Thursday, Aug. 21, 2008

Dear International Living Reader,

Panama has made some changes to its immigration law…changes that will affect you if and when you apply for a residency visa. The government deadline for revealing these modifications was Aug. 26, but lawmakers are now ready to provide official confirmation.

We asked attorney Rainelda Mata-Kelly to clarify these changes for us. Residency visa options remain more or less the same, she told us, but the investment or monetary requirements are higher.

Importantly, if your visa application is submitted prior to Aug. 26, you’re under the wire and should not be affected.

Here’s what Rainelda says about the changes, effective Aug. 26:

“The Pensionado or Pensioner's Residency Permit: This is the most popular option for retirees. Up to now, if you draw a qualified pension of $500 per month, it entitles you to residency and a host of stellar discounts, including 10% to 25% and more on everything from medical treatment to transportation. As of Aug. 26, though, you must draw a pension of at least $1,000 per month to qualify for this option. If you have dependents to include on your application, you'll need to show an additional $250 per month per dependent. Under certain circumstances, though, you’ll be able to obtain this visa with a minimum pension of just $750…we’ll fill in the details in our September issue of Panama Insider.

“The Person of Means Visa: As of Aug. 26, the minimum investment for this visa increases from $200,000 to $300,000. If you plan to live in Panama but not generate income here, this may be the best option for you. To qualify, among other things, you must invest $300,000 in property here. Alternatively, you may place $300,000 in a fixed-term deposit or split the $300,000 between a property purchase and fixed-term deposit.

“The Forestry Investor Visa: Until now, forestry investors have had two options, the Small Forestry Investor Visa and the Large Forestry Investor Visa. Among other things, the requirements include investment in approved forestry projects of $40,000 and $80,000, respectively. As of Aug. 26, those amounts will be $60,000 and $80,000. Before you choose the least expensive option, though, read the next issue of Panama Insider...you may find the $80,000 option is the better deal.”

How much does it cost to apply? What other visa options are there? We'll give you more details in the September issue of Panama Insider. Tune in for a run-down of important investor and work visa options, as well as costs and fees to be aware of, and the upside of these changes, which are meant to modernize the application process.

Jessica Ramesch
Your Panama Insider, International Living

P.S. Panama Insider is your inside line to what’s happening in Panama, from legal issues to health care providers to real estate opportunities and much, much more. If you’re interested in Panama, don’t let another month go by without this valuable research tool. Find out more here.