RETIREMENT – RELOCATION – IMMIGRATION TO PANAMA

ABOUT PANAMA: Cost of living, Environment, Freedom, Health, Infrastructure, Safety & Risk, Climate

VISAS: Pensionado Visa, Self Economic Solvency Visa, Retired Incomer, Investor in the Small Business Sector, Investor in the Micro Business Sector, Reforestation Visa

ADVANTAGES FOR THE RETIREE

ABOUT PANAMA

The Republic of Panama is a sovereign, democratic country located between Costa Rica and Colombia and it is an almost undiscovered haven.

To put things into perspective, Panama has been a democracy for over a decade now, in fact, it was a democracy before the military overthrew the democratic elected government of President Arnulfo Arias Madrid in 1968. So democracy is not a stranger to this country.

Finally, on December 20th of 1989 and the capture of General Manuel Noriega, the Panamanians regained their long paused democracy.

Besides our incredible history, Panama has an economic performance that surpasses every other country in the Latin American region, with an inflation rate that over the last 30 years has averaged less that 2% per year.

Panama is becoming one of the Top choices for people that want to retire and/or invest…and why not?….consider the following elements:

· The legal tender in Panama is the U.S. Dollar, which derives in an stable economy;
· The reliability and efficiency of it services (legal, banking, financial, cargo, medical care, etc.);
· Costs of living are surprisingly lower than in the US, Europe or even neighbouring countries;
· No income tax is levied upon income received or paid to you by a foreign source and no taxes are levied on interest earned on savings accounts and CD’s;
· Panama has very low crime rates compared to other countries in the region;
· No guerrillas or terrorist activities;
· The government encourages foreigners to invest and retire in Panama. In fact, you will find laws that encourage foreign investment and protect it as well. No wonder why many foreign companies have established offices to operate in or from Panama. To name a few: Dell, Cable & Wireless and the Spanish giant Telefonica.
· Discount to retirees for services ranging from medical visits to utility bills;
· A renown International Banking Centre with strong secrecy laws;
· The second largest Free Zone in the world (next to Hong Kong);
· Daily and direct flights from Panama City to seven US major cities such as Los Angeles, Atlanta, Houston, New York, Newark Miami and Orlando, plus you can catch at any of these destinations direct flights to any part of Europe.

Other elements you must consider are:

· In Panama you will find world-class dining and hotels, excellent shopping malls with every imaginable luxury at half or less of what you pay in the US or Europe;
· Panama has a recorded 940 species of birds, surpassing the United States and Canada together!!!!;
· Panama offers one of the best deep fishing and surfing in the world;
· More than 1,500 islands off the country's coast, some of which offer snorkeling and diving opportunities that rival any found in Central America.
· And of course, the Canal, one of the most important engineering accomplishments in the history of the world.

Cost of living:

The cost of living in Panama is lower than the US and much lower than Western Europe. For example, electricity costs approximately 10 - 12 cents per kilowatt hour depending on the area, water and trash collection around $7 per month. Direct TV, telephone and internet services vary according to the plans chosen. Locally produced vegetables, meat and fish are priced considerably lower than in the USA although imported items may be slightly higher. The minimum wage for housemaids or gardeners is 88 cents per hour. Local beer at the supermarket costs 30 cents per can, a coffee in a restaurant may be as little as 30 cents. Medical assistance can be received as low as US$10.00. Apartments in Panama City can be found starting at US$350.00 a month. Very nice apartments with amazing views, can be found in less than US$1000.00 a month.

Environment:

Panama is a small country with big sightings. The perfect combination for the retiree who is seeking all the commodities of a major city just few hours away from amazing nature, highlands, mountains, beaches and islands.

Boquete in the Chiriqui Highlands has a perfect spring-like climate, with clean air, clear water, and a welcoming community. On the lush green hillsides gourmet coffee is grown and at times the smell of roasting coffee sends wonderful aromas through the town.

Bocas del Toro is one of the last affordable areas of the Caribbean, and the archipelago of Bocas del Toro is stunning. Palm fringed islands, white sand beaches; Bocas has everything you ever imagined for the picture perfect tropical retreat to hang your hammock.

Panama City is an affordable cosmopolitan location for those who prefer city life. With a skyline reminiscent of Manhattan or Singapore, the high rise buildings tower above the ocean. High class restaurants, first class hotels and fast food outlets, are here for all tastes and pockets.

Entertainment is varied, the latest movies, concerts featuring foreign and local performers of all genres, every kind of sporting event – baseball is arguably the most popular sport and a number of Panamanian players are found in US major league clubs.
Shopping options range from local markets to multi million dollar super malls and luxury goods. The Amador Causeway has a number of great restaurants, yacht clubs and a duty free shop, it is also a great place to bicycle, jog or walk with sea breezes and a great view of the stunning Bridge of the Americas. Panama City even has a rain forest within its city limits.

Freedom:

Panama, as described before, is a Constitutional Republic with democratic elections every 5 years. Plus Panama does not have military as the army was abolished in 1991.

The current President is Mr. Martin Torrijos, who took office on September 1, 2004, after winning the General Elections on May 2, 2004, by a wide margin.

Health:

Modern and reliable private medical services are available. According to current legislation covering sanitary matters, Panama offers health care facilities to all nationals and foreign travelers who may require them, independent of any reciprocal agreement with a particular country.

Infrastructure:

Airports, highways, railroads, ports and the Panama Canal are all well developed.

The international airport connects Panama with international world centers through the various international carriers. In fact, there are direct flights to 7 cities in the US, namely, Miami, Orlando, Atlanta, Houston, Los Angeles, New York and Newark and two direct flights to Madrid, Spain There are two ports, Balboa and Cristobal (at either end of the canal).

