Quijano & Associates participates in the Family Business Summit in Cartagena
September 21, 2026
Five Changes Introduced by Executive Decree No. 17 of 2026
Executive Decree No. 17 of September 8, 2026, published in Official Gazette No. 30613 of September 16, 2026, establishes a new framework for permanent residency as a Qualified Investor. The Decree entered into force upon its enactment and fully replaces Executive Decree No. 722 of 2020, as amended by Executive Decrees No. 109 of 2022 and No. 193 of 2024. [1]
The updated framework differentiates the required investment amounts according to the type of real estate, further develops the mechanisms for verifying property values and invested funds, introduces an alternative involving deposits with state-owned banks, and clarifies the rules governing the replacement and maintenance of investments. For those considering applying for residency under this category, the main implications can be summarized in the following five areas. [1]
1. Real Estate Investment: US$ 300,000 for First Sales and US$ 500,000 for the Secondary Market
The immediately preceding regime established a minimum real estate investment of US$ 300,000 without distinguishing between first sales and the secondary market. Article 4 of the new Decree introduces this distinction. [1][4]
First sale: minimum US$ 300,000. This category covers the initial acquisition of a new and previously unoccupied property transferred by the developer, builder, or its successor in interest. This status must be evidenced by certification from the Public Registry and, as applicable, construction or occupancy permits, tax records, and other appropriate supporting documents. [1]
Secondary market: minimum US$ 500,000. This category covers the transfer for consideration of a property that has previously been marketed, occupied, leased, or transferred to an unrelated third party. Accordingly, classification does not depend solely on the number of purchase and sale transactions appearing in the Public Registry; the property’s use and history are also relevant. [1]
The Decree provides for certain exceptions. Specific acts, such as segregation, contribution to a trust, or a corporate reorganization without commercialization to unrelated third parties, do not, by themselves, cause a property to lose its first-sale status. For purposes of determining whether a prior sale exists, transfers by reason of death are also excluded, among other circumstances, without preventing the authorities from disregarding simulated transactions intended to circumvent the applicable investment threshold. [1]
As a practical matter, investors should review the property’s legal and factual status before committing to the investment. These thresholds apply to the real estate subcategories established under Article 4; they are not general investment amounts applicable to every alternative available under the program. Investments made through a promise to purchase are subject to specific rules under Article 7. [1]
2. Property Verification: ANATI Certification Remains Required, but Is Not the Only Element Considered
Article 6 maintains the requirement for certification from the National Land Administration Authority (ANATI) to verify cadastral information. The change does not consist of eliminating this document, but rather of developing a mechanism to compare the registered value, the characteristics of the property, the acquisition price, and the payments actually made. [1]
The Ministry of Commerce and Industries (MICI) may require an independent private or commercial appraisal when the cadastral value does not reflect the property’s current conditions or when objective elements give rise to reasonable doubts regarding its consistency with market value. The Decree does not impose a mandatory commercial appraisal across the board for all applications. [1]
When required, the appraisal must have been issued within the six months preceding its submission and must be prepared by a qualified professional recognized by the National Bank of Panama and Caja de Ahorros, in accordance with applicable provisions. The appraiser must be independent from the applicant, seller, developer, intermediary, and financing party; disclose conflicts of interest; and substantiate the methodology, comparable properties, and conclusions used. The applicant bears the cost of the appraisal. [1]
ANATI certification will be reviewed together with the documents evidencing the price, actual payment, foreign source, and traceability of the funds. When applicable, the appraisal is complementary: it does not replace evidence of payment or ownership of the investment. [1]
3. Eligible Investment Amount: Net Value Matters, Not Merely the Contract Price
Articles 5 and 6 specify how the recognized real estate investment amount is determined for purposes of satisfying the immigration requirement: [1]
| Eligible net value = the lower of the price actually paid and the reasonably substantiated commercial value, minus the outstanding balance of any liens or other security interests encumbering the property.
The resulting amount must meet the applicable minimum: US$ 300,000 or US$ 500,000, depending on the subcategory. It is not sufficient for the deed, contract, or appraisal to state a value exceeding the applicable threshold if the substantiated payment or recognized net value is lower. [1]
For example, if an applicant substantiates a purchase price paid of US$ 550,000, a commercial value of US$ 520,000, and an outstanding lien of US$ 30,000, the resulting eligible amount would be US$ 490,000. Under those circumstances, the investment would not meet the US$ 500,000 minimum required for the secondary market.
