15.05.03 Special
offer For Asian, Middle East and
other applicants with poor visa-free travel
opportunity wishing to live and
work in Europe: easy immigration and relocation in
Switzerland. more
24.03.04 Special
offer For citizens with poor visa-free travel opportunity
wishing to reside in European Union. more
Panama
Through History. Economy
Overview.
With US
backing, Panama seceded from Colombia in 1903 and
promptly signed a treaty with the US allowing for the
construction of a canal and US sovereignty over a strip
of land on either side of the structure (the Panama
Canal Zone). The Panama Canal was built by the US Army
Corps of Engineers between 1904 and 1914. On 7 September
1977, an agreement was signed for the complete transfer
of the Canal from the US to Panama by the end of 1999.
Certain portions of the Zone and increasing
responsibility over the Canal were turned over in the
intervening years. With US help, dictator Manuel NORIEGA
was deposed in 1989. The entire Panama Canal, the area
supporting the Canal, and remaining US military bases
were turned over to Panama by or on 31 December
1999.
Economy.
Panama's
economy is based primarily on a well-developed services
sector that accounts for three-fourths of GDP. Services
include operating the Panama Canal, banking, the Colon
Free Zone, insurance, container ports, flagship
registry, and tourism. A slump in Colon Free Zone and
agricultural exports, the global slowdown, and the
withdrawal of US military forces held back economic
growth in 2000- 02. The government has been backing
public works programs, tax reforms, new regional trade
agreements, and development of tourism in order to
stimulate growth.
Economy:
facts and figures.
GDP (2000): (PPP) $16.6 billion (including Colon
Free Zone). Annual growth rate (2001 est.): 1.5%;
(2000): 2.4%. Per capita GDP (2000): (PPP) $6,000.
Natural resources: Timber, seafood, copper.
Services (76.5% of GDP): Finance, insurance, health
and medical, transportation, telecommunications, the
Canal and maritime services, tourism, Colon Free Zone,
and general commerce. Agriculture (7% of GDP):
Products-- bananas and other fruit, corn, sugar, rice,
coffee, shrimp, timber, vegetables, livestock.
Industry (16.5% of GDP):
Types-- food and drink
processing, metalworking, petroleum refining and
products, chemicals, paper and paper products, printing,
mining, refined sugar, clothing, furniture,
construction. Trade (2000): Exports-- $5.7 billion:
bananas, shrimp, sugar, coffee, and clothing. Major
markets-- U.S. 42%. Imports--$6.9 billion: capital goods,
crude oil, foodstuffs, chemicals, other consumer and
intermediate goods. Major suppliers-- U.S.
39%.
History. Panama's history has been shaped by the evolution of the world
economy and the ambitions of great powers. Rodrigo de
Bastidas, sailing westward from Venezuela in 1501 in
search of gold, was the first European to explore the
Isthmus of Panama. A year later, Christopher Columbus
visited the isthmus and established a short-lived
settlement in the Darien. Vasco Nunez de Balboa's
tortuous trek from the Atlantic to the Pacific in 1513
demonstrated that the isthmus was, indeed, the path
between the seas, and Panama quickly became the
crossroads and marketplace of Spain's empire in the New
World. Gold and silver were brought by ship from South
America, hauled across the isthmus, and loaded aboard
ships for Spain. The route became known as the Camino
Real, or Royal Road, although was more commonly known as
Camino de Cruces (Road of the Crosses) because of the
frequency of gravesites along the way.
Panama was
part of the Spanish empire for 300 years (1538-1821).
From the outset, Panamanian identity was based on a
sense of "geographic destiny," and Panamanian fortunes
fluctuated with the geopolitical importance of the
isthmus. The colonial experience also spawned Panamanian
nationalism as well as a racially complex and highly
stratified society, the source of internal conflicts
that ran counter to the unifying force of nationalism.
Administrative
divisions.
9
provinces (provincias, singular - provincia)
and 1 territory* (comarca); Bocas del Toro,
Chiriqui, Cocle, Colon, Darien, Herrera, Los
Santos, Panama, San Blas*, and
Veraguas.
Independence.
3 November 1903 (from
Colombia; became independent from Spain 28
November 1821).
Panama Economic
Citizenship Program. Background and Legal
Considerations.
The Panamanian government has created several
laws which, depending on the particular type of visa
applied for, enable foreigners to obtain legal temporary
or permanent residency, work permits, and in some
cases citizenship and passport in the Republic of Panama. Most of
these laws have been created to promote foreign
investment in the country which benefits the local
environment or local economy of Panama.
This program
allows foreigners to obtain immediate Panamanian
Passport under the condition that they make a 5 year
time deposit (certificate of deposit - "CD"), at the
Banco Nacional de Panama, which earns a minimum of
US$750 per month in interest income.
At
current interest rates (as of September 2004), this would mean that
the investor would need to deposit a minimum of
US$200,000 in the 5 year time deposit at the Banco
Nacional de Panama. The monthly interest earned from the
time deposit (CD), would be deposited directly into the
applicants savings account, and the applicant can
withdraw the funds in the savings account at any time.
Self
Economic Solvency (Bank Deposit
Program).
Law N° 16,
of June 30,1960 created this program to offer
international investors the opportunity to obtain legal
residency in Panama through an investment in a fixed
time deposit (certificate of deposit, or "CD"), with any
licensed Panamanian bank.
The
requirement is that the applicant must invest a minimum
of US$100,000 in a 1 year time deposit at any licensed
bank in Panama. For each additional dependent that
applies under the primary applicant, the time deposit
(CD) amount must be incremented by US$5000 (for each
dependent).
The time
deposit (CD) account, must be in the personal name of
the primary applicant (it may not be in the name of a
corporation, foundation, or trust). The interest earned
from the time deposit (CD), will be deposited monthly
into any savings account at the bank that you designate
(the savings account may be a personal account, or a
corporate account). The interest income is NOT taxed by
the Panamanian government, nor is it subject to any tax
reporting requirements.
Small
Business Investor Program.
This program
allows foreign business owners to obtain legal residency
in Panama under the condition that they invest a minimum
of US$40,000 in either a new business venture, or an
established company in Panama. Part of the requirement
is that the business must employ at least 3 Panamanian
employees paying them at least minimum wage, with social
security benefits.
Tax Free Processing Zone Investor
Program.
This program
allows foreign investors to obtain legal residency in
Panama under the condition that they must rent a plot of
land or an office or building (rented through a 10 to 20
year concession) within one of the new tax free
processing zones in Panama, for the purpose of operating
a business from Panama that exports its products or
services.
Since the
turn-over of the US military bases in Panama, the
Panamanian government has designated several of these
areas as "Tax Free Processing Zones", with similar tax
benefits as the existing Colon Free Trade Zone (the
second largest distribution center in the world). These
tax free processing zones have distinct tax advantages
for operating manufacturing plants, assembly plants,
software creation facilities, call centers, and other
such businesses that export their products or services.
These businesses also get a substantial tax break on a
certain percentage of their products or services sold
locally.
Retired or Pensioned Program (Visa
Pensionado).
This program
allows foreigners to obtain legal residency in Panama
under the condition that they are retired or
pensioned.
The
applicants retirement income (or pension income) must be
at least US$500 per month. For each dependent, the
retirement income (or pension income) amount must be
increased by US$100.
The
applicants income must be proven by providing
documentation such as a letter from the institution or
company that pays the retirement or pension income. This
certification must be notarized and authenticated by the
Panamanian Consulate nearest you (or appostiled).
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