Panama Residency Laws

Panama’s Pensionado Program

Panama has put together the most appealing program of special benefits for foreign residents and retirees you’ll find anywhere in the world today, starting with the pensionado, or pensioner visa, program.

In Panama, qualified pensionados or retirees are entitled to:

• 50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events)
• 30% off bus, boat, and train fares
• 25% off airline tickets
• 25% off monthly energy bills
• 30% to 50% off hotel stays
• 15% off hospital bills*
• 10% off prescription medicines*
• 20% off medical consultations*
• 15% off dental and eye exams*
• 20% off professional and technical services
• 50% off closing costs for home loans, and more…

*Unless insurance applies.

If you become a pensionado, you’ll also be entitled to a one-time exemption of duties on the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation or, better yet, local purchase of a car.

Plus, Panama’s pensionado law stipulates that anyone entering the country as a qualified pensioner is guaranteed that status for as long as he resides here. That means that even if future laws change the pensionado requirements, your status will be grandfathered in…it won’t ever change!

The general rules:

• All overseas documents to be presented to the authorities in Panama must be authenticated by a notary and by the Panamanian consulate nearest you, or by a notary and Apostille. The Apostille (as per The Hague Convention of 1961) is a faster way of authenticating documents and in the U.S. can be obtained through the secretary of state in your home state; in the U.K., this can be done through the Foreign Office. In Canada, please check with the Panamanian embassy/consulate nearest you
• All documents must be valid (within two months of visa application) and passports must be valid for at least another year from time of application
• Dependents: Bring a marriage certificate. However, original marriage certificates are not acceptable for the visa application if over two months old, so you’ll probably need to request a copy. If you have cdependents under 25 that you’ll be including on your application, you’ll need to bring valid birth certificate copies (not originals)
• All visa applications require that you obtain a health certificate in Panama
• All visas require a clean police record from your last place of residence
• All visas require 6–9 passport-size photos (gentlemen in suit and tie; ladies in long sleeves).

In the past, the government of Panama has allowed any adult who could show proof of a monthly pension of any kind (from the age of 18 upward) to qualify for a pensionado (retiree) visa. As in the past, if you are receiving a pension from a government entity or a well-known international company, age is not an issue. You must simply provide proof of adequate income. However, if you are on a private pension, the pensionado visa is available to you if you are of retirement age (50 or older). The age of your spouse (if applying as dependent) will not be considered on the age limitation.

For many years, pensioners with a qualified pension of $500 per month were entitled to apply, but in August 2008 the pensionado requirements finally changed. Now you must draw a minimum pension of $750 and invest at least $100,000 in property in Panama or you must have a pension of at least $1,000 per month (no real estate requirement). However, there is a plus: you may now pool your pension with your spouse’s to meet the minimum pension requirement.

A big new plus: you may now pool your pension with your spouse’s pension to meet the minimum pension requirement, provided you’ll be applying together.

Person of Means Visa (POM)

If you plan to live in Panama but not start a business here, this may be the best option for you. To qualify, among other things, you must invest $300,000 in one of three ways: by buying property here; by placing $300,000 in a fixed-term deposit; or by applying with a “mixed use” split between a property purchase and fixed-term deposit, provided the total investment adds up to at least $300,000. Previously, the Panama government stipulated that the only acceptable split was 40%/60% invested in property and a fixed term deposit, respectively. Now, you may determine the split yourself (for example, if your dream property costs you $280,000, you may place $20,000 in a fixed-term deposit to qualify for this permit).

You must keep the property and/or fixed-term deposit for approximately three years or until you are granted your permanent residency. (You can apply for this two years after your initial application is approved).

Forestry Investor Visa

The forestry investor visa encourages the production and preservation of teak. Basically, the program consists of two options, dubbed the small forestry investor and the large forestry investor visas. The small forestry investor visa requires a minimum investment of $60,000, whereas the large forestry investor visa requires a minimum investment of $80,000.

The Small Forestry Investor option has some drawbacks. It doesn’t grant you permanent residency after two to three years, like the other permits mentioned here. It is a temporary resident permit, and you must spend more time and money to re-apply every year for six years. Only on the seventh application will you be able to apply for permanent residency. The Large Forestry Investor visa is granted provisionally for two years. After that, you may renew and apply for a permanent residency permit. Five years after obtaining permanent residency, you may apply for Panamanian citizenship.

If you have a different type of investment in mind, note that Panama offers many different visa alternatives; those listed above represent just a few of the more popular options.

Tourist visa: If you are from the U.S. or Canada you do not need a visa for tourist visits of up to 90 days. Tourists may stay for up to 90 days and, in general, extensions are not available unless you can prove you need more time because you are changing your status from that of tourist…for example, if you entered Panama as a tourist and then decided to apply for residency.

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