Panama has introduced significant changes to its Qualified Investor Permanent Residency Program, restructuring the real estate investment route under Executive Decree No. 17, signed on September 8, 2026, and published in the Official Gazette on September 16. The new framework creates separate investment thresholds for new-build and resale properties, while also introducing enhanced valuation, source-of-funds, and compliance requirements.
Two-Tier Real Estate Investment Route
The main change is the introduction of two separate property investment thresholds. A first purchase of a new and unoccupied property from a developer continues to qualify at US$300,000.
By contrast, investors purchasing a resale property that has previously been sold, transferred, leased, or occupied must now invest at least US$500,000. This creates a US$200,000 difference between new-build and resale investments.
Stronger Property Valuation Controls
The new decree strengthens controls over property valuations. The qualifying investment is based on the lower of the actual purchase price and the substantiated commercial value, after deducting any outstanding lien affecting the property.
The Ministry of Commerce and Industries may also require an independent appraisal where the cadastral value does not reflect current market conditions or there is reasonable doubt regarding the property’s value.
Off-Plan Investment Remains at US$300,000
Investors purchasing property off-plan can continue to qualify with a minimum investment of US$300,000. However, the new rules introduce additional safeguards for investors, including requirements for trust arrangements or financial guarantees to protect funds until the property is completed and registered.
If a developer fails to meet contractual deadlines, investors have 180 business days to replace the failed investment with another qualifying investment.
Processing and Compliance
The new framework establishes clearer administrative deadlines. MICI has 15 business days to issue an Investment Certification after admission, while applicants have 15 business days to correct incomplete files.
Once a complete application reaches the National Migration Service, the existing 30-business-day decision period remains applicable.
Source of Funds and Annual Verification
Applicants must demonstrate that the investment comes from their own funds and provide evidence of ownership and traceability. Funds received as gifts or other gratuitous transfers from third parties do not qualify.
Investors must maintain their qualifying investment for five years and are subject to annual verification requirements. Failure to maintain or properly reinvest the qualifying investment within the prescribed period may lead to cancellation of the residence permit.
Pathway to Naturalization
The new decree formally introduces a framework for naturalization applications for qualified investors and their dependents after completing five consecutive years of residence in Panama. However, naturalization is not automatic and remains subject to Panama’s constitutional and legal requirements.
Transitional Rules
Investors with applications or qualifying investments already in progress may benefit from transitional provisions. Certain investments or binding contracts entered into before the new decree may continue under the previous requirements, including the former US$300,000 property threshold, provided the applicable filing deadline is met.
Summary
Under the new rules, investors purchasing a new property directly from a developer for the first time can still qualify with a minimum investment of US$300,000, while purchases of resale properties now require at least US$500,000. The changes are intended to direct foreign investment toward new construction and support the local construction sector. The decree also strengthens property valuation controls, introduces clearer processing deadlines, and establishes a more structured pathway for investors seeking naturalization
