Panama Immigration Law Change Update: 02/27/2008

Introduction – Panama passed a new law regarding immigration. The way Panama works legally is a law is passed which sets out the general guidelines and then later on regulations are passed which sort of provide the fine points of the law. We have the final version of the new law but the regulations that define it have yet to be written. We will cover some of the points of the new immigration law here as best as we can from the information we have to work with.

Start Date – Six months, so estimated start date of Sept 1, 2008 (approx). This means the old laws are still in place until then and this is important for some of you, as you will soon see. If you are thinking of applying do so as soon as possible since the old laws are way more advantageous as you will see.

Previously Granted Residencies and Visas – There will not be any retroactive changes to the visas already granted. Someone is going to ask if my application is in process when the law changes which set of laws will I be under? We are not sure but we heavily favor that you will be under the old set of laws, which you applied under. This is generally how the system operates and we see nothing contrary to this in the law but no one has seen any regulations yet. Under the Panama Constitution retroactive changes to laws are forbidden.

Student Visas, Maritime Workers and Tourist Visas – Under the new law one will be able to apply for these two specific visas at the Panama Consulate or Embassy closest to them without using a Panama attorney. This is a new change for Panama and probably a good one.

Permanence of Visas Removed – Under the new law if one leaves Panama for more than two years they lose their visa unless they obtain prior approval from immigration before leaving the country. We do not know what a good reason is for this yet. We would assume pursuing an education, health care, taking care of sick relatives etc should work but we do not know for sure yet.

Additionally one must maintain the conditions required for the granting of the visa or residency. For instance if one was required to put $200,000 in the bank then this $200,000 will need to stay in the bank for as long as they have the visa which could be the rest of their life. The bank account is required to be in the person’s personal name. Same applies with getting a visa by putting $200,000 hard cash equity into a residential piece of real estate. They will need to keep the home and the title in their personal name for as long as they have the residency or visa. It was proposed that the $200,000 amounts for these two visas be raised to $350,000 and then was removed from the actual law. We need to see the regulations to determine what the new amount is or if it is the same amount. We expect it to be raised but are not certain. A similar scenario applies to the small investor visa and the investor visa. They were proposing the small investor visa be raised from $40,000 to $75,000 but again we need to see the regulations when they come out which should be soon. So with any visa or residency the conditions required for you to get the visa or residency must be maintained for as long as you have the residency or visa under the new law.

Fees – The fees for applications will be increased from $100 to $250. In addition there will be an $800 refundable repatriation fee to guarantee that one can return home if the application is denied.

Approval Times - Under the new law the immigration department is given 60 days to approve or deny any applications that have been accepted. If a determination has not been made by the 61st day then the application is automatically considered to be approved. Nice change here.

Discussion – It appears that Panama is tightening their immigration laws. And going after a more affluent class of people, which is consistent with the boom in real estate prices. Visas and Residencies are still obtainable but the permanent nature of them has been removed. Getting a citizenship from Panama is something that is not going to happen. If one lives in Panama for 18 years under the new law and leaves the money in the bank to get the residency and then dies then the surviving spouse would need to file her own visa application with her own bank deposit or else would lose her status in the country. If you wish to live in Panama it is still not hard to get a residency just will not have any permanence to it. There are other countries with more competitive immigration programs we can help with, just inquire.

Actual text of New Panama Immigration Law – The actual law can be found here, a machine translation is included below:

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REPUBLIC OF PANAMA

EXECUTIVE BODY

DECREE LAW No.3

(22 2008) it creates the National Immigration Service, the Immigration and Career dictates other provisions

THE PRESIDENT OF THE REPUBLIC,

In exercise of his constitutional and statutory powers specifically conferred upon it by the numeral 1 1 1 2008, after hearing the concept by the Council of Cabinet

DECREES:

TITLE I

MIGRATION

SINGLE CHAPTER

PURPOSE AND SCOPE

Article 1. This Decree-Law is designed to regulate the movement of migrant inflows and outflows of nationals and foreigners, the latter's stay in the national territory, establishing the requirements and procedures for acquiring Panamanian citizen by naturalization, and create the National Immigration Service and the Immigration Carrera, without prejudice to treaties, international conventions and integration agreements ratified by the Republic of Panama and special laws.

