Panama's Qualified Investor residency and branded hotel property: what to check before you buy

Panama's Qualified Investor programme gives permanent residency in exchange for a qualifying investment, and real estate is its most used route. Its rules were rewritten in September 2026, and many guides online still describe the old ones. This article sets out the current rules, what they mean for off-plan and branded hotel units, and what to verify before you pay. Data as of October 2026; confirm with a Panamanian immigration lawyer, because the threshold has been revised in 2020, 2022, 2024 and again in 2026.

What changed in September 2026

Executive Decree 17 of 8 September 2026 replaced the 2020 regulation. It was published in the Official Gazette and came into force on 16 September 2026. According to the Ministry of Commerce and Industry (MICI), it set a minimum of $300,000 for new real estate on its first sale and kept $500,000 for second-sale (resale) property. Between July 2025 and June 2026 the programme issued 268 certificates backed by about $113.6 million of investment.

The practical point: the long-rumoured jump of the real-estate minimum to $500,000 did not become a blanket rule. New, unoccupied property sold for the first time still qualifies at $300,000; a previously occupied or transferred property needs $500,000.

The thresholds at a glance

• New real estate, first sale: $300,000.
• Real estate purchase promise on a project in progress: $300,000.
• Secondary-market real estate: $500,000.
• Securities on the Panamanian market: $500,000.
• Fixed-term deposit in a state bank: $500,000; in a private bank: $750,000.

Permanent residency is granted directly; there is no provisional stage.

How the qualifying value is counted

The programme counts the lower of the purchase price and a reasonable commercial value, minus real encumbrances. A cadastral certificate from the national land authority (ANATI) is required, and an independent appraisal can be demanded if there is reason to doubt the value; an appraisal must be recent and prepared by a professional recognised by the state banks. So a unit priced only slightly above $300,000 carries a real risk that its counted value falls below the line. Extras, furniture and fees that are not part of the property's value should not be assumed to count.

Buying off-plan: the rule that surprises people

If the property is still under construction, the investment is made through a purchase promise (promesa de compraventa). The decree accepts two structures.

• A trust (fideicomiso) administered by a licensed bank or fiduciary.
• Payment of 100% to the developer, secured by an irrevocable bank instrument, such as a standby letter of credit or guarantee, covering the full amount, payable on first demand and valid until the property is built, segregated and registered.

A normal developer schedule, a down payment now and the balance at handover, does not by itself meet this. Under a promise alone, the time cannot exceed three years in total, and if the developer defaults you have 180 business days to substitute another promise, once. Ask any seller of an off-plan unit, in writing, how the investment will be structured to qualify and who is the bank behind the guarantee.

Holding, proof of funds and timing

• You must keep the investment for five years and prove it every year through MICI, within the 30 days before the anniversary of the migration resolution.
• If the investment ends, you must notify MICI within 30 days and show an equivalent reinvestment within 90 days.
• Funds must be proven to come from abroad, by international SWIFT transfers from your own account or from an entity you beneficially own. Gifts and donations do not count.
• Timing under the decree: about 15 business days to certify the investment and 30 business days to decide the residency application, from a complete file.
• Investments completed before 16 September 2026 may use the former regime if the application is filed within six months.
• Spouse, dependent children and (under the programme) dependent parents can be included; confirm the current list and fees with your lawyer.

Residency is not citizenship

• Citizenship by naturalization is counted from the date of the migration resolution granting permanent residency: five years in the general case, three for a person married to a Panamanian or the parent of Panamanian children, and shorter for some nationalities.
• You must pass a Spanish and civics test, the president signs the application, and the oath includes a formal renunciation of political ties to the origin country (whether you then keep your other citizenship depends on that country's law). Processing is commonly one to five years.
• A 2025 law created a special travel document for qualified investors; it does not grant citizenship.
• To keep residency, note that under Panama's immigration law the migration authority can cancel residence if you are absent from the country for more than two years, unless the absence is justified and authorised. Do not assume a fixed minimum-visit schedule; ask your lawyer what applies to you.

Tax: what "territorial" means

Panama taxes income earned in Panama. Foreign-source income is not taxed there, for residents or not. Panama-source income is taxed on a progressive scale: 0% up to B/.11,000, 15% from B/.11,001 to B/.50,000 and 25% above. Two cautions: your home country may still tax you as its tax resident, and you should ask a Panamanian tax adviser how rent from your particular unit is treated.

Branded hotel units: what to check

Hotel and branded-residence projects are marketed to investors with yields and brand names. The yield is a projection; the contract is what you actually own.

• Title. Is the unit a separately titled property that will be registered in your name? Residency needs an investment that qualifies and can be certified; ask for MICI's written confirmation of eligibility for this project and unit before paying.
• Management contract. Who is the operator, for how many years, and under what fees (royalties, management, marketing, reserve)? Brand fees reduce what reaches you.
• Rental arrangement. If units share a rental pool, how is income split, what happens in a low season, and can you use the unit yourself?
• Yield claims. Is any return stated as guaranteed? Who guarantees it, for how long and with what security? An expected yield and a guaranteed one are different things.
• Exit. Can you resell, to whom, with what restrictions and fees? Does the five-year hold fit the operator's term?
• Payment. For an off-plan unit, see the payment-structure rule above; confirm the guarantee bank and where deposits are held.
• Costs. Annual property tax, service charges and insurance, and the ITBI position under the new law for a first sale.

A pre-signing checklist

• A lawyer of your own, not the developer's, reads the contract.
• The unit is titled, or the guarantee or trust structure is documented.
• Eligibility is confirmed in writing for the $300,000 or $500,000 route.
• The qualifying value is checked against an independent appraisal, with a margin above the threshold.
• The proof-of-funds route (SWIFT from your own account) is planned.
• You know the five-year plan: hold, annual proof, and what happens if you sell.

This article is informational and is not legal, immigration or tax advice.