7 Common Myths About Investing in Panama in 2025

One of the most common myths about investment in Panama The thing is that you must first get the Panamanian residence or physically move to the country to invest. The reality is much more flexible.

You don't need to live in Panama nor be a resident to make legal investments. The local legal framework is designed to attract foreign investors and includes legal provisions that allow investments to be made from abroad in a secure manner.

While there are special visas that benefit investors, such as the Qualified Investor Visa or the Own Economic Solvency Visa, these are options, not mandatory requirements. You can invest through legal structures such as public limited companies, private interest foundations or trusts, without having a physical presence in the country.

Some common examples where it's not necessary to live or reside in Panama include:

• Acquiring properties for rent or resale
• Buying shares in local companies
• Participation in tourism, energy or agricultural projects
• Constitution of Panamanian companies with international operations

In addition, you can manage your investment in Panama remotely. Many local firms provide legal representation, accounting and even property management services without requiring your presence in the country.

So, when should you obtain residency?

If you plan to have a regular presence in the country, actively operating a business there or enjoying the tax and banking benefits of being a resident, then you could consider a residence permit for investors. This process is accessible and has fast ways, especially if you invest in real estate for specific amounts or in strategic sectors defined by the government.

In short, Can you legally invest in Panama without living there. Your decision to apply for residency depends more on your personal or business objectives than on a legal obligation to invest.

El real estate market in Panama is, without a doubt, one of the best-known areas for investors. It has experienced steady growth over the past two decades, especially in areas such as Panama City, the banking district and tourist destinations such as Boquete or Bocas del Toro.

But to assume that the Real estate is the unique profitable investment In the country it's a myth that can severely limit your perspective. The Panamanian economy is diverse, and is supported by sectors with high resilience and international projection.

Profitable sectors beyond the brick

Among the strategic sectors with high growth potential in 2025, the following stand out:

• Logistics and transport: Given the Panama Canal and its position as a maritime and air hub, many global companies are investing in international distribution and trade centers.
• Financial Services: Panama is a highly developed regional banking center, with opportunities in banking, insurance, funds and fintech.
• Technology and startups: Recent incentives seek to position Panama as an epicenter for innovation in Latin America.
• Ecological and high value tourism: Investments in boutique hotels, sustainable projects or eco-resorts have a high occupancy rate and return in key destinations.
• Agribusiness and renewable energy: From the export of agricultural products to solar and wind projects, these areas are attractive to investors with a medium and long-term vision.

In addition, investors can channel capital into local investment funds, international franchises or even open their own doing business in Panama as a foreigner, thanks to simplified regimes for setting up companies.

Why is real estate still so popular?

Because they represent a tangible, often safe option, and they can also help with other goals, such as obtaining a residence permit or generating passive income through rentals. But they are not, nor should they be, the only way considered.

Panama 2025: Diversification Overview

Los doing business in Panama in 2025 they have a diversified approach that allows investment strategies to be adapted according to the investor's profile: conservative, moderate or aggressive. With the updated legal framework, incentive policies and international capital protection agreements, the country offers stability for multiple types of projects.

With the right approach and the right advice, you can identify sectors that go beyond real estate and achieve Profitability in Panama, both from inside and outside the country.

One of the most persistent myths The point about foreign investment in Panama is that the rights of foreign investors are not well protected or that the country favors only nationals. This perception may be based on experiences in other countries in the region. However, in the case of Panama, the legal framework has been carefully constructed to create an environment of legal certainty and openness for investors, regardless of their nationality.

To begin with, the Constitution of Panama and various trade laws ensure equitable treatment of foreign investors. The country is a signatory to key international agreements, such as the ICSID Convention of the World Bank and bilateral investment treaties that provide reliable and internationally respected dispute resolution mechanisms.

In addition, the Law on Legal Stability for Investments (Law 54 of 1998) provides specific guarantees to those who invest significant amounts in key sectors, such as:

• Stability in legal and fiscal regulations for a period of up to 10 years.
• Non-discrimination against domestic investors.
• Freedom to repatriate profits, dividends and capital.

This legal environment makes Panama one of the countries in the region with the largest legal protection for foreign investments, which offers peace of mind to those who want to do business or manage assets internationally.

With regard to private property, another important point, the country guarantees the right to property for foreigners. This includes the possibility of acquiring real estate, participating as partners in companies or setting up own companies. You don't need to be a permanent resident or have Panamanian citizenship to exercise these rights.

Panama has also dedicated efforts to improving its global image through fiscal transparency and international financial cooperation, without sacrificing its attractive for foreign investors. In fact, programs like the one in residency for qualified investors have consolidated the country's position as a predictable and attractive place to do business in 2025 and beyond.

