Panama launches AbonoPaTi, a $3,000 subsidy for new homes priced up to $80,000

Panama's finance ministry created AbonoPaTi on 18 September: a one-off $3,000 grant for buyers of new primary homes priced up to $80,000, applied to the loan.

Panama's Ministry of Economy and Finance (MEF) has created AbonoPaTi, a non-reimbursable state subsidy of B/.3,000, or $3,000 given that the balboa trades at par with the US dollar, for people buying a new home priced at no more than B/.80,000. The programme rests on Executive Decree No. 35 of 17 September 2026 and was announced by the ministry on 18 September.

How the subsidy works

The home must be new and serve as the buyer's primary residence. The mortgage may not exceed B/.80,000, and the buyer has to put in at least 1% of the purchase price. Each person can receive the benefit once; it is personal and cannot be transferred. Applicants register through the Panamá Conecta platform and must hold an approved mortgage on an eligible home. The MEF administers the programme, and payments depend on budget availability. The legal framework is Law 468 of 24 April 2025.

The money is not handed to the buyer. It is credited against the price before the final mortgage amount is set, which lowers both the amount financed and the monthly instalment. On a home at the B/.80,000 cap, the subsidy equals 3.75% of the price, while the minimum own contribution of 1% comes to B/.800. The state therefore puts in 3.75 times what the buyer must.

Why the government is acting now

According to the Panamanian daily La Prensa, the programme will run until 31 December 2030, or until the country's housing deficit falls to 5% or less. The newspaper puts that deficit at more than 180,000 dwellings. It also reports that residential mortgage lending in the preferential segment fell 34% in the first quarter of 2026, after the preferential-interest regime under Law 481 of 2025 came to an end on 1 January 2026. A second measure is already in force: Law 546 of 31 August 2026 exempts first homes worth up to $120,000 from the property transfer tax (ITBI), La Prensa adds.

The paper's own projection is that more than 100,000 families receiving the full amount would cost the state over $300 million in direct subsidies and could mobilise around $5,000 million of mortgage credit. These are estimates, not ministry figures.

What our Panama City data show

Panama publishes no national house price index, so we hold no national price level; the only comparable series covers the capital. In Panama City, closed sales on the local brokers' MLS (ACOBIR) averaged $1,726 per square metre in the first half of 2026, and closed rentals $12.57 per square metre per month. That pair gives a gross rental yield of 8.74%, or 8.23% after the 5.8% effective tax on rental income we apply to a standard non-resident landlord. Prices rose 6.81% over twelve months, and our bubble score for the city is 40, in the moderate band. Transaction costs for a buyer come to about 8.1% of the price in our data.

At $1,726 per square metre, the $80,000 cap buys about 46 square metres at the city-wide average. In practice, the subsidy reaches compact flats or homes priced below that average.

What the announcement leaves open

The ministry's release gives no total budget, no target number of beneficiaries and no date for applications to open. It does not say whether foreign residents qualify. Because the benefit is tied to a primary residence and a local mortgage, it is aimed at owner-occupiers rather than investors buying to let.

Sources: Ministerio de Economia y Finanzas de Panama, Gobierno crea AbonoPaTi, un subsidio de B/.3,000, 18 September 2026 https://www.mef.gob.pa/2026/09/gobierno-crea-abonopati-un-subsidio-de-b-3000/; La Prensa, 3,000 para comprar casa, el empujon que busca despertar las hipotecas, 19 September 2026 https://www.prensa.com/economia/3000-para-comprar-casa-el-empujon-que-busca-despertar-las-hipotecas/

Market data: Panama City · Panama