Panama Scraps Planned Increase For Real Estate Investment Visa

10/24/2024 2:27:26 PM

(MENAFN- Newsroom Panama) The government of Panama has published significant updates to its
Qualified Investor Visa (also known as the Red Carpet Visa)
through Decree 193, effective from
October 15th, 2024 . This permanent visa, originally launched to attract high-net-worth individuals by offering a fast-track route to residency, has now undergone crucial changes to its Real estate investment requirements and processing options.

Key Changes to the Real Estate Investment Threshold

Investment Amount Reduced:
The minimum required real estate investment has been
lowered from $500,000 to $300,000 . This amount applies whether the purchase is made directly by the individual, through a Panamanian foundation, or via a corporate entity, provided the applicant maintains beneficial ownership.

Options for Investment Execution:
Applicants can now make the required investment through:

Completed real estate
or
pre-construction projects , facilitated by a
promise of sale contract .

Funds placed in a
trust managed by a Panamanian trustee .

100% payment to the developer
at the time of purchase with a
bank letter of guarantee
from the developer or seller on behalf of the buyer/investor.

Acceptance of Co-ownership Investments:
If the real estate purchase is executed personally, through a company or foundation, co-ownership arrangements are allowed between
spouses or dependents . In such cases, the investment will still qualify, promoting flexibility for families or dependents applying together under the same visa.

Additional Application Details

The processing time remains fast , with approvals typically issued within 30 working days .
The investment must be maintained for at least five years to retain residency status.
Applicants and their dependents can complete the application through a Panamanian lawyer and initiate the process remotely before arriving in Panama.

This adjustment reflects Panama's intention to
boost foreign investment
by making the visa more accessible and attractive to potential investors. The new rules emphasize
flexibility
by including pre-sale projects and trust agreements, which reduce the barriers for those entering the market.

For more information on these updates or to get started with your application, it's recommended to consult with an
immigration attorney
familiar with the latest Panamanian regulations to ensure a smooth process and compliance with all requirements.

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