Panama stands out as one of the best places globally for relocation. With its vibrant capital, Panama City, and an array of picturesque tropical beaches, it’s no wonder that Panama is on more and more people’s radar as remote work continues to break down geographical borders and barriers.
And one demographic that finds Panama especially attractive is foreign retirees seeking a great place to spend their retirement years. That’s because Panama offers an enticing blend of modern amenities and a relatively low cost of living compared to many Western countries. Panama also boasts excellent healthcare facilities and low crime rates, making it a popular choice for people looking to enjoy their golden years in a safe and secure environment.
And among all the different residency programs available in Panama today, the Retirement and Pensioner Visa program (known as the “Pensionado Visa“) is undoubtedly one of the best. It is one of the few visa programs that offers permanent residency status, and it doesn’t require applicants to make a major investment to qualify. It offers one of the least expensive application processes among all of Panama’s residency visas.
Requirements to Qualify for the Pensionado Visa
Actually, there are just two main requirements to qualify for Panama’s Pensionado Visa: a.) the applicant must be the recipient of a minimum monthly income in the form of a pension, annuity, retirement plan, or similar, and b.) the income should be verified as a lifetime benefit.
Legal fees will vary and will be quoted by your immigration lawyer – but the total costs of the Pensionado Visa are generally way lower than most of the other most popular residency programs. That is in part because the Pensioado Visa does not involve substantial government fees to the National Treasury and the Immigration Office like most of the other residency programs.
The application process itself is also relatively straightforward. There are a few things that we will take care of locally, such as a health certificate, a special power of attorney, and passport registration. And then there are the key documents that you will need to gather in your home country to go into your application package:
- An apostilled or authenticated federal police report or background check.
The report should be issued within 6 months of submitting your application. - An apostilled or authenticated letter from the company or foreign government agency that manages your retirement plan, annuity, or pension (often referred to as a “Proof of Income Letter”).
The Proof of Income Letter needs to state the amount of the benefit you are receiving (which must meet the minimum monthly income threshold). And the letter also needs to indicate that it is a lifetime benefit. So a lifetime pension income qualifies, and a permanent disability benefit qualifies. But a fixed-term annuity or something similar will not work here.
In addition to these general requirements, there are a few additional required documents that you will need to provide for any additional dependent applying with you (such as a spouse or child) :
- An apostilled or authenticated copy of your marriage certificate, if you are applying with a spouse.
The copy should also be issued within 6 months of submitting your application. - An apostilled or authenticated copy of each child’s birth certificate, if your kids will be applying as your dependents.
The birth certificates do not have to be freshly issued. But be aware that the Pensionado Visa will only grant residency to your dependent children until they reach 25 years of age. Unfortunately, this applies even if they are minor children.
As I mentioned, you will need to get the apostille or authentication of these documents. I won’t go off on a tangent about that here, but if you have questions about this then be sure to read our article: WTF is an Apostille?
There is also a lot more to say about the Pensionado Visa program, including the minimum monthly income threshold. We have written about this pretty extensively. But the rest of this article is going to discuss a specific obstacle that many applicants face in satisfying the lifetime income requirement.
What to do if the Proof of Income Letter does not Indicate the Lifetime Benefit?
This is where things sometimes get interesting and also a little frustrating for some applicants.
You see, the qualifying minimum monthly income can come from a variety of sources – including a private insurance company or pension management company. But these days most people apply based on a benefit from a government agency such as the Social Security (SS) Administration, a Veterans Affairs (VA) benefit, a Canada Pension Plan (CPP), or a Canadian Old Age Security (OAS) benefit.
Any of these companies or government offices should be able to issue a Proof of Income Letter without any problem. In fact, most of them send out a letter each year with a cost-of-living adjustment, which can serve just fine for your Pensionado Visa application. And most government offices also allow you to obtain a Proof of Income Letter using an online platform, such as My Social Security.
The problem arises when the Proof of Income Letter does not specifically and explicitly indicate the “lifetime benefit” component required to qualify for the Pensionado Visa.
To say that this issue comes up “often” would be an understatement. It comes up all the time. And it can be frustrating for an applicant.
Because from the applicant’s perspective, it probably seems completely obvious that a SS benefit, CPP benefit, or similar is guaranteed for life. However, this is not obvious to the government official at the Panama immigration office who will review the permanent residency application. They need to see the words “lifetime benefit”, “for life”, “until she passes”, or something similar in the Proof of Income Letter.
What do you mean the letter doesn’t say it’s a lifetime benefit? It’s Social Security!?
Seriously, what’s the matter with you people?!?
-Angry Client
Fortunately, we can pretty much always overcome this small obstacle very easily. Here is how we do it:
Option 1: Convincing the Company or Agency to Update the Proof of Income Letter to Reflect the Lifetime Income
If you are dealing with a private company, such as an insurance company, then this is probably relatively easy. You will probably make a phone call to explain the situation. Then you’ll probably be asked to send an email so that it can be easily explained to someone slightly higher up. And then they will probably send you an updated benefit letter that meets your requirements. Easy-peasy.
But this may be more of a challenge if you are dealing with a government office or agency. Or it may be kind of a crapshoot that depends who answers the phone when you call.
We have had some US clients who have called the Social Security Administration (1-800-772-1213), navigated their way past the automated options, and managed to speak with a real person who was able (and willing) to help them get the Proof of Income Letter that they needed.
For example, here is a Proof of Income Letter from the US Social Security Administration that clearly and explicitly satisfies the lifetime income requirement for the Pensionado Visa.
However, we have also had US clients who have called the same phone number, only to be told by the SS representative that they are not able to do anything to change the content of the Proof of Income Letter. Like I said, it seems to be a bit of a crap shoot. And you may wait on hold for an hour or two before you find out that you have hit a brick wall.
Actualy, the US Veterans Affairs office seems to be more helpful than the US Social Security Administration. Here is an example of how one of our clients resolved a similar case related to his disability benefits from the VA.
The client initially provided a Proof of Income Letter that didn’t explicitly state that his benefits constituted a lifetime income:
But in this case, the client was easily able to convince the Veterans Affairs Office to update his Proof of Income Letter to reflect that the benefits were based on a permanent disability. Take a look at the language that was added to the letter below. This was enough to satisfy the lifetime income requirement for the Pensionado Visa application!
Option 2: Sign a Sworn Affidavit Declaring the Lifetime Income in your Home Country
The last thing anybody wants is to feel that they are bouncing back and forth between one government office in the US or Canada and another government office in Panama.
If you aren’t getting anywhere with the Social Security Administration, CPP, or other government agency, then we have an easy solution. You´ll simply sign an affidavit declaring that your benefit constitutes a lifetime income!
The affidavit is a simple, half-page document. We can draft it and send it to you. Then you will need to have your signature notarized, and then you will need to send the document to your nearest Panama consulate office to have it authenticated before you come down to Panama.
To be clear – your affidavit has to be an honest declaration. This is no time for BS! But if you find yourself in a bind, then this can be an easy and relatively painless solution to satisfy the Panamanian immigration office.
Option 3: Sign a Sworn Affidavit Declaring the Lifetime Income Before your country’s Consulate in Panama
The only thing worse than waiting on hold with a government office in the US or Canada is waiting on hold on an expensive international phone call.
If you area already in Panama when you hit a similar brick wall with a government agency back home that manages your lifetime benefit, then you can sign a similar affidavit here in Panama. But this one will have to be first authenticated by the consulate of your home country, and then the affidavit will have to be authenticated at the Ministry of Foreign Relations (MinRex) here in Panama. Both of these authentications require making an appointment, but the whole thing can be taken care of in just a couple of days. And this will be enough to satisfy the Panama immigration department.
Here is an example of what one of these sworn affidavits looks like from the Consulate office at the US Embassy:
Bottom Line?
For foreign retirees, Panama offers more than just shiny skyscrapers and pristine beaches. Panama also offers world-class health care, access to modern amenities, and a lower cost of living compared to many other countries. It’s no wonder that Panama is considered one of the best places to relocate and retire.
And the Panama Pensionado Visa is a favorite path to residency for those fortunate enough to qualify. The application process is straightforward and inexpensive, and it offers a direct path to becoming a permanent resident. It also affords a range of benefits and discounts.
But while the application process for the Panama Pensionado program is relatively simple, it is also quite rigid. And many clients may have to deal with some obstacles in obtaining a Proof of Income Letter that explicitly states that they enjoy a lifetime income. Fortunately, there are multiple ways to move past such obstacles if you have a problem-solving immigration lawyer!
I hope you found this article interesting and helpful. If you have questions or would like to discuss your own residency and relocation plans, then drop us a quick email to introduce yourself: info@theindependentlawyer.com.
