Panama updates permanent residency for Qualified Investors

Panama has updated the rules governing Permanent Residency as a Qualified Investor through Executive Decree No. 17 of 2026, published in the Official Gazette on September 16, 2026.

The new regulation replaces the previous framework and keeps several investment routes available, but introduces important changes regarding thresholds, supporting documentation, verification of funds and maintenance of the investment.

For investors considering the purchase of property in Panama, one of the most relevant developments is the new distinction between new real estate and secondary market property.

New property from US$300,000

The minimum investment of US$300,000 remains available for the initial purchase of a new, unoccupied property transferred by the developer, promoter or its successor.

By contrast, if the property has already been sold, occupied, leased or previously transferred to an unrelated third party, the minimum investment threshold increases to US$500,000.

This distinction makes it especially important to determine, before structuring the investment, how the property will be classified for immigration purposes.

The investment amount must be properly evidenced

The new Decree also provides more detail on how the value of the investment will be determined.

For immigration purposes, the relevant amount will be based on the lower of the price actually paid and the reasonably supported market value, net of encumbrances affecting the property.

If there are reasonable doubts regarding the declared value, the authorities may require an independent commercial appraisal. In practical terms, it is no longer enough for a contract to reflect a certain amount. The payment, the value of the asset and the overall structure of the transaction must be consistent and properly documented.

Own funds from a foreign source

The investment must be made with the applicant’s own funds originating from a foreign source.

The Decree expressly states that donations, gifts and other gratuitous transfers from third parties may not be counted toward the minimum required investment amount.

The Decree also reinforces the obligation to evidence ownership and traceability of the funds used. The investment may still be structured through a legal entity or private interest foundation, provided the ultimate beneficial ownership and effective control of the investment can be properly demonstrated.

New rules for pre-construction property

Investment through a promise to purchase agreement remains an option starting at US$300,000, but the new regime introduces additional mechanisms to protect and verify the investment.

Where a trust is used, the corresponding deposit must be evidenced. If the investor pays 100% of the property price directly to the developer before the property is built or segregated, the transaction must be backed by a banking instrument, such as a stand-by letter of credit, irrevocable bank guarantee or performance guarantee.

In addition, when a project is not completed for reasons attributable to the developer, the Decree allows the investment to be substituted within specified time frames. The cumulative period during which residency may remain based only on promise to purchase agreements is capped at three years.

Other investment routes

The regime continues to include other options for permanent residency.

Investment through the Panamanian securities market requires an aggregate minimum of US$500,000 and must be maintained for at least five years.

In the case of time deposits, the minimum amount is US$750,000 if placed with a private bank holding a general banking license. The threshold is reduced to US$500,000 when the deposit is made directly with Banco Nacional de Panamá or Caja de Ahorros.

The investment must be evidenced every year

Another important change is the annual confirmation of the investment.

The investment must be maintained for a minimum of five years and, during that period, the resident must evidence its maintenance annually before the Ministry of Commerce and Industries through legal counsel.

If the investment ceases, is sold or is replaced before the required holding period is completed, the resident must report it. The regime contemplates a period of up to 90 days to evidence a qualifying reinvestment, where applicable.

Defined timelines for the procedure

The Decree also establishes maximum timeframes for the main procedural stages.

Once a complete application is admitted, the Ministry of Commerce and Industries will have up to 15 business days to issue the Investment Certification. The National Immigration Service will then have up to 30 business days to decide the complete application.

The application may also be filed by legal counsel before the applicant and dependents enter Panama, subject to the later biometric process required for the issuance of the immigration card.

What if the investment had already been made?

The Decree contains transitional provisions that deserve careful review.

Applications filed before its entry into force will continue to be governed by the requirements and thresholds in effect at the time of filing.

Likewise, certain investments and binding agreements perfected before the Decree entered into force may still qualify under the previous regime, provided the corresponding application is filed within six months from September 16, 2026.

Planning the investment and the residency process together

The new regulation makes it even more important to coordinate, from the outset, the structure of the investment, the source of funds, the banking documentation, the value of the asset and the immigration filing strategy.

For individuals evaluating the purchase of property or another qualifying investment in Panama, identifying the correct route before committing funds can significantly facilitate the process.

At CLD Legal, we can assist you in evaluating and structuring your investment and in preparing your permanent residency application as a Qualified Investor in Panama.