Panama Updates Its Qualified Investor Visa Under Executive Decree 17 

A substantially revised framework has been introduced for the Panama Qualified Investor Visa, changing several of the investment requirements applying to individuals and families seeking permanent residence in the country. 

Executive Decree No. 17 of September 8, 2026, published in Panama’s Official Gazette on September 16, repeals and replaces Executive Decree No. 722 of 2020 and its subsequent amendments. 

The new decree retains the principal structure of the Qualified Investor Visa but introduces differentiated real estate thresholds, expands the range of eligible securities, creates a lower fixed-deposit threshold for Panama’s two state-owned banks, and formalizes processing and investment-verification procedures. 

The changes took effect upon publication. 

Key Changes at a Glance

Under the revised framework: 

• New or first-sale properties continue to qualify from USD 300,000 
• Secondary-market properties now require a minimum investment of USD 500,000 
• Certain pre-construction purchases paid directly to a developer must be protected by an eligible banking instrument covering the full investment 
• The USD 500,000 securities route now accommodates a broader range of qualifying instruments 
• Fixed-term deposits require USD 750,000 at an eligible private bank or USD 500,000 at Banco Nacional de Panamá or Caja de Ahorros 
• Qualifying investments must generally be maintained for at least five years and verified annually 
• Government charges remain USD 5,000 plus a USD 5,000 repatriation deposit for the principal applicant 
• The decree establishes maximum processing periods for complete applications 
• Transitional arrangements apply to certain existing investments, applications, and holders of Panama’s Own Economic Solvency residence status 

Although the decree expresses its amounts in Panamanian balboas, the balboa is maintained at parity with the US dollar. The equivalent USD amounts are therefore used throughout this article. 

Different Thresholds for New and Resale Property

One of the most important changes is the distinction between first-sale and secondary-market real estate. 

A minimum investment of USD 300,000 continues to apply when purchasing a new, previously unoccupied property directly from a developer, promoter, or qualifying predecessor in title. 

However, the minimum threshold rises to USD 500,000 for a secondary-market property that has previously been sold, occupied, leased, or transferred to an unrelated third party. 

This replaces the previous position under which qualifying new and resale properties could both meet the USD 300,000 threshold. 

John Paul Young, Latitude Strategic Partner and Panamanian advisor, says the distinction should be understood before applicants begin evaluating properties: 

“This decree gives foreign investors real protection; it ensures their capital reflects the actual, verifiable value of the property they’re buying. It’s also a smart move for the economy: by favoring new construction, Panama is incentivizing developers to build more product, which in turn creates more jobs in the market,” he explains.  

“That’s why property selection is now the most important step at the very start of the process. A USD 300,000 property may still qualify when it is a genuine first sale, but applicants looking at the resale market must now plan around the higher USD 500,000 threshold. Confirming how a property is classified should be one of the first steps in the assessment.” 

For both routes, the property’s net qualifying value must meet the relevant threshold. The decree defines this by reference to the lower of the amount actually paid and the property’s reasonably demonstrated commercial value, less any outstanding lien. 

Financing may be used for an amount exceeding the required minimum, provided it does not reduce the property’s net qualifying value below the applicable threshold. 

Authorities may also request an independent commercial appraisal where there are objective reasons to question whether the registered value accurately reflects the property’s current market value. 

Additional Protection for Pre-Construction Purchases

The decree retains a USD 300,000 route for qualifying real estate investments made through a promise of purchase and sale agreement, including certain pre-construction purchases. 

Applicants can structure this through an eligible trust deposit. Alternatively, they may pay 100% of the property value directly to the developer or prospective seller. 

Where payment is made directly to the developer for a property that has not yet been built, segregated, or registered, the full qualifying investment must be protected by an eligible banking instrument issued by an institution licensed to operate in Panama. 

This instrument may take the form of: 

• A standby letter of credit payable on first demand 
• An irrevocable bank guarantee 
• A performance bond 

The protection must cover at least the total amount invested and remain valid until the property is completed, segregated, and registered in the applicant’s name. Updated evidence of the protection must be submitted annually while it remains required. 

