---
title: "Panama's \"Expat Economy\" Tops $1.8 Billion, and U.S. Buyers Now Lead Foreign Home Purchases"
description: Expats in Panama now drive a market worth over $1.8 billion. New Indesa data shows U.S. buyers leading foreign home purchases for the first time. Here's what it means.
---

[Experiences from Residing in Panama by expats living in Panama.](https://www.residepanama.com/en/reside-panama-blog)

# [Panama's "Expat Economy" Tops $1.8 Billion, and U.S. Buyers Now Lead Foreign Home Purchases](https://www.residepanama.com/en/reside-panama-blog/panamas-expat-economy-tops-1.8-billion-and-u.s.-buyers-now-lead-foreign-home-purchases)

 Written by [Reside Panama](https://www.residepanama.com/en/reside-panama-blog/author/reside-panama) | Oct 1, 2026, 7:37:22 PM

For years, people have talked about Panama as a great place for expats. Now there's hard data showing just how much expats shape the country's economy.

A new analysis by the Panamanian consultancy Indesa, published in September 2026, estimates that the "expat economy" (foreigners buying homes, spending day to day and hiring local services) already moves more than $1.8 billion. It is also the most dynamic part of Panama's residential market.

And there's a twist that surprised a lot of people in the industry: **for the first time, buyers from the United States lead foreign demand for housing in Panama**, ahead of Colombia and Venezuela, which have traditionally been at the top.

## The numbers behind the trend

According to Indesa's data, as reported by Infobae:

- Foreign investment in Panama's residential market passed $841 million in 2025, up 53% from 2019.
- In Q1 2026, foreigners bought $205 million in homes, 17% more than a year earlier.
- In homes priced above $120,000, foreigners accounted for 57% of purchases in Q1 2026, the highest share in Indesa's records.
- U.S. buyers spent $33.6 million in Q1 2026 (+53% year over year), passing Colombia and Venezuela for the first time.
- The median purchase price was $259,000 for U.S. buyers and $310,000 for European buyers.
- Foreign residents earning over $4,000 a month generate about $990 million a year in local spending on services like legal and immigration advice, home services, wellness and premium consumption.

The main reasons foreigners give for buying are investment and a place to retire.

## Why more expats are choosing Panama

The data fits a broader picture. In August 2026, **Panama was ranked the No. 1 country for expats for the third year in a row** in InterNations' *Expat Insider 2026* survey, which included nearly 8,000 respondents from 162 nationalities. Panama came first in the "personal finance" and "working abroad" categories. Nine in ten expats in the country praised the friendliness of locals, compared with 63% worldwide.

Tourism is also feeding the pipeline. Visitor arrivals grew 19.7% in Q1 2026, after 11.6% growth in 2025, and U.S. tourism has grown the most since 2019. Programs like Copa Airlines' Stopover let travelers spend a few days in Panama at no extra airfare, and many of them come back later to look at homes.

Indesa also points to an opportunity: Tocumen Airport handles around 20 million passengers a year, but Panama receives about 2.3 million international tourists. Turning more of those connecting passengers into visitors, and some visitors into residents, is seen as a big growth area.

## What this means if you're thinking of buying or moving to Panama

**If you're a buyer:** Strong foreign demand in the over-$120,000 segment means well-located properties, especially in areas popular with expats, may see more competition. It pays to research neighborhoods early, compare similar listings and avoid rushing a decision under pressure.

**If you're coming from the U.S.:** You're part of the fastest-growing group of foreign buyers. That means more agents, lawyers and services 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.

**If you're planning residency through property:** Remember that Panama updated its Qualified Investor visa rules in September 2026, with different minimums for new and resale properties. Check the current rules before you sign anything.

**If you already live here:** Growing expat demand usually means more services in English, more international options in health, education and dining, and a stronger community of people who have been through the same move.

*The information in this article is based on public reports and our community's experience. Market data can change, so we recommend checking with official sources or a qualified professional before making investment decisions.*

## Related Reside Panama Articles

- [Panama Updates Its Qualified Investor Program: What Foreign Buyers Need to Know in 2026](https://www.residepanama.com/en/reside-panama-blog/panama-updates-its-qualified-investor-program-what-foreign-buyers-need-to-know-in-2026?hsLang=en)
- [Panama Real Estate Market Trends 2026: Where Are Expats Investing?](https://www.residepanama.com/en/reside-panama-blog/panama-real-estate-market-trends-2026-where-are-expats-investing?hsLang=en)
- [Buying Property in Panama as a Foreigner](https://www.residepanama.com/en/reside-panama-blog/buying-property-in-panama-as-a-foreigner?hsLang=en)
- [Best Neighborhoods in Panama City for Expats (2026 Guide)](https://www.residepanama.com/en/reside-panama-blog/best-neighborhoods-in-panama-city-for-expats-2026-guide?hsLang=en)
- [Panama City Area Guide](https://www.residepanama.com/en/areas/panama-city?hsLang=en)

## Keep exploring Panama with us

At [Reside Panama](https://www.residepanama.com/en/about-reside-panama?hsLang=en), we follow the news that matters to anyone living in, investing in or planning a move to Panama. Explore our blog for more guides, and if you have questions about your move, get in touch. Our community has walked this path before you.

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