a branch
inside the registry office. Since 1999, there has been an optional
expedited procedure in which one can obtain registration within 24
hours, at an additional cost of $250 though not many people choose it
because it is rather expensive.
The documentation shall include: the notarized public deed (obtained in
Procedure 5).

Procedure 7.

A copy of the recorded deed is filed at the Cadastral Office to record the new buyer and the new value for tax purposes

Time to complete:

15 days

Cost to complete:

no cost

Comment:

A
copy of the recorded deed should be filed at the Cadastral Office to
record the new buyer for tax purposes as the new person responsible for
the payment of the property tax. This should be an internal procedure
after Procedure 6, but in fact, the buyer needs to do it in person so
far. The buyer picks up the certificate of good standing with the new
name and value at the end of the 2 weeks.

Full text in http://www.doingbusiness.org

Panama mortgages reach the $4.85 billion mark

Panama financial weekly Martes Financiero www.martesfinanciero.com

features a series of articles on real estate. Interesting numbers
tell us that:
* The first half of 2007 closed with $4.85 billion in mortgages, led
by Banco General ($0.98), Continental ($0.59, later acquired by
General), HSBC ($0.55), Banistmo (acquired by HSBC), and Banco
Nacional ($0.51).
* They are followed by Caja de Ahorros ($0.45), Scotiabank ($0.20),
BBVA ($0.18), Banvivienda ($0.17) and Credicorp ($0.09).
* Risk analysts point out that banks have increased their mortgage
exposure from 15 0/0 in 2003 to 21 0/0 in 2007.
* S&P analyst Angela Bala says that condo prices have reached very
high levels based on speculation from sale to foreigners, so Panama
banks face the risk of a "possible" mortgage crisis.
* These priced are not based on a local buyer who is unable to pay
$3000 per square meter.
* Despite the real estate boom, Panamanians face a housing shortage
of 160 thousand homes, down from 178 thousand in 2006.
* A square meter of Pacific beachfront costs $2,300.00.
* Investment by developers in Altos del Maria is of $20 million.
* Investment by developers in Malibu will be of $400 million for 1200
houses and 800 condos, with 80 o/o destined to the foreign market.
* In San Francisco, the price of a square meter of land ranges
between $800 and $1500, while in next-door Parque Lefevre they range
between $200 and $900. Middle-class Pueblo Nuevo has parcels between
$80 and $120 a square meter.
* The 2004 Panama Structure Regulations increased the anti-seismic
features - along with the cost - of high-rises.
* Monthly salaries of construction workers range from 2 times the
$300 minimum wage to $1200.
* Inmobiliaria San Felipe has 83 shareholders and has restored 50
apartments and 13 commercial spaces in Casco Viejo, for $6 million since 1995.
* Inmobiliaria San Felipe has 30 proyects in the pipeline and is
planning its IPO.
* The price of the square meter of land in Casco Viejo has increased
from $1000 to $2400, due to the demand from foreigners.
* Foreign competitors entering the market are Shyreen Deer Company
under Kurt Kisto with a $30 million investment in units of $50K and
Adsum Group with an $18 million office building sold at $2,200-2,600/
square meter.
* Only properties with occupation permits registered before August
31, 2007, qualify for 20 year property tax exemptions. Others have
lower tax holidays of 15 years or less.

The full text is available in

http://www.martesfinanciero.com/history/2007/09/04/index.shtml

Requirements for the Solvency Visa

Before buying that expensive real estate hoping to get a Self-Solvency visa, the foreigner must comply with one of the following options:

1) a time deposit account, in his name, with a minimum of two years extendible time deposit in a local bank and a minimum amount of Two Hundred Thousand American dollars (US$200,000.00). This time deposit must be mortgage free. The fulfilment of this requirement must be verified by means of a letter issued by the bank where the time deposit is registered, and the time deposit number must be certified; also the time period of the deposit must be specified. Additional to the above, an authenticated copy of the time deposit certificate or agreement by the bank, must be attached or

