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Panama's "Expat Economy" Estimated at Over $1.8 Billion: What a New Indesa Analysis Shows

A new private-sector analysis puts a number on how much foreigners contribute to Panama's housing market and local economy. According to the Panamanian consultancy Indesa, as reported by Infobae in September 2026, foreign residential purchases and spending by higher-income foreign residents together exceed $1.8 billion. Indesa calls this the "expat economy."

It's important to read this figure for what it is: an Indesa estimate, not an official government statistic. Infobae's article does not include the full methodology, so the numbers below are best understood as private-sector analysis rather than hard market data.

What the $1.8 billion includes

The estimate combines two different groups:

  • Foreign buyers: approximately $841 million in foreign residential purchases during 2025, according to Indesa (up 53% from 2019).
  • Higher-income foreign residents: an estimated $990 million a year in local spending by foreign residents earning more than $4,000 a month, on services such as legal and immigration advice, home services, wellness and premium consumption.

These groups overlap only partly. Not every foreign buyer lives in Panama, and not every foreign resident owns property here.

What happened in Q1 2026

According to Indesa's data:

  • Foreign buyers made $205 million in residential purchases in Q1 2026, 17% more than a year earlier.
  • In Q1 2026, foreign buyers accounted for 57% of Indesa's tracked residential segment above $120,000, the highest share in its records.
  • In Q1 2026, U.S. buyers led foreign residential purchase value in Indesa's dataset, ahead of buyers from Colombia and Venezuela, with $33.6 million (+53% year over year).
  • The median purchase price was $259,000 for U.S. buyers and $310,000 for European buyers in that dataset.

The main reasons foreign buyers gave for purchasing were investment and a future retirement residence.

The wider context

Other indicators point in the same direction. Panama ranked first out of 31 destinations in InterNations' Expat Insider 2026 survey of people living abroad, for the third year in a row.

Indesa also notes that visitor arrivals grew 19.7% in Q1 2026, and that Tocumen Airport handles around 20 million passengers a year while Panama receives about 2.3 million international tourists. Indesa sees that gap as an opportunity to turn more travelers into visitors, and some visitors into future residents or buyers.

What this means if you're...

...a buyer: Strong foreign demand in the segment above $120,000 may mean more competition for well-located properties in areas popular with foreigners. Research neighborhoods early, compare similar listings and avoid rushing a decision.

...coming from the U.S.: U.S. buyers are currently the largest foreign group by purchase value in Indesa's data. Many agents, lawyers and service providers are used to working with North American clients, but it's still important to understand how buying works in Panama and to work with independent professionals.

...planning residency through property: Panama updated its Qualified Investor rules in September 2026, with different minimums for new and resale properties. Check the current rules before signing anything.

...already living here: More foreign demand usually brings more services in English and more international options in health, education and dining.

Note: This article is based on public reports and our community's experience. The figures come from private-sector analysis whose full methodology is not public, and market data can change. Please check official sources or a qualified professional before making investment decisions.

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