Executive Decree No. 17 replaces Decree 722 of 2020 and sets out, in a single text, how the investment underpinning residency is structured, verified, and maintained — with new safeguards for those who already have capital committed to the process.
| US$300,000 Purchase or purchase-sale promise for new real estate | US$500,000 Real-estate purchase (secondary market), securities, or fixed-term deposit in a state bank | US$750,000 Fixed-term deposit in a private bank |
The Permanent Residency for Qualified Investors program has been the entry point for thousands of foreign families and investors into Panama since 2020. Below is a review of what changes, for those evaluating Panama as a destination or who already have an application underway.
Changes to the Qualified Investor Residency Rules
Three doors, one destination
The program retains its three familiar routes: real estate, the Panamanian securities market, or a fixed-term deposit. What changes is the fine print of each — and that is where it is worth pausing.
Corporate structures, not just personal investment
For clients who already operate through companies or private interest foundations, the decree expressly confirms that investment can be made through these vehicles, domestic or foreign, without needing to dismantle an existing wealth structure.
The condition is clear: the beneficial owner and the party effectively controlling the investment must be documented, along with the entity’s good standing and representation. And one point that often raises questions: the funds must belong to the applicant, be of foreign origin, and have documented traceability. Donations or gratuitous transfers from a third party do not count toward the minimum.
Real estate : price depends on condition, not the buyer
A new, unoccupied property purchased directly from the developer requires a minimum of US$300,000. One from the secondary market — already occupied, leased, or previously transferred — rises to US$500,000.
The value that counts toward the minimum is the lower of the price paid and the appraised commercial value, net of any liens. If the price exceeds the threshold, the excess may be financed, provided it is documented.
Appraisals : a means of verification
When there is reasonable doubt as to whether the price reflects the real value, the authority may require an independent commercial appraisal, valid for six months and signed by a professional recognized by the National Bank or the Savings Bank (Caja de Ahorros). It does not apply to every purchase by default, but it is worth keeping in mind.
Securities market : more instruments, same holding period
With an aggregate minimum of US$500,000 through a licensed brokerage, the range includes private equity funds focused on Panama, sovereign debt, and corporate securities. Capital must remain invested for five years, but the decree recognizes that markets fluctuate: a drop in value beyond the investor’s control does not breach the requirement, provided it is restored within 90 days of notification by the Ministry of Commerce and Industry (MICI).
Bank deposits: state or private, the gap is real
At Banco Nacional or Caja de Ahorros, the minimum is US$500,000. At a privately licensed general bank, it rises to US$750,000. In both cases, five uninterrupted years, free of liens, with the source of funds documented via international transfer.
When the investment needs to change
If the investment ceases or is sold before the five years are up, the resident has 30 calendar days to notify MICI, and the Ministry grants up to 90 additional days to replace it with an equivalent one. While that period runs, any cancellation proceeding on this ground is suspended.
Projects under construction, with stronger backing
The purchase-sale promise from US$300,000 remains in place, backed by a trust or by payment of 100% to the developer secured by an irrevocable banking instrument in the investor’s favor. If the project does not materialize due to the developer’s fault, there are 180 business days to replace the investment — once only, and not exceeding three accumulated years under this modality.
The family can grow later
A child born or adopted, a marriage entered into after residency is obtained: Article 17 allows these new dependents to be added, with a certificate of status from MICI and a payment of US$1,000 to the National Treasury plus US$1,000 to the National Migration Service for each one.
Naturalization: a clearer channel, not a shortcut
Naturalization applications from qualified investors, after five consecutive years of residency, are now filed through MICI’s single window, which will certify the investment’s status. Worth stating plainly: this does not speed up or reduce the constitutional requirements for naturalization — it simply organizes the administrative channel.
Timeframes
Up to 15 business days for investment certification, up to 30 business days to resolve residency — both counted from the date the file is complete. The application may be processed through a proxy, even before the investor sets foot on Panamanian soil.
Those already in process
Applications filed before September 16 are governed by the previous rules. Investments or contracts already perfected may remain under the prior regime if the application is filed within six months. And those holding status under economic solvency have twelve months to convert their category to Qualified Investor — except for investments made before October 15, 2020, which do not qualify for that conversion.
Are you evaluating the Qualified Investor program, or do you need to review an investment already underway under the new decree? At K&B Legal Services, we can advise you at every stage of the process. Contact us