No Pension? Not Yet 50? Don't Have 200k? Don't Worry, Here's What You Do…

We told you Tuesday about changes the Panama government has made to its tourist visa policy. Instead of allowing

tourists to stay in the country on a tourist visa for 90 days, a 30-day visit is now allowed…with a possible 60-day extension.

We also mentioned the two most popular ways to obtain a residency visa in Panama--the pensionado visa, which requires that you receive a pension of at least $500 a month from a verifiable private or government source--and the "person of means" visa, which requires that you invest at least $200,000 in a two-year fixed-term deposit in a national bank CD and/or property in Panama.

There is currently some controversy swirling about Panama regarding the fact that the property you purchase under this latter option must be in your personal name and not in the name of a foundation or corporation. Although Panama is one of the few countries in the world that has never signed any sort of Tax Information Exchange Agreement (TIEA) or tax treaty, anyone can visit the local title registry and find your name and the price paid for your property.

It is important to point out here that if you have nothing to hide, you have nothing to fear--and I understand the viewpoint of those who believe otherwise, so please don't feel the need to write me about that. But if you want to obtain a resident visa in Panama under the "person of means" process, you should be aware of this rule.

However…all is not lost. There are other ways to qualify for a resident visa in Panama, and one in particular is a less expensive option than those mentioned so far--unless, of course, you are lucky enough to qualify for a pension.

You can obtain a resident visa by becoming either a small forestry investor or a large forestry investor with a minimum approved reforested land purchase of $40,000 or $80,000 respectively. There is, of course, some risk with this option--and there can also be potentially high gains. (For more on this, see the Panama First Alert report 'Alternative Visas For Long-Term Stays in Panama'.)

The difference between the two options? Small forestry investors are allowed to stay in Panama with one-year renewable immigrant visas and must apply for permanent residency on their fifth year. Then they are allowed to apply for citizenship if they wish. Large forestry investors are allowed to apply for permanent residency immediately after the first immigrant visa card expires, and may apply for citizenship five years after their initial application.

You can now use your IRA funds to invest in forestry projects in Panama and qualify for a forestry investor visa. You can also use IRA funds to invest in other types of Panama real estate, but this will not qualify you for a resident visa, as when you buy with an IRA the property must be owned by a corporation or foundation owned by the IRA and not in your personal name. The government of Panama will, however issue resident visas for those who use IRA funds to invest in forestry projects, as in this case it accepts the fact that you own the land through a corporation.

Keep in mind, that both the person of means visa and the large forestry investor visa are immigrant visas. If your application is accepted, you will receive a provisional one-year visa. At the end of the year, you must file a petition for permanent residence. Five years later, you can apply for Panamanian citizenship if you comply with the requirements for this. But know going in that the citizenship process can be very lengthy, as immigration receives many such petitions.

For more information about the forestry investor visa, contact Robert Kroesen of United Nature: Robert@unitednature.com.

For information about using your IRA to invest in Panama--either in a forestry project or in real estate, contact Rich Luchsinger of Sovereign International Asset Management: rluchsinger@worldwideplanning.com.

For information about general immigration issues, contact attorney Rainelda Mata-Kelly at rmk@mata-kelly.com.

Suzan Haskins
Latin America Insider, International Living

P.S. Panama has much to offer--that's why it has been #1 on IL's Global Retirement Index for six years in a row. Whether you're enticed by the low cost of living, the friendly people, or the tropical climate, Panama is the ultimate retirement and relocation destination. Find out more from our experts at Live and Prosper in Panama, August 2-4. This seminar is a must for anyone considering a move to Panama. For full details, click here.