In recent years, Panama has become a popular destination for retirees, thanks to its low government taxes and attractive discounts for foreign retirees. The country offers one of the best retirement programs in the world through the Panama Pensionado program, which comes with a range of excellent benefits for retirees.
Foreign nationals wishing to participate in the program must first apply for a Pensionado visa.
To qualify for a retirement visa in Panama, you must demonstrate a minimum verifiable lifetime monthly income of $1,000. This income must be derived from a pension or retirement benefits provided by a government agency, an authorized and regulated retirement agency, or a private company, with additional documentation required. If applying with a spouse or a minor dependent, an additional $250 in monthly income per dependent is required.
Requirements
The general requirements to apply for the Panama Retiree and Pensioner Visa are:
- Passport valid for a period of at least 6 months from the date of application.
- 5 passport-sized photos.
- National criminal background check, recently issued, apostilled/authenticated by a Panamanian consulate in the issuing country – valid for 6 months.
- Retirement letter stating that you receive at least $1,000 in lifetime monthly income – recently issued, apostilled/authenticated by a Panamanian consulate in the issuing country – valid for 6 months.
- Health certificate issued in Panama.
- Sworn declaration form, fully completed and signed.
- Proof of residence in Panama, through a utility bill and rental contract, or a letter from a hotel.
Private Pension Holders (must additionally provide):
- A letter from the pension administrator, trust, mutual insurance or banking fund, certifying that the company manages the applicant’s pension, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country – valid for 6 months.
- Certification of the existence and good standing of the pension administrator, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country – valid for 6 months.
- Certificate proving the company is legally authorized to offer pension management services, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country – valid for 6 months.
- Bank statements for the last 3 months showing pension payments have been made, or the last 3 months’ payment summary, recently issued, apostilled/authenticated by a Panamanian Consulate in the issuing country – valid for 6 months.
Process
The following are the steps to follow in the process:
- Gather the required documents.
- Visit Panama to submit the application at the country’s immigration office and obtain the temporary residence card.
- Wait for approval.
- Once the application is approved, permanent residency will be granted.
The time it takes for the National Immigration Service to process each application will largely depend on the volume of applications the institution is handling. However, a good point of reference is the temporary processing card issued to the foreign applicant and their dependents once the application has been submitted. This card is valid for six (6) months, which is the approximate time it typically takes to process permanent residency applications.
*Citizens from Asia, the Middle East, and Africa: Please note that Panama’s Immigration Office may have your country listed as restricted and subject to special requirements.
Benefits
Permanent residency under Retiree and Pensioner status has the advantage of lower costs related to immigration fees compared to other residency categories. It also does not require any additional investment to obtain Permanent Residency approval.
Furthermore, it is important to highlight specific benefits granted by law to foreign nationals who have this approved Retiree and Pensioner Residency Permit, which are listed below:
- Full customs exemption for the one-time importation of household or personal items up to the sum of ten thousand dollars (US$10,000.00).
- Full customs exemption every two (2) years for the importation of a motor vehicle for personal or family use.
- Exemption from paying any deposit, levy, or immigration fee related to obtaining the Retiree and Pensioner Permit.
It is also important to note that Panama offers multiple legal benefits to both nationals and foreign retirees or pensioners who are residents of Panama. These benefits apply to women aged fifty-five (55) and older and men aged sixty (60) and older. Below is a summary of some of the most relevant benefits:
- 50% discount on admission prices for recreational and entertainment activities, such as cinemas, theaters, sporting events, and other public performances.
- Discounts on public transportation fares, as follows:
- 25% off airfare with national and international public or private airlines.
- 30% off boat and ferry fares.
- 30% off train fares.
- 30% off intercity bus fares.
- Minimum discounts on regular hotel, motel, and boarding house rates are as follows:
- 50% from Monday to Thursday.
- 30% on Fridays, Saturdays, and Sundays.
- 25% discount on individual food consumption at restaurants.
- 15% discount on national and international fast-food franchises.
- 15% discount on the total bill for services at private hospitals and clinics.
- 20% discount on the cost of medications.
- Discounts on the following medical services:
- 20% off fees for general medical consultations and medical and surgical specialties.
- 15% off dental services.
- 15% off optometry services.
- 50% discount on closing costs or commissions for personal and commercial loan transactions carried out in their name at banks, finance companies, and credit institutions.
- 50% discount on airport taxes or fees.
If you meet the eligibility criteria, you can apply for the Pensionado Visa through Siuma Mobility, we would be delighted to assist you through the entire process.