2). The ownership, within the national territory of a mortgage free real state property in the amount of Two Hundred thousands (B/200,000.00), or

3). The ownership, within the national territory, of a real state property in the amount of Eight Thousand Dollars (B/80,000.00), plus a two year time deposit in a local bank, with the minimum amount of One Hundred Twenty Thousands (B/120.000.00). This will be proved by the means of a Public Register Certification of the property in behalf of the petitioner and a letter issued by the bank where the time deposit is stating that it is pledge free, the time deposit number, and length of time. Additional to an authenticated copy of the time deposit, a certificate or agreement by the bank must be attached.

Owning a property through a corporation, private foundation or other entity - or buying any property with a mortgage - does not qualify for a Self-Solvency Visa.

This is the official list of requirements, as posted in http://www.migracion.gob.pa/eng/service_popup.php?id=3 on January 15, 2008:

Immigrant Visa and Residence Permit due to Personal Economic Solvency

To grant an Immigrant Visa and Residence Permit due to Personal Economic Solvency for a foreigner or family group that wants to immigrate. CODE: VISEP.

This immigrant’s visa and the corresponding resident permit can be requested by a family group that wants to immigrate all together and establish their permanent residence at the Republic of Panama. The family group must prove that they have, and bring along with them into the country, the proper economic means to support the family expenses such as housing, food, education, health, transportation and so on. This visa can only be requested by a family composed by: a) a couple (formally married and with a marriage registered in the Republic of Panama). b) The parents of the principal requester. c) Under age children; d) Single children over 18 years old but under 25 years, regular students attending high school or university studies can’t apply to this visa, brothers or sisters, over legal age married children, nor brother or sister in law or cousins.

Important: If any of the members of the family group is going to arrive to Panama afterwards, then this individual has to do it after the request of immigrant’s visa was granted to the family. In this case, the person must request an Immigrant visa as a dependent of a family resident.

Processing time frame: 2 to 4 months

REQUIREMENTS:

Foreigner
The costs of the carnets will be paid by the interested party as well as the B/10.00 fiscal stamp for those foreign citizens that require a visa.

Power of attorney and request by means of a lawyer: The Power of Attorney must be presented before a Public Notary or personally before the Directorate of Migration and Naturalization by the visa’s applicant (if it is only one person) or by all the components of the family group over 18 years old (head of family and dependents). This must show the complete general information of the interested parties, including full name and parent’s nationality. In addition, the petitioner must specify all the general information of the lawyer of the applicant and dependents, including office’s address, domicile at the Republic of Panama, telephone numbers and e-mail. Also the complete information of the attached checks must be given (check number, drawing bank’s name, date and amount), list and enumerate the attached documents and quote the facts and legal fundaments that sustain the request. The power of attorney, as well as the request must be stamped or sealed with B/. 4.00 per page. ]

Certified or cashier’s check in the amount of B/ 100.00 in favour of the National Treasury.

Certified or cashier’s check in the amount of B/. 500.00 in favour of the “Ministerio de Gobierno y Justicia” (Ministry of Government and Justice) as a repatriation’s deposit [applicable to persons older than 12 years]

Good Health Medical Certificate [: issued within the three (3) months prior to the presentation date (it must have date, signature and seal with the doctor name, including the code and register number of the physician.]

Penal history and police record issued by the previous country or residence country within the last two years, ( if the interested party has been in Panama for the last two or more years on a consecutive time, this document will not be necessary).

