How to Get Residency in Panama through a Corporation: An Overview
Navigating the Grey Area of Temporary Residency and Tips for Converting to Permanent Residency


If you're looking for a way to get residency in Panama, creating a corporation and hiring yourself may be an option. However, this pathway can be a bit of a grey area. Here's what you need to know.
The process involves creating a corporation in Panama, which can give you temporary residency. After two years, you can try to convert this to permanent residency. However, many people are not forming real companies, and it's unclear if the government will convert these temporary residencies to permanent when the time comes.
To learn more about this option, I spoke with two law firms in Panama that I highly respect and that process clients for the Bitcoin Capitalist company. The first firm told me that they are not offering this service, as they believe that unless the client has a real company and is paying taxes, the government will deny their residency. This could be troubling since clients spend a lot of time and money on this route, and the first attorney I spoke to did not want clients coming back for refunds when they could not receive permanent residency.
The second attorney I spoke with is processing clients for residency via the corporation route, but they are advising their clients to pay $300 a month in social security tax to the government of Panama. They believe this significantly increases the chances of converting temporary residency into permanent residency. The total amount paid in taxes would be $7,200 for two years, not including attorney fees. This is not necessarily cheap, but it's a more affordable option than a $200k real estate investment. Some clients have chosen not to pay any social security taxes, and some will only pay the last nine months of the temporary residency. However, this is uncharted territory, so it's unclear what will work with the Panamanian government.
The first wave of people applying for residency via this route will start applying for permanent residency in August, so we will get a clearer picture of what applications will work or not. Going this route is not a guarantee to get residency, but if you pay the taxes and keep your corporation in good standing, there is a good chance of obtaining residency in Panama. It's important to note that this pathway can be risky and may not be suitable for everyone, so it's crucial to consult with a knowledgeable attorney before proceeding.