Article 2. Is created the National Immigration Service, as an institution of public security and administration, the Ministry of Government and Justice, subject to immigration policy to be issued by the Executive and monitored by the Comptroller General of the Republic.

The National Immigration Service will exercise its authority throughout the country and will have the organization, media and migratory sites within the facilities air, sea and land of the Republic. In discharging their duties, shall be guided by principles of law, order, efficiency, transparency, professionalism, discipline and simplification of procedures migration with strict adherence to human rights.

Article 3. Under international agreements ratified by the Republic of Panama and the norms of international law, this Decree-Law shall not apply to:

• 1. The diplomats and consular officials or foreign missions, legations and their families, duly accredited to the Republic of Panama.
• 2. The permanent representatives, representatives and special envoys, foreign officials from international agencies or intergovernmental and their families based in the national territory, based on international agreements signed and ratified by the Republic of Panama.

TITLE II

AUTHORITIES MIGRATORY

CHAPTER V

NATIONAL SERVICE FOR MIGRATION

Article 4. The National Immigration Service provides a public function security, administration, supervision, monitoring and implementation of migration policies to be issued by the Executive Branch, in accordance with the Decree Law, the r ~ eglamentos and standards related to the matter.

Article 5. The National Immigration Service will operate uninterrupted throughout the country and will consist of officials appointed by the Director General of the National Immigration Service, in accordance with the rules of the Career Migration, in different offices or entry and exit points of the country, depending on their specialty, for the effective implementation of immigration control.

The Director General of the National Immigration Service, subject to authorization by the Minister of Government and Justice, may establish addresses, departments and administrative units that are required for the proper functioning of the institution, subject to the provisions of the law.

Article 6. The National Immigration Service has the following functions:

• 1. Run migration policy and ensure strict compliance with the current immigration legislation.
• 2. Organizing, managing, recording, control and deliver the service migration to foreigners and to ensure effective control of their stay in the country, within the limits laid down in the Decree-Law.
• 3. Exercising control immigration and registration of entrances and exits from the country and abroad.
• 4. Authorizing, deny or prohibit the entry or residence of foreigners in the country and ordered his deportation, expulsion or refoulement, in accordance with the Constitution and the law.
• 5. Approve or deny, through reasoned decision, requests for changes in immigration status of foreigners in the country.
• 6. To approve or deny requests for those categories migratory go through embassies and consulates.
• 7. Cancel through reasoned decision, the non-resident permits, temporary resident and permanent resident of foreigners in the country, according to this Decree Law.
• 8. Receiving and resolving visa applications made by non-resident aliens.
• 9. Providing identification documents to foreigners recognized by the Republic of Panama as refugees, asylees, and stateless persons under temporary protection on humanitarian grounds.
• 10. To issue safe conduct for foreigners whose countries have no diplomatic or consular representation in the Republic of Panama.
• 11. To apply and enforce international agreements ratified by the Republic of Panama, in immigration matters.
• 12. Managing funds entering repository concept of repatriation and collateral in the Trust Fund for Migration, and returned to their respective deposits stakeholders as appropriate.
• 13. Manage the Special Fund for the Development of Human Resources.
• 14. Creating the system of internal procedures, protocols, operational and administrative, to establish standards of corporate governance and regulation.
• 15. Exercising immigration controls on passengers of the means of local transportation and international, public or private, at airports, borders, seaports and river, as well as anywhere in the national territory. For this purpose they may establish permanent controls and / or newspapers, duly authorized by the Director General of the National Immigration Service.
• 16. Inspect and perform immigration controls in the workplace and in any place of public access, where there are indications of irregularities migratory.
• 17. To exchange information and cooperate with other agencies and national counterparts in other countries and with international organizations specializing in immigration matters, to assist in the implementation of measures against the smuggling of migrants, trafficking in persons, offences related to organized crime transnational terrorism, illegal trafficking in weapons and explosives and against diversion for illegal purposes, dual-use goods and related activities.
• 18. To seize, detain and guard foreigners who violate the provisions of the immigration legislation, as provided in this Decree-Law.
• 19. Carry out the necessary research to prevent, identify and combat offences relating to the legal regime of migration, and cooperating with the competent authorities in investigations relating to breaches of the criminal law.
• 20. Exercising jurisdiction coercive.
• 21. Implement administrative penalties for violators of this Decree Law and its regulations.
• 22. Any other to establish law and regulations.