Passport of the country of origin [... with a minimum of six months validity time]

Complete copy of the passport [.of all the applicants]

Two (2) Carnet size photo [...of every one pertaining to the family group dated (no hats or veils and front face and up dated]

Relationship’s evidence [.Marriage certificate and /or Birth Certificate of every children to whom the visa is requested, according to the case]

Letter of responsibility from the married couple: [... or the spouse that claims to be the head of the family and income provider, which will allow the members of the family to support their basic needs such as a home, food, education, transportation, health expenses and so on. ]

Visa Request: [... To apply for this visa, the foreigner must comply with one of the following options: 1. a time deposit account, in his name, with a minimum of two years extendible time deposit in a local bank and a minimum amount of Two Hundred Thousands American dollars (US$200,000.00). This time deposit must be mortgage free. The fulfilment of this requirement must be verified by means of a letter issued by the bank where the time deposit is registered, and the time deposit number must be certified; also the time period of the deposit must be specified. Additional to the above, an authenticated copy of the time deposit certificate or agreement by the bank, must be attached or 2). The ownership, within the national territory of a mortgage free real state property in the amount of Two Hundred thousands (B/200,000.00), or 3). The ownership, within the national territory, of a real state property in the amount of Eight Thousand Dollars (B/80,000.00), plus a two year time deposit in a local bank, with the minimum amount of One Hundred Twenty Thousands (B/120.000.00). This will be proved by the means of a Public Register Certification of the property in behalf of the petitioner and a letter issued by the bank where the time deposit is stating that it is mortgage free, the time deposit number, and length of time. Additional to an authenticated copy of the time deposit, a certificate or agreement by the bank must be attached.]

Provide proof of the amount and source of income that will support the petitioner’s general expenses and of his dependent(s).

Legal Base:
Article 1, paragraph 6, articles 24, 25, and 26 of the Law Decree No.16 of 30 of June of 1960, and Executive Decree No.52 of February 19 of 2003.

Panama City Office Market View

CBRE Panama has an interesting report on the office building market with numbers from the 2006 market:

Panama has experienced a strong recovery and real estate market activity has rebounded in 2006.

Although a significant volume of new Class A buildings were delivery to the market in the first quarter of 2006, lease rates and sales prices have remained relatively stable and are expected to increase once the available space is absorbed.

Construction activity remains strong in the residential market, but has slowed the price in commercial spaces. Panama is steadily positioning itself as a top second home or retirement haven for foreigners within the region. The positive result of a nationwide referendum about the ambitious Panama Canal expansion project has attracted the attention of international companies for related business and offshore relocations.

Furthermore, economic growth projections accounting this project are 2% higher than former estimates.

The Class A office buildings that have been delivered on the first semester, doubling the existing stock have been relatively fast absorbed.

At present, there are few buildings in construction, and in planning stage.

Although inflation and oil prices increased since last year, the Panamanian economy grew of 6.5%.

Panama maintains the best performance of Central America in Foreign Direct Investment (FDI) for the fifth consecutive year, and figures among the top 10 recipients in Latin America.

The overall economic growth in fueled by and increase in tourism, exports of non-traditional products, Free Trade Zone at Colon, and the Panama Canal project expectations.

The construction of the Port of Farfan and the reopening of the former military airport of Howard, both located in the Panama Pacific logistics zone at the west of the city are starting. Dell and other tenants already out of this area, and Singapore Technologies Aerospace is establishing an aircraft maintenance facility. Call center activity, plenty of fiscal incentives, is also strong, and now complemented by back office facilities coming offshore.

Given the current stable political and economic conditions, prospects for Panama�s office market remain positive.

Things may have changed in 2007 but the outlook remains positive. The full text of the report can be downloaded from http://www.cbre.com.pa/PDFs/Panama3q06Ofc-Eng.pdf

Useful Tips on Buying Property in Panama

Your tax dollars at work: The US Embassy publishes a guide with common-sense information for those buying land in Panama. Unfortunately, many do not follow these tips and loose money when they leave common-sense at home.

Panama Information - Purchasing Property

Useful Tips on Buying Property in Panama

February 2006

INTRODUCTION AND SUMMARY. The following is general information on purchasing real estate in Panama. It is not to be construed as legal advice. The different categories of land make it imperative to engage professionals for more detailed information. Real estate laws on the mainland can be quite different than those on islands, coastal areas, and areas near national borders.

