PANAMA AND THE FRIENDLY NATIONS PERMANENT RESIDENCY PERMIT

PANAMA AND THE FRIENDLY NATIONS PERMANENT RESIDENCY PERMIT

Panama Facts Population: 4, 001, 033 Gross Domestic Product: USD 59. 3 billion as of 2017. (official amount to be released). Economic Growth: Panama’s growth for the end of 2017 was of 5. 4%. Internal principal growing activities: wholesale and retail business, construction, real estate developers, transportation of passengers, telecommunications, electricity, water, restaurants, hotels, mines, education. Area: 75 420 km² Language: Spanish

Immigration Panamanian Government issued a new law in 2012 that was created to accept applications for permanent residence for citizens of Friendly Nations of Panama. There are 50+ countries that are included in the Friendly Nations List. There are other types of permits that allow foreigners to live in Panama such as the investment in Real Estate, Work Visas, Special Permits for Retirees, etc. All this permits allow the granting of a Permanent Residency Permit in Panama. VERY IMPORTANT NOTE: In order not to lose the residency permit, you can’t be out of Panama for more than 2 years. Therefore, please don’t forget to visit Panama for at least 2 -3 days every 2 years.

Real Estate Citizens from all nationalities can purchase property in Panama. There are no restrictions on nationalities. There is no obligation to be a resident to buy property in the country. In order to buy property in Panama we suggest getting assistance from certified Real Estate Brokers. Once the property is chosen, the seller will propose a sale contract. Once this contract is signed, the promissory buyer will pay a deposit to secure the property and the final payment is made once the purchase is registered at the Public Registry.

Taxes Panama has a territorial tax system. Panama will tax all income generated or produced in the country. The country has signed several treaties to avoid double taxation. Some of the taxes to be paid in Panama are the following: Income tax, Capital Gains, Real Estate Tax, Real Estate Transfer Tax, Annual Franchise Tax (juridical persons). Inheritance tax, capital acquisitions, capital duty or net worth taxes do not exist in Panama.

Tax incentives Panama has several laws promoting tax incentives for companies that will be established in Panama. Special tax incentives are given to the following: ● ● ● Multinational companies International advisors with clients abroad Micro, small and medium size companies NGOs Corporations established in free zones or special economic activities zones.

Requisites for the application of the permanent residency permit In order to apply for a permanent residency, the applicant will need to bring the following from abroad: 1. 2. 3. 4. 5. Police records for all applicants of legal age. With APOSTILLE. Marriage certificate if the petitioner will come with spouse. With APOSTILLE. Birth certificates if the petitioner will include the children or parents. With APOSTILLE. Passport Second I. D. card from the country of origin. Also, the petitioner needs to open a bank account in Panama and bring the documents mentioned in another slide.

Requisites for the application of the permanent residency permit The rest of the documents to be presented for the Immigration Service are all obtained in Panama: 1. 2. 3. 4. 5. 6. 7. 8. Power of attorney Certified copies of all pages of the passport Health certificates Sworn declarations Certified checks for Immigration Seven coloured passport size photos Share certificate in the name of the petitioner of a Panamanian Corporation. Requisites in another slide. Bank reference letter from the bank in Panama where an account of USD 5, 000. 00 is opened.

Banking Opening a personal bank account is not complicated if you bring all documents requested to your first Panama trip. In order to open a bank account the following is needed: 1. 2. 3. 4. 5. Bank reference letter addressed to the bank where the account is to be opened or to the petitioner. Source of Income documents (tax declarations, work letter, etc. ) A letter from your lawyer stating that the residency permit will be in process. An interview with the bank officer IN PANAMA. A deposit of USD 5, 000. 00 (this amount needs to be deposited for immigration reasons only. ) We recommend leaving a balance of USD 5, 000. 00 until the residency permit is approved.

