The government of Panama has the best incentive program in the world for foreign retirees with it’s “Panama Pensionado Visa”.
The Panama Pensionado Visa allows foreigners to obtain legal residency in Panama under the condition that they have a pension income guaranteed for life. According to the Panama Immigration Department, there is no minimum or maximum age required to qualify, you only need to provide the requirements and documents listed below.
The applicants’ retirement income (or pension income) must be for life, and must be a minimum of one thousand US Dollars (US$1,000) per month. If your lifetime pension income is less than US$1,000 per month, but equal to or more than US$750 per month, you may purchase any Panama real estate property with a value of at least US$100,000, which reduces the lifetime monthly pension income requirement down to a minimum of US$750.
The Panama retirement visa applicants’ pension income must be proven by providing documentation such as a letter from the institution or company that pays the retirement or pension income. This certification must be notarized and authenticated by the Panamanian Consulate nearest you (or by apostile).
Requirements to Obtain a Panama Pensionado Visa:
1. A letter from the foreign government agency or company administrating the pension, or a mutual fund company, or a trust company, or a bank, or an insurance company certifying the funds exist and guaranteeing the payments are for the applicant’s lifetime.
2. Proof of the existence of the private company issuing the payments.
3. Copies proving the payments are being made or a bank account statement showing the deposits.
Note: Panama allows both spouses who are receiving pensions or annuities to combine them to meet the minimum $1,000 USD amount.
Dependents: Panama requires and additional monthly receipt of $250 USD per month for each dependent. Dependents are defined as children up to age of 18 or up to 25 years of age if they are full time college students. Children 18 years of age or older who are not full time college students will lose their Pensionado Visa status. They will have to find another Panama immigration visa to qualify for.
Here is a summary of the benefits of the Panama retirement visa:
One time Duty tax exemption for household goods up to a total of $10,000.
Duty exemption for importing a new car every two years.
50% off entertainment anywhere in the country (movies, concerts, sports)
30% off bus, boat, and train fares
25% off airline tickets
50% off hotel stays from Monday through Thursday
30% off hotel stays from Friday through Sunday
25% off at restaurants
15% off at fast-food restaurants
15% off hospital bills (if no insurance applies)
10% off prescription medicines
20% off medical consultations
15% off dental and eye exams
20% off professional and technical services
50% reduction in closing costs for home loans
25% discounts on utility bills
15% off loans made in your name
1% less on home mortgages for homes used for personal residence
Tax Exemptions: As a qualified “Panama pensionado visa” holder, you will be entitled to:
A one-time exemption of duties (taxes) on the importation of household goods up to US$10,000 in total value.
100% duty exemption on the importation or purchase of an automobile every 2 years.