Before handing over any money, make sure you consult with a professional and do a proper due diligence investigation over the property to ensure you aren't buying a big problem! It is important to understand the rules and process your property transaction correctly.

Panama has three different types of property;

Titled Property

Titled property is not unlike "fee-simple" titles in the USA. The Panamanian Public Registry has jurisdiction over the registration of titled properties throughout the country. Titled property is verifiable through the Public Registry system and is guaranteed by the constitution of the Republic of Panama. Titled property can also be mortgaged. The bank will register a lien against the title as collateral on the loan. Titled properties are subject to annual property taxes when the registered value is over US$30,000 unless the buyer has obtained an exemption for the construction of a new dwelling. This is a pro-rated tax exoneration based on the value of the dwelling. Buying titled property normally requires the following procedure:

1. Promise to Purchase Contract: A small down payment is made at the signing of the promise to purchase contract. The down payment secures the property and establishes time for the title search and to coordinate payment arrangements for the closing. Registering this contract at the Public Registry ensures the property cannot be sold to another party during the escrow period.

2. Title Search: A proper title search includes: a) verification that the seller in fact has title to the property and it is free and clear of encumbrances, liens, or other issues that could affect the free disposition or transfer of the title; b) a review of the official survey map, and a professional surveyor to physically verify the map points on the property (to avoid future boundary conflicts); c) verification of utility debts (water and sewage d) verification of payment of property taxes and/or of the tax exemption.

3. Buy-Sell Contract: This contract is registered at the Public Registry and the final balance is paid to the seller, or an escrow agent. Payment is made when the title is transferred to the buyers' name. Payment can be issued by a bank, contingent on receiving from the seller proper title to the property. The buyer can open a bank account (or get a mortgage) and then formally request that the bank issue payment as soon as it is presented with the registered public deed transferring title to the buyer. Real estate agents normally get paid only when the sale closes.

4. Title Transfer: The buyer officially owns the property when the title is transferred to the buyers' name. The transfer occurs when the buy-sell contract is signed by each party and registered at the Public Registry. If the title is in the name of a corporation, there is no transfer of title, only a transfer of shares of the corporation. The buyer can keep the same officers in the corporation or appoint new members. Buyers of corporate titled properties through the purchase of the corporation itself, should ensure the annual corporation tax (Tasa Unica) is up to date. A change of corporate officers cannot be officially recorded at the Public Registry if the tasa Unica is in arrears.

Possession Rights Property

Possession Rights Property is not unlike "squatters rights" common in North America many years ago. This property is government owned but is "occupied" or "used" by a Panamanian individual (or Panamanian organization) for some time. Possession rights are generally certified by either municipal mayors, sheriffs, or other government organizations such as the Agricultural Reform Department (Reforma Agraria). Possession rights do not incur property taxes, although registered improvements on possession rights property may incur taxes at a municipal and/or national level. Most Possession Rights properties can become titled through a procedure of purchasing the land from the government, however, the law prohibits titling of possession rights properties in some areas such as certain coastal areas, national parks, or islands. In these cases, as an alternative, the "possessor" of the property can apply for an administrative concession over the land to guarantee the pacific use of it.

Acquiring possession rights over a property normally requires the following procedure:

1. Promise to Purchase Contract: A small down payment is made at the signing of the promise to purchase contract to secure the property, establish time for the title search and to coordinate payment arrangements for the closing. Contracts related to the purchase of Rights of Possession cannot be registered at the Public Registry, but can be authenticated by a public notary.