In short, if you are wondering Is it safe to invest in Panama?, the answer is yes, as long as you do so with proper advice and knowledge of the environment. The Panamanian legal framework is designed to promote trust, attract foreign capital and enable efficient long-term operations.

However, even if the rights are legally guaranteed, some investors want to go a step further and open local accounts. But how easy is it to do that if you don't live in the country? This is another frequent question that we will clarify below.

A topic that raises many doubts among those who explore the foreign investment in Panama Is it possible to open bank accounts premises. It's common to hear that “you can't do it anymore” or that Panamanian banks are difficult with foreigners, especially if they don't reside in the country. While it is true that requirements have become stricter in recent years, particularly to meet international standards of transparency, opening an account as a non-resident is still possible.

Panama has a highly developed banking sector, regulated by the Superintendency of Banks, and distinguished by its robustness, confidentiality and wide range of international services. The key to successfully managing openness is to understand what banks are looking for today and to prepare the documentation well.

What do Panamanian banks request?

Most banks require compliance with the standards of know your customer (KYC) and money laundering prevention, which is common in serious financial centers. Among the most common requirements are:

• Current passport (optionally, second official identification)
• Certification of income or proof of the origin of funds
• Bank and business references from your country of origin
• Justification of the purpose of the account (investment, company, wealth management, etc.)

In many cases, It is not necessary to be physically in Panama for the entire process, although some banks still require an in-person signature. For this reason, it is advisable to work with financial advisors or trusted firms that can facilitate these procedures efficiently, especially if you are planning a remote investment in Panama from abroad.

What types of accounts can be opened as a foreigner?

Depending on your profile, you can manage:

- Personal accounts: ideal for those who want to manage investments, rental income or gradually move to the country.
- Corporate accounts: for businessmen or entrepreneurs who want to open a company in Panama or operate with local or international clients from here.

As Panama aligns with international regulations, due diligence has increased, but that doesn't mean it's impossible. It is rather a reflection of their commitment to maintaining a reliable and professional financial system.

So, if you're wondering How to open a bank account as a foreigner in Panama, the answer is: yes it can, and more and more investors are doing so as a strategic part of their international presence in Latin America.

And once you have your bank account in Panama, you'll probably wonder: How do I repatriate my earnings from Panama to my country? This is another important topic that we address in the next point.

One of the most common questions among those considering carrying out a investment in Panama is if they will be able to send their earnings out of the country without complications. The good news is that Panama has a fiscal and legal environment designed precisely to facilitate these types of operations, both for residents and for Foreign investors who wish to operate from outside.

Contrary to the myth that profits are “trapped” in the Panamanian banking system, the reality is different: Free Repatriation of Capital is allowed, and there are no capital controls that limit the movement of funds out of the country.

Panama does not impose restrictions on foreign exchange outflows

One of the factors that most attracts investors is that the country has no significant restrictions on sending funds outside the national territory. The economy is dollarized and there are no exchange controls, which provides a great advantage over other jurisdictions in Latin America.

This means that you can freely transfer your profits, interest or dividends to a bank account in your country of residence or in any other country of your choice.

What are the requirements for repatriating profits?

Although the legal framework allows for the free movement of capital, it is necessary to meet certain operational requirements to execute smooth international transfers:

• Justify the origin of the funds: Panamanian banks are required by compliance regulations to request documentation that demonstrates the source of income (such as financial statements or contracts).
• Local taxation: Only income generated within Panama is subject to income tax. If your investment generates profits outside the country, they are not taxed in Panama, thanks to its territorial system.
• Active bank account: To move money from Panama, you need to have a local account. Fortunately, as we explained in another section of this guide, Is it possible to open a bank account as a foreigner if you meet the basic requirements.

This framework favors the Remote investment from abroad, allowing investors to move inbound and outbound capital according to their needs, which is key to conserving Profitability in Panama.

Tax benefits and international agreements

One of the most attractive elements of the Panamanian system is that it has a Territorial fiscal policy, which means that only income earned within the country is taxed. This significantly reduces the tax burden for foreigners and allows for greater liquidity when repatriating profits.

In addition, Panama has signed multiple treaties to avoid double taxation with countries such as Mexico, Spain, Luxembourg and others, providing a more predictable environment for those who invest and have tax residence in another nation.

Common Cases

Consider this example: a person invests in a tourism business in Boquete and lives in Europe. The dividends generated can be collected in a Panamanian account, and then transferred monthly to your European account, provided that the origin of the funds is justified. There are no excessive holds or limits on those shipments.

In short, Yes, you can repatriate your profits from Panama without major obstacles. The country has built its Legal framework And Banking infrastructure to facilitate this type of operation, making it very competitive compared to other destinations in the region.