Organizing a Panamanian corporation Petitioners of the Friendly Nations permit can make their request proving that they own a Panamanian corporation of if they are offered a job with a Panamanian company. If the petitioner will apply through its own Panamanian corporation it can be registered before the trip to Panama with the following: ● Filling in a company request form with the following information: ○ ○ ○ Possible corporation’s name Name and address of all directors (3 directors is the minimum to organize a Panamanian Corporation) Name and address of all shareholders Amount of authorized capital Bookkeeping information, source of funds and purpose of organizing the corporation.

Organizing a Panamanian corporation ● Filling in a profile form for each director and shareholder with the following information: ○ ○ ○ Complete name Contact information Nationality Occupation Tax residency information Copy of passport and second I. D. Once all the forms are completed and signed, we will register the corporation. Normally we register the corporation a couple of weeks before the first trip to Panama. If your corporation will not have any activities afterwards you can keep it (paying an annual fee) or you can dissolve it (dissolution costs are similar to organization costs).

The process at Immigration to get a Permanent Residency in Panama In order to get Permanent Residency in Panama you need to come twice (one trip to apply and one trip to get notified of the Permit). The first trip to Panama timeframe (in working days): 1. 2. 3. 4. 5. 6. 7. Day 1: Interview at the bank account Day 2: Registration at the Immigration Service. If the account is opened USD 5, 000. 00 will be deposited. Day 3: Our paralegal will present the application for the residency permit. Day 4: Visit to Immigration to get a Provisional Residency Card. Day 5: Request for a multiple entries visa (necessary to leave the country). Day 6: Free day before passport pick up. Day 7: Pick up passport at Immigration with the Multiple Visa Stamp and end of first visit to Panama. These dates are subject to increase due to: the bank not opening the account fast, Immigration requesting more documents than expected, and others.

The process at Immigration to get a Permanent Residency in Panama Second Trip to Panama: Within the 6 months after the application of the residency permit, Immigration will issue a Resolution approving the application. We will inform of the approval and the applicant will have 6 months to come to Panama for the second time to get notified of the residency permit been approved. We recommend a visit of a minimum of 3 to 4 working days. First day: Meeting at Lima y Asociados and delivery of passport. Second day: Our paralegal will get notified of the Resolution approving the residency permit. Third day: Getting a new photo for a permanent residency card.

What comes after getting a residency permit? Once the permanent residency is approved and the second visit to Panama is completed, Immigration will send a note to the Civil Registry certifying that the new resident has the right to get a “cedula”. A cedula is an official; government issued identification card that is mandatory to get in order to request citizenship. Your cedula number will also be your TIN number in Panama if you ever have to pay taxes. When to get your cedula: The note from the Immigration Service will be sent to the Civil Registry within 2 months after the notification process mentioned above. We will inform you when you can come to Panama to get your cedula. You have 2 years to come back to Panama to do that. Allow 3 -4 working days to come to Panama.

Working in Panama All permanent residents having a Friendly Nation’s permit will need to request a work permit to work in Panama for a company established here. Work permits can be requested once Immigration has issued a Resolution approving the permanent residency permit. This is a separate process from the Immigration one. Work permits have to be requested at the Labor Ministry and they take around 2 -4 months to be issued. Dependents of the petitioner can also request a work permit once they are hired by a local company.

Citizenship A person can request citizenship after five (5) years from the date of issuance of the resolution approving the permanent residency permit. The requisites for citizenship are: 1. 2. 3. 4. 5. 6. 7. 8. Acquire a permanent residency 5 years before application. Grant a power of attorney to a lawyer in Panama Make a sworn declaration stating the reasons for the petition. Police record of country of origin with Apostille or police record from the country of residency for the last 5 years. Panamanian police record. Authenticated copy of your “cedula”. Documents certifying economic solvency. Personal interview at the Immigration Service in Panama.

