Panama: what changed in 2026 for foreign buyers

Two new instruments in the late summer of 2026 changed what agencies in Panama can say to foreign buyers: a decree changing the investor residence programme and a law reducing the transfer tax on first sales of new homes. A third item, a proposed tax on digital platforms, is reported but not yet law. This briefing sets out each as reported and says what is unclear.

The investor residence programme

Executive Decree No. 17 of 8 September 2026 was published in the Official Gazette on 16 September 2026, and a law firm that follows the programme reports it as effective from that date. The reported changes for real estate are:

• a first sale of a property from the developer still qualifies at PAB 300,000, the same as before
• a resale property now needs PAB 500,000
• a fixed-term deposit is possible at PAB 500,000 in a state-owned bank, while the minimum for private banks stays at PAB 750,000

The same reports describe stricter verification rules for the qualifying funds, for proof of ownership of an investing company and for proof of the investment. Other summaries say that the funds must belong to the applicant personally, that money received as a gift or other gratuitous transfer from a third party is not accepted, and that applicants who invest through a company must show who owns and controls it. They also say that a notarised copy of the promise to purchase, registered at the Public Registry, is required for certain applications.

The sources we read do not say whether earlier applicants keep the old rules, how contracts signed before 16 September are treated, or how the decree handles promise contracts and off-plan units. Do not answer those questions for a buyer. A buyer who wants residence should have an immigration lawyer read the decree before signing anything.

How to talk about it. Say that the programme exists and that the threshold depends on whether the property is a first sale or a resale, as reported. Never present a purchase as a route to residence in your marketing, and do not accept a deadline from a buyer that depends on the immigration decision.

Transfer tax relief for new homes

Law 546 of 31 August 2026, effective 1 September 2026, is reported to create a preferential regime for the first sale of new housing. As reported:

• the sale must be the first sale of a new home and must close within two years of the date of the occupancy permit; the seller declares under oath in the public deed that the property is new, that it is the first transfer and that the signing is within the period
• the first PAB 120,000 of the taxable value is free of the transfer tax, whatever the total price
• the part between PAB 120,000 and PAB 200,000 is taxed on a rising scale applied only to the excess: 0.50 percent up to PAB 130,000, 1.00 percent up to PAB 150,000, 1.40 percent up to PAB 170,000, 1.60 percent up to PAB 190,000 and 1.80 percent up to PAB 200,000
• above PAB 200,000 the exempt amount stays and the excess is taxed at the general 2 percent rate
• a transitional rule lets deals closing on or after 1 September 2026 qualify even if the occupancy permit is older, provided the signing is within thirty months of that permit

The page we read does not state any conditions on the buyer, such as residence, nationality or use as a primary home. Do not assume there are none. Before you advertise the relief on a unit, ask the developer for the occupancy permit date and for the lawyer's written confirmation that the unit qualifies, and keep both on file.

A proposed tax on digital platforms

A broker blog dated 20 August 2026 reports that the new-home relief was tied to a separate proposal to improve tax collection from digital platforms, including short-term rental bookings, because the constitution requires offsetting revenue for tax relief. The same article says the proposal had cabinet approval but had not yet been debated by the national assembly, that the rate and the start date were not set, and that no law existed. The same blog notes that a 10 percent lodging tax already applies to accommodation. If your buyers plan short-term rentals, tell them that the rules are still being settled and that they should check at the date of purchase.

Questions buyers now ask, and honest answers

• Does buying a new apartment from a developer qualify for the lower threshold for residence? Reports say the first-sale threshold is PAB 300,000 and the resale threshold is PAB 500,000; ask an immigration lawyer to confirm for the specific unit.
• Do I pay the transfer tax on a new home? Under the new law, the first PAB 120,000 is relieved if the conditions are met; ask the lawyer to confirm for the unit.
• Can I rent the unit short term? Currently a 10 percent lodging tax is reported to apply, and a new proposal is pending; check at the date of purchase.
• Can I use money given to me by a relative for the residence investment? Reports say gifts are not accepted for the qualifying funds; refer the question to an immigration lawyer.

What to do with this

• keep a one-page sheet of the figures your sales team quotes, with the source and date
• ask developers for occupancy permit dates before you advertise the transfer tax relief
• send residence questions to an immigration lawyer, in writing, and do not answer them yourself
• watch for the final text on digital platform taxes before you promise rental returns

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.