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A new immigration law in Panama will take effect in August of 2008. Part of this law states that all foreigners in Panama will need to get a new Panama identity card. The department that will oversee this endeavor is the Electoral Tribunal. The Immigration authorities will still be in charge of granting residency in Panama but subsequent to gaining residency the Electoral Tribunal dispenses the Panama identity cards.

According to the August 31, 2008 issue of the English language Panama Star there is another change that came with the new immigration law. Every foreigner in Panama will need to get a new identity card. Those who currently have a "cedula" which is the current Panama identity card will keep their current number but will get a new card.

The paper reports that many residents are already concerned that this will entail another visit to the lawyer and more legal fees and well as another fee for the new Panama identify card. The card will have a new, blue background with a globe. Thus it will be distinctly different from the current Panama identity card which differs by having an "E" before the number and the word "extranjero" for foreigner stamped forever at the bottom of the card.

A flood of North Americans has made Panama a premier retirement destination. Part of this has been Panama's easy residency requirements. Now that the new law has doubled the amount of pension required and raised fees across the board it remains to be seen how this will affect the flow of retirees coming to Panama. Currently you can still get a residency with a Panama identity card but it just costs more.

Besides the number of retirees moving to Panama a large number of younger expatriates have moved here also looking for prosperity and a new life. The option of coming to Panama, investing in a business, hiring Panamanian employees and thus gaining continuing residency is still available. So long at the business and employment continue one can stay indefinitely. You will just need a new Panama identity card.

There is already speculation about a rising cost of living and a real estate bubble in Panama. Speculators who have purchased several "pre construction" condos may get stuck with a drop in prices and chose to drop out of their contracts. This could precipitate a plunge in prices, the speculation goes. Another thought is that if the slightly tougher immigration law starts to scare off retirees they may choose other Central American locations with more attractive immigration requirements and lower real estate prices instead of Panama. This in turn could flatten out the real estate market.

ABPanama has over twenty-three years handling real estate portfolios. If you have questions about Panama identity cards, residency here, property here, or investment here ask us. We do business throughout the country.