The events that have unfolded over the last two years have given many the reason to consider relocating overseas. Strong restrictions on movement caused by lockdowns during the pandemic, rising costs of living, worsening social climates and unstable career prospects are all commonly cited as being the sources of growing dissatisfaction when it comes to quality of life. No less so than for those that have retired who are witnessing the aforementioned events come to pass and may now feel that it is time to relocate to another country so that they may enjoy their retirement peacefully and affordably.
Panama as an option for retirement
Any retiree making research on what are the best countries to relocate to will be presented with many sites containing lists that almost certainly appear identical. Panama, usually, finds itself to be featured on those lists. It has ranked at the top of International Living´s Annual Global Retirement Index for many years, and in 2021 it has been ranked in second place. In the US News article, Best Countries for a Comfortable Retirement, Panama is featured within the top 10.
What makes Panama an attractive option for expats
For anyone seeking to stay within the western hemisphere within proximity to the US, enjoy warm climates and ocean views as well as live a comfortable and affordable life, Panama has all those on offer. It has earned the nickname “Hub of the Americas” owing to its geographical location, the Panama Canal and its Tocumen International Airport which is considered as the best airport in the Central America/Caribbean region.
Although Panama may not be the cheapest country in Central America to live in it is the most sophisticated and is still very affordable. Its transport infrastructure is well established, excellent internet and cell phone facilities, and Panama City itself is a thriving cosmopolitan city with a diverse international flavor and wide array of recreational and cultural attractions on offer.
Culturally, Panama pays much respect and courtesy towards its mature citizens and so retired Panamanians can live with dignity as active members of society. This courtesy is extended towards foreign nationals who gain permanent residency status also.
Panama Retiree and Pensioner Visa
An increasing number of people are choosing Panama as their preferred location to spend their retirement. The Pensionado or Pensioner Visa is considered one of the most competitive and affordable retiree residency visas in the world. In comparison to retirement visa programs, you can retire in Panama at a fraction of the cost of what it would cost in many other countries.
In order to qualify for submission of an application for the Panama Retiree and Pensioner Visa you must have a monthly pension income of no less than US$1,000 and which must be guaranteed for life. This income must be in the form of a pension received from a government agency or a regulated private pension company or specialist retirement agency. It is worth highlighting that if the applicant purchases property in Panama with a value of $100,000 or more, the requirement of minimum monthly income drops down to US$750.
General requirements
- Five passport size photos
- Passport
- Letter of retirement, from a government office, clearly stating the monthly income for life
- Police record check, for your last five years of residency, issued by a government office
- Certificate of good health issued in Panama
- Sworn declaration in the form of an affidavit about personal background, and can only be done by a lawyer in Panama.
- Proof of domicile in Panama, through a utility bill, rental agreement or letter from a hotel
If the applicant is submitting an application with his, or her, spouse, a further US$250 per month in income is required to qualify for the pensioner visa application and the spouse must also present all of the above listed documentation, except for the letter of retirement but with the addition of an original marriage certificate.
Any documents that originate from sources outside of Panama must be original, notarised and either authenticated at the Panamanian Consulate in your country or duly apostilled.
The timeframe for establishing permanent residency, through the pensionado visa program usually takes six months and it also offers the right to a Panamanian personal identity card (Cedula).
Panama´s pledge
Some may query what may happen in the future to the status of their Panama retiree and pensioner visa in the event that the country ever changes its laws on this programme. Panama has pledged to grandfather in the rights of Pensionado residents, so this means that even if Panama changes its laws regarding the Pensioner visa in the future, your visa status would remain unchanged.
Benefits
Panama´s pensionado programme offers a wide array of benefits, the level of which is difficult to find anywhere else.
Retirees, called jubilados, can gain access to a wide range of discounted rates on products and services In Panama. They include the following;
- Total duty-free allowance, up to the amount of US$10,000 and on a one-time basis, for imported goods for personal or domestic use
- Total duty-free allowance every two years for the importation of a motor vehicle for personal or family use
- 50% discount in cinemas, concerts and sporting events
- 30% discount on public transportation
- 25% discount on airline tickets
- 25% discount in restaurants
- 25% discount on utility bills
- 15% discount in hospitals (if insurance does not apply)
- 20% discount on medical consultation
- 50% and 30% discount in hotels for stays during the week and weekend respectively.
One word of warning, however, is that some independent hospitality venues, such as restaurants and bars, may not automatically apply your jubilado discount and you may need to ask. Always best practice to ask beforehand.
As already commented, Panama is rich in culture, night life and recreational facilities especially in the city. Cinemas, bars, museums, galleries and restaurants of all international types. In fact, Panama City was recognised in 2019 by UNESCO as the Ibero-American Capital of Culture with a rich culinary landscape and has many dining options including Italian, French, Spanish, Asian, American and Middle Eastern restaurants.
Panama offers the conveniences of a developed country but with the attraction of low prices and natural landscapes of a less developed nation.
Every year, large numbers of people from all over the world are retiring in Panama and while many come from the USA, Panama has become a growingly popular destination for Asian and European retirees also.
How Topaz Services can be of assistance
If you would like more information on the requirements to apply for, or assistance with obtaining, your permanent residency in Panama, then please do not hesitate to contact us on our contact page.
We understand that relocating to another country can be a daunting prospect but, as a British-managed company in Panama, our service offer comes with decades of local experience and practice along with our broad local network of professionals, including lawyers who specialise in immigration applications. Coupled with our ability to speak with you in fluent English, your decision to engage our services could prove to be of invaluable support when making this important and exciting next step in your life. We can recommend to you a suitable local lawyer and act as your liaison, collate your application documentation and guide you through the stages of the process.
We consider ourselves Panama’s base for traditional British service from specialists in:
- The formation and management of corporations, wherever domiciled,
- Private Interest Foundations, as well as Charitable Foundations, and
- Providing banking guidance, accounting and local tax advice services
Our international public and private sector experience in fiduciary and corporate administration, gained in America, United Kingdom, Africa and the Caribbean, is unrivalled in Panama and we have been serving professional firms, institutions and individuals since 1981.