Boasting a year-round tropical climate, an affordable cost of living, and access to modern amenities and health care, Panama is consistently ranked by International Living as one of the best places to retire in the world today.
And if you are interested in relocating to Panama, then the Retirement and Pensioner (“Pensionado“) Visa offers one of the fastest, least expensive, and most straightforward paths to becoming a permanent resident.
This article will provide an overview of the requirements and application process to apply and qualify for the Pensionado Visa program.
Why Foreign Retirees Choosing Panama?
If you have spent any time at all in Panama, then you know that it is much more than beautiful beaches, lush rainforests, and manicured golf courses. Panama is also one of the safest countries in Latin America, and one of the fastest-growing economies in the hemisphere.
And while the country is quite small geographically speaking, a lot is going on here. Panama City is one of the most cosmopolitan cities in Latin America, set against the backdrop of a diverse natural landscape. It is also the Copa Airlines hub, with daily direct flights to locations all around the region and the world.
Requirements to Qualify for Panama’s Pensionado Visa
While the Pensionado Visa is often associated with retirees living out their golden years on a fixed pension income, this permanent residency program is not limited to advanced-age applicants. In fact, there is no minimum age to qualify so long as the applicant can satisfy the 2 main requirements:
- The applicant must be the beneficiary of a pension or annuity paying a minimum of $1,000 USD per month; and
- The pension or annuity must provide a lifetime benefit.
That’s it. The benefit can be from a foreign government agency or military, or it can be from a trust, a private pension administration, a banking entity, an insurance company, or another private company. What matters is that it provides the requisite $1,000 USD monthly benefit (or the equivalent if in a different currency) and that the benefit must be for life. It’s that simple!
The $1,000 USD Minimum Monthly Income
The requirements for the Pensionado Visa program are quite clear, but they are also very rigid. For one thing, it has to be a pension benefit, annuity benefit, or something similar. For example, even if regular monthly payouts from a stock portfolio or rental properties consistently exceed the threshold amount, such income would not qualify for the Pensionado Visa.
Similarly, if your Social Security benefit is $1,150 per month, but after deductions for things like Medicare you receive less than $1,000 per month, then the income would not qualify for the Pensionado Visa program.
The Lifetime Benefit Requirement
The lifetime benefit requirement is also quite rigid. For example, let’s say you have a financial product such as an annuity that pays a minimum fixed return above $1,000 per month. If you have an option of canceling the annuity and withdrawing your invested capital, then the annuity would not qualify as a lifetime benefit for the purposes of the Pensionado Visa.
And you will need to obtain a letter from the provider specifying that you receive at least $1,000 USD per month, and that it is a lifetime benefit. The government official reviewing your residency application in Panama won’t make any inferences or assumptions.
For example, it may seem obvious that your monthly US Social Security payment is a lifetime benefit. But the letter from the US Social Security Admin that we include in your residency application package needs to state this explicitly and on its face. The letter must also be issued within 6 months of submitting your residency application package.
But if you hit a dead end on this with the Social Security Admin, then don´t worry! We have an easy workaround!
Applying for the Pensionado Visa with Dependents
Applicants who qualify can also obtain residency for their spouse or dependent children. But there are some additional requirements that you need to take into account when applying with a family member.
Applying as a Married Couple
A qualifying applicant can obtain permanent residency for his/her spouse, but you need to be aware of a few important details.
First, when a husband and wife apply together, they will need to obtain a fresh copy of their marriage certificate. The marriage certificate has to have been issued within 6 months of applying for residency, so an original marriage certificate won’t work unless you just recently married.
Second, there are 2 options for a married couple to satisfy the minimum monthly benefit threshold:
Option 1: If a married couple each has a pension or annuity paying a lifetime benefit, then they can satisfy the $1,000 USD monthly benefit requirement based on the cumulative amount of their monthly benefits.
So, let’s say a man has a pension paying $500 USD per month as a lifetime benefit, and his legally married wife has a qualifying annuity paying $500 USD per month. Individually, neither of them meets the $1,000 USD monthly threshold. But their cumulative monthly benefits do add up to $1,000 USD, so they can qualify for the Panama Pensionado Visa.
Option 2: The primary applicant can apply with his/her spouse as a dependent, but the primary applicant’s pension or annuity benefit should cover an additional $250 USD per month.
For example, a woman with a pension paying $1,250 per month as a lifetime benefit could qualify for the Panama Pensionado Visa with her legally married husband as her dependent.
Applying with Children as Dependents
Qualifying applicants can also obtain residency for their dependent children under the Pensionado Visa, but you need to be aware of some important details here as well.
First, you will need to submit a copy of each child’s birth certificate. However, these do not have to be freshly issued copies within 6 months of submitting the application.
Second, you can obtain permanent residency for minor children (under 18 years of age). If you have dependent children over 18 years old, then they can apply for residency as well. However, they must be enrolled as a full-time student to qualify, and they will only be able to maintain residency until age 25. READ MORE ABOUT THIS.
