Foreign Residency & Visa Requirements

Jan. 25, 2011:

"Kathleen, I just wanted to say that your Emergency Offshore Summit Home Conference Kit is truly worth the price.

"I've listened to the entire collection of audio recordings and have a couple of questions.

"I have more than a few concerns. I am planning to move offshore in 2012 or early 2013, so I believe the HIRE act will affect my plans and potentially the way I set up a permanent visa.

"My first question I hope is not too complex. Do I (and anyone else planning to move to Panama) need to allow for US$1,000 plus an extra 30% a month for a Panama visa, knowing that now, under the requirements of the HIRE Act, 30% will automatically be taken out of our annuities and of our Social Security checks and sent to the IRS? Or am I jumping the gun?

"Will this directly affect people who are already living abroad and annually renewing their visas, assuming that these people are just about at the US$1,000 mark for, say, a Social Security payment. Won't they be short 30% and therefore unable to renew their visas? This will be a big deal for a lot of people who have been living years on a US$1,000 allowance from annuities, Social Security, or other investments, correct?

"Now, regarding a residency visa for Panama, specifically, I'm interested in the reforestation program that country offers and that your presenter details in your Offshore Summit package. I'm wondering:

• How long does this type of residency require that you be in Panama per year?

• When you decide to sell the trees, does the company do that for you and at what cost?

• How long must you keep the trees to ensure your continued visa?

"Finally, with regard to the QRP residency program for Belize. I know that you can finance this in several ways. When using the US$24,000 a year in a Belize bank method and renewing every year, must you continue to deposit an additional amount of US$24,000 each year or can you simply leave that amount permanently and never use it and renew your visa that way?

"Thank you very much for your time to answer these questions for me."

--Norman W., United States

The US$1,000 a month required to qualify for a pensionado visa in Panama has to be proven, but it doesn't have to be transferred each month to Panama.

Belize does require you to transfer the US$24,000 per year required to qualify for the QRP into the country. You can do this in monthly installments of US$2,000 or annually.

In other words, the 30% withholding coming into place as a result of the HIRE Act might be an issue for people retiring to Belize under the QRP program, but it shouldn't have a direct impact on visa requirements in Panama.

That said, I believe that transfers to yourself would effectively be exempt from the withholding requirement. In other words, if your Social Security check is deposited into a U.S. checking account and then you wire it to an account in your name in Panama or Belize, the transaction shouldn't be affected by the withholding rule.

Also, remember that you could simply use an ATM to access funds from your U.S. account in either of these countries. This is an easy, practical way to access cash for living expenses overseas.

Regarding the reforestation visa program in Panama, there is no specific physical presence requirement, but you would have to be in the country to renew the visa.

The forestry company will sell the trees for you (at least the one that we recommend will). This is at no extra cost. The company (United Nature) simply sells your timber along with their own when the time comes. They get a better price than you'd be able to, because of their volumes, and, of course, they have all the infrastructure in place to facilitate a sale to the highest bidder.

With a reforestation visa, you can apply for permanent residency in Panama after three years. Once you have permanent residency, you could sell off the land where the trees have been growing if you want (you own the land, as well as the trees, with the United Nature program).

Finally, Belize wants to see the US$24,000 required for the QRP visa transferred into the country every year. This is one of the key reasons they have created the program…to attract hard currency into the country.

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