Introduction
The Government of Panama has implemented a significant update to residency regulations for foreign investors with Executive Decree 193 of October 15, 2024, which replaces the previous Executive Decree 722 of 2020. This modification maintains the minimum investment amount at $300,000, facilitating the entry of new investors without the need to increase the initial investment.
If you are considering real estate investment in Panama to obtain permanent residency, this change offers you unparalleled opportunities to invest in properties in Panama and diversify your assets in a safe and profitable environment.
1. What is Executive Decree 193?
Executive Decree 193 of 2024 establishes new guidelines to obtain permanent residency in Panama under the Qualified Investor category. This regulation aims to facilitate foreign investment in real estate in Panama, promoting the purchase of properties in strategic sectors such as Panama City, Panama Pacifico, Boquete, and beach areas in Panama. The most relevant changes include:
- Minimum investment amount of $300,000: The initial amount is maintained, allowing investors to enter the market without increasing the required capital.
- Flexibility in investment options: Investments can be made in commercial properties, residential properties, or tourism projects with high profitability.
- Investment Term: The investment must be maintained for a minimum of 5 years to retain permanent resident status in Panama.
This new legal framework makes Panama an attractive destination for real estate investment in Latin America, consolidating its position as a hub for international investments.
2. Benefits for the Qualified Investor
The update through Decree 193 offers multiple benefits to those seeking residency in Panama through property purchase. Some key benefits include:
- Permanent Residency in Panama: Qualified investors can obtain permanent residency along with their immediate family members, allowing them to live, work, and operate businesses in Panama.
- Access to Expansion and Financing Opportunities: Investing in real estate in Panama offers access to local bank financing, facilitating the expansion of the real estate portfolio.
- Tax Exemptions and Legal Benefits: Panama has a favorable tax environment, exempting property taxes and capital gains taxes on certain real estate investments.
This decree also allows investors to access business opportunities in Central America, taking advantage of Panama’s strategic location and its dollarized economy.
3. Who Benefits from the New Decree
Executive Decree 193 is designed for foreign investors seeking to diversify their real estate portfolio and obtain permanent residency in Panama. Some of the audiences that benefit from this update include:
- Investors from North America, Europe, and Asia who wish to take advantage of Panama’s economic stability and tax exemptions.
- Entrepreneurs and businesspeople looking to establish their commercial operations in Panama Pacifico or Panama City.
- Expats and retirees who want to enjoy a high quality of life in tourist areas such as Boquete, Coronado, and Playa Blanca.
- Russian investors seeking services in their native language, utilizing real estate and legal advisory.
At NL Realty & Legal Services, we offer comprehensive real estate advisory and legal services in Panama, ensuring a secure and efficient process to obtain permanent residency in Panama.
