The Panamanian Residency Program is a program created especially for those potential investors who are interested in obtaining a second residence or home, for many different reasons for example; privacy, vacations, holidays, retirement, or just as a retreat to a small paradise, free of taxes and of the US government.
The Panamanian Residency Program besides offering you a second home, also offers you the opportunity to expand and increase your investments by creating a portfolio of Non-Voting Preferred Stock, issued by the Corporation LAF Panama, with the capital investment of $100K from the investor. The Corporation LAF Panama has an authorised capital of Five Million Dollars (US$5M) and Three Million (3M) in issued shares of common stock.
One of the advantages this new Portfolio provides is that the Non-Voting Preferred Stock generally has preference over other classes of stock. One of the preferences it offers is Redemption Rights or redeemable shares.
'Redemption Rights refers exclusively to the idea that the stockholder is given the right to compel the corporation to repurchase the shares, if it has legally available funds to do so.
BENEFITS & ADVANTAGES
I. PANAMANIAN RESIDENCY
The Investor who takes full advantage of the Panamanian Residency Program will obtain:
3 month period tourist card, after that he will apply for;
A temporary residence, following a one year period, then he will be granted;
A permanent residence status beginning the second year.
The investor will then be qualified to apply for a Panamanian citizenship and Passport, after having 5 consecutive years of permanent residency.
As a resident the investor will be protected at all times under the Laws of the Republic of Panama.
One of the economic benefits this program provides is a Fixed Annuity for the Investor.
The investor will receive throughout a period of 20 years, a fixed annuity or amount of Five Thousand Dollars (USD$5,000.00) per year, paid on a monthly basis (USD$416.66) or if preferred it may be re-invested in his investment portfolio.
The payments will be taken offshore, to a BVI Corporation to avoid any tax consequences.
III. WORKING PRIVILEGES
The investor will be allowed to work in the Republic of Panama, offering his professional, technical or any other services he provides, protected under the Panamanian Labor Code.
The investor must first pay in its total the amount of One Hundred Thousand Dollars (US$100.000) to the Corporation LAF Panama, to begin (immigration) residency process.
The investor must then provide LAF Panama with personal information which includes:
a Power of Attorney authorizing to act on his behalf,
a medical certificate of good health for a period of at least 3 months,
an HIV laboratory test,
police records from his jurisdiction,
a valid passport,
2 Copies of passport, front and back (notarized by Panamanian counsel)
birth certificate (notarized by Panamanian counsel)
4 photographs (2x2cm), and
a declaration stating his nationality and names of parent's.
All of these documents are necessary to continue the immigration diligence effectively for the investor.
The Investor will also have to make a total of 1 to 3 short trips to Panama, in a 3 months lap, to finish minor details regarding his immigration process.
IV. PANAMANIAN TAXES
The investor will not be subjected to any Panamanian Taxes. The offshore structure in BVI will receive the Annuity Payments the investor obtains from his initial investment, avoiding any tax consequences. BVI Corporation.
A BVI Corporation will be established to receive the investors Annuity Payments of (5K) yearly, from his initial $100K investment in Non Voting Preferred Stock, issued by LAP Panama.
The BVI Corporation will be capitalized with special shares of 2M.
The investor will not incur in any capital gain tax consequences in Panama nor the United States.
NON VOTING PREFERRED STOCK
The Investor will invest $100K in Non Voting Preferred Stock, issued by LAP Panama, receiving in exchange shares from LAP Panama.
The Non-Voting Preferred Stock will have repayment rights. The repayments will be a fixed annuity of 5K per year, agreed to be paid monthly ($416.66), to BVI Corporation.Repayments made from LAP Panama to the BVI Corporation (for the investor), redeeming his investment made initially of $100K, will not incur in any tax consequences for the investor.
The BVI Corporation is responsible to keep the Investors earnings offshore.
The investor has the guarantee of accumulating his repayments if not paid on the date agreed upon, to be received in its total amount. BVI Acquisition Corporation
A subsidiary of LAF Panama will be established in BVI, called BVI Acquisitions Corporation.
BVI Acquisitions Corporation will have the right to repurchase the shares from the Investor, at a value of ($1.00) one dollar per share.
The repurchase of shares known as (retroventa or repurchase) is allowed here in Panama only for the repurchase of shares exclusively.
Panama Regulation - Repurchase
Civil Code. Section 1277. The repurchase contract is prohibited.
The exception to the Law for repurchase in Panama, (considered as modem law application instead of Roman Law interpretation) is only allowed for shares or in Stock Exchange.
The repurchase of shares is the only type of repurchase contract which is permitted in Panama. Celebrating in this case a one time contract, where it is subjected to a resolution clause, for the shares to be returned to its original owner or seller, transferring its ownership back.
(2. ) A repurchase or redemption of shares has the same effect as a dividend- meaning the distributing of the assets of the corporation to shareholders, thereby putting them beyond the reach of creditors and often senior shareholders.
The Corporation LAP Panama is capitalized with ($5M) and (3M shares) of common stock.
The investor will invest $100K in Non-Voting Preferred Stock, created portfolio by LAP Panama, receiving in exchange shares from LAP Panama.
The Investor receives in exchange for the $100K invested a Residency Package which includes:
3 month visitor card;
Temporary Residence for 1 year
Permanent Residence and Panamanian Citizenship after 5 years
Fixed Annuity of 5K per year for a 20 years period, received by BVI Corp.
Panamanian Identification (Cedula) as Investor
Working Privileges in Panama (entitled to work)
LAP Panama will establish a BVI corporation, capitalized with 2M of special shares.
The investor annuity payments of 5K per year, will be sent directly to the EVI Corporation avoiding tax consequences for the Investor.
The BVI Corporation will receive the annuity payments the investor will obtain as repayment from his initial investment of $100K in Non Voting Preferred Stock portfolio, in LAP Panama.
A subsidiary of LAP Panama, BVI Acquisition Corporation, will repurchase the Investors shares (Non Voting Preferred Stock) at a $1.00 per share value.
All legal fees and immigration expenses are paid by LAP Panama except for a check required for the Ministry of Panama for the amount of USD$1,100. Total Expense US$1,100.
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