A $120 oil barrel and a flight of investors: why capital is choosing Panama

Just four weeks ago, the United States and Israel carried out strikes on Iran, which led to the death of the Supreme Leader. The events triggered the biggest disruption to global oil markets since the 1970s: Brent confidently moved above $120 per barrel.

In practice, operations were largely halted through the Strait of Hormuz, which typically carries about one-fifth of the world’s oil supply. Gulf states that for decades had marketed themselves as “quiet havens” for international capital faced direct risks: their own refineries and airports came under attack from Iranian missiles.

For the global investment community, the signal was just as loud as an alarm siren: optionality is no longer a matter of planning convenience—it has become an operational necessity.

Capital relocation was already underway before February 28. “Golden visas” across Europe had been shrinking for years: Spain shut down its program in 2025, Ireland is winding down its Immigrant Investor Program, and Malta has frozen new applications.

Portugal—until recently one of the leaders in CBI/RBI (citizenship or residency by investment)—had been generating uncertainty about the rules for several years. As a result, investor confidence dropped noticeably.

Italy and Greece still accept applications, but the overall European trend is clear: fewer programs, higher thresholds, and the political class increasingly treats “investment residency” as a risk rather than an asset.

Caribbean CBI programs are also under pressure: costs have risen, regulatory changes can arrive suddenly, and the geopolitical agenda coming from Washington and Brussels makes the region less attractive to part of the capital. In Pacific jurisdictions, restrictions remain due to lengthy procedures and relatively low brand recognition. African programs sound ambitious, but many still lack the infrastructure and institutional reputation that accelerate cross-border decisions.

Then the war started. A question that once felt theoretical became urgent: where exactly should capital go, and how can investors ensure long-term stability?

Why Panama—and why now

For an increasing number of mobile investors, the answer points to a country that doesn’t need to shout from the front page—but still meets key requirements. Panama is not involved in territorial disputes, is not in a state of war, does not impose sanctions, and is not becoming a target of sanctions pressure.

Geography also works in investors’ favor: Panama is located in the Western Hemisphere, connected to both continents via the Panama Canal, and its airport operates as a hub with direct flights to more than 80 cities. Another advantage is the banking sector, one of the deepest in Latin America.

Panama’s economy runs on US dollars. This is not just a “peg,” but a stable practice: the balboa trades in constant parity, and transactions are conducted using US banknotes. For investors who see how currency volatility quietly eats into returns from European programs—or how risks suddenly “surface” for assets in the Persian Gulf region—this becomes a decisive factor.

There is also a structural argument: a territorial system of taxation. Income generated outside the country is not subject to Panamanian tax. For investors whose income sources are distributed across different jurisdictions, this is not a technicality—it explains why international banks, logistics companies, and corporate headquarters concentrate in Panama.

Even before the Iran-related events, the baseline dynamics were already leaning in Panama’s favor. In 2024, nearly 2.78 million tourists arrived—10% more than the year before. The IMF projected GDP growth of 4.0% and inflation of 2.0% in 2026—Panama was outpacing regional competitors.

The government planned about $30 billion in infrastructure investment: from new metro lines to building a fourth bridge over the canal. These figures were set before the current crisis, and the final picture in 2026 will depend on how long supply disruptions persist due to conditions in the Hormuz region. Still, Panama’s distance from the conflict zone, its dollar-based economy, and its territorial tax model make it a logical beneficiary of “capital flight” away from riskier countries.

Qualified Investor Visa: how residency works

Most RBI programs involve a waiting period: submitting an application, receiving a temporary card, renewing status, and only then moving to a permanent format. In Panama, the process is organized differently—without a long queue.

Under the Qualified Investor Visa (Executive Decree 722; updated by Decree 193 in 2024), purchasing real estate worth $300,000 provides permanent residency immediately. The status is neither “temporary” nor conditional. It becomes permanent upon approval, typically within 30–45 business days.

Permanent presence in the country is not required. One visit every two years is enough, along with an annual confirmation that the property is still owned.

After five years of permanent residency, you can apply for naturalization. But that is a separate process: you will need a Spanish-language assessment, an exam on civic integration, and proof of ties to the country.

The $300,000 threshold was initially expected to rise to $500,000, but authorities postponed the increase to October 2026. The threshold may still move again, but the direction is obvious.

The application is designed for a family unit: spouse/partner, children under 25, and dependent parents. Government fees are roughly $2,000 for each adult dependent and $1,000 for a child under 12. Compared with programs where separate packages must be submitted for each family member and assets are assembled “piece by piece,” this format saves both money and paperwork.

At the same time, the tax picture for the investor depends on how ownership is structured: as an individual, via a corporate structure, or through a trust. For a US investor and a UK resident, the tax logic may differ.

Rental income is not always automatically taxable in Panama either—everything depends on the details of the specific setup. Mistakes usually happen not at the time of purchase, but when people try to “figure out taxes later.” That’s why planning the structure in advance matters, so the residency idea doesn’t turn into a bookkeeping headache.

