Panama Company with Residency Drawbacks?

[bizniz]

I don't have any experience of Atlas. I can tell you Banistmo, after they board you, really don't ask any questions at all. They are very easy going. However, you have to be there in person to open the account.

 

[EliasIT]

There is no way around the personal visit with Banistmo, which I think is the bank below?
https://www.banistmo.com/wps/portal/banistmo/personas
back to topic, what other drawbacks do you face with a Panama residency, as far as I know then if you have paid the 20,000 US$ application fee you can have dual citizen ship and avoid taxes this way?!

 

[Golden Fleece]

back to topic, what other drawbacks do you face with a Panama residency, as far as I know then if you have paid the 20,000 US$ application fee you can have dual citizen ship and avoid taxes this way?!

What $20K application fee? I think that all the government fees combined for the Panama friendly nations visa tally between $1,000 and $1,500.

Panama does not allow dual citizenship, but currently does not enforce that law. As everything else in life, that could change.

Panamanian citizenship will never happen unless you live in Panama for a number of years and establish basic ties to the country. That important point is often glossed over by many OSPs.

Legally avoiding taxes is certainly possible, but not guaranteed and is based upon your fact-specific circumstances. A legal residency is different than a legal tax residency, which does not automatically follow from legal residency. You must separately establish your Panamanian tax residency.

 

[EliasIT]

What $20K application fee? I think that all the government fees combined for the Panama friendly nations visa tally between $1,000 and $1,500.

that's if you do the job yourself. I spoke with a few OSP's as you call them, they charged up to 20K for the residency and second passport.

 

[JackAlabama]

that's if you do the job yourself. I spoke with a few OSP's as you call them, they charged up to 20K for the residency and second passport.

What? That is way too much. One of the top lawyer there charged about around 7k all inclusive with the company/personal bank/cedula. On top you need 5k us$ cash to deposit, but you can use that later again if you want. I did mine years ago and it was a pretty stress free experience given the highly bureaucratic processes prevalent in Latam.

A second passport obtained this way will be only achieved thru unofficial means as they have no investment citizenship option. You gotta wait 5 years and then see how things will develop.
Do you want to share more info on what you have been told regarding that second passport?

 

[Golden Fleece]

that's if you do the job yourself. I spoke with a few OSP's as you call them, they charged up to 20K for the residency and second passport.

No, the government fees apply no matter who does the work. Your initial post stated $20k "application fee," which is a government fee. There is no such thing in that amount. Now you are talking about other things, including lawyer fees, the $5,000 bank deposit (which you get back), and all other related costs -- not just the "application fee."

While I cannot speak on the topic of citizenship (because it is so rare) the Kraemer law firm, who many people on expat forums recommend for residency services charges $2,900 including most fees, including government fees, for the friendly nations visa. There is also a $800 government repatriation fee. So, if you add the $5,000 bank deposit, which you get back, the total outlay amounts to about $9,000. That law firm even posts its $2,900 fee, and all the legal requirements, right on its web site.

https://kraemerlaw.com/en/immigration/panama-friendly-nations-visa/

 

[Panama]

What $20K application fee? I think that all the government fees combined for the Panama friendly nations visa tally between $1,000 and $1,500.

Panama does not allow dual citizenship, but currently does not enforce that law. As everything else in life, that could change.

Panamanian citizenship will never happen unless you live in Panama for a number of years and establish basic ties to the country. That important point is often glossed over by many OSPs.

Legally avoiding taxes is certainly possible, but not guaranteed and is based upon your fact-specific circumstances. A legal residency is different than a legal tax residency, which does not automatically follow from legal residency. You must separately establish your Panamanian tax residency.

Hey! Thanks for the info. What do you mean about Panamian residency vs tax residency? To be tax resident in Panama you should spend 6 months or more per year? Am I right?

 

[Golden Fleece]

Hey! Thanks for the info. What do you mean about Panamian residency vs tax residency? To be tax resident in Panama you should spend 6 months or more per year? Am I right?

Yes, to maintain residency under the friendly nations visa program you must simply visit Panama once every few years. As you noted, to maintain tax residency requires far more time each year.