Residence by investment in PanamaOverview
Panama created the Qualified Investor subcategory in October 2020 (Executive Decree 722) to give investors a faster, single-window route to permanent residence. Successive decrees in 2022 and 2024 repeatedly postponed a planned increase in the real estate threshold. Executive Decree 17, dated 8 September 2026 and published in the Official Gazette on 16 September 2026, replaced that framework entirely. The reform keeps US$300,000 for newly built property bought on first sale, sets US$500,000 for resale property, introduces a US$500,000 fixed-term deposit option at Banco Nacional de Panamá or Caja de Ahorros, keeps US$750,000 for deposits at private banks, and broadens the instruments eligible under the US$500,000 securities route.
The application runs in two stages. MICI first verifies the investment and issues an investment certificate; the SNM then decides the residence application. Both stages can be handled by a Panamanian lawyer under power of attorney, so the investor need not be in Panama while the file is prepared. Once approved, residence is permanent from the outset. The investment must be maintained for five years and evidenced annually; if it is sold or lost, MICI must be notified within 30 days and a replacement investment confirmed within 90 days.
Decree 17 places greater weight on provenance. Funds must originate outside Panama, gifts from third parties do not qualify, and MICI may order an independent valuation if a declared property value appears overstated, with the lower of price and market value used. Off-plan purchases remain possible at US$300,000, but only where the funds are protected by a trust with a licensed Panamanian bank or trust company, or by full prepayment backed by an annually renewed bank guarantee. Applications filed before 16 September 2026 continue under the old rules, and investors who had already invested or signed a binding contract had six months, until 16 March 2027, to apply under the previous regime.
Panama taxes on a territorial basis: income from sources outside Panama is generally not subject to Panamanian income tax, which makes residence attractive for internationally invested families. Alongside the Qualified Investor route, Panama also offers the Pensionado visa for retirees with a lifetime pension of at least US$1,000 a month, the Friendly Nations visa for nationals of listed countries with economic ties to Panama, and residence based on own economic solvency. Under Decree 17, existing economic solvency residents have 12 months to migrate to Qualified Investor status.
Key benefits
- Permanent residence granted on approval, without a provisional stage
- Low threshold of US$300,000 for newly built property on first sale
- Financial routes through listed securities or fixed-term deposits for those who prefer not to hold property
- Spouse, children and parents can be included
- Territorial tax system under which foreign-source income is generally not taxed in Panama
- Light presence requirement of one visit every two years
- Route to naturalisation after five consecutive years of residence, subject to the general naturalisation rules
- US dollar economy with an established international banking sector
Requirements
- Main applicant aged 18 or over with a clean criminal record
- Qualifying investment made with funds originating outside Panama; third-party gifts are not accepted
- Property held in the investor's name, through a company or through a private foundation, with ownership traceable to the investor
- Securities held for five years through a broker licensed by the Superintendency of the Securities Market
- Fixed-term deposits of five years with a Panamanian bank, at the state-bank or private-bank threshold as applicable
- Investment maintained for five years and evidenced to MICI each year
- Payment of the government charges for the main applicant and each dependant
- Source-of-funds and AML documentation acceptable to the bank, broker or notary and to MICI
- Application filed through a Panamanian lawyer
Investment options
New residential property
US$300,000
First sale of a newly built, unoccupied property. Off-plan purchases qualify where funds are held in trust with a licensed Panamanian bank or trust company, or are fully prepaid against an annually renewed bank guarantee.
Resale property
US$500,000
Property acquired on the secondary market. MICI may require an independent valuation, and the lower of the price paid and market value is taken into account.
Listed securities
US$500,000
Investment through a licensed Panamanian brokerage, held for five years. Eligible instruments now include registered shares, debt, mutual funds, REITs, government bonds and certain private equity and venture capital funds.
Deposit at a state bank
US$500,000
Five-year fixed-term deposit at Banco Nacional de Panamá or Caja de Ahorros, introduced by Decree 17 of 2026.
Deposit at a private bank
US$750,000
Five-year fixed-term deposit at a Panamanian bank holding a general licence.
Step-by-step process
- 1
Route selection and source-of-funds review
We assess family composition, liquidity and investment preferences, and assemble the source-of-funds evidence before any money is moved.
- 2
Make the investment
The property purchase, brokerage investment or deposit is completed with funds transferred from abroad, with independent legal checks on title or on the off-plan protection mechanism.
- 3
MICI investment certificate
MICI verifies ownership, value and provenance and issues an investment certificate, which remains valid for a limited period for filing.
- 4
Residence application to the SNM
The lawyer files the permanent residence application with the certificate, civil documents and government payments for the investor and dependants.
- 5
Approval and identity documents
On approval, permanent residence cards are issued and the family can then apply for a Panamanian cédula for foreign residents.
- 6
Annual compliance
The investment is evidenced to MICI each year for five years, and any replacement is notified within 30 days.
Typical documents
- Passports for the investor and each dependant
- Criminal record certificates, apostilled and translated into Spanish
- Birth and marriage certificates establishing family relationships
- Property title from the Public Registry, purchase contract or off-plan trust and guarantee documents
- Brokerage or bank certificates confirming the securities or deposit and their terms
- Bank evidence that funds were transferred from outside Panama
- Corporate or foundation documents where the investment is held through an entity
- Health certificates and passport photographs
- Power of attorney in favour of a Panamanian lawyer
How Legal Wealth helps
Legal Wealth helps families decide whether Panama's Qualified Investor route, a retiree visa or another jurisdiction best fits their plans, and then prepares the source-of-funds file to the standard Decree 17 now expects. We coordinate independent Panamanian counsel, check property title and off-plan protections before funds move, and consider whether the investment should sit personally, in a company or in a private foundation as part of the family's wider succession arrangements. Every engagement is handled discreetly and tailored to the client.
Enquire with Legal WealthFrequently asked questions
What changed with Executive Decree 17 of 2026?
It replaced the 2020 framework from 16 September 2026. New property stays at US$300,000, resale property now requires US$500,000, a US$500,000 deposit route at the two state banks was added, private-bank deposits remain at US$750,000, eligible securities were broadened, and provenance and valuation checks were tightened.
I invested before the reform. Which rules apply?
Applications filed before 16 September 2026 are decided under the rules in force when filed. Investors who had already invested or signed a binding contract but had not applied could use the previous rules if they filed within six months, by 16 March 2027.
Can my parents be included?
Yes. The spouse, children and parents of the main investor may be included, each with an additional government payment, and their status depends on the investor keeping the investment.
Do I have to live in Panama?
No minimum stay is required to obtain status, but permanent residents must visit Panama at least once every two years. Naturalisation after five years requires genuine residence.
Is foreign income taxed if I become resident?
Panama applies a territorial system, so income from sources outside Panama is generally not subject to Panamanian income tax. Local-source income is taxed, and your home country's rules still apply until you cease to be resident there.
Can I hold the property through a company?
Yes. The investment may be held through a company or a private foundation, provided the investor's ownership and the foreign origin of the funds can be demonstrated.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.
Sources
- Erickson Immigration Group – Panama updates Qualified Investor residence program
- Kraemer & Kraemer – Panama Qualified Investor residency changes
- Perspektive Ausland – Panama Decreto Ejecutivo 17/2026
- Revista E&N – Panamá amplía el alcance del programa Inversionista Calificado
- Relocation Firm – Panama visas summary
