Panama Pensionado Visa Requirements and Benefits Guide

What is the Panama Pensionado visa and who qualifies?

The Panama Pensionado visa is a permanent residence program for retirees who can show a guaranteed lifetime pension of at least USD 1,000 per month. You qualify if you are of any age, your pension is for life (not temporary), and you can document it properly through official letters and apostilles.

Unlike many countries, Panama does not set a minimum age for the Pensionado program - the key requirement is a guaranteed lifetime income. The visa is regulated mainly by the immigration law (Decree Law 3 of 2008 and subsequent regulations) and processed by the Servicio Nacional de Migración (SNM), Panama's National Immigration Service.

Key features of the Pensionado visa:

• Permanent residence from approval, not a temporary visa that you must constantly renew.
• Access to Law 6 benefits for retirees, including wide-ranging discounts across daily life and big-ticket purchases.
• Eligibility for a Panamanian ID for residents (cédula E), which makes local transactions and discounts much easier.
• Dependents allowed (spouse and minor/adult disabled children) with additional income requirements.

Why Panama is a top retirement destination

Panama ranks high for retirees because its currency (Balboa) is pegged 1:1 to the US dollar, healthcare is relatively affordable, and the legal discount regime for retirees is unusually strong. The Pensionado visa gives you legal status, stability, and cost-of-living reductions that can significantly stretch a fixed income.

What are the income and documentation requirements for the Pensionado visa?

You must show a lifetime pension of at least USD 1,000 (PAB 1,000) per month, issued by a government, international organization, or private company, with an additional USD 250 per month for each dependent. You prove this through an official pension letter, properly legalized or apostilled, along with standard immigration documents such as a police record and passport copies.

Minimum income thresholds

• Base requirement: USD 1,000 per month lifetime pension.
• Dependents: Add USD 250 per month for each dependent (spouse, minor children, or disabled adult children).
• Property option (policy-dependent, verify with counsel): If you buy Panama real estate as your residence (commonly cited threshold is at least USD 100,000), authorities often accept a lower monthly pension, commonly around USD 750. This is based on administrative practice and may change, so a current check with a lawyer is essential.

Types of acceptable pensions

The pension must be for life and proven through official documents:

• Government or social security pensions (e.g., US Social Security, Canadian, European state pensions).
• Military or civil service retirement pensions.
• Private company pensions, if they are guaranteed for life and documented.
• International organization pensions (UN, World Bank, etc.).

Ordinary investment income, rental income, or savings alone do not usually qualify unless they are part of a structured lifetime annuity contract and clearly documented.

Core documents you will need

Exact requirements can vary slightly by consulate and time, but typically you must provide:

• Valid passport (with several months of validity remaining and multiple blank pages).
• National criminal record check from your country of residence, issued within 6 months, apostilled or legalized.
• Original pension letter stating:
  • The issuing institution (government or company).
  • That the pension is for life.
  • The exact monthly amount.
• Proof of pension payments (recent bank statements showing deposits, if requested).
• Marriage certificate (apostilled/legalized) if including a spouse.
• Birth certificates (apostilled/legalized) for children or dependents.
• Health certificate from a Panamanian doctor issued shortly before filing.
• Passport-size photos in the format required by SNM.

Translation and legalization

• All foreign documents in another language must be translated into Spanish by a Panamanian licensed public translator.
• Documents must be apostilled (for countries party to the Hague Convention) or consular legalized at a Panamanian consulate.
• Documents older than 6 months are often rejected, so timing your collection is critical.

What retirement discounts does Panama Law 6 give you as a Pensionado?

Law 6 of 1987 grants Pensionados and retirees legally mandated discounts on daily expenses and major purchases, including medicines, restaurants, airline tickets, utilities, entertainment, and real estate closing costs. Once you hold your Pensionado residence and corresponding ID, you can claim these discounts simply by presenting your card and ID when you pay.

Law 6, as modified by later laws (such as Law 18 of 1989, Law 15 of 1992, and Law 37 of 2001), covers both Panamanian retirees and foreign Pensionado residents. Many discounts apply either to persons with a retirement or pension status or to men aged 60+ and women aged 55+ living in Panama, but the practical effect is that a Pensionado resident with the proper documents usually qualifies.

Summary of key discounts under Law 6

Travel and leisure discounts

• Airline tickets: 25% discount on base fares for national and international flights on airlines operating in Panama.
• Ground and water transport: 30% discount on public bus, boat, and train fares.
• Hotels:
  • 50% discount on weekday stays (Monday through Thursday).
  • 30% discount on weekend stays (Friday through Sunday).
• Entertainment: 50% discount on tickets for movies, theaters, sports events, concerts, and cultural shows.

Healthcare and medicines

• Medicines: 20% discount on prescription drugs in pharmacies.
• Medical consultations: 20% discount on doctor consultations.
• Hospital services: 15% discount on hospital bills from private hospitals and clinics.
• Diagnostic tests and lab work: 20% discount on X-rays, scans, lab tests, etc.
• Dental and optical services: 15% discount on dental and vision services and products.

Utilities and banking

• Electricity bill: 25% discount on the monthly bill, for consumption up to 600 kWh.
• Water and telephone: 25% discount on fixed-line and mobile phone services and water bills.
• Bank loans and mortgages:
  • 1 percentage point reduction on interest rate for a mortgage on your personal residence.
  • 15% discount on interest charged for personal and commercial loans.

Real estate and big-ticket items

• Real estate closing costs: 50% discount on some closing costs, legal fees, and specific taxes for the purchase of a personal home in Panama.
• Vehicle taxes and import: Specific breaks on import duties for personal vehicles at defined intervals (covered more fully below).
• Household goods: One-time duty-free import of household goods up to a statutory limit for personal use.

To claim discounts, you usually present your Pensionado card and, where applicable, your resident ID (cédula E) before the vendor issues the bill. Some businesses will ask for both documents and will not retroactively apply discounts to previously paid invoices.

Can you work or run a business while holding a Pensionado visa in Panama?

You cannot legally work as a salaried employee in Panama under the Pensionado visa, because it is a retiree residence program and expressly excludes local employment. You may, however, own a Panamanian company, receive dividends, and often perform remote work for foreign clients or employers as long as the work is not considered local Panamanian employment.

What is prohibited on a Pensionado visa

• No Panamanian payroll job: You cannot hold a standard employment contract with a Panamanian employer under the Pensionado category.
• No local freelancing to Panamanian clients: Invoicing Panamanian clients for services can be treated as local economic activity that conflicts with the retiree nature of your visa.
• No professional licenses tied to local practice (for example, practicing certain regