On October 15, 2020, Executive Decree No. 722 was issued, through which the subcategory of Permanent Resident as a Qualified Investor was created within the category of Permanent Resident for Economic Reasons.
The main requirement to apply to said immigration subcategory is that the applicant prove that he has made an investment in the Republic of Panama.
In the event that said investment is due to real estate investment that includes, the purchase of a real estate already built or by signing a Promise of Sale Agreement (in the cases of real estate under construction), the applicant must contribute with the request:
i. Authenticated copy of the Promise of Sale Agreement and,
ii. Authenticated copy of the Trust Agreement in which the total amount given in trust is recorded, which will be disbursed in partial payments in relation to the obligations contained in the promise of sale signed with the Promoter.
During the first twenty-four (24) months after the entry into force of the Executive Decree (that is, until October 15, 2022), investment for real estate reasons (in built projects or by signing a promise of sale), may be for the sum of three hundred thousand balboas (B / .300,000.00). After this date, the investment must be for the sum of five hundred thousand balboas (B / .500,000.00).
In the event that the sale is not completed (with the registration of the transfer of the real estate in the public registry), the immigration permit would be canceled from the applicant. In addition, the applicant must maintain the investment for a minimum period of five (5) years.
In relation to the requirement contained in Executive Decree No. 722, at Ipal Trust we have structured an Administration and Guarantee Trust whose Settlor may be the Promoter who maintains Projects built or under construction, for sale to foreign investors who require or have an interest in Obtain a Permanent Residence in the Republic of Panama.
Said Trust acts as the main Trust Agreement, to which, from time to time, the buyers and/or promising buyers adhere to it through Bonding Agreements, becoming Adherent Settlors.
In this way, the Promoter of a Project can offer its clients, as an added value, the trust instrument required for the application of the Permanent Resident permit, which facilitates the negotiation and signing of the Sale Agreement and/or the Agreement of Promise of Sale of the real estate that it maintains in the Projects developed or to be developed.
The subscription of the Bonding Agreements by Foreign Investors does not represent a risk for the Promoter, as Settlor of the main Trust. As they are Settlors that adhere to the main instrument, the Trust Company must (i) carry out the due diligence process individually, (ii) maintain a separate equity for each one, with respect to the amounts that are deposited, (iii) require individual fulfillment of the obligations they acquire by signing the Bonding Agreement, among others. Each Adherent Settlor is treated as an individual Settlor, with individual rights and obligations.
Maintain in fiduciary property the amounts related to the subscription of Purchase and Sale Agreements and/or Promise of Sale Agreements, in order to guarantee the Promoter (Main Settlor) the payment of the price for the real estate units acquired by Foreign Investors (Adherent Settlors) in the Projects developed by the Promoter in the Republic of Panama, in accordance with the terms and conditions contained in the Purchase and Sale Agreements, the Main Trust and the Bonding Agreements signed by each Adherent Trustor.
In compliance with the foregoing, Ipal Trust:
i. Issues in favor of the Principal Settlor (Promoter) the Irrevocable Promise Letters of Payment on the sums deposited by the Adherent Settlors (Foreign Investors), for the payment of the real estate(s) acquired and,
ii. Issues to the National Directorate of Migration, the certificate on the investment of the property (s) made by the Adherent Settlor (Foreign Investor) to obtain their Permanent Residence in the Republic of Panama.