The Friendly Nations Visa (the “FNV”) and the Retirement and Pensioner Visa (the “Pensionado Visa”) are two of the most popular paths to residency among my clients. But what about when a client qualifies for both?
Both of these residency programs are fantastic. But some of my clients are fortunate enough to qualify for both of them and have to decide which is the better route. So, this article is going to give a quick comparison and tell you why the Pensionado Visa is usually (but not always) the clear winner.
Comparing the Costs of the FNV and the Pensionado Visa
First and foremost, the Pensionado Visa application process is less expensive than the FNV.
I am not talking about legal fees (my fees are similar for both). I am talking about expenses associated with the application process.
Here is a comparative breakdown of the current approximate expenses related to a FNV application for 1 person vs. the Pensionado Visa application for 1 person:
As you can see, the big difference is that for the FNV you need to issue a certified check for $250 to Panama’s National Treasury for each applicant + another certified check for $850 to the Immigration Office for each applicant over 12 years old. These payments are not included in the requirements for the Pensionado Visa.
Comparing the Requirements of the FNV and the Pensionado Visa
The requirements for the Pensionado Visa are simpler and require less actions on the part of the applicant. You can read about them HERE in more detail, but there are basically just 2 main requirements:
- The applicant must be the beneficiary of a pension or annuity that pays at least $1,000 per month; and
- The pension or annuity must provide a lifetime benefit.
These requirements are pretty straightforward, and you can quickly and easily predict whether you will qualify for the Pensionado Visa.
The requirements for the FNV are a just bit more complicated and involved.
- First, the applicant must have a passport from one of a list of more than 50 countries that have been deemed “friendly” to Panama.
That is easy enough. You can even check the list on my website. - The applicant must also demonstrate either:
a.) a labor contract through a Panamanian corporation with a business license; or
b.) a qualifying investment of at least US$ 200,000 in real estate property, or in a minimum 3-year time deposit (a “CD”) with a local bank.
To be clear, a qualifying investment must be completed before applying for residency. A lot of folks would rather move to Panama and take their time to get in tune with the market before making such an investment.
Comparing the Application Process for the FNV and the Pensionado Visa
The Pensionado Visa offers a direct path to permanent residency.
Meanwhile, the FNV initially grants a 2-year residency that can then be renewed for permanent. But that means the client has to go through a 2-step application process to reach permanent residency. And that means incurring several of the expenses two times as well.
Exceptions to the Rule: When the FNV May be the More Attractive Option
As I said, the Pensionado visa is usually (but not always) the preferred option for a client fortunate enough to qualify for both visa programs. There area couple of scenarios when the FNV may better suit a client’s needs.
Scenario 1
The first scenario is when the client or the client’s spouse plans to work in Panama.
You see, Panama immigration law has a bit of an ambiguity. On one hand, Article 7 of Law Decree No. 6 (April 13, 2023) says that once a person has permanent residency, that person can apply for a work permit. But then there is an exception that appears in Article 6 of Law 9 (June 24, 1987) that prohibits someone who has obtained residency via the Pensionado Visa from obtaining a work permit.
The limitation on Pensionado Visa holders sort of makes sense as a policy matter to the extent that the Pensionado Visa is intended to provide residency to people who are “retired” and living on a fixed income. But it is pretty annoying, because some would-be Pensionado residents would undoubtedly love to take on a job to stay active, supplement their fixed pension income and contribute to the greater Panama economy.
In any case, you should be aware that the current interpretation is the Pensionado Visa does not allow qualifying applicants to apply for a work permit. But the FNV does!
Scenario 2
The second scenario is when a client has a dependent son or daughter who is over 18 years old who also wants residency. Basically, the Pensionado Visa would only allow you to obtain residency for an adult dependent until age 25. But if you apply for residency via the Friendly Nations Visa, you can get permanent residency for your over-18 son or daughter!
This one requires a bit more explaining, but you can read all about it HERE.
Bottom Line?
The Friendly Nations Visa (“FNV”) and the Retirement and Pensioner Visa (“Pensionado Visa”) are two of the most attractive residency options that Panama offers. But if you are fortunate enough to qualify for both, then the Pensionado Visa is generally the recommended residency option. It is one of the least expensive visa options, it doesn’t require a major investment prior to applying, and it provides you and your spouse a direct path to permanent residency.
But keep in mind the fact that the Pensionado Visa does not allow qualifying applicants to apply for a work permit. Also, contact me if you have a son or daughter above 18 years old who wants to apply as your dependent as there are some special considerations to take into account.
If you have questions about how this might apply to your family, then I would love to hear from you. You can write to me at info@theindependentlawyer.com.
