Applying for Panama Friendly Nations Visa

When it comes to getting a second residency, living there in a long-term basis is never the plan. A lot of countries that offer residency programs are undesirable places to have a long-term stay in the very first place. However, this is possible in Panama where you can live a great life in this beautiful country.

 

Why is Panama a great place for second residency?

 

rural areaWhen it comes to its geographical location, Panama is a great hub. Its geographical location is excellent for many different locations within the America in a span of hours. There are daily flights from the international airport of Panama to the other parts of the world. You can expect for more flights coming in and out in Panama as the airport grows more.

 

Its nature is full of rainforest and tropic islands. If you are outside of the city in Panama, you can arrive in just 30 minutes to the exquisite landscape of the rural area of this city. Your eyes will witness a thick, green fauna wherever your eyes wander. Also, there’s a plenty of great choices for exploration and hiking. Different and numerous islands await for your visit. The Bocas del Toro and the San Blas Islands are the most popular ones to visit.

 

Panama is both warm and rainy. Its temperature is between 23-30ºC for most of the year. It rains daily for several hours during the summer season. The weather in Panama is precisely one of the factors that this country is not getting a top score with most of the expats.

 

Panama’s People and Its Culture

The Latin American has a friendly culture. Comparing it to its neighboring country, Colombia, the Panamanian people are more aloof and reserved.

 

Is the Panamanian economy good?

Panama has a stable economy where it has a solid growth as its currency is in the value of dollar. Dof the last few decades, the development of the Panamanian economy is doing very well. Its banking sector has a big role and the Panama canal is bringing in a constant revenue too.

 

Another important role is its US dollar currency. There are several Latin American countries that are struggling in keeping a stable currency and are consistently facing the high risk of inflation. However, Panama doesn’t have its own central bank or own currency. Thus, the government cannot simply print money and find it hard to inflate the currency in generating a revenue to keep it going. The money must be from the other sources such as some specific programs that would bring investors in the country.

 

Is Panama a safe country?

The Republic of Panama is generally a safe country. It is a must that you look after yourself especially in the dark areas of the major cities in Panama. A higher risk is present for pickpockets than what you are used to in the Western countries.

Tax in Panama

perpetual travelersThe tax system in Panama is totally the core element of what makes it a great place for investors, perpetual travelers and geographically independent entrepreneurs in getting a permanent residency here.

 

With its great landscape and stable economy, getting a Panama Friendly Nations Visa is the popular and the easiest residency program that the country offers. However, there are a lot of choices that you can get too such as the pensionado Visa which takes a minimum of  $1, 000 monthly pension, the Panama Agricultural Investor Program which takes a minimum of $60,000 for investment in an agricultural business, the Reforestation Investor Visa which values a minimum of $80,000  investment of a certified five hectares reforestation project, the Business Investor Visa which has a minimum of $160,000 investment for a business in Panama, the Economic Self Solvency Visa with a minimum of $300,000 investment in real estate and/or a fixed deposit account in a Panamanian bank.

 

 

In addition, the Republic of Panama is offering the most common way in getting residency that is available in most of the countries such as residence through a marriage to a Panamanian or by being a parent to a child that is born in Panama.

 

Personal Income Tax in Panama

Panama is using a territorial-based taxation system. Both the residents and the non-residents are only based on their income that they get within Panama. This means that any income generated outside of Panama is zero tax. Otherwise, it is subject for a tax.

 

Tax exemption is for the first $11,000 taxable Panama-source generating income. A huge percentage of the Panamanian population are paying no direct taxes despite the increase of the average wages. An income from $11,000 to $50,000 is subject to tax at 15% while 25% will be subject to income that exceeds $50,000.  Furthermore, a 0% to 0.7% is for the property tax.

 

 

Value-added tax

7% is the standard VAT (Value-added tax). A special rate of 10% for the accommodations and a 15% for alcohol.

 

 

Withholding tax

Resident companies should withhold 10% on its dividends that are distributed from domestic profits and 5% on dividends distributed from their export profits or foreign-source profits. Payment of interests and royalties to a non-resident are subject to a 12.5% withholding tax.

 

 

How to Get the Panamanian Citizenship & Passport

The Panamanian passport has a 39th ranking out of on the Henley Passport Index last year 2019. What it does is it gives a visa-free access to 142 countries. The said countries are all the Latin and South America, Russia and the Schengen area. Panamanians are required to have a visa to enter the US territory but wont get any issues in getting one. Also, they have an access the Global Entry program.

 

Panama is officially not recognizing a dual citizenship. This means that you are required to renounce your former citizenship when you get your nationality there. The law in the Panamanian nationality requires you to have an oath of renunciation as a means of naturalization. The oath might not be effective when it’s not done by the relevant authorities of your current country of nationality. This would that you don’t have to give up your original nationality when you become a national in Panama.