Panama Scraps Planned Increase for Real Estate Investment Visa

Panama will maintain its $300,000 minimum investment threshold for real estate investments under its Qualified Investor Permanent Residency (QIPR) program, scrapping plans to increase the amount to $500,000 after October 15.

The government has also tweaked the QIPR’s policies. Qualified investors can now pay developers directly for properties under construction, provided they secure a bank guarantee, marking a departure from the previous requirement of mandatory escrow accounts.

New provisions also allow applicants to co-own qualifying properties with spouses or family members, eliminating the requirement for sole ownership of the full investment amount.

“The significant impact of this program” influenced Panamanian authorities to maintain the lower investment threshold “in response to the current needs of Panama,” according to Panamanian law firm Arias.

The QIPR program offers three investment pathways:

• A $300,000 real estate investment
• A $500,000 securities investment through the Panama Stock Exchange
• A $750,000 fixed-term deposit in a Panamanian bank

The program grants immediate permanent residency upon approval, requiring only one visit every two years to maintain status. Successful applicants can pursue citizenship after five years, contingent on Spanish language proficiency.

Anecdotal reports, however, indicate that the process of obtaining Panamanian citizenship is, in practice, fraught with delays.

The Panamanian government’s decision to maintain the lower threshold comes amid strong demand for the program.

QIPR sets new record as Independent Means Visa approvals dip

The announcement of the QIPR price hike sparked a rush of applications in 2024 as investors hurried to secure residency at a lower rate.

Panama had approved 188 QIPR applicants in the first nine months of 2024, surpassing the previous record total of 2023 (187) and putting the program on track to register 250 approvals by year’s end.

Panama's Friendly Nations Visa (FNV) approvals significantly dropped after the government implemented a price increase and then slightly dipped in 2023. The first nine months of 2024, however, indicate that this year may witness a modest increase in FNV approvals.

Panama has approved 1,953 FNV applications so far, 92% of 2023's total, putting it on track to reach 2,604 by the end of the year.

Even if numbers have dropped since 2021, the FNV maintains the lion's share of capital-based immigrant applications.

In July, IMI reported that Panama's Independent Means Visa (IMV) was on track for a record year if it maintained its momentum during the first half of 2024. Approvals dipped during the past three months, however, putting the projected year total approvals at 1,533, just 6% shy of 2023's total.

Panama has maintained a remarkable average approval rate for all visa types in 2024, even by Panama's lofty standards. Panama approved 98.6% of all capital-based applications, 2.4% higher than in 2023 (96.2%) and 2.2% higher than in 2022 (96.4%)