Real estate and why Panama City

Panama City is no longer the “growth hotspot” it was a decade ago. Arbitrage deals have become more complicated, development has intensified, and the market looks more mature.

This maturity creates opportunities for buyers: new construction permits were reduced through 2025, meaning the “pipeline” of supply narrowed exactly when rental demand remains stable. Corporate relocations continue to support apartment occupancy in Costa del Este. Young professionals gravitate toward El Cangrejo. Tourism also boosts demand for short-term rentals—especially in coastal and central locations.

Across the city overall, the gross rental yield averages around 6.00%. And again, we come back to the dollar-based economy: rental receipts and mortgage payments (if any) are expressed in the same currency—the one investors typically think in. For those who owned property in Europe and watched currency swings quietly erode returns, this has a direct financial impact.

But the property must be “the right one.” And the key point is the developer and the specific project. Not every real-estate product automatically fits the requirements of the Qualified Investor Visa.

In addition, not every project is delivered on time, and the gap between a beautiful concept and a completed property with functioning management is where investment expectations most often fall apart. That’s why due diligence on the developer is not optional—it’s critical for residency-related objectives.

GLP PROPERTIES: more than 40 years on the ground

GLP PROPERTIES (GLP) has been building in Panama since 1985. Over four decades, the company has evolved from delivering major capital projects into managing entire communities: more than 60 development projects, over 6.2 million m² across residential, beach, commercial, infrastructure, and industrial segments.

GLP’s portfolio includes projects that few other players would dare to take on. Ocean Reef Islands near Punta Pacífica are the first inhabited artificial islands created in Latin America. The company also built the region’s largest shopping mall and a terminal that processes more than 100,000 people each day through its gates.

The difference between GLP and the “wave” of developers that entered the investment-migration market is that GLP doesn’t just sell a unit and disappear. GLP designs, builds, sells, leases, and manages its properties. The company has been running its property-management operations for 18 years. If something happens to a GLP property at night, the call goes to the company—not to an abstract “sales office.”

The portfolio is built around three master-planned communities. Santa María surrounds an 18-hole golf course in one of Panama City’s most sought-after areas. Ocean Reef Islands are located on the Pacific coast by Punta Pacífica, with waterfront residences and a private marina. Playa Caracol along the coastline has become one of Central America’s fastest-growing international beach communities: restaurants, retail, and infrastructure for water activities are already in place.

Each project functions like an independent “micro-city”: residents don’t have to commute to the center every day for groceries or school. That self-sufficiency is what makes these projects attractive both for quality of life and as investment assets.

GLP portfolio of projects

All active GLP projects meet the requirements of the Qualified Investor Visa. The selection is broader than what most developers offer when they focus on a single product type.

Ipanema Waterfront Residences in Costa del Este launched in 2025. Ocean-view apartments start from $280,000. The development includes a private artificial beach, the largest private pool in Panama City, and resort-level amenities. The pricing point is close to the Qualified Investor Visa threshold—and that is no coincidence.

Bosco Di Santa Maria is a new direction within the Santa María Golf community. The architecture has an Italian character, while the philosophy is eco-focused: low-density development amid walking routes, streams, and green leisure areas. The territory includes more than 45 service amenities. The project was developed by two of Panama’s most recognized architectural practices.

Oceana Residences & Skyhomes within Santa María target the upper segment: luxury penthouses and flexible apartment layouts inside the golf community. Ocean Reef Park offers access to life on the artificial islands. Armonía, minutes from Cinta Costera, unfolds in three phases—studios and 1–3 bedroom apartments, plus an apartment hotel and ground-floor retail. The project is aimed at city investors who value walkability and rental potential.

Along the waterfront, Playa Caracol offers homes and apartments for buyers who choose the sea and sand over “how many floors in the center.” Across all projects, one principle remains consistent: GLP manages what it builds—even after the sales office closes.

For investors and for consultants

For immigration specialists and wealth advisors guiding clients through an increasingly volatile environment, Panama’s Qualified Investor Visa remains one of the few programs where residency is processed quickly, the asset is tangible, and the jurisdiction appears stable.

However, success depends on practical execution—who exactly builds and manages the asset on the ground. GLP’s international sales team works with consultants and their clients from the very beginning: helping select a project based on lifestyle preferences and the requirements for obtaining residency.

The window for the threshold through October 2026 will not stay open indefinitely. And the interaction between property selection, ownership structure, and criteria for family members is too specific to postpone the decision until the last moment.

For more information, contact GLP via the official website or directly through the contact form.

If you’re considering investment-based residency/citizenship, it’s crucial to look beyond the headline benefits and focus on how stable the rules are over time. As European programs tighten and thresholds rise, many investors start exploring alternatives with clearer regulation and more predictable processes. The team at Digital Nomad can help you assess current options for investment residency/citizenship, build a plan, and choose the best pathway for your goals.

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