Qualifying through your own company or foundation
You can hold the qualifying investment through a Panamanian corporation if you are the individual who is the final beneficial owner of its shares, or through a private interest foundation if you are its founder and final beneficiary.
The company can also be your employer under the job route, as long as it is registered, holds a Notice of Operation and you obtain the MITRADEL work permit.
Two ways a company helps you qualify
A company is not a separate route of its own. It works in two ways. First, it can own the property or hold the fixed term deposit that qualifies you, instead of you owning it in your own name. Second, it can hire you, and then your job is the economic tie. Each way has its own papers.
Executive Decree 416 of 2012, article 3.2, as worded by Executive Decree 226 of 2021, article 2
Owning the investment through a corporation
The decree accepts a property or a deposit owned by a legal entity in which you are the natural person who is the final beneficial owner of the shares, contributions or quotas. In plain words, you must be the real person who owns the company at the end of the chain. You prove the property with a Public Registry certificate, and the deposit with a certificate from the bank.
Executive Decree 416 of 2012, article 3.2.b and 3.2.c, as worded by Executive Decree 226 of 2021
Owning the investment through a foundation
A Panamanian private interest foundation also works, if you are both its founder and its final beneficiary. If you already have one, or plan to create one, tell us early, because the documents of the foundation must show both roles.
Executive Decree 416 of 2012, article 3.2.b and 3.2.c, as worded by Executive Decree 226 of 2021
When your company is your employer
If your company hires you, it is treated like any other employer: it gives you a job letter with your position, salary and the repatriation commitment, its Public Registry certificate and its Notice of Operation, and you both apply for the MITRADEL work permit. The decree does not forbid an owner from being an employee of his or her own company.
Executive Decree 416 of 2012, article 3.2.a, as worded by Executive Decree 226 of 2021
Your company must follow Panamanian law
The original decree asks every applicant to comply with Panama’s commercial, labor and other rules that apply to the activity they carry out. A company that exists only on paper does not give you a stronger application. Keep it in good standing during your two provisional years.
Executive Decree 416 of 2012, article 5
What the decree does not say
- Whether a company you share with partners qualifies, when you are not the sole beneficial owner.
- Whether the funds must come from abroad: the text does not ask for it.
- Which register of beneficial owners Immigration checks: we confirm it when we prepare your file.
Executive Decree 416 of 2012, article 3, as worded by Executive Decree 226 of 2021
- Confirm that you are the final beneficial owner of the company, or founder and beneficiary of the foundation.
- Gather the Public Registry certificate of the company and of the property, or the bank certificate of the deposit.
- If the company will hire you, prepare the job letter and the Notice of Operation.
- Keep the company in good standing for the whole provisional stage.
Thinking of holding your investment through a company or a foundation? Tell us how it is set up and we will check it against the decree.
Free consultationFree 15-minute call
Not sure where to start?
Book a free 15-minute call. We will confirm your eligibility and the route that fits you best.
- A signed contract
- An invoice for every expense
- Licensed attorneys
