For the past 23 months, I have been beating it into you guys about the coming changes to Panama’s Qualified Investor’s Visa program (the residency-by-investment pathway that offers near-immediate permanent residency).
Well, they’re here.
On September 16th, Panama officially updated the rules.
I have to tell you… I am VERY happy with where the chips landed.
There’s no more speculation.
We have clarity. And clarity is king… especially when an important decision is in front of you.
Under the new rules, the minimum investment for secondary-market real estate has increased from $300,000 to $500,000.
Qualifying new, first-sale real estate remains at $300,000, as do qualifying pre-construction purchases.
The Panamanian government could have raised the minimum real estate investment threshold to $500,000 USD across the board. But they (smartly) didn’t.
The government has drawn a distinction between putting your capital into an existing property on the secondary market and putting that capital into qualifying NEW real estate.
It makes perfect sense because there are two universal things virtually every government on earth wants more of:
More foreign direct investment AND more jobs being created for its people.
Instead of the government having to raise that money through taxes, foreign investors bring their own capital into Panama and put it directly to work in the local economy.
These aren’t tax dollars being extracted from locals and recycled through the economy - it’s outside capital entering the country, adding foreign currency to the reserves and helping to finance new economic activity.
Then you have the jobs.
Think about what happens when foreign capital goes into a new real estate development.
That money flows directly into the local economy and supports developers, architects, engineers, construction crews, electricians, plumbers, building-material suppliers and countless other local businesses.
Eventually, the new builds need appliances, furniture, landscaping, and all the other finishing touches that turn a development project into a place where people can actually live.
Then, once those properties are completed, you have property managers, maintenance crews, cleaners and an entire ecosystem of other businesses providing services to the owners.
As you can see, the money doesn’t simply stop with the initial investment - it works its way downstream through the local economy.
Compare that with buying an existing $500,000 condo from another owner: one person owned the condo or home yesterday, and somebody else owns it today.
That doesn’t add housing inventory to Panama’s under-supplied market.
That doesn’t add years of construction work.
That doesn’t generate the downstream demand for materials, trades workers, furniture manufacturers, appliances and all the other businesses that benefit from new development.
Panama is growing, and people need places to live… and so, housing needs to be built.
When I look at these new rules and see Panama maintaining the $300,000 threshold for qualifying new real estate while raising the secondary-market threshold to $500,000, I see an incentive structure that lines up with exactly what we are already doing.
For those of us investing in new projects here (often to secure permanent residency), this is a VERY welcome outcome because we have tailwinds working in our favour AND we remain aligned with the Panamanian government's direction.
The government is recognizing and rewarding people like us who are not just shuffling existing assets from one investor to another.
We’re BUILDING.
We’re bringing capital into the country.
We’re creating housing.
We’re putting tradespeople to work.
We’re buying materials.
We’re furnishing properties.
We’re contributing to the kind of economic activity Panama has decided to continue incentivizing through its Qualified Investor Visa program.
So yes, it’s pretty obvious why they have not raised the minimum investment threshold for us.
They are happy to have us, as they should be.
I am so thrilled with where the chips have landed (we can all finally breathe a breath of relief).
The uncertainty is gone.
If you've been sitting on the sidelines because you wanted to know exactly what Panama was going to do before committing the capital needed to secure residency in Panama via the QIV visa, Christmas came early.
Here is what you need to do right away:
WATCH THIS SPECIAL PRESENTATION BY CLICKING THIS HIGHLIGHTED BLUE TEXT.
The presentation will walk you through a project my partners and I are developing along one of the country’s most beautiful (and rapidly growing) coastlines. It's structured to qualify families and investors just like you for the Qualified Investor Visa at the preserved $300,000 threshold.
After you watch the presentation, email my trusted partner, Kiley Herold, at [email protected] to learn more about the project and the next steps you’ll need to take to secure your residency in Panama.
The speculation is over. Let’s get moving.
Speak soon,
Mikkel
PS. Before I widely reported these changes, members of The Hub had already received an Emergency Briefing explaining what had changed and what they needed to know. As a Hub member, you’re telling me that you’re serious about becoming a more involved member of this community… and I treat you as such. Emergency Briefings are just one small part of what you get as a member of The Hub. Learn more about the long list of membership benefits by visiting ExpatMoney.com/Go.
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No advice: This newsletter, EMS Pulse®, contains information about going offshore and being an expat. The information is not advice and should not be treated as advice. You must not rely on the information in the newsletter as an alternative to legal, financial, or tax advice from an appropriately licensed professional. If you have any specific questions about any such matter, you should consult an appropriately licensed professional. You should never delay seeking legal advice, disregard legal advice, or commence or discontinue any legal action because of information in the EMS Pulse® newsletter or in our work at Expat Money®. Limited warranties: Whilst we endeavour to ensure that the information in the newsletter is correct, we do not warrant or represent its completeness or accuracy. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this newsletter or our work at Expat Money®. We will not be held liable for any decisions you decide to make as the consumer of this content. Law and jurisdiction: This disclaimer shall be governed by and construed in accordance with Panama Law. Any disputes relating to this disclaimer shall be subject to the exclusive jurisdiction of the courts of Panama. This message is sent to you because your email address is on our subscribers' list. If you are not interested in receiving more emails like this one, just hit unsubscribe at the bottom of this email.
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