For internationally mobile executives, founders and retirees, a second residency has become part of ordinary planning. Panama keeps appearing on shortlists. It uses the US dollar, taxes only Panama-sourced income, and Tocumen International Airport links it directly to North America, Latin America and Europe. Its Qualified Investor programme offers something few countries in the region do: permanent residency granted directly, without a provisional stage, in exchange for a qualifying investment that can be a home.
The programme changed in September 2026, and the change matters to anyone planning to use a property purchase to qualify.
What changed in 2026
Until recently, the real estate route was widely described as a single US$300,000 threshold. Executive Decree 17 of 2026 split it in two. A new property bought on its first sale, typically from a developer, still qualifies from US$300,000. A resale property, bought from a previous owner, now needs US$500,000.
For buyers, this changes the search itself. The same budget now qualifies in one building and not in the one next door. A restored colonial apartment in Panama City’s Casco Viejo, usually a resale, falls under the higher figure. A new condominium unit bought from the developer can qualify at the lower one. Securities and fixed-term bank deposits remain alternative routes, with their own, higher thresholds.
The conditions that usually trip people up
The headline number is only the start. The conditions attached to the investment are where applications slow down:
- Holding period. The qualifying investment must be maintained for five years. Selling early can put the residency at risk.
- Free of liens. The qualifying value must be clear of mortgages and encumbrances. Financing part of the purchase can reduce the amount that counts.
- Funds from abroad. The money generally needs to come from outside Panama, with a clear paper trail through the banking system.
- Titled property. The property must be properly titled and registered at the Public Registry. Untitled land held under rights of possession, common in rural and coastal Panama, does not fit this route.
- Banking compliance. Panamanian banks apply thorough know-your-customer checks. Bank references, proof of income and source-of-funds documents should be ready before money moves.
How it compares with Panama’s other routes
The Qualified Investor route is the fastest path to permanent status, but it is not the only option, and for many buyers it is not the best one.
The Friendly Nations visa is open to citizens of a long list of countries, including Canada, the United States, the United Kingdom and most of the European Union. Its investment option accepts titled real estate with a registered value of at least US$200,000. It starts with two years of provisional residency before permanent status, and the property must be held throughout that period.
The Pensionado programme, aimed at retirees, requires a verifiable lifetime pension of at least US$1,000 a month and no property purchase at all. It also brings well-known discounts on services.
The right choice depends on budget, nationality, age and timeline. A buyer spending US250,000onaresalehome,forexample,maybebetterservedbyFriendlyNationsthanbystretchingtoaUS500,000 property for the faster route.
A practical sequence
Buyers who handle this well tend to follow the same order:
- Choose the residency route first, with a licensed Panamanian immigration attorney, before shortlisting property.
- Confirm whether each candidate is a first sale or a resale, and whether its registered value meets the threshold.
- Have an independent property attorney check title, liens and the seller’s tax clearance.
- Move funds from abroad through a documented bank transfer, comparing exchange rates if converting currency.
- Close, register the property, and file the residency application with the investment documents.
Processing is commonly reported at a few months once paperwork is complete, though timelines vary.
Taxes still need home-country advice
Panama’s territorial system does not tax foreign-source income, but residency in Panama does not end obligations elsewhere. Canada, the United Kingdom and EU states each have their own tests for tax residency and departure. Panama also levies tax when a property is sold, including a 2% transfer tax and a capital gains payment, so a five-year hold should be modelled with an exit in mind.
Choosing the property, not just the permit
The most common mistake is buying a property only because it qualifies. Five years is a long time to own somewhere that does not suit your life or your rental plans. Licensed brokerages that represent the buyer, rather than the developer, such as Panama Properties, can check whether a listing is a first sale or a resale, whether it is titled, and whether its price stands up against comparable sales.
The September 2026 decree did not close Panama’s door. It simply made the details more important. Investors who settle the route first and the property second will find the programme remains one of the more accessible in the Americas.
Thresholds and rules are current as of October 2026. Confirm them with a licensed Panamanian immigration attorney before committing funds.
Also Read: How Modern Investors Are Scaling High-Yield Real Estate Portfolios in 2026