Financing of amounts exceeding the minimum remains possible, but it must be documented and traceable. In addition, no lien may reduce the eligible net value below the applicable minimum. This requires the purchase price, substantiated value, and financing structure to be evaluated together rather than separately. [1]
4. Applicant’s Own Funds: Greater Precision Regarding Ownership and Traceability
The foreign origin of funds and identification of the ultimate beneficial owner were already part of the previous regime. Article 2 of the new Decree adds an express rule: the investment must be made using the applicant’s own funds, and their ownership and traceability must be substantiated. Amounts received from third parties as donations, gifts, gratuities, or other gratuitous transfers are not recognized for purposes of meeting the required minimum investment. [1][4]
This provision does not constitute a general prohibition against receiving gifts or donations; rather, it determines which funds may be counted for purposes of this immigration category. The text does not establish an express exception permitting gifts from family members to be used to reach the minimum investment amount. [1]
The investment may be held through the legal vehicles permitted under the applicable investment category. However, using a corporation or private interest foundation does not eliminate the requirement to establish who the ultimate beneficial owner is and who retains effective control. Where applicable, documents concerning legal existence and good standing, ownership structure, representation, and control must be submitted, together with any required legalizations, apostilles, and translations. [1]
Articles 3 and 11 allow applicants to establish the foreign origin of funds already deposited in Panama, provided that the prior international transfer and its connection with the applicant or with the vehicle of which the applicant is the ultimate beneficial owner can be reconstructed through documentary evidence. Accordingly, funds from a foreign source do not necessarily mean funds that must be newly transferred when the application is filed. [1]
For shared investments, each principal applicant must individually establish the applicable minimum amount. However, an investment jointly held by the principal applicant and his or her spouse or dependents included in the same application may be treated as a single investment, subject to the co-ownership, joint ownership or ultimate beneficial ownership, and net-value requirements established under Article 3. This family rule does not constitute an exception to the exclusion of donated funds. [1]
4. Applicant’s Own Funds: Greater Precision Regarding Ownership and Traceability
The foreign origin of funds and identification of the ultimate beneficial owner were already part of the previous regime. Article 2 of the new Decree adds an express rule: the investment must be made using the applicant’s own funds, and their ownership and traceability must be substantiated. Amounts received from third parties as donations, gifts, gratuities, or other gratuitous transfers are not recognized for purposes of meeting the required minimum investment. [1][4]
This provision does not constitute a general prohibition against receiving gifts or donations; rather, it determines which funds may be counted for purposes of this immigration category. The text does not establish an express exception permitting gifts from family members to be used to reach the minimum investment amount. [1]
The investment may be held through the legal vehicles permitted under the applicable investment category. However, using a corporation or private interest foundation does not eliminate the requirement to establish who the ultimate beneficial owner is and who retains effective control. Where applicable, documents concerning legal existence and good standing, ownership structure, representation, and control must be submitted, together with any required legalizations, apostilles, and translations. [1]
Articles 3 and 11 allow applicants to establish the foreign origin of funds already deposited in Panama, provided that the prior international transfer and its connection with the applicant or with the vehicle of which the applicant is the ultimate beneficial owner can be reconstructed through documentary evidence. Accordingly, funds from a foreign source do not necessarily mean funds that must be newly transferred when the application is filed. [1]
For shared investments, each principal applicant must individually establish the applicable minimum amount. However, an investment jointly held by the principal applicant and his or her spouse or dependents included in the same application may be treated as a single investment, subject to the co-ownership, joint ownership or ultimate beneficial ownership, and net-value requirements established under Article 3. This family rule does not constitute an exception to the exclusion of donated funds. [1]
5. New Investment Alternatives and More Detailed Control Rules
Fixed-Term Deposits: A Differentiated Alternative at State-Owned Banks
Article 9 establishes a minimum investment of US$ 500,000 when the deposit is placed directly and exclusively with Banco Nacional de Panamá or Caja de Ahorros. For privately owned banks holding a general license authorized by the Superintendency of Banks, the minimum remains US$ 750,000. [1]
In both cases, the deposit must be maintained for an uninterrupted minimum period of five calendar years, free of liens, pledges, and restrictions arising from third-party financing. The foreign source of the funds must be substantiated through the international transfers contemplated by the Decree. Applicants must also provide bank certification regarding the existence, maturity date, ownership, foreign origin, and absence of encumbrances affecting the deposit, together with an authenticated copy of the certificate of deposit. [1]
Securities Market: More Expressly Identified Investment Options
This category maintains an aggregate minimum investment of US$ 500,000, channeled through a securities firm licensed by the Superintendency of the Securities Market. Compared with the previous framework, which focused on securities issued by entities conducting business in Panama and traded through the local stock exchange, Article 8 establishes a broader and more specific range of eligible instruments. [1][4]
These include private equity and venture capital funds intended for productive investment in Panama; debt instruments issued or directly guaranteed by the Republic of Panama and acquired in the primary or secondary securities market; and other corporate securities, shares, debt instruments, mutual funds, and real estate investment funds, subject to the applicable authorization, registration, supervision, and national-impact requirements. Not every instrument available through an investment account is necessarily eligible. [1]