Citizenship 9. Tax good standing from the Panamanian Tax authorities. 10. Authenticated copy of the petitioner’s passport from the corresponding Embassy in Panama. 11. Good health certificate obtained in Panama. 12. Immigration’s status certificate. 13. Two (2) passport size photos in formal attire. The complete process from the application of the citizenship until its approval can take from 2 to 3 years. Once you are a citizen you can request a Panamanian passport.

Panamanian Passport Once you become a Panamanian Citizen, you will be able to request a passport. The process takes only one visit to the Passport authority and they will deliver a passport valid for 5 years. Passport request and delivery can take around 3 days in Panama City. Passports can be requested at the Panamanian Consulates too. Panamanian citizens can travel visa-free or with visa on arrival to 129 countries and territories. This includes Schengen territory but not U. S. A. or Canada.

Panama City’s useful information Weather: If you are traveling to Panama, know that we only have 2 seasons: Dry season (Jan to April) and Rainy season (May. December). Temperatures are always summer like with lots of humidity. Transportation : Panama City has a population of more than 1. 5 million so there’s a lot of traffic jam. Expect a lot of traffic jam in Panama specially on rush hour. Around 8: 00 A. M. and around 5: 00 P. M. You can use UBER and CABIFY, they provided a very good service and it’s not expensive. If you have a meeting in the city, request the transport 30 minutes in advance. Renting a car is also easy, we have all major rental car companies in Panama.

Panama City’s useful information Accomodation: If you want to stay in the old town where there a a lot of cafés, bars and restaurants we recommend La Concordia Panamá Boutique Hotel: https: //laconcordiapanama. com/ (it’s a 15 minute drive to Lima y Asociados) If you want to stay in the city center we recommend: Global Panama Hotel: http: //www. globalpanamahotel. com/ (10 minute walk to Lima Y Asociados) Bristol Hotel: http: //www. thebristol. com/ ( 15 minutes walk and 5 -10 minute drive to our offices) W Hotel: http: //www. starwoodhotels. com/whotels/directory/hotels/southamerica/pa (15 minute walk to Lima y Asociados, less than 10 minute drive). There also a lot of big hotel franchises such as: Marriott, Hard Rock Hotel, Sheraton, The Waldorf Astoria, Hilton, Radisson, Tryp Hotels, Crowne Plaza hotels and much more.

Tourism Visit the following places: 1. 2. 3. 4. 5. 6. 7. 8. The Panama Canal. The beaches, the islands you can choose from Caribbean or the Pacific Side even in one day. The Panama highlands in the province of Chiriqui. Panama viejo and the Panama Old Quarter (Casco Viejo). Amador Causeway and the Museum of the Biodiversity. Dining in the city, you can visit a different restaurant every day. There’s a lot of options, from Chinese, Vietnamese, Fusion, Peruvian, Japanese, Italian and of course local Panamanian food. Shopping malls: Multiplaza, Altaplaza, Town Center, Soho Mall, Albrook Mall and others. Museums: Interoceanic Canal Museum, Contemporary Art Museum and Biodiversity Museum.

Safety in Panama is safe for expats, but as in any other city, you always have to be alert and use your basic common sense to avoid petty crimes or armed robbery. Always ask where not to go! Panama has the third lowest murder rate in Central America, behind Costa Rica and Nicaragua. Murders in Panama are highly related to drug trafficking. Your chance of getting murdered/being a victim of a violent crime is very low as an expat in Panama. Pedestrian safety is a concern in Panama, always be careful when you cross a street, crosswalks are not always respected by Panamanians. In conclusion, you will always feel safe in Panama, but there always safety measures to take and places that we recommend not to visit. Always ask before going somewhere new.

Forms and requisites All forms and requisites mentioned in this presentation are provided by Lima y Asociados. A model of all document can be provided by us. Contact us at: Address : PH Edificio Central, 4 to. Piso, Ave. Samuel Lewis y Calle Gerardo Ortega Airmail address: PO Box 0819 -06591, Panama City, Panama Telephones : +507 269. 3552 / +507 264. 3312 Fax: +507 269. 4663 Mail: info@limayasociados. com