Mr Young explains that the change creates an additional planning requirement but also strengthens protection for applicants: 

“The changes create an additional planning requirement, but they also allow applicants to apply without having the property ready. With a banking guarantee instrument confirming that the capital has been deployed 100% whether through confirmation from the bank or developer, or by setting up a trust, the applicant is able to apply almost immediately once the property has been chosen,” he said.  

“This provides an important safeguard if the developer fails to complete or register the property as agreed. It introduces another step, but it is intended to protect both the applicant’s capital and the residence status supported by that investment. That’s why here at Latitude we work with top-tier developers in the country.” 

Where a qualifying development fails for reasons attributable to the developer, the decree provides a period of 180 business days in which the applicant may replace the investment through another authorized route. Specific limitations apply where an applicant attempts to replace one failed promise of sale with another. 

Broader Securities Market Route

The minimum investment for the securities route remains USD 500,000, and the qualifying investment must generally be maintained for five years. 

However, the new decree provides a broader description of the financial instruments that may qualify when acquired through a brokerage house licensed and approved by Panama’s Superintendency of the Securities Market. 

Eligible investments may include: 

• Participations in registered and regulated private equity, venture capital, or other qualifying funds 
• Sovereign bonds, treasury notes, bills, and other debt instruments issued or guaranteed by Panama 
• Qualifying government instruments acquired through either the primary or secondary market 
• Registered common or preferred shares 
• Corporate debt instruments 
• Mutual funds 
• Real estate investment funds or REITs 
• Other qualifying corporate securities supervised by the Panamanian regulator 

Applicants may use one qualifying instrument or an eligible combination, subject to the decree’s requirements and the necessary regulatory and custodial documentation. 

“The expanded investment through securities route gives applicants a variety of options when it comes to investing not just one asset class. It opens the door to bonds, funds, or financial products listed in Panama. This route is becoming very popular with clients looking for a seamless investment solution, or for potentially better yields,” explains Mr Young. 

“And for more sophisticated clients who already have an investment account in another jurisdiction, adding one more becomes a wealth planning solution and diversification strategy; the residency component is the added bonus. That does not mean every fund, bond, or security will qualify. The instrument, issuer, brokerage arrangements, regulatory status, custody, and wider suitability all need to be assessed carefully before capital is committed.” 

Market fluctuations outside the applicant’s control will not automatically cause noncompliance, provided there has been no voluntary withdrawal, disposal, or encumbrance. If required by the Ministry of Commerce and Industries, the applicant must restore the qualifying amount within 90 calendar days of notification. 

Neither eligibility for residence nor inclusion under the decree constitutes a recommendation of any security or financial product. Applicants considering this route should obtain independent legal and financial advice. 

New Fixed-Deposit Thresholds

The decree creates two thresholds for the five-year fixed-term deposit route. 

Applicants may qualify through: 

• A USD 750,000 fixed-term deposit with a privately capitalized bank holding the appropriate Panamanian banking license; or 
• A USD 500,000 fixed-term deposit placed directly with Banco Nacional de Panamá or Caja de Ahorros 

The deposit must be maintained without interruption for five years and remain free of liens, pledges, or third-party financing. 

The reduced USD 500,000 threshold is intended to direct additional liquidity toward Panama’s state-owned financial institutions and support public, agricultural, mortgage, and social financing. 

Source of Funds and Ownership Requirements

The decree strengthens and consolidates the rules surrounding ownership and sources of funds. 

The qualifying capital must originate outside Panama, and applicants must demonstrate its ownership and traceability. Funds received as a donation, gift, gratuity, or another gratuitous transfer from a third party will not count toward the required minimum. 

An investment can be made personally or through a qualifying company, private interest foundation, or other permitted structure. Where a legal entity is used, the applicant must demonstrate ultimate beneficial ownership and effective control, together with the entity’s legal existence, ownership structure, and representation. 

The authorities retain the power to request additional information where it is reasonably necessary to verify the legitimacy, origin, destination, and traceability of the funds. 