The investment must be maintained for five years from the date it is perfected in the relevant account. Market fluctuations not attributable to the investor do not, by themselves, constitute noncompliance, provided that there has been no voluntary withdrawal, disposal, or encumbrance and that the minimum amount is restored within 90 calendar days following notification by MICI. [1]
Promises to Purchase: Guarantees and Limits on Replacement
Article 7 maintains the investment alternative involving a promise to purchase, for which it states a minimum amount of US$ 300,000 and regulates two mechanisms: a deposit into a trust administered by an authorized entity, or payment of 100% of the purchase price to the developer or prospective seller in cases involving properties that have not yet been constructed or are pending segregation and registration. The provision also requires evidence of the actual value of the investment and of payments effectively made. [1]
The bank guarantee applicable to payments made to the developer was already contemplated in the 2024 amendment. The new Decree further specifies the permissible instruments—stand-by letters of credit, irrevocable bank guarantees, or performance guarantees—and requires them to be irrevocable, unconditional, payable upon first demand, and valid until the property has been constructed, segregated, and registered in the investor’s name. [1][4]
If the transaction is not completed within the contractual period due to a breach attributable to the developer or prospective seller, the investor may replace it within 180 business days, counted from the business day following expiration of the agreed contractual period. Replacement with another promise to purchase may only be used once; if the second transaction is also not completed, the investor must resort to a direct and consolidated investment. [1]
In addition, immigration status may not remain supported solely by promises to purchase for more than three cumulative years, whether continuous or discontinuous. This limit does not replace the general obligation to maintain the investment for five years. [1]
Certification and Resolution: Different Timeframes for MICI and Immigration
Article 15 distinguishes among three procedures: [1]
| Procedure | Timeframe | Starting Point |
| Issuance of the Investment Certification by Ministry of Commerce and Industry | Maximum 15 business days | Admission of the application file. |
| Correction of deficiencies by the applicant during initial review | 15 business days | Notification of the request for correction. |
| Immigration decision by the National Immigration Service | Maximum 30 business days, without prejudice to legally permissible suspensions | Formal receipt of the complete application file at its Special Processing Window, once the certification has been issued. |
If the application requires correction, it is not considered admitted and MICI’s timeframe does not begin until the complete corrected submission is received. Failure to comply with the period granted to the applicant results in the application being deemed not filed and the file being closed. Accordingly, MICI’s 15-day period does not constitute the total timeframe for approval of permanent residency. [1]
The Investment Certification is valid for three months from its issuance and must remain valid when the complete application is filed with Immigration. If it expires after that filing, renewal will not be required when the delay is not attributable to the applicant. [1]
Maintenance: The Five-Year Requirement Continues, with More Detailed Obligations
The requirement to maintain the investment for five years and provide annual evidence thereof is not new. Article 12 further specifies compliance requirements: annual documentation must be submitted to MICI through legal counsel within the 30 calendar days preceding the anniversary of the immigration resolution. [1][2]
If the investment ceases, is disposed of, is replaced, or otherwise ceases to exist before completion of the five-year period, MICI must be notified within 30 calendar days following the event. As a general rule, the Ministry may grant up to 90 calendar days to substantiate an equivalent reinvestment, during which proceedings aimed at cancelling the residency status will remain suspended. Failure to comply may result in cancellation. [1]
Prior Applications and Investments: The Transitional Regime Matters
Article 19 protects situations existing before the Decree entered into force, but establishes specific conditions: [1]
Applications filed with MICI or Immigration before September 16, 2026, are governed by the requirements, conditions, and investment amounts in force at the time of filing, without prejudice to the immediate application of more favorable procedural rules. [1]
Investments and binding agreements perfected before that date may qualify under the previous regime if the corresponding application is filed within six months following the Decree’s entry into force. Certifications previously issued remain effective until their expiration. [1]
The new appraisal and value-verification rules may not be applied retroactively to disregard previously certified investments unless there are objective indications of falsity, simulation, fraud, or illicit origin of funds. Even in such cases, any review must respect due process, the right of defense, and the obligation to provide reasons for the decision. [1]
Separately, Article 18 permits certain foreign nationals with pending applications or valid status under the Personal Economic Solvency category to request conversion to Qualified Investor status within twelve months, subject to the applicable requirements. Investments made before October 15, 2020, are not eligible for purposes of such conversion. [1]
Preparing the Investment and Its Documentation from the Outset
Taken as a whole, the Decree reinforces the need to demonstrate that the investment was effectively made, that the funds belong to the applicant and are traceable, that the recognized real estate value has adequate economic support, and that the investment is maintained throughout the required period. It does not start from an absence of prior controls; rather, it develops and clarifies those controls, particularly in relation to value discrepancies, simulated transactions, and changes to the investment. [1]
For investors, it is advisable to coordinate from the outset the selection of the investment category, ownership structure, payments, financing, and supporting documentation. At Quijano & Associates, our Immigration Law team is available to evaluate these matters and assist in preparing the application according to the circumstances of each case.
This article is provided for informational purposes only and does not constitute or replace legal advice regarding any specific investment or application.
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