Panama Pensionado visa: requirements, discounts and steps

The Pensionado visa is Panama’s retirement visa and the route most American retirees use. It asks for a modest lifetime pension, gives permanent residency and comes with a set of legal discounts on everyday costs.

Who qualifies

You need a pension paid for life of at least $1,000 a month. It can come from:

• US Social Security, retirement or disability.
• A military or government pension.
• A company pension.
• In some cases a private annuity, if it is guaranteed for life. Attorneys report that these get more scrutiny.

There is no minimum age. Savings, rental income and investment withdrawals don’t count toward the $1,000, however large they are.

Other points:

• Dependants. A spouse and children can be included, with an extra $250 a month of pension income for each.
• Couples. A couple can apply as one main applicant and one dependant. Ask your attorney whether two smaller pensions can be combined, as practice on this has varied.
• Property option. The law allows a pension of $750 a month if you also own Panamanian property worth at least $100,000 in your own name.

What you get

• Permanent residency. There is no temporary stage beyond the processing period, and nothing to renew.
• A Panamanian ID card for foreigners (the E cédula), once you are approved and apply for it.
• A one-time duty exemption on household goods, up to a value commonly cited as $10,000.
• A duty exemption on importing a car every two years. Other taxes can still apply, so cost it before shipping a vehicle.
• The retiree discounts described below.

The Pensionado discounts

Panamanian law gives retirees a list of discounts. They apply to Pensionado visa holders of any age, and also to any legal resident once they reach 55 for women or 60 for men. The amounts set out in the law include:

What	Discount
Cinema, concerts, sports events	50%
Hotels	50% Monday to Thursday, 30% at weekends
Restaurants	25%, or 15% at fast-food chains
Domestic bus, boat and train fares	30%
Airline tickets	25%
Doctor’s consultations	20%
Dental and eye exams	15%
Prescription medicines	10%
Private hospital bills, if you have no insurance	15%
Electricity, water and phone bills	25%, up to a consumption limit

In practice you ask for the discount and show your card. It is not always combined with other offers, and some businesses apply it more willingly than others. Treat it as a useful reduction on a few bills, not as a reason to choose the visa.

The documents

• Passport, with copies of every page.
• A letter from the body that pays your pension confirming the monthly amount and that it is for life. For Social Security this is the benefit verification letter. It must be apostilled.
• An FBI background check, apostilled by the US State Department.
• Marriage certificate and children’s birth certificates if you are including dependants, apostilled.
• A medical certificate from a doctor in Panama.
• Proof that the pension is being paid, such as recent bank statements, if your attorney asks for it.

Background checks and pension letters are accepted only for a limited time after issue. Work out the order and timing with your attorney before you request anything.

The application

1. Hire a Panamanian attorney. The application can only be filed through one.
2. Collect and apostille your documents in the US.
3. Travel to Panama, register your passport at the National Immigration Service and get the medical certificate.
4. Your attorney files the application. You receive a temporary card valid while it is processed.
5. Approval commonly takes a few months. You then collect your permanent Pensionado card.

Plan to be in Panama for one to two weeks for the filing. You will need to be there again, or still there, to collect the permanent card.

Limits to know about

• Work. The visa is not meant for employment in Panama.
• Citizenship. Attorneys give different answers on whether Pensionado residency counts toward naturalisation. If a Panamanian passport matters to you, ask before you choose this route, and read Panama citizenship and dual nationality.
• Absences. Permanent residents are generally expected to visit Panama at least once every two years.
• Healthcare. The visa doesn’t include health cover. See health insurance in Panama.

If you don’t have a pension

Look at the Friendly Nations visa or the Qualified Investor visa. For how the visa fits with healthcare, Social Security and where to live, see retiring in Panama.

Common questions

How much income do you need for the Panama Pensionado visa?

A pension of at least $1,000 a month that is paid for life. Each dependant adds $250 a month. The law also allows a lower pension of $750 a month if you buy property in Panama worth at least $100,000. Have your attorney confirm the current figures.

Does Social Security count for the Pensionado visa?

Yes. US Social Security retirement and disability benefits are the most common way Americans qualify. Military, government and company pensions also count. Private annuities are accepted in some cases, so check before relying on one.

Is there a minimum age for the Pensionado visa?

No. What matters is that the pension is for life and meets the minimum. Someone receiving a lifetime disability or military pension at 45 can qualify.

Can I work in Panama on a Pensionado visa?

Generally not as an employee. The visa is meant for people living on a pension. Holders can usually own a business or receive investment income, but ask your attorney before taking paid work.