2. Due Diligence: The due diligence procedures on possession rights property is more complex since there is no central database of information on possession rights properties. Buyers of possession rights should take extra care in their purchase. The following due diligence investigation can be done on possession rights property:

a. Verification of Certification of Rights of Possession: A valid Certification of Rights of Possession is issued by a competent government authority, and contains the possessors' name, correct description of the property in terms of location, size (area), limits, boundaries and neighbors (to the north, south, east, and west).

b. Verification of Survey: A stamped, signed survey by a professional licensed surveyor or topographer, identifying the possessors' name, location and reflecting the same information in accordance with the Certification of Rights of Possession is recommended.

c. Inspection: An inspection will evaluate the physical occupation, no opposition by third persons, and good faith. A physical inspection to identify and mark the points of the property as well as confirmation of these points with the neighbors to ensure that there are no future boundary conflicts should be done by your surveyor. Also, the property should be maintained and fenced to clearly delineate the boundaries.

d. Permitting Verification: If the buyers' intentions are to build a certain type of structure or project on the possession rights property (for example, a marina, port, hotel, airstrip, etc.), it is necessary to verify any national or municipal regulations that may prohibit those activities in the area.

3. Buy-Sell Contract: The final balance is paid to the seller, or an escrow agent, once the possession rights certification is transferred or changed to the buyers’ name. Contracts relating with the purchase of Rights of Possession cannot be registered at the Public Registry, but can be authenticated by a public notary.

4. Possession Rights Certification Transfer: Possession rights for the property are officially transferred to the buyer when the Certification of Rights of Possession is transferred to the buyers' name. Transfer to the buyer’s name occurs when the buy-sell contract is signed by each party. If the possession rights are in a corporations' name, there is no transfer of certification, only a transfer of shares of the corporation. The buyer can keep the same officers in the corporation or appoint new members. Buyers of corporate possession rights properties through the purchase of the corporation itself, should ensure the annual corporation tax (Tasa Unica) is up to date. A change of corporate officers cannot be officially recorded at the Public Registry if the tasa Unica is in arrears.

Concession Property

Concession property is not unlike “land lease” arrangements, common in Mexico or Hawaii. Concession Property is government owned property, where the government has granted a concession to an individual or organization for a specific purpose, such as a real estate development, hotel, or marina. Concessions in Panama are generally granted for a maximum of 20 year (renewable) periods. Some concessions are granted for up to 40 years (renewable) in specially designated areas such as the Amador Causeway or where there are commercial and condominium developments currently being sold (Naos Harbor, for example).

Concession Property is often located on islands, in special coastal or other protected areas where titles are not permitted by law. Real estate developments over concession property often offer investors time share or fractional ownership arrangements. Unlike Possession Rights property, Concession property is guaranteed by the government through a specific contractual agreement.

CONTRACTS IN ENGLISH HOLD NO LEGAL WEIGHT IN PANAMA.

[Moderator says: I have my doubts about this. Yes, title is only transferred through a public deed in Spanish registered in the Public Registry. However, a contract signed by both parties in English can help a defrauded buyer get payback from a solvent seller when submitted before a court along with a translation into Spanish.]

Contracts signed are legally binding documents, and you should ensure that you have read and understood them completely before signing.

All judicial processes in Panama are conducted in Spanish. For any real estate transaction in Panama, a contract written solely in English carries no legal weight, and is generally not recognized. All contracts for property must be in Spanish on a formal public deed, and signed before a public notary, in order to be legally enforceable and where applicable, be filed at the Public Registry.

GET PROFESSIONAL HELP. Buying real estate in a foreign country should not be guesswork. As when purchasing real estate in the U.S., common sense should be the guiding factor. Again, engaging a reputable attorney and licensed real estate broker is recommended. While a good real estate agent can help you through the steps of buying, he cannot provide you with legal advice; an attorney does that. Even some Panama City-based real estate lawyers might not be fully familiar with such intricacies as land law in certain areas, e.g., Bocas del Toro.

[Moderator says: Real estate agents get their fees from the Seller, so when you are a buyer having drinks with a friendly agent, keep in mind his interest is to have the deal go through, not to protect your interest. Ask bluntly your agent and lawyer who are they representing and get their response in writing.]