Third, the primary applicant’s pension or annuity benefit should cover an additional $250 USD per month for each dependent child.
Attractive Benefits
The Pensionado Visa also grants a number of excellent benefits for applicants living on a fixed income:
- A tax exemption on the import of household goods up to $10,000 USD.
- A tax exemption on the import of a new car every two years.
- 50% discount at movie theaters, concerts, or sports events
- 30% discount on bus, boat, and train fares
- 25% discount on domestic airline tickets
- 50% discount at hotels Monday-Thursday (30% Friday-Sunday)
- 25% discount at restaurants (15% at fast-food establishments)
- 15% discount on hospital bills (if no insurance applies) / 10% discount on prescription meds / 20% discount on medical consultations / 15% discount on dental or eye exams
- 25% discounts on utility bills
- 1% interest subsidy on a home mortgage
All of that adds up to “pretty damn good”. And it is no wonder that the Retirement and Pensioner Visa is among the most popular visa options in Panama.
Documents to Prepare
To apply for the Pensionado Visa, you should plan to include the following documents in your application package:
- A letter from your pension or annuity provider confirming that a.) you receive the minimum monthly income and b.) that it is a lifetime benefit. The letter must be issued within 6 months of submitting your residency application, and it must be apostilled or otherwise authenticated.
- A federal background check, which should also be issued within 6 months of applying, and must also be apostilled or otherwise authenticated.
- Your passport should have a minimum of 6 months validity.
- A second form of ID (such as a driver’s license) from the country that issued your federal background check.
- 5 passport-size photos.
- If applying with a spouse, you will need to provide a freshly issued copy of your marriage certificate issued within 6 months of applying. And it must be apostilled or otherwise authenticated.
- If applying with dependent children (minors or at least under 25 years of age), then you will need to provide apostilled or otherwise authenticated copies of each child’s birth certificate. However, these do not need to be freshly issued within 6 months of applying.
- If you receive your benefit from a private corporation, then you will need to provide a certification of the existence and validity of the company. And you will also need to provide a proof of payment receipt or bank account statement showing the benefit being received.
- A health certificate from a licensed physician.
- A power of attorney and other documents that I will provide.
Other Frequently Asked (or Interesting) Questions
This is a list of questions that I receive from clients about the Panama Pensionado Visa program. New inquiries are always coming in, so I’ll update this from time to time.
Do I have to travel to Panama to apply for the Panama Pensionado Visa?
Yes, you’ll have to come to Panama for the passport registration at the immigration office and to take your picture for the provisional residency card. These will allow you to stay in Panama, and to come and go from Panama, while the Visa is being processed. We can usually accomplish this within max 5 business days, and then you won’t need to be in Panama again until you are ready to take the picture for your permanent residency card about 6 months later.
What do you mean by apostille or other authentication?
These refer to a certification that verifies the authenticity of public documents for use in a foreign country. You can usually obtain these through your State Department, Global Affairs Office, or a similar government agency in the country where your legal documents were issued. Or you can obtain the required authentication through the Panamanian Consulate in the issuing country. You can read more about the apostille here, and here is another article that provides instructions and helpful links for obtaining an Apostille in the United States.
How does the Panama Pensionado Visa compare with the Friendly Nations Visa?
Both are very popular, and both are great residency programs. The Pensionado Visa is cheaper, less complicated, and offers a direct path to permanent residency But one downside is that the Panama Pensionado Visa does not allow the applicant to apply for a Work Permit. If you want to go further down this rabbit hole, check out our article Comparing the Pensionado Visa vs. Friendly Nations.
I have some old criminal charges from the late 1970s. Can I still apply?
Whether old criminal issues will be prohibitive really depends on the nature and severity of the charges and how old they are. But your immigration lawyer can request an opinion from the immigration office as to whether the charges will be an impediment before you invest time and money in the application process.
If I obtained residency through one of the other residency programs, can I still qualify for retirement benefits in Panama?
Yes, anyone with Panama residency can qualify for these benefits once they reach retirement age (defined as 57 years old for women / 62 years old for men).
Are there any exceptions to the $1,000 USD minimum monthly income requirement?
Yes, there is one. If you have purchased a real estate property in Panama for at least $100,000 USD, then you would be able to qualify for Panama’s Pensionado Visa a lifetime pension or annuity benefit of just $750 USD per month.
Bottom line?
For applicants fortunate enough to qualify, the Pensionado Visa is often the best option for obtaining permanent residency in Panama. It is one of the few Visa options that currently offers a direct path to permanent residency in Panama. It also offers a range of benefits including discounts on things like home mortgages, entertainment, and medical services, as well as tax exemptions.
The requirements for the Pensionado Visa are also very clear and specific. So you can very quickly determine whether you will qualify.
Do you have a pension or annuity that you think may qualify for the Retirement and Pensioner Visa? Let us hear from you to provide a quote.