Article 7. The National Immigration Service will ensure respect for the dignity and human rights. In the exercise of their duties, officials of the National Immigration Service will not run discrimination on grounds of nationality or social or economic status, or on the basis of disability, political beliefs, ethnicity, gender, language or religion.

CHAPTER II

ADVISORY COUNCIL ON MIGRATION

Article 8. Introduction of an Immigration Advisory Council as a consultative and advisory body of the National Immigration Service, which shall consist of the following public servants or those who nominate them:

• 1. The Minister of Government and Justice, who shall preside.
• 2. The Minister for Foreign Affairs.
• 3. The Minister of Labour and Social Development.
• 4. The Minister of Trade and Industry.
• 5. The Minister of Economy and Finance.
• 6.The Chairman of the Electoral Tribunal.
• 7. The general manager of the Panamanian Institute of Tourism.
• 8. The Executive Secretary of the Council of Public Security and National Defense.
• 9. The Director General of the National Immigration Service, who will perform the functions of the Registrar, with the right to speak.

The Minister of Government and Justice may convene meetings of the Council with the right to vote to individuals or corporations or associations duly recognized by the Ministry of Government and Justice.The functions of the Advisory Council will be developed in the rules of this Decree-Law.

CHAPTER III

MIGRATION POLICY

Article 9. Functions of the Minister of the Interior and Justice, in the field of migration policy, as follows:

• 1. Develop and propose to the Executive Body migration policies to guide the State in its strategies demographic and population planning, for its adoption when it deems necessary.
• 2. To submit, for consideration by the Executive Branch, programs for migrant workers, to address the political, economic and demographic in the country.
• 3. Recommend and develop special measures to be taken by the Panamanian state to control and prevent illegal migration.
• 4. Promote interdisciplinary studies that will facilitate the integration of immigrants into Panamanian society.
• 5. Recommend and monitor the census and updating data, in order to determine the quantity and category of migrant immigrants who remain in the country, the conditions under which they operate and their relationship with the nation as a whole and with the Other groups that populate the country.
• 6. To recommend to the Executive Body negotiation, amendment or revision of treaties, conventions or agreements migratory.

CAPÍTULO IV CHAPTER IV

DIRECTOR Y SUBDIRECTOR GENERAL DIRECTOR GENERAL AND ASSISTANT DIRECTOR

Article 10. The Director and Deputy General public servants are free appointment and removal of the President.

To be Director and Deputy Director General of the National Immigration Service, requires:

• 1. Being a Panamanian citizen.
• 2. Enjoy proven moral integrity.
• 3. Not have been convicted of criminal offence.
• 4. Possessing college degree.

Article 11. Functions of the Director General of the National Immigration Service, the following:

• 1. Direct, plan and manage the National Immigration Service.
• 2. Adopt measures for the effective implementation of the tasks laid down in this Order Act and its regulations.
• 3. Punish the members of the National Immigration Service for breaches of this Decree Law, regulations and the relevant disciplinary rules.
• 4. Ensure, to approve or disapprove the guidelines of the system of internal procedures, protocols, operational and administrative, to establish standards of corporate governance and regulation.
• 5. Recommend to the Minister of Government and Justice changes in organizational, administrative and functional, as it deems necessary for the effective discharge of the functions set out in this Decree-Law and its regulations.
• 6. Presenting the draft budget of the institution to the Minister of Government and Justice.
• 7. Manage the Trust Fund for Migration, the Special Fund for the Development of Human Resources and the resources approved in the budget.
• 8. Delegate to their subordinates the functions and powers it deems appropriate, with the exception of decisions to resolve on staying legal, deportation or expulsion.
• 9. Implement the administrative and financial penalties that apply to those who violate this decree Act and its regulations.
• 10. Representing the internationally National Immigration Service, in coordination with the Ministry of Foreign Affairs.
• 11. Exercising jurisdiction coercive and, when appropriate, delegate it to an official of the institution.
• 12. Exchange information with counterpart agencies in other countries and with intergovernmental and international organizations specialized in immigration matters.
• 13. Authorize the necessary research to prevent, identify and combat offences relating to the legal regime of migration.
• 14. Adopt administrative practices that promote safety criteria, transparency, speed and fairness.
• 15. To determine the term of deportation according to the seriousness of the cause that motivates, pursuant to this Decree Law.
• 16. Exercise such other functions as are conferred on the present Ordinance Act and its regulations.

Article 12. The Deputy Director General of the National Immigration Service shall perform the functions assigned to the Director General and replaced their temporary absences.

CHAPTER V

MIGRATORY FUNCTIONS OF DIPLOMATIC STAFF AND CONSULAR PANAMEÑO

Article 13. Is authorized to diplomatic and consular personnel in the Republic of Panama, to perform functions migratory accordance with international agreements, the present Ordinance Act and its regulations. In the exercise of these responsibilities, diplomatic and consular officers shall:

• 1. Receive, process and issue visas to them filed by stakeholders, in the category of non-resident and determined by the Executive Branch, through the Ministry of Government and Justice, after complying with the requirements and procedures.
• 2. Perform the steps necessary to verify that the statements and documents submitted by applicants are authentic.
• 3. Receiving and processing, in accordance with the established regulations, temporary resident permits for foreigners wishing to study in the national territory, as regular students of university schools, duly recognized by the competent authorities, save those set forth in the agreements and special laws.
• 4. Submit report to the National Immigration Service, within the first five days of each month on immigration procedures performed in his office.

TITLE III

CATEGORIES MIGRATORY

CHAPTER V

RANKING

Article 14. Foreigners entering the country will be able to do so under the following immigration categories:

• 1. No resident.
• 2. Resident temporary.
• 3. Permanent resident.
• 4. Foreigners under protection of the Republic of Panama.

The Executive Body regulate migratory categories and subcategories, the procedure, form and the conditions under which they are issued permits and visas, according to the principles of national security, health, public order and protection of rights and freedoms. Foreigners may opt to change immigration status after complying with the requirements set out in this Decree Law and its regulations, with the exceptions that they brought.

Article 15. The Executive Branch shall regulate the conditions and requirements which must be met in order to implement each of these categories migratory and may create other migratory subcategories.

CHAPTER II

NON-RESIDENT

Article 16. Resident is not an alien who enters occasionally in the national territory, which has no desire to take up residence in it or leaving his home of origin while in Panama, and must rely on their own financial means and appropriate for kept during their stay and leave the country on the expiration of the period allowed.

In response to the purpose of entry to the country from abroad, a visa or permit non-resident will be granted in accordance with the following subcategories:

• 1. Tourists. Those who arrive in the country exclusively for recreational and other activities in the regulation of this Decree Law, for a period of not more than ninety days, without prejudice to the provisions of international agreements ratified by Panama and the Republic of the principles of reciprocity.
• 2. Passengers and crew in transit. Those who reach the national territory and have to resume travel abroad, within twelve hours of their arrival and are in scale within a route, as well as the crew members or passengers on international transportation, and those who remain in migratory sites. In the event of force majeure or Act of God may extend the stay seventy-two hours prior permission of the Director-General or the public servant authorized at airports, ports and immigration checkpoints.
• 3. Mariners. Foreigners who enter national territory for the purpose of embarking and crew, in ports and in national waters to begin its work on a ship. They may stay in the country for a period of no more than five days and will be governed in accordance with the laws in force on the subject. In the event of force majeure or fortuitous event this period may be extended upon approval of the Director-General or the public servant authorized at airports, ports and immigration checkpoints.

Article 17. Foreigners who enter the country under the category of tourists, may request a change of immigration status, which you may be given an extension of up to sixty days to complete the documentation for the change in status, if they meet the requirements establish this Decree Law or regulation.

CHAPTER III

TEMPORARY RESIDENT

Article 18. Temporary resident is abroad or their dependents who enter national territory for employment reasons, special political, educational, cultural, religious, humanitarian and family reunification and other subcategories, for a period of up to six years, except in cases where special laws and conventions establish distinct periods. The requirements, procedures, costs and changes in category will be established in the rules of this Decree Law.

The term dependents, parents, spouse and children under eighteen. For children older than eighteen years until twenty five years, who may be called as a dependent, always studying on a regular basis and are under economic dependence on temporary resident, they issue a permit for a period of time, that in no case can be as high as this one.

Article 19. Foreigners referred to the Cabinet Decree No. 363 of 1971 and Law No. 23 of 1977, for purposes of this Decree-Law, shall be treated under the category of temporary residents and migrant maintain the tax benefits and franchises tariff set their special laws.

CHAPTER IV

PERMANENT RESIDENT

Article 20. Permanent resident alien who is entering the country for economic reasons and investment, special political, and demographic and other subcategories in the spirit established in the country, according to special policies adopted by the State, according to requirements, procedures and costs that will be established in the rules of this Decree-Law.

Paragraph. The Rules of this Decree-Law shall be fixed the minimum amounts of pensions, pensions and investments, which should prove that foreigners apply to the immigration status of permanent resident.

The Executive Branch shall review every two years to determine their suitability for the national and global economy, taking into account national interests.

Article 21. Service National Migration accord to foreign applicants for migratory categories set out in this chapter, a temporary residence permit for two years, with their identification document. After this period, interested parties may request the stay, if they meet the requirements to the law and the regulations set.

Article 22. Foreigners referred to the Act 9 of 1987, shall be treated for purposes of this Decree-Law in the category of permanent residents and keep the profits tax and tariff franchises set their special laws.

CHAPTER V

FOREIGNERS IN PROTECTION OF THE REPUBLIC OF PANAMA

Article 23. Foreigners are under protection of the Republic of Panama, refugees, asylum seekers, stateless persons and persons under temporary humanitarian protection status, they join a large scale or individually to the country in search of temporary protection, while awaiting the return their country of origin or their resettlement in a third country. Recognition of this condition shall be subject to national law and international treaties ratified by the Republic of Panama.

Article 24. Recognized as a refugee, asylee or stateless by the Republic of Panama, the National Immigration Service granted a temporary residence permit valid for one year, renewable for a similar period, provided that the competent authorities certifying that keeps this condition.

The national commission of eligibility for the care of refugees granted a permit to be extended two months, to aliens who are under temporary humanitarian protection status.

Foreigners who enjoy this status are exempted from payment of the deposit until the cessation of repatriation, lose that status or renounce it.

Article 25. In the case of refugees, after application of the cessation clause Collectively, the Executive may waive the deposit repatriation.

Article 26. Refugees, Asylum will have the same rights as temporary residents, including the right to work, subject to the existing labour law, the obligation to pay taxes and social security contributions under the same conditions as nationals, as well as the payment of migration services.

The refugees may be exempt from requirements applicable to common residents and have the right to change their immigration status.

Article 27. If that occurs resignation, termination, revocation or loss of refugee status, or stateless asylum, the competent authorities shall report such fact to the National Immigration Service.

