When you’re retiring internationally, there’s no shortage of places to consider. One country that consistently ranks as one of the best for expats is Panama. In addition to an affordable cost of living, the country is absolutely stunning and has an amazing climate.
While some countries have a difficult process for retiring there, that’s not the case with Panama. In fact, it’s quite the opposite as the process is incredibly streamlined and simple.
Not only is getting a Panama retirement visa easy, but the visa also offers several benefits that have the potential to save you a ton of cash throughout your retirement.
Let’s take a closer look at the retirement visa program in Panama, and the process for joining it.
How to Qualify For a Panama Retirement Visa
In order to retire in Panama, you’re able to get a retirement visa through the Panama Pensionado Program. This program grants permanent residency in the country and was created in the 1980s in order to attract international retirees to Panama. It is often seen as one of the best programs of its kind on the planet.
The first step for getting a Panama retirement visa is making sure you’re qualified. In order to qualify for the Pensionado Program, you need:
- To be at least 18 years old.
- Have a clean criminal record.
- Have a monthly retirement income of at least $1,000, or $750 if you’ve invested $100,000 or more into Panamanian property. However, if you have any dependents, you’ll need to earn an additional $250 per month per dependent. ( This income must be guaranteed for life, the reason for which that income must be sourced from military pension, Social Security, or private company pensions)
As you can see, the Panama retirement visa requirements are straightforward, and qualifying for one is easy for most retirees.
How to Apply For a Panama Retirement Visa
Once you know you’re qualified for the visa, the next step is to apply. To start the Panama retirement visa application process, you need to first submit and authenticate a variety of different documents.
This includes your birth certificate, proof of income, a police record check, a valid passport, a health certificate, and photos of yourself. If you’re married, your marriage certificate is also required. If you’re applying with your family, you’ll also need their photos, passports, health certificates, birth certificates, and police record checks for anyone over the age of 18.
All of these need to be authenticated through a Consulate of Panama in your country. But while you can authenticate these documents in your country, you aren’t able to submit the documents until you’re in Panama.
After arriving in Panama, you’ll need to find and work with a Panamanian lawyer to submit the authenticated documents and apply for the Pensionado Program on your behalf. You’ll also need to provide a sworn statement about your background and have a medical exam with a Panamanian doctor who will give you a health certificate if you’re in good health.
After gathering everything you need, you’re finally able to submit the application via the Panamanian lawyer you’re working with. In addition to the application form, you’ll also be responsible for paying a fee.
While the fees depend on your individual situation and circumstances, it’ll generally cost you around $1,000 to $1,500 to apply.
It may take a couple of months to hear back on whether your application was successful or not, so in the meantime, you’ll get a Provisional Processing Card, which is a type of temporary residency card while the application is reviewed.
If your application is successful, you’ll finally get your permanent resident card and be able to legally retire in Panama. While having this visa doesn’t automatically give you citizenship, once you’ve been a permanent resident in the country for five years, you’re able to apply to become a citizen.
Other Ways to Get Residency in Panama
In addition to using the Pensionado program to become a permanent resident in Panama, you’re also able to instantly become a permanent resident by joining the Qualified Investor Program or getting a Self-Economic Solvency Visa.
To join the Qualified Investor Program, you need to invest at least $500,000 in Panamanian real estate or $160,000 in a Panamanian business to receive instant permanent residency.
On the other hand, to get a Self-Economic Solvency Visa and immediately become a permanent resident, you need to either invest $300,000 into Panamanian real estate, deposit $300,000 into a Panamanian bank for three years, or a combination of the two. However, if you have any dependents, you’ll need to increase your investment by $2,000 per dependent.
However, the Pensionado program is a much more affordable option and doesn’t require a large upfront monetary commitment as the previous two options do.
In addition to this program, there are other long-term residency options like the Friendly Nations Visa and the Business Investor Visa, too.
The Friendly Nations Visa is a visa that lets citizens of countries friendly with Panama live and work in the country. There are over 50 countries that Panama deems friendly and who can take advantage of this visa. This includes the United States, Canada, and many of the countries in Europe.
The only requirements are that you have a Panamanian bank account with at least $5,000 and that you have a professional or economic tie to Panama, either by being employed there, owning a business, or owning real estate.
The Business Investor Visa lets you achieve temporary residency by starting or investing in a business in Panama. As long as you put in at least $160,000 and create five or more full-time jobs, you’re able to get this visa.
Unlike becoming a member of the Pensionado Program, these don’t give you permanent residency but instead offer long-term temporary residency. After having this temporary residency for two years, you’re able to apply for permanent residency.
The Benefits of Getting a Panama Retirement Visa
Now that you’re aware of how to qualify and apply for a Panama retirement visa, let’s take a closer look at the benefits you get from being a member of the Pensionado Program. First, you get a collection of major discounts. This includes:
- A 25% discount on your utilities
- A 15% discount on loans that are in your name
- A 25% discount on airline tickets, and a 30% discount on other types of transportation
- A 15% discount on dental and eye exams
- A 50% discount on entrance to movies, sports games, and other cultural events
- A 1% discount on home mortgages, as long as the home is used as your residence
- A 10% discount on all medicine
- A 20% discount on doctor’s bills and 15% on hospital services
- A 50% discount on hotels from Monday to Thursday, and a 30% discount on the weekends
- A 20% discount on professional/technical services
You’ll also be exempt from import tax for household goods, and every two years, you’ll get an import tax exemption for a new car.
As you can see, there’s a reason this visa is so popular, it provides a ton of useful benefits that could save you thousands of dollars or more over the years.
And of course, in addition to all of these discounts and tax breaks, having the visa allows you to retire in a wonderful country that’s full of gorgeous beaches, stunning mountains, lively towns and cities, and spectacular weather all year. Not only that, but it’s also an affordable and safe country to live in, too.
