PANAMA

 

 

 

i. Name of country

PANAMA

ii. Region

Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica

iii. Population

3,928,646 (July 2021 est.)

iv. General Introduction

Panama is a lovely Central American country known for its excellent passport and excellent banking options. Panama is a Spanish-speaking country that is as good as it gets at English. You have the right to live and work in Panama for the rest of your life if you obtain permanent residency.

v. Wifi Speed

Panama City
Download Speed - 21.57 Mbps
Upload Speed - 7.96 Mbps

vi. Electrical outlet

In Panama the power plugs and sockets are of type A and B. The standard voltage is 110 V and the standard frequency is 60 Hz.

vii. Per Capita GDP

Real GDP per capita
$25,400 note: data are in 2017 dollars (2020 est.)
$31,400 note: data are in 2017 dollars (2019 est.)
$31,000 note: data are in 2017 dollars (2018 est.)

note: data are in 2010 dollars

viii. Climate

tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)

ix. Residence-by-Investment

When it comes to becoming a resident in Panama, the process is relatively simple and straightforward, and citizenship can be obtained after only 5 years. You can begin your Panama residency by making a bank deposit and opening a business or investing.

Investment

The interested party will have the following investment options in Panama to demonstrate the purpose of establishing permanent residence under this category:

Invest in the purchase of real estate worth at least $300,000 during the first 24 months following the effective date of Executive Decree No. 722 on October 15, 2020. Following this date, that is, on October 15, 2022, the value of the real estate must be at least US$500,000.00. This sum must come from outside the country, and the property must be free of encumbrances. The property title issued by the Public Registry and the certification of the National Land Authority (ANATI) that accredits the value of the property will be used to prove the investment.

For the reason of Real Estate Investment by means of a Contract of Promise of Purchase and Sale. For which the investor must present a) an authenticated copy of the contract of promise for the purchase and sale of the property in the amount of US$300,000.00; and b) a copy of the contract of promise for the purchase and sale of the property in the amount of US$300,000.00. Authenticated copy of the Trust Contract outlining the trust's disbursements for the purchase sale.

To invest the sum of five hundred thousand dollars (US$500,000.00), through a Brokerage House with a license approved by the Superintendence of the Securities Market of Panama, and with the commitment of the investment for a period of five (5) years.

To invest in a Time Deposit in the amount of seven hundred and fifty thousand dollars (US$750,000.00), for a period of five (5) years, in any Bank with a general license, authorized to operate in the national territory.

Processing Time

Investor applications are reviewed within 30 working days of submission.

Key Benefits

  • After five years, you can apply for Panamanian citizenship.
  • The procedure is simple and inexpensive.
  • To qualify, Panama only requires a small bank deposit, and starting a business is inexpensive.
  • There are no income requirements.
  • You are not required to relocate to Panama in order to keep your residency.
  • Panama speaks Spanish, which is a simple language to learn.
  • The country's economy is expanding at a rapid pace.

Requirements

  • General requirements for visa applications
  • All visa applications must be made through a Panamanian lawyer or law firm.
  • There is no age limit required for applying for any of these visas, save for the minimum legal age of 18 years. Young people under 18 years will qualify for a visa as dependents of their parents.
  • All foreign documents to be presented to the authorities in Panama must be certified by a Notary, and in addition by a Panamanian consulate or apostille.
  • All documents must be recent (within three months of visa application) and passports must have at least one year for expiration.
  • Dependents: Bring a marriage certificate. If your children under 18 are to be covered by your visa, you’ll need to bring recent birth certificates.
  • All visa applications require the applicant to obtain a health certificate and HIV test in Panama.

Procedures and Time Frame

The permit will be issued in two stages. The first stage grants provisional residency for two years, followed by a second stage that grants permanent residency. Once the two-year provisional permit has expired, the applicant may file an application for permanent residence, meeting the same requirements as before, except for the Police Record and the government payments.

Applicants will be able to apply for Panamanian citizenship after 5 years of permanent residency through the naturalization process, and once citizenship is granted, they will be able to apply for a Panamanian passport if they so desire.

xi. Natural Resources

copper, mahogany forests, shrimp, hydropower

xii. Ethnic Groups

Mestizo (mixed Amerindian and White) 65%, Native American 12.3% (Ngabe 7.6%, Kuna 2.4%, Embera 0.9%, Bugle 0.8%, other 0.4%, unspecified 0.2%), Black or African descent 9.2%, Mulatto 6.8%, White 6.7% (2010 est.)

xiii. Languages

Spanish (official), indigenous languages (including Ngabere (or Guaymi), Buglere, Kuna, Embera, Wounaan, Naso (or Teribe), and Bri Bri), Panamanian English Creole (similar to Jamaican English Creole; a mixture of English and Spanish with elements of Ngabere; also known as Guari Guari and Colon Creole), English, Chinese (Yue and Hakka), Arabic, French Creole, other (Yiddish, Hebrew, Korean, Japanese); note - many Panamanians are bilingual

xiv. Religion

Roman Catholic 48.6%, Evangelical 30.2%, other 4.7%, agnostic 0.2%, atheist 0.2%, none 12.3%, unspecified 3.7% (2018 est.)

xv. Median Age

total: 30.1 years
male: 29.6 years
female: 30.5 years (2020 est.)

xvi. Urbanization

urban population: 68.8% of total population (2021)
rate of urbanization: 1.92% annual rate of change (2020-25 est.)

xvii. Physician density

1.57 physicians/1,000 population (2016)

xviii. Government type

presidential republic

xix. Unemployment Rate

6.14% (2018 est.)
6% (2017 est.)

x. Taxes

Headline Personal Income Tax Rate (highest marginal tax rate)

  •  27%

Residents and non-residents of Panama are subject to taxation.

  • Panamanian tax law is based on the territoriality principle, whereby all foreign source income is exempted, but income and revenue produced within Panama are subject to Panamanian tax. In other words, income tax is levied on all revenue produced within the boundaries of Panama, irrespective of where the income is received and of the domicile or residence of the taxpayer. Activities that take place outside Panama are considered foreign source income and not liable to tax. An individual's income generated from salaries, business investments or commercial activities within Panama will be subject to income tax or taxes (capital gain, value added tax (VAT), dividend, interests, etc).

Taxable income Tax rate

  • Up to USD 11,000 - 0%
  • From USD 11,000 up to USD 50,000- 15% for the exceeding of USD 11,000 up to USD 50,000
  • More than USD 50,000- USD 5,850 for the first USD 50,000 and a rate of 25% for any amount above of USD 50,000

Headline Corporate Income Tax Rate (excluding dividend taxes)

  • 25%

Taxes on personal income

  • Panama's tax system is based on a territorial concept of income. Citizens and residents are taxed on income earned from Panamanian sources. Non-residents are taxed only on income from Panamanian sources, and the tax on any type of income paid to a non-resident must be withheld by the payer. Citizens, residents, and non-residents are not taxed on exempt income (i.e. interest on Panamanian government securities, interest on savings accounts, and time deposits maintained with banks established in Panama).

Corporate Tax Rate

  • In Panama, the Corporate Income tax rate is a tax collected from companies. Its amount is based on the net income companies obtain while exercising their business activity, normally during one business year. The benchmark we use refers to the highest rate for Corporate Income. Revenues from the Corporate Tax Rate are an important source of income for the government of Panama.

Panama Taxes

  • Corporate Tax Rate- 25.00%
  • Personal Income Tax Rate - 25.00%
  • Sales Tax Rate - 7.00%
  • Social Security Rate - 23.50%

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