The New Panama Immigration Law; More Money and Shorter Visas

At the end of February, 2008 Panama passed a new Panama immigration law scheduled to take effect on or around September 1, 2008. The general outline of the law has been passed by the legislature and the legal regulations are being written by the executive. Thus much of the detail of the law remains to be seen.

The old Panama immigration law regarding Panama residency will stay in effect until all the work is done on the new law. Thus, if you are considering applying for Panama residency, consult with a competent immigration attorney now. The new Panama immigration law may not be as good to immigrants as the old. If you do not have access to a competent attorney please feel free to ask ABPanama for a referral.

The new Panama immigration law will not change the status of those already having visas. Also, Panama does not retroactively change laws. Thus it is likely that those already in the visa process will proceed under the old law. However, the new regulations could go either way. Watch the ABPanama newsletter for updates on changes in Panama residency requirements.

The new Panama immigration law spells out that the conditions under which one obtains a visa must be maintained. For example, the cost of a “person of means” visa by which a bank CD is purchased or cash is paid for a house is currently $200,000. Under the new law if these investments are not maintained ones visa for Panama residency becomes invalid. Also, watch the ABPanama newsletter for updates to the new Panama immigration law as the “person of means” amount may go up.

It is likely that other means of obtaining Panama residency will also be effected when the regulations for the new Panama immigration law come out. Beside the “person of means” visa there are the “investor visa,” the “small investor visa,” the two investment levels of the “reforestation visa,” and the pensioner or non-pension retiree visas. Expect to pay more for these after the new law takes effect and expect to renew more often. The suspicion is that the conversion of some these visas into Panama citizenship will go away.

One clear new change in the new Panama immigration law is that if one leaves the country for two years one loses one’s visa. There will be exceptions to this law but one will need to deal with the issue before leaving the country and it is unclear what the exceptions will be. Follow ABPanama’s newsletter for updates.

Please feel free to discuss any real estate or investment issues relating to Panama residency visas with the staff at ABPanama. We can help you make a wise real estate or investment decision as regards Panama residency and the new Panama immigration law. We can help you find competent legal help if needed.

Panama residency under the new Panama immigration law will still be available. You may just need to pay a little more. Don’t let that “little bit more” turn into a “lot more” with an unwise real estate or investment decision. Ask ABPanama for advice and stay ahead of the crowd.