Reforestation visa requirements

After many expats were left in a Kafkian limbo with the abrogation of Reforestation visas, they made a comeback under a special version of the US$40K Micro-Business Investor visa and now somewhat - official rules are in force.

However, 3 renewals of the first 1-year visa are still necessary to apply for a permanent residence (or 4 renewals if you want to be straightforward). This is something the Immigration English site does not clarify, but is published in the Spanish version of the e-government site and in our blog comments. Only when the investment exceeds US$80K can permanent residency be applied for at the end of the 1st immigrant visa. The investment must be made directly, and not by buying stock in a reforestation company.

Immigrant visa and Residence permit granting a Forest Investor of a Micro Business. VIFOR. 1

Who may apply to this immigrant visa?

Foreigners may apply to this immigrant visa and the corresponding permission of residence, who invest in direct form in the activities of reforestation as natural persons or through a legal person when the investment is no less than 40.000.00 (Forty Thousand “Balboas”).

The foreign applicant must prove to the National Directorate of Immigration and Naturalization the source of founds that he has effectively invested in the plantation of forest species for commercial, environmental, tourist aims or others. When the Immigrant visa has been approved, the foreigner receives a permission of residency for one year and when the same is expiring, the petitioner can request for a definitive permanency.

Only a single foreigner and its employees by company will be admitted and the attempt of violation or the violation of this requirement will bring as a consequence the refusal of the request and the obligation to leave the country.

Note:

• All foreign citizens, that approaches the Directorate of Immigration to perform any procedure, must be previously registered in the Migratory Movement’s Section, whereto has to fulfil the following requirements:
  1. Present two (2) carnet size photos
  2. Present a copy of the page of the passport that containing the general information about him or (her) and copy of the page that shows the seal of the last entry to our country.
  3. Payment of the registration fee.
  4. Complete the register form of the Sworn Statement

• In the case that the request includes dependents, the requirements for the Immigrant’s Visa as a Resident Dependent must be included.
• All documents issued abroad, must be properly annotated or authenticated by the Republic of Panama Embassy or Consulate at the country that issued them, and by the Ministry of Foreign Affairs of Panama.
• All documents issued abroad that are not written in the Spanish Language, must be translated by an Official Public Translator certified by the Ministry of Government and Justice.
• All foreign residents, temporary visitors or alien citizens present in the country with an application being processed that wishes to go abroad and re-enter the country, requires from the National Directorate of Immigration and Naturalization a MULTIPLE INCOMING VISA BEFORE LEAVING THE COUNTRY. The omission of this procedure will incur a One Hundred Balboa fine (B/100.00).
• One month before the termination of the one year Residence Permit that is granted with the Immigrant Visa, the petitioner may apply for the Permanent Residence, with the right to apply for a Panamanian Cedula (I.D. Card)
• All those nationalities that require a Consulted Visa must present with any request, a VALID VISA CERTIFICATION TO PROCESS A RESIDENCE, issued by the Consulted Visa Department of the National Directorate of Immigration and Naturalization.
• The Sworn Declaration must be made in the form supplied by the Directorate of Immigration and Naturalization. This form must be signed by the interested party and be completed in full. To furnish false information carries penal and legal responsibilities and the refusal of the requested visa or its cancellation if already granted. Under age foreigners don’t have to complete this form, but parents or tutors must provide the requested information, although not under the gravity of oath.

The documentation must be COMPLETE at the time of presentation, and in the expressed following order. Small documents such as, birth certificates, health certificates, receipts, etc, must be added to a legal size paper and both faces of the abovementioned documents must be clearly seen, in order to be properly received.

REQUIREMENTS:

Foreigner

At the time of the document presentation, a temporary valid carnet for three months is issued and when the petition is approved a temporary resident carnet for one year is issued. At due time of the previous mentioned carnet, two successive extends can be requested, and if they are approved then a carnet for a validity of two years is issued. The costs of the carnets will be paid by the interested party as well as a B/10.00 fiscal stamp for those foreigners citizens that require visa.

