If you are buying property to apply for Panama’s Qualified Investor residence permit, check the specific unit and the proposed payment terms before you sign a reservation agreement. The asking price alone cannot tell you whether the purchase will meet the investment requirement.
1. Check whether the property qualifies as a first sale
Under Article 4 of Executive Decree 17, the B/.300,000 first-sale route applies to an initial purchase of a new, unoccupied property from the developer, promoter or their successor in title. The B/.500,000 secondary-market route applies to properties that meet the decree’s secondary-market criteria, including previous marketing, occupation, rental or transfer to an unrelated third party. The decree also specifies exceptions for certain transactions. Executive Decree 17, Article 4.
Ask your lawyer to review the unit’s registry history and the documents that support its classification. A vacant apartment may have been occupied or rented before. Ask the seller to provide the evidence for the route they say applies.
2. Calculate the qualifying net value
Article 5 starts with the lower of the price actually paid and the reasonably evidenced market value. Outstanding charges against the property are then deducted. Article 6 sets out how cadastral information is assessed and when an independent valuation may be requested. Executive Decree 17, Articles 5–6.
Example: A resale property costs B/.540,000. Its evidenced market value is B/.520,000. If B/.35,000 in charges remain against it, the calculation yields B/.485,000. That falls below the B/.500,000 threshold even though the purchase price is higher. Ask which charges will remain and how their release, if agreed, will be documented.
3. For a purchase promise, review the payment structure
Article 7 provides a separate route starting at B/.300,000. One option uses a trust managed by a bank or fiduciary licensed to operate in Panama. The direct-payment option requires 100% of the property’s value to be paid to the promoter or seller under the purchase promise, with qualifying bank security in the investor’s favour. A standard reservation deposit does not establish that either structure meets Article 7. Executive Decree 17, Article 7.
Before signing, ask who will hold or receive the money, when it can be released and what happens if the property is delivered late or the transfer cannot be completed. Have the trust agreement or bank instrument reviewed alongside the purchase promise.
4. Confirm the funding trail before transferring money
Ask which account should send the funds, which account should receive them and which records will connect the transfer to your investment. If a company will hold the property or if the funds are already in Panama, ask what evidence is needed to document ownership, control and the original transfer from abroad. If you signed a binding agreement before the decree took effect, have the transitional rules assessed against your dates and documents. Executive Decree 17, Articles 2–3 and 19.
Before you reserve: Ask for a written assessment of the applicable property route, qualifying net value, payment structure and any documents still missing. For the full programme requirements, see the Qualified Investor visa page.
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