Telecommunications are also well developed with mayor international companies competing in the local market, such as Cable & Wireless and Telefonica, the Spanish Telecom monster that just bought the operations of Bellsouth in Panama and Guatemala.

The majority of the hotels in Panama have a business center at the ready for the foreign national that wants to maintain contact with family, friends or business. Internet cafés can also be found all over Panama City as well as facilities for making long distance phone calls at low rates.

Safety & Risk:

Panama City is safer than most capital cities, but as in any major city in the world there are some parts where caution should be exercised. Except for the province of Darién and only where it borders with Colombia, the rest of the provinces in the country are safe.

Earthquakes, tornados and other natural disasters are not common in Panama.

Climate:

The climate is spring-like year round with temperatures typically hot in the lowlands between the 70’s and 90’s and cool in the mountains between 50’s and 60’s.

As for your legal status in Panama we can secure, through our recommended attorneys, a Visa for yourself and your family, after of course, determining by a careful study what type of Visa is most convenient for you.

VISAS

At OIS we provide you with a range of legal support services designed to assist you on all matters related to your retirement or investment in Panama. All the legal services are rendered by our attorneys all duly licensed to practice in the Republic of Panama and bilingual so you can rest assured that you will be attended by professionals.

Through our collaborators and strategic alliances we will help you to secure a home, life and medical insurance, bank accounts and just about everything you need to set up your stay in Panama, either temporary or permanent.

There are various types of visas offered by the Panamanian Government to the foreign national, however, we only list those that are directed to the foreign national looking to retire and/or invest in the Republic of Panama:

· Pensionado Visas

If you currently receive a pension from a foreign government, international organization or private company of US$500 per month this is the right visa for you!. If you want to include your spouse and children under your visa application add US$100 per person. We must point out that this visa does not grant you citizenship.

This type of Visa allows you the following benefits:

1. A one time US$10,000 exemption on the import of items for domestic or personal use;
2. Every two (2) years you can import a car for personal or family use without paying import taxes;
3. Exemption on the payment of any deposit or migratory fee related with the obtainment of the Pensionado Visa;
4. Discounts on everything from entertainment to medical bills.

We consider this programme to be the best in the world these days, surpassing similar programs in other countries.

For the list of requirements, costs and fees please contact us

· Self Economic Solvency Visa

This type of Visa will enable you to secure residence status in Panama; however, you must make a term deposit of US$200,000 with any Bank located in the Republic of Panama for a term of one (1) year. We will help you secure such a term deposit with any of the Banks we usually do business with or with the Bank of your choosing.

A provisional residence status is granted for one (1) year, however, permanent residence may be applied to after this first year. A Panamanian ID would be issued thereafter.

For the list of requirements, costs and fees please contact us.

· Retired Incomer

This particular visa is directed to those individuals that are interested in securing a second passport, either for safety reasons or just to hold the passport of friendly visa country. The applicant must make a term deposit for five (5) years at the Banco Nacional de Panama that yields in monthly interest the amount of US$750. The advantages of securing this type of visa are:

- You obtain a second passport. We must stress that this passport does not grant you the Panamanian Nationality nor residence status;
- Every two (2) years you can import a car for personal or family use without paying import taxes;

For the list of requirements, costs and fees please contact us.

· Investor of the small business sector

By establishing an investment in the small business sector of Panama of a minimum of US$150,000 you are eligible for this type of Visa. The investment may be made in any part of the Republic of Panama, including the Colon Free Zone. This type of Visa is directed to those individuals that wish to acquire residence status by establishing a business in Panama, of course, in the small business sector. This Visa is granted for one (1) year and can be renewed for three (3) consecutive periods thereafter. After that last period has expired the applicant can file for permanent residence.

For the list of requirements, costs and fees please contact us.

· Investor in the micro business sector

This visa is granted to those foreign nationals who invest $40,000 in a business and hire a minimum of 3 Panamanian workers. Proof of the investment is needed, such as bills of sale, commercial invoices, lease agreements, etc.

For the list of requirements, costs and fees please contact us.

·Reforestation Visa

This visa is granted to those foreign nationals that invest either $40,000 as a micro investor or $80,000 as macro investor. This visa was brought back by Resolution No. 39, April 27, 2006. The investment can be done directly or indirectly. Investing directly means basically that you directly invest the money yourself and purchase an approved teak plantation. Investing indirectly means that you purchase the shares of a corporation that owns an approved teak plantation.
For the list of requirements, costs and fees please contact us.

ADVANTAGES FOR THE RETIREE

If the foreign national is 60 (men) or 55 (women), he or she can benefit from the discounts that they are legally entitled by Law 14 of 2003, namely:

· 50% discount on movie theaters, recreation, cultural and sports events

· 30% discounts in transportation (buses, trains, boats and ships)

· 25% discount on plane tickets, either for domestic or international airlines

· 50% discounts on hotels, motels and pensions from Monday to Thursday and 30% from Friday to Sunday

· 25% discount in restaurants

· 15% discount in fast food restaurants, either national or international franchises

· 15% discount in private medical clinics and hospital services

· 10% discount on prescribed medicines

· Discounts on medical services, as follows: 20% discount on medical bills from general medical doctors or specialists; 15% discount for dental services; 15% discount on optometry services

· Discounts on premiums payable to insurance companies for health insurance

· 20% discount in technical and professional services

· 20% discount on prosthesis and of all the apparatus and aid accessories

· 50% discount on expenses and closing bank fees for closing personal or commercial loans

· Exemption of payment of the Special Interest Compensation Fund

· 15% discount on interests payable to banks or other financial institutions for personal or commercial loans

· 25% discount on utility bills

· 1% discount on interest rates on mortgage loans