Power of attorney and petition by means of a lawyer [ ... The power of attorney must be presented personally before a Public Notary or at the Receipt of documents for immigrants Section at the Directorate of Migration. It must include the general information of the foreign petitioner (full name, nationality, passport exact address, telephone numbers) as well as the parents full name, nationality and exact address. Also, all the general information of the lawyer must be given (office’s address, fax number, telephone number, e mail address) Within the request, in addition to the complete general information of the principal and the empowered, the complete information of attached check must be stated (check number, drawing bank’s name, date and amount), all the attached supporting documents must be listed, and quote the legal bases that support the request and explain the type of commercial activity that the company will develop. The power of attorney, as well as the request must have a stamp or seal for B/. 4.00 per page. ]

Certified or cashier’s check in the amount of B/. 100.00 in favour of the “Tesoro Nacional” (National Treasury).

Certified or cashier’s check in the amount of B/. 500.00 in favour of the “Ministerio de Gobierno y Justicia” (Ministry of Government and Justice) as a repatriation’s deposit [applicable to persons older than 12 years]

Medical Certificate of Good Health [: issued within the three (3) months prior to the presentation date (it must have date, signature and seal with the doctor’s name, including the code and registration number of the physician. ]

Penal and police record issued by the previous country of residence of the petitioner within the last two years, ( if the interested party has been in Panama for the last two or more years on a consecutive time, this document will not be necessary).

Passport issued by country origin [ .. with a minimum of six months validity time]

Complete copy of passport.

Two (2) carnet size photos [..updated (no hats or veils and front face)

Public Registry Certification: [: in which the legal representation, authorized share capital and the way the shares are divided is shown (shares must be nominative), the physical address and dignitaries and directors names must appear, to which the petitioner must belong. At the same time, the legal representative name and empowered, if any, has to be included.

Certification of the Secretary or Treasurer of the company, whereby the title of the shares issued in favour of the foreign applicant are credited and stating that the shares are released and properly paid (the shares must be of a minimum value of B/.40,000.00). The certification must be signed before Public Notary and it does not have to be subscribed by the interested party.

Certification of a Certified Public Accountant (CPA), where the total direct invested amount in the forestal activity by the petitioner is detailed, certifying that the investor owns the capital. The C.P.A. must attach copy of his or her identification card and the C.P.A.´s carnet.

Copy of the share certificate or certificates issued to the forestal investor.

Authenticated copy by the Ministry of Economy and Finance [.. of the Income tax form along with its payment receipts. If a yearly fiscal period has not concluded since the starting of operations of the company, instead of the income tax form, a copy of the Taxpayer Registry (Registro Unico) along with the original receipt must be supplied to be compared. ]

Authenticated photocopy [.. of the National Authority of Environment’s resolution where the legal entity or the foreigner was approved to be registered in the Forest Registry. ]

Proof of the investment made [... in a direct form in reforestation activities, by a minimum of B/. 40,000.00 (forty thousand B/ 80.000.00 “Balboas”) which can be demonstrated with documents such as: certificate of the Public Registry issued in the name of the interested party, in which the inscription of the property that will be destined to the reforestation is registered, authenticated photocopy of the checks that were made as investment in reforestation, with paid seal of the Bank and the corresponding invoice, customs liquidations of machinery to be used in the reforestation project or another document that certainly proves the investment made in reforestation ]

Complete the form of Sworn Declaration of Personal Background

Legal Basis:

Articles 23^rd. and 26^th of the Law-Decree 16 of June 30 of 1960.

National Directorate of Migration and Naturalization’s Resolution Nº 039 of April 27^th. of 2006. Official Newspaper No. 2555. (Gaceta Oficial)

Comments:

If the petition includes dependants, the investment should be an additional B/4,000.00 per dependant and must comply with the conditions of Resident’s Dependent Visa.