Government Charges Confirmed

The decree confirms the following government charges: 

Principal applicant 

• USD 5,000 application fee payable to the National Treasury 
• USD 5,000 repatriation deposit payable to the National Migration Service 

Each dependent 

• USD 1,000 application fee payable to the National Treasury 
• USD 1,000 repatriation deposit payable to the National Migration Service 

Professional, legal, banking, investment, property, appraisal, registration, and other transaction-related expenses may apply separately. 

Formal Processing Periods

The decree establishes maximum processing periods for the two principal government stages. 

Once a complete file has been formally admitted, the Ministry of Commerce and Industries has up to 15 business days to issue the Investment Certification. 

After the certification has been issued and the complete application has been formally received by the National Migration Service, the migratory resolution must generally be issued within no more than 30 business days, subject to legally permitted suspensions. 

These are maximum periods applying to complete and properly admitted files. They should not be interpreted as a guaranteed 45-business-day end-to-end process, as document preparation, remediation, investment completion, banking procedures, registration, and biometric requirements can affect the overall timeline. 

Applications may be submitted through a legal representative before the applicant and their dependents enter Panama. However, biometric registration and enrollment in the Foreign Registry must be completed before any migratory identification card is issued. 

Maintaining and Verifying the Investment

The qualifying investment must generally be maintained for at least five years. 

Applicants must demonstrate annually that the investment remains in place, submitting the required evidence during the 30 calendar days before the anniversary of the migratory resolution. 

If an investment is sold, substituted, or otherwise ceases to exist during the required period, the resident must notify the Ministry of Commerce and Industries within 30 calendar days. The decree generally allows up to 90 calendar days to demonstrate an equivalent reinvestment, subject to the applicable conditions. 

The decree also allows qualifying residents to add a new spouse or children born or adopted after approval, provided the investment remains valid and the relevant relationship, documentation, and fee requirements are satisfied. 

Transitional Arrangements

The decree includes two important transition periods. 

Individuals with a pending application or valid status under Panama’s Own Economic Solvency permanent residence category have 12 months from the decree’s effective date to request conversion to Qualified Investor status, provided they meet the applicable investment and documentation requirements. 

Separately, investments and related contracts completed before the new decree took effect may continue under the previous rules if the corresponding application is submitted within six months of the decree’s effective date. 

Applications already submitted before the new decree took effect remain governed by the requirements, conditions, and amounts applicable when they were filed, although more favorable procedural provisions may apply immediately. 

Anyone seeking to rely on these transition arrangements should obtain individual advice promptly. Whether a particular investment or contract qualifies will depend on its date, legal status, documentation, traceability, and compliance with the decree. 

Can The Panama Qualified Investor Visa Lead to Citizenship?

The Qualified Investor Visa grants direct permanent residence, not immediate citizenship. 

Executive Decree No. 17 confirms that qualified residents and their dependents may potentially pursue Panamanian citizenship by naturalization after completing five consecutive years of residence in Panama. 

Naturalization is a separate process and is not guaranteed by the investment. Applicants must satisfy Panama’s constitutional and legal requirements, including the applicable residence, language, civic-knowledge, documentation, and approval requirements. 

Maintaining permanent residence through an investment should therefore not be confused with satisfying the conditions required for citizenship. 

What Should Prospective Applicants Do Now?

The new decree makes Panama’s Qualified Investor Visa more clearly differentiated by asset type. 

New property remains available from USD 300,000, while resale property now begins at USD 500,000. The securities route retains its USD 500,000 threshold but encompasses a wider range of potentially eligible instruments. The fixed-deposit route now offers a USD 500,000 threshold through Panama’s state-owned banks, compared with USD 750,000 through eligible private banks. 

The appropriate route will depend on the applicant’s objectives, preferred asset type, liquidity requirements, risk tolerance, family circumstances, and longer-term plans. 

Prospective applicants should avoid committing capital until the proposed investment, ownership structure, source of funds, supporting documentation, and transitional position have been reviewed against the new rules. 

Latitude can help individuals and families understand the revised framework, evaluate their potential eligibility, and coordinate the legal and practical stages of a Panama Qualified Investor Visa application. 

Learn more about the Panama Qualified Investor Visa or contact Latitude to discuss your circumstances. You may also book a complimentary residence and citizenship consultation with a member of our team.