Retiree Visa
Residency for retirees and pensioners in Panama
Panama leads Central America in the Quality of Life ranking and is among the top three countries in Latin America recognized as ideal for retirees. Even within Panama, there are small cities that stand out as preferred locations for foreign retirees, as they offer all the necessary services and an ideal quality of life to enjoy your golden years.
Your retirement can be the key to entering a country of contrasts like Panama. Enjoy your retirement with peace of mind, security, and without financial hardship.
If you opt for the Retirement or Pensioner Residence Permit, your monthly income or pension cannot be less than B/.1,000.00 or its equivalent in foreign currency, and you must have it granted for life.
Certification proving retired or pensioner status may be B/. 750.00 or its equivalent in foreign currency in cases where the applicant has acquired property in their own name in the national territory for a sum greater than B/.100,000.00 or its equivalent in foreign currency.
Other exceptions to be taken into consideration:
In the case of spouses, it may be possible to combine the sums of both to meet the minimum pension requirement, which is B/.1,000.00 or its equivalent in foreign currency.
In the case of dependent children, their permit will be temporary until they reach the age of twenty-five (25), provided they can prove that they are pursuing full-time studies. However, they will not be entitled to permanent residence or pensioner status. The exception to this rule is dependent children with a proven severe disability.
The price for applying for a Residence Permit for Retirees or Pensioners in Panama consists of the following expenses: (notary fees, registration fees, stamps, transaction fees, transportation, certificates, proof of kinship, SNM registration, etc., including application card, residence card, and multiple-entry visa) and legal fees.
The total cost is US$2,166.05. Below is a breakdown of the price:
Expenses:
The total cost of expenses for applicants without dependents is US$566.05. Breakdown below:
Application card expenses: US$50.00 (fifty US dollars).
Transaction fees: US$90.00 (ninety US dollars).
Resident card: US$100.00 (one hundred US dollars)
Multiple-entry visa: US$50.00 (fifty US dollars)
Health certificate: US$12.00 (twelve US dollars) Notary fees: US$33.00 (thirty-three US dollars)
Foreign currency certification (if applicable): US$16.05 (sixteen US dollars and five cents)
ID card application fees: US$100.00 (one hundred US dollars)
Transportation and travel: US$110.00 (one hundred ten US dollars)
Foreign registration: US$5.00 (five US dollars)
Legal fees:
The total cost of legal fees for applicants without dependents is US$1,600.00 (one thousand six hundred US dollars).
The total cost does not include the payment of:
ITMBs in the established fees, nor translations.
The requirements to apply for a Retired or Pensioner Visa in Panama are as follows:
Power of attorney and application (notarized and by a qualified Panamanian lawyer)
Three (3) passport-size photographs.
Duly certified copy of passport (notarized).
Certificate of Criminal Record (or sworn statement before a notary public if this does not exist in the applicant's country of origin).
Health certificate from a qualified Panamanian doctor.
Sworn Statement of Personal Background form.
Certification of your status as a retiree or pensioner by foreign governments, international organizations, or private companies, certifying that you receive a lifetime pension of no less than one thousand balboas (B/. 1,000.00) per month or its equivalent in foreign currency.
If the retirement or pension comes from a private company, in addition to the above, you must also provide:
Letter from a foreign pension management, trust, mutual fund, insurance, or banking company certifying that it manages funds for the company or the applicant.
Certification of the existence and validity of the company that grants the pension and manages the fund.
Copy of proof of payment or bank statement.
The difference between a pensioner and a retiree is that a pension consists of a periodic, temporary, or lifetime amount paid by a country's Social Security system due to retirement, widowhood, orphanhood, or disability. Therefore, a pensioner is someone who has or receives a pension for a specific reason.
A retiree, on the other hand, is someone who, having completed the working cycle established by the internal legislation of each country, stops working due to their age and receives a payment known as a retirement pension.
However, with regard to Residence Permits, applicants must meet the same requirements regardless of whether they are applying for a Retiree or Pensioner Permit.
A pensioner in Panama is a person who receives a pension from the Social Security Fund acquired by virtue of their own contributions as a contributing worker. This includes pensioners receiving benefits for occupational hazards, disability, and old age.
A pension is considered to be a cash benefit, in the form of a temporary or life annuity, which Social Security pays monthly to its insured persons or their beneficiaries, subject to compliance with the relevant legal requirements.
The Social Security Fund in Panama grants pensions through three programs:
Disability, Old Age, and Death Program: consisting of Old Age, Early Retirement, Disability, and Survivor pensions.
Occupational Hazards Program: consisting of Permanent Partial, Permanent Total, and Survivor pensions.
Supplementary Fund Program: consisting of Special Retirement Pensions for Length of Service and Physical Disability, Supplementary Benefits for Old Age, Early Retirement, and Disability. (The Supplementary Fund was repealed in 2001, in compliance with Law No. 8 of February 6, 1997).
Internal regulations offer many advantages and benefits for retirement in Panama.
Law 51 states that anyone who has paid 240 contributions, verified by the Social Security Fund (CSS), and is 57 years old (women) or 62 years old (men) is eligible for retirement, with 60% of their average best annual salary.
Panama offers many advantages to those who choose to reside in its territory. It should be noted that Panamanian law establishes that both Panamanians and foreigners residing in the country who are fifty-five (55) years of age or older, if they are women, or sixty (60) years of age or older, if they are men, as well as all retirees and pensioners of any gender, shall enjoy the following benefits. The law expressly states:
A 50% discount on admission prices for recreational and entertainment activities, such as cinemas, theaters, sports, and other public shows. This discount does not apply to charitable activities whose proceeds are earmarked for children, disaster victims, and programs duly authorized by the competent authority.
Discount on public transportation fares in accordance with the following classification:
Intercity buses, 30%.
Trains, 30%.
Boats and ships, 30%.
25% on airfare for public or private domestic and foreign companies.
A minimum discount on regular prices for hotels, motels, and guesthouses as follows:
50% from Monday to Thursday.
30% on Fridays, Saturdays, and Sundays.
25% discount on the value of individual food consumption in any restaurant, except those considered as fondas, which do not require a commercial license to operate.
15% discount at fast food establishments with national and international franchises.
15% discount on the total bill for services at private hospitals and clinics.
10% discount at pharmacies on the cost of prescription medications.
Discounts on the following medical services:
20% on fees for general medical consultations and medical and surgical specialties.
15% on dental services.
15% on optometry services.
Insurance companies that include illness risk in their policies shall make the necessary adjustments so that the benefit of these discounts is transferred to the insured in the payment of their premiums, at the age of fifty-five (55) or older for women, and at the age of sixty (60) or older for men, as well as for pensioners and retirees.
20% discount on fees for technical and professional services.
20% discount on the price of all prostheses as well as all assistive devices and accessories.
50% discount on closing costs or fees for personal and commercial loan transactions made in their name at banks, financial institutions, and credit institutions. No public or private entity may charge any amount for discount services, either to borrowers benefiting from this Law or to banks, financial institutions, cooperatives, and credit institutions in personal and commercial loan transactions made in their name.
Personal and commercial loan transactions made in their name at banks, financial institutions, cooperatives, and credit institutions shall be exempt from the surcharge or tax stipulated in the Special Interest Compensation Fund (FECI).
A 15% discount on the maximum interest rate that the law allows banks, financial institutions, cooperatives, and credit institutions to charge on personal and commercial loans in their name.