Panama scores 73 / 100 — all three pillars Pass, MPH Verified™.

Arbitrage passes cleanly at 7.4. Price-to-value gap (7.5) reflects Panama City prime at USD 1,200–3,500/m² delivering strong quality-per-dollar versus comparable coastal and gateway cities in the region. Yield spread (8.0) is a defining strength: Global Property Guide puts gross residential yields at about 7.6% in Panama City (April 2026) and 6.84% nationwide: roughly 7–8% in mid-market districts such as San Francisco and El Cangrejo and 6–7% in prime towers such as Punta Pacífica and Costa del Este, with net yields typically 1.5–2 points lower — still well above mature-market prime benchmarks of 3–4%. Tax and cost differential (7.0) benefits from Panama’s territorial tax system, which exempts foreign-sourced income, low transaction costs (a 2% transfer tax paid by the seller; buyer closing costs of roughly 1.5–3%) and available property tax incentives. Currency entry advantage (7.0) reflects the dollar base: dollarization eliminates FX risk and is globally attractive to US-based and dollar-denominated investors, though it also removes currency mispricing upside.

Scarcity is Panama’s strongest pillar at 7.5 and the primary driver of the national score. Demand trajectory (8.0) is exceptional: international visitor arrivals rose 8.2% in 2025 to generate USD 6.58bn in tourism income; IMF projects 4.0% real GDP growth for 2026; and CoastalPanamaProperties documents rising retirement, relocation and remote-work inflows across both the city and Pacific Coast. Uniqueness (8.0) is a genuine differentiator: the Canal-anchored service economy, dollarized banking hub, regional logistics role and residency-programme linkage combine in a way that is not easily replicated by regional peers — as confirmed by direct comparisons with Costa Rica and Colombia. Programme / window scarcity (7.0) reflects a programme that has already been repriced rather than one about to close: Executive Decree 17 of 2026 (in force 16 September 2026) keeps the Qualified Investor Visa at USD 300,000 for new property bought from the developer but raises it to USD 500,000 for resale property, with a five-year hold. Binding contracts signed before the change can still use the old rules if filed within six months. There is no announced closing date, so the window adds steady rather than urgent scarcity. Supply constraint (7.0) is moderate-strong: developer inventory in Panama City fell to a nine-year low in early 2026, resale listings in prime districts are down 30–40% year on year, and true titled beachfront is finite.

Exit passes at 7.1 — the slimmest of the three pillars, but a genuine Pass. Capital mobility (8.0) is the standout: Panama’s dollarized, open-banking system has no capital controls, and the IMF rates it “sound, well-capitalised and liquid” — profit repatriation is straightforward and legally clear. Transaction friction (7.5) is a structural strength: foreigners own titled property outright with no trust requirement, the conveyancing process is well-defined and typically completes in 30–90 days, and title defects are uncommon. Resale liquidity (6.5) and holding-period flexibility (6.5) are the relative constraints: specific DOM data is unavailable, and Qualified Investor Visa holders face a five-year hold on the qualifying investment to maintain residency status. Non-programme buyers are unconstrained, but visa-linked capital has a defined lock-up.