There is currently no "citizenship for investment" program in Panama. However there is a so called instant passport programme. Despite its name the passport is giving its holder non-immigrant residence status but does not lead to citizenship. The holder has no right to opt for Panamanian nationality. The bearer of the Panama passport gets temporary residency status, and may live in Panama if desired. It is good for traveling purposes though. Foreigners may apply for naturalization and citizenship in Panama after 5 years from the moment they have been granted immigrant status (provisional or permanent residence permit). 

Program Overview

1. Panama Instant Passport Programme (PIPP):  To qualify for the Panama Instant Passport Program, a foreigner or non resident must first establish a five year time deposit (Certificate of Deposit) at one of two Panama banks, the National Bank of Panama and the La Caja de Ahorros de Panama.  The value of the time deposit must produce monthly interest income of no less than US$ 850.00 per month.  The PIPP is open to all who qualify and dependents and family members of the Petitioners of the Panama Instant Passport Program are accepted for a nominal increase in the interest revenue, whereby the CD must generate and additional US$75.00 monthly for each dependent.  At anticipated interest rates of 4-5%, the estimated general CD deposit amount is $US200,000. This is a nominal fee considering that all interest earned on the time deposit is tax free.  During the five year term of the CD, the money may be used as security against loans or other investments. At the end of the 5-year period, the account may be closed or renewed.  If the term deposit is renewed, the Panama passport is then renewed for another five-year term as well.

2. Agricultural Investor, with a required minimum of US$ 60,000 of investments in agricultural industry (6 years temporary residence)
3. Reforestation Investor, participating in reforestation program with a minimum investment involving US$ 60,000 and 3 hectares of forest (6 years temporary residence)
4. Reforestation Investor, participating in reforestation program with a minimum investment involving US$ 80,000 and 5 hectares of forest (permanent residence permit upon certain requirements)
5. Business Investor, making investment in a business enterprise with minimum capital of US$ 160,000 (permanent residence permit upon certain requirements)
6. Self-Economic Solvency, with a required minimum investment of US$ 300,000 in a fixed deposit for a minimum of 3 years (with any banking institution licensed in Panama), or the same amount in real property, or combination of both (permanent residence permit upon certain requirements)
7. Panama Pensionado Program, Pensionado Visa is available to persons receiving a monthly pension from a foreign government or private company or international organization in the amount of minimum US$ 1,000. (permanent residence permit upon certain requirements)
8. Other areas: investments in Empresa del Área Panamá-Pacífico (US$ 250,000); processing industries working for export (US$ 250,000); call centers working for export; cinematography (US$ 150,000). (permanent residence permit upon certain requirements)

Main Advantages

• Visa free travel to more than 80 states including most EU countries
• Panama recognizes dual citizenship, so you don’t have to give up your other citizenship and passport
• Short process for PIPP. Usually process is completed within 1-4months. A personal visit to Panama is required
• Panama is a stable country with beautiful beaches and landscape offering good infrastructure, the US Dollar is generally accepted and economy is US centered.

Taxation

• No taxes on foreign based income
• Income tax: maximum of 25% (deductions apply)
• Investment in tourism benefits from many tax exemptions
• Capital Gains tax: maximum 10% (exemptions apply, only properties within Panama are subject to this tax)
• Very favorable tax and legal regime for offshore companies (annual franchise tax of 300USD)