Panama Tightens Qualified Investor Residency Rules: Second-Hand Property Threshold Doubles to $500,000
Updated: 4 hours ago
PANAMA CITY, September 22, 2026 — Panama has issued a new executive decree overhauling its Qualified Investor permanent residency programme, introducing stricter financial traceability rules, distinguishing for the first time between first-sale and secondary-market property, and adding a new state-bank deposit route.
Executive Decree No. 17 of 8 September 2026, published in the Official Gazette on 16 September, replaces the 2020 framework (Decree 722) and its subsequent amendments. The decree was approved by the Cabinet Council with the stated aim of attracting foreign investment while boosting new construction projects and job creation.
Key Changes at a Glance
Area | Previous Rules | New Rules |
First-Sale Property | $300,000 minimum | $300,000 (maintained) |
Secondary-Market Property | No distinction | $500,000 minimum |
Source of Funds | Standard requirements | Stricter — gifts, donations, and gratuitous third-party transfers excluded |
Legal Entity Ownership | Basic documentation | More detailed ownership and control evidence required |
State Bank Deposit | Not available | $500,000 five-year deposit with Banco Nacional or Caja de Ahorros |
Ongoing Verification | General compliance | Annual evidence required before immigration approval anniversary |
Property Threshold Now Relies on Transaction History
The most notable modification categorizes real estate into two types:
First-sale property: A new, unoccupied unit purchased directly from the developer or promoter, with a minimum price of $300,000
Secondary-market property: A unit that has been previously owned, lived in, rented out, or handed over to an unrelated third party, with a cost of $500,000
The practical effect is that the entry point now depends on the property's ownership history, rather than a single standard figure. The qualifying value is determined as the lower of the actual purchase price and the verified commercial value — indicating that a contract price alone no longer defines the qualifying amount.
Financing can exceed the applicable minimum as long as it is documented and traceable. The minimum amount must be authentically invested.
Stricter Source of Funds and Entity Rules
The decree tightens fund traceability requirements :
Investment funds must belong to the applicant and cannot include gifts, donations, or other gratuitous third-party transfers
Even if funds have already reached the applicant's account, if they originated as a gift or gratuitous transfer, they cannot count toward the qualifying investment amount
Investments held through a legal entity now require more detailed documentation regarding ownership and control
Applicants whose funding involves parental gifts, relative transfers, or third-party payments should restructure their funding pathways before applying .
New Options and Streamlined Pathways
The decree introduces two new elements :
New Option | Details |
State Bank Deposit | $500,000 five-year fixed-term deposit with Banco Nacional de Panamá or Caja de Ahorros |
Citizenship Streamlining | A process designed to streamline applications through the Ministry of Commerce and Industry for Qualified Investor residents and dependents applying for Panamanian citizenship after five consecutive years |
The decree also clarifies processing times: MICI certification within 15 working days, and immigration permanent residency approval within 30 working days .
Full List of Qualifying Routes
Route | Minimum Investment | Term |
First-sale property from developer | $300,000 | 5 years |
Secondary-market property | $500,000 | 5 years |
Promise of sale with banking safeguards | $300,000 | 5 years |
Securities through licensed brokerage | $500,000 | 5 years |
Deposit with state institution (BNP or Caja de Ahorros) | $500,000 | 5 years |
Deposit with private bank | $750,000 | 5 years |
Each route requires a minimum holding period of five years. If a qualifying investment is no longer valid during this time, the investor has 90 calendar days to replace it with another qualifying investment.
Transition Period for Existing Investors
Applications that have already been submitted are subject to the requirements that were in place at the time of submission. Investments completed before the decree became effective still qualify under the old rules if the related application is filed within six months.
Those who invested under Decree 722 but have not yet submitted their application are operating within this time frame.
Industry Reaction
Real estate attorney Berlisa Arosemena criticised the decree's focus on new construction, warning it will slow the secondary market and reduce Panama's competitiveness against similar programmes. She noted that while Panama and West Panama have 18,000–22,000 new units, the resale market holds around 30,000 properties in the $250,000–$450,000 range, with placement times already at 9–14 months .
"The decree aims to boost the new housing market, but we cannot dress one saint by undressing another. By placing obstacles on resale properties in a visa of this type, the foreign investor will simply look to other latitudes."
Arosemena also warned the change could reduce government revenue, as Qualified Investor applicants generate $5,000 to the National Treasury and $5,000 to the Repatriation Fund each, while alternative visa routes generate far less .
Programme Performance
Between July 2025 and June 2026, Panama issued 268 Qualified Investor certificates backed by investments totalling $113.6 million — up from 193 certificates and $90.1 million in the previous period .
Julio MoltĂł, the Minister of Commerce and Industries, stated:
"This programme is already bringing investment to Panama, and now we want to take it to a new stage. We have made changes to make it more competitive, boost new projects, and ensure that investment has a greater impact on our economy."
Read Also
Official Resources
Resource | Link |
MICI Official Announcement | |
Official Gazette No. 30613 | |
Panama National Immigration Service |
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