Simon Black at Sovereign Man Weighs In On Panama

Adrian Prozzo February 27, 2017 4 minutes read

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Simon recently visited Panama and reflects back to his earlier days in Panama.
February 21, 2017
Panama City, Panama

It seems like every time I come to Panama now the first word that springs to mind is “impressive”.

I first traveled to Panama back in 2003… fourteen years ago.

I remember landing at Tocumen International Airport for the first time– it was a depressing backwater that was barely functioning.

And on the way into town there was hardly any sign of civilization; everything seemed completely impoverished.

Basically Panama was just another third world toilet bowl back then.

But over the years as I kept coming back, and even as I lived here back in 2007, Panama really started to grow… thanks in large part to the expansion of the Canal.

Economists can quote figures about GDP and foreign direct investment to measure growth, but what really matters is standard of living.

And people here are living MUCH better than ever before.

Panama’s middle class has exploded, growing from almost nothing to more than a third of the population… and rising. It’s far higher in the capital city.

They’re able to afford the basics that Western countries take for granted– air conditioning, washing machines, laptops, televisions, smart phones, Internet access, etc.

Home and vehicle ownership have soared (contributing to Panama City’s horrendous traffic).

And since Panama has become a major international hub for trade, transportation, tourism, business services, and finance, the job market is robust.

This isn’t some country where the locals are all picking bananas; there are plenty of meaningful careers and opportunities available to people who work hard.

And unlike in the United States where wages haven’t kept pace with inflation, Panamanians become wealthier each year.

The transformation has been incredible.

Today Panama City is easily the most cosmopolitan capital in Latin America with a bustling skyline and nightlife that rivals Miami’s.

Everywhere you look there are clear signs of prosperity (and hence business and investment opportunities).

And that trend will likely continue.

I just came out of a meeting with a senior government minister in which we discussed a wide range of projects and incentive programs.

They’re keen to continue attracting more businesses and industries here, and I was pleasantly surprised to see that the minister had a particular interest in cryptofinance and how it might be implemented.

Bear in mind, this is a country where just about anyone can come and obtain legal residence to live, work, and set up a business. It’s great.

It’s called the “Friendly Nations Visa”, and it provides an easy framework for people from just about every country in Europe and North America, along with Australia, New Zealand, Singapore, Chile, Argentina, Uruguay, Israel, Japan, Hong Kong, and South Korea.

Basically you have to deposit a small sum of money in a Panamanian bank and submit an application packet to the authorities.

(By the way, Panamanian banks tend to be extremely conservative, liquid, and well capitalized, plus it’s a US dollar economy so you might not even have any exchange rate risk.)

Through this visa you can ultimately receive permanent residency in the country, which will remain valid even if you don’t live here.

Even if you don’t qualify for the Friendly Nations Visa for whatever reason, there are literally dozens of other ways to obtain residency here, ranging from reforestation to business investment.

Foreigners can also qualify to apply to become Panamanian citizens after five years of residency and obtain a Panamanian passport.

Bottom line, Panama is a great deal.

And it makes a LOT of sense to consider obtaining such an easy second residency in a growing, thriving country that might one day lead to a second passport for you and your entire family.

You might not ever need it. But it’s hard to imagine you’ll be worse off having such a great Plan B.

2 thoughts on “Simon Black at Sovereign Man Weighs In On Panama”

While it sounds easy – obtaining citizenship is much more challenging than expressed here. After you have been a permanent resident for five years – you can begin the process. First there is a personal interview in Spanish. If you pass that, you are invited to return to write a 75 question exam in Spanish that you must get 75% or better on. Study is required. Questions include: name five people from the arts, the sciences, history, sports and literature – name the carmarcas, their capitals, name the major rivers and bays across Panama or which are the three largest provinces and what is their major exports? The best way is to get out and see this incredible country – visit the carmarcas, and explore your adopted new country – which is fun, but time consuming. We have been to every province and carmarca – and what amazes us is the diversity of cultures, geography and weather.

However – that is not the hard part. My wife and I passed our citizenship exams three years ago. We know our application has been approved by the Security Ministry (we were shown a copy of our citizenship certificate). All we are waiting for is the Governor of Panama to swear us in. We have been told that he only does 30 a month and we have had many false starts. I was told that all applicants from the previous President’s reign (like us) have been delayed as they triple check backgrounds and ensure no bribes were paid.
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We just heard once again that we will be sworn in this month. This wil be the fifth time we have been told this.

So it is not five years – you cannot even begin the process until you have been a permanent resident in Panama for five years, (not just be in Panama), then pass your exams, and then wait – for this is Panama. Oh and be aware – there is an election in 2019 – if the government changes – (which has happened every election in recent times)- the changeover will likely cause more delays. So start your process early.