IL Postcard

How To Louse Up Foreign Investment in Panama-According to One Official

Date: 07/05/2007

Prominent businessman and politician Ricardo Martinelli is speaking out against recent changes in immigration legislation. Martinelli, who plans to run for President in 2009, says 30 days is not enough time for foreign visitors who want to invest in Panama.

A recent amendment to Immigration Law No. 15 stipulates that visitors on tourist visas will be automatically granted 30 days in the country, rather than 90. Tourists can stay in Panama for up to 90 days, but once here, they must go to Panama Immigration offices and apply for an extension of up to 60 days. Immigration representatives say they are working to ensure that the extension process is quick and that petitions are answered the same day.

According to Panama's El Siglo, Martinelli says the measure will push away potential investors from North America and Europe-Panama's biggest buyers. "They [government officials] want to keep watch on citizens from certain South American countries, and for that reason have imposed 30-day visas instead of 90," Martinelli says.

Government officials say the new policy is an anti-crime measure-that undesirables from other countries are driving up the crime rate. Martinelli says he understands the need to control crime, but that the government should focus on applying legislation to those citizens of countries with higher crime and illegal immigration rates. He adds that this would be better than distancing all potential investors by asking them to go through "bothersome" visa extension procedures after a month in Panama.

Most importantly, Martinelli points out that Panama's construction and real estate boom is largely the result of foreign investment.

Martinelli isn't the only person here lobbying for a change or a reversal. Local groups-made up of expats and Panamanians-are also doing what they can to convince ranking officials to review this legislation. Rumor has it top dogs like the Director of Immigration and Vice-President have agreed to look at alternative proposals.

We'll keep you posted on any and every official response to this polemic issue.

Best Regards,

Jessica Ramesch
Editor, Panama Insider
International Living

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