At least once or twice a month, a reader contacts me to ask about an "instant passport" program from Panama.
My response has always been the same. Panama does NOT have a legally sanctioned economic citizenship/passport program. However, there are several possibilities for residence in exchange for investment.
Recently, though, a company in Panama contacted me telling me that I was wrong. For a mere US$5,000 in legal fees, plus an investment in CDs at the Bank of Panama sufficient to generate US$750/month in interest, I could acquire a Panamanian travel document. The company also claimed that, ""You can travel with it anywhere in the world as your sole passport."
This claim is highly misleading, according to attorneys I’ve contacted in both the United States and Panama. Here are the facts:
CD-for-visa programs that lead to immediate residence status do exist in Panama. In the program this company is promoting, you also receive a travel document. That travel document is similar to a normal Panamanian passport, but it does NOT indicate Panamanian citizenship.
You can use this travel document to enter or leave Panama. However, other nations do NOT recognize it as a normal Panamanian citizen’s passport. If you present the travel document at a border crossing at any country other than Panama, it will likely NOT be accepted.
This travel document is also about to be discontinued. A well-connected Panamanian attorney has informed me that within the next few weeks, it will no longer be issued. That decision is already final.
That attorney also told me, in reference to this particular CD-for-visa program:
"I have never recommended this program, and none of my clients have opted for it after having it explained how it works. It always seemed foolish to me to put around US$200,000 with the National Bank of Panama, virtually forever, since the five-year fixed term deposits need to be continually renewed to preserve residence status."
Avoid this program. It does NOT result in a normal Panamanian citizen’s passport, and there are better ways to obtain a Panamanian residence visa.
Click here to learn about citizenship-by-investment programs that result in the issuance of a legitimate passport.
Copyright © 2008 by Mark Nestmann