TITLE IV

PERMAMENTE RESIDENT PERMIT AND TEMPORARY RESIDENT PERMAMENTE

CHAPTER V

COMMON REQUIREMENTS

Article 28. Requesting permission temporary resident or permanent resident to be presented to the National Immigration Service must be filed by legal representative, in accordance with the requirements established for each category of visa or permission, except for one category that requested from the outside that category and applicable by virtue of education, which must meet the following common requirements:

• 1. A copy of the passport properly collated by Panamanian notary public, or accompanied by certification of the diplomatic mission accredited in the country and the corresponding authority in the place of issuance. When he deems it necessary for security reasons, the National Immigration Service, may require the applicant to certify the authenticity of the passport.
• 2. Certificate of criminal history of the country of origin or residence. In those countries where there is issuing this document, the applicant must provide a certification of a diplomatic or consular agent of his country of origin accredited in the Republic of Panama, demonstrating that the absence of such a certificate and an affidavit before a notary public , demonstrating that they do not have criminal records.
• 3. Health certificate issued by a qualified professional, within three months prior to the filing of the application.
• 4. Pay one quarter of balboas to the National Treasury in rights for the application for a category of migration, and eight hundred balboas in favour of the National Immigration Service by way of deposit repatriation.
• 5. Affidavit of personal history. Any documentation from abroad must comply with the requirements of legalization.

Article 29. Are exempt from payment of deposit repatriation, religious, students, married with Panamanian people under twelve years of age and those who are available by special laws.

Article 30. Regulation of this Decree-Law shall determine the requirements and special procedures for each category and subcategories migratory under this title, as well as the exoneration established in the previous article.

CHAPTER II

CANCELLATION OF VISAS OR PERMISSIONS MIGRATORY

Article 31. The Director General of the National Immigration Service may cancel the residence or stay in the national territory, the non-resident alien, temporary or permanent resident in any of their migratory subcategories, for the following reasons:

• 1. Using the sole purpose of marriage to a citizen, to obtain their residence.
• 2. An attack against the national security, public order, morality or public health or violate the rights and freedoms of individuals.
• 3. In the case of permanent residents, leave the national territory for more than two years, unless such absence is justified and authorized by the Director of the National Immigration Service.
• 4. Carry out activities incompatible with which served as the basis for granting a visa or permit non-resident, temporary or permanent resident.
• 5. Presenting false statements and / or fraudulent documents or altered.
• 6. Provide, by himself or through an intermediary person, any kind of promise or pay, or exert any pressure to alter the will of the officials of the National Immigration Service or diplomatic or consular agents, in order to get a visa or the permit.
• 7. Having been convicted of committing a criminal offence or for tax fraud.
• 8. Cesar causes that gave rise to the approval of a visa or permit.
• 9. Any other grounds established by law or regulations.

Article 32. The National Immigration Service deported to foreigners they have been cancelled for non-resident visa or permit temporary or permanent resident in the Republic of Panama, except in those cases where the law provides otherwise.

CHAPTER III

PROVISIONS TO THE PREVIOUS CHAPTERS

Article 33. The National Immigration Service and members of the police services may require any alien, on a mandatory basis, the submission of documentation that demonstrates their entry and immigration status in the country. In appropriate cases, the police services abroad to make available to the National Immigration Service, which will assume its custody.

Article 34. The National Immigration Service will check the applications for temporary or permanent residents, in a period not exceeding sixty days. The applicant is entitled to be given proof of its handling relevant while deciding its application. In the event that an application detects incomplete or defective, will be granted a period of fifteen working days from the notification to remedy. Paragraph transient. From the first year in which enters into force on this Decree Law, if not taken a decision within the term set forth in this article, the application shall be deemed approved in favor of the applicant.

Article 35. For reasons of security and public order sectors Security, the Public Ministry and the judicial authorities should communicate immediately, the National Immigration Service on the existence of investigations or legal proceedings in which it appears involved a foreigner , which must indicate the alleged offence, the precautionary measures against him and ordered his release, as well as the results obtained.

For purposes of the provisions of the preceding paragraph, the National Immigration Service will create the technological tools and formalise the conventions and protocols necessary with the institutions involved, in order to safeguard the information provided in accordance with the law.