Retirees or persons with “lifetime” pensions may qualify for the Panama retirement visa, also called the “Panama Pensionado Visa”.  POLS has a dedicated staff of immigration attorneys with extensive experience in processing the Panama retirement visa.

The Panama Pensionado Visa allows foreigners to obtain legal residency in Panama under the condition that they have a pension income guaranteed for life.  According to the Panama Immigration Department, there is no minimum or maximum age required to qualify, you only need to provide the requirements and documents listed below.

The applicants’ retirement income (or pension income) must be for life, and must be a minimum of one thousand US Dollars (US$1,000) per month.  If your lifetime pension income is less than US$1,000 per month, but equal to or more than US$750 per month, you may purchase any Panama real estate property with a value of at least US$100,000, which reduces the lifetime monthly pension income requirement down to a minimum of US$750.

The Panama retirement visa applicants’ pension income must be proven by providing documentation such as a letter from the institution or company that pays the retirement or pension income. This certification must be notarized and authenticated by the Panamanian Consulate nearest you (or by apostile).

Panama Retirement Visa Benefits

Here is a summary of the benefits of the Panama retirement visa:

  • One time Duty tax exemption for household goods up to a total of $10,000.
  • Duty exemption for importing a new car every two years.
  • 50% off entertainment anywhere in the country (movies, concerts, sports)
  • 30% off bus, boat, and train fares
  • 25% off airline tickets
  • 50% off hotel stays from Monday through Thursday
  • 30% off hotel stays from Friday through Sunday
  • 25% off at restaurants
  • 15% off at fast-food restaurants
  • 15% off hospital bills (if no insurance applies)
  • 10% off prescription medicines
  • 20% off medical consultations
  • 15% off dental and eye exams
  • 20% off professional and technical services
  • 50% reduction in closing costs for home loans
  • 25% discounts on utility bills
  • 15% off loans made in your name
  • 1% less on home mortgages for homes used for personal residence

Tax Exemptions: As a qualified “Panama pensionado visa” holder, you will be entitled to:

  • A one-time exemption of duties (taxes) on the importation of household goods up to US$10,000 in total value.
  • 100% duty exemption on the importation or purchase of an automobile every 2 years.

Click here to read more about Panama tax exemptions for pensionados


Panama Retirement Visa Requirements

Here are the basic requirements to qualify for a Panama Pensioned Visa / retirement visa:

Article 201.4.a states the following:

“Article 201.(4): If the pension or retirement fund is from a private company, the following is required:

a.  Letter from a foreign company that administrates pensions, a trust company, a mutual fund company, an insurance company or a bank, that certifies that the funds exist to guarantee a lifetime pension for the applicant.
b.  Certification of the existence and validity of the private company that issued the pension and administrates the funds.
c.  Copy of the proof of payment or statement of account from the bank.”

This is important because now applicants can use an Annuity issued by a bank, an insurance company, or even a private company to meet the Panama Pension Visa requirement.

Also, in the same article 201(4) it states in the final Paragraph:

“In the case of spouses they may opt for proving the sum established (US$1,000) in the numeral 1 with the pension of both, in that case they should comply with the requirements previously established for both pensions.”

What this means is that if a married couple both receive a pension, and their combined pensions equals at least $1,000 they can apply for the Panama Pension Visa.

Also, the law states the following regarding dependents:

“Article 202. In the case of dependent children, the dependents permit (resident visa) shall be temporary until 25 years of age, as long as they prove that they are full time students, however, they shall not have the right to permanent residency nor the condition of “Pensioned”.  The exception is for dependent children that suffer from a proven profound disability (such as a physical or mental disability).”

This means that if a dependent child does not attend college full time after the age of 18, then their Panama Pensionado Visa will be cancelled for that dependent.  It also means that dependent children cannot use the parents Panama Pensionado Visa to obtain Panama permanent residency.  They will have to find another Visa to apply for Panama permanent residency.

The law requires the applicants’ pension amount to be increased by US$250 for each dependent or alternatively this requirement can be solved by providing a Panamanian bank reference letter indicating that the applicant earns at least US$250 per month in interest income from local bank deposits.

Also, its important to note that the law does not discriminate based on age, so anyone, regardless of age, that has the lifetime pension income mentioned above, can apply for this Panama visa.

Procedures for Qualifying for Panama Pensioner Visa

Foreigners that receive a lifetime retirement or pension from a foreign government, international agency or private enterprise, who enter Panama to live and have sufficient economic means to cover all of their living expenses for themselves and their dependents, will be able to request the Panama Pensioner Visa.  The income or monthly pension must not be less than One Thousand US Dollars (US$1,000) and should be granted to the applicant for life.

Note: If the applicant can show that they acquired Panama real estate with the property title in their personal name, and the property has a registered value of at least One Hundred Thousand dollars (US$100,000), the monthly lifetime pension income may be reduced to a minimum of Seven Hundred Fifty dollars (US$750).

In addition to the basic requirements of Article 28 of the Decree Law, the applicant must submit the following documents:

1. Certification letter of his/her retirement or pension by a foreign government, international agency, or private enterprise, confirming that he/she receives a pension of at least One Thousand US Dollars (US$1,000) monthly or its equivalent in foreign currency and that the pension is for life.

Note: In the case of spouses, the two can be approved if they have a combined sum of at least US$1,000 per month pension income for life.

2. If the applicant has dependents, they must pay an additional application fee in favor of the National Panama Immigration Service, for the sum of Two Hundred Fifty US Dollars (US$250) for each dependent;

Note: In the case of dependent children, their permission will be temporary until they turn twenty-five (25) years old if they can prove they are full time students. However, they will not have the right to the continuance of the Panama Pensioner Visa, except for those dependent children that suffer a verified physical or mental disability.

3. Certificate of Public Registration of the Panama real estate with title in the applicants personal name (if applicable);

4. If the pension or retirement is from a private enterprise, they must submit the following items:

a. Letter from an administration of foreign business of pensions, of trusts, of mutual funds, of insurances, or a bank, that certify that the funds exist to guarantee an annuity of the applicant for life;
b. Certification of existence and work of the business that offers the pension and administers the fund;
c. Payment proof with a copy of payments or statement from the bank.

5. If the Pension Letter is from a private company, then the applicant must also provide a Certification from the Government authority that certifies that the Company that pays the pension is in good standing and duly registered.  This document must be ‘original’, ‘official’, ‘updated’ and ‘authenticated’ (please check explanation below of these terms).  The private company administering the annuity or pension must also provide an original letter certifying that this company is administering said annuity or pension.

6. Copies of proof of pension payments (copies of pension payment checks, bank statements showing deposits, etc.) from Institution/Company to applicant.  This document must be ‘authenticated’ (please check explanation below of these terms).

7. Police record from the country of last 5 years of residency.  This document must be ‘original’, ‘official’, ‘updated’ and ‘authenticated’ (please check explanation below of these terms).

8. Marriage Certificate (for the spouse – if applicable), and/or Birth Certificate (for children under 18 years of age – if applicable).  This document must be ‘original’, ‘official’, ‘updated’ and ‘authenticated’ (please check explanation below of these terms).

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