Last week, I posted an article comparing the Friendly Nations Visa (the “FNV”) and the Retirement and Pensioner Visa (the “Pensionado Visa”). Both are fantastic residency options for applicants who qualify. But the article really talked up the Pensionado Visa, because it is a little easier, less expensive, and gets qualifying applicants to permanent residency more quickly than the FNV.
So if a client qualifies for both, then usually the Pensionado Visa is the way to go.
However, there are a few situations where my clients may opt for the FNV instead. The first is if the client wishes to obtain a work permit. That is because Article 6 of Law 9 (June 24, 1987) specifically prohibits a Pensionado Visa holder from working in Panama. That’s a bummer for anyone who might like to supplement their fixed pension income with a job while they are here.
But my clients may also consider the Friendly Nations Visa over the Pensionado Visa if their family includes a young adult dependent. And the reason has to do with how these two visa programs treat a non-spouse, young adult (over 18 years old) applying as a dependent.
A Young Adult Dependent (over 18 years old)
Let me tell you about a Canadian client who recently contacted me about residency in Panama. He has a nice healthy pension that pays him each month for the rest of his life, and the amount of the monthly payment is more than enough to cover his wife and two children (boys ages 15 and 18). The entire family of four is planning to relocate to Panama.
Nevertheless, he is probably not going to apply for permanent residency via Panama’s Pensionado Visa program. Instead, he is leaning toward the Friendly Nations Visa, which will initially grant him and his family a 2-year provisional residency.
I’ll guide you through his thought process.
Remember, my client’s oldest son is 18 years old. He is a young adult. This means that in order to qualify as a “dependent” for residency purposes, he will need to be enrolled full-time in an educational program (here in Panama or abroad). And this applies whether the family applies through the FNV or Pensionado Visa program.
The Pensionado Visa
So if this young man enrolls in a university or other educational program, the Pensionado Visa would allow him to get residency as a dependent of the primary applicant (his father). Perfect.
But here is the thing about the Pensionado Visa program. It will only grant residency to young adult dependents until age 25. And only so long as he remains enrolled in the educational program, which allows him to maintain his “dependent” status.
The Friendly Nations Visa
The situation looks a little better for the dependent 18-year-old son under the FNV program. To qualify as “dependent”, he or she still needs to be enrolled full-time in an educational program. But unlike the Pensionado Visa, the FNV program does not prohibit a young adult dependent from qualifying for permanent residency.
So instead of going for the permanent residency under the Pensionado Visa, my client and his family will get the 2-year residency via the Friendly Nations Visa. And they will need to re-apply again for permanent residency at the end of the 2 years. But as long as his son remains enrolled in an educational program as a full-time student and qualifies as a “dependent” at the time of renewal, there is nothing stopping him from getting permanent residency under the FNV program.
So, ultimately, the FNV will allow my client’s entire family to get permanent residency – including their young adult dependent son. Under the Pensionado Visa, the now 18-year-old son would need to leave Panama or apply for residency under some different visa program by the time he turns 25.
Bottom Line?
If you are fortunate enough to qualify for the Pensionado Visa, then this is generally the recommended preferred residency option in Panama. It provides you and your spouse a direct, 1-time process to get to permanent residency, and it doesn’t require a major investment like some of the other visa programs.
The Pensionado Visa also allows qualifying applicants to obtain residency for their dependent children. However, if your son or daughter is already 18 years old or older, then it will only grant him or her residency until age 25. And they must remain enrolled as a full-time student in an education program).
But take the exact same circumstances (an over-18-year-old son or daughter, enrolled in an education program), and the FNV does allow a young adult dependent to eventually qualify for permanent residency.
Does this difference between the two visa programs make sense as a policy matter? Probably not. But welcome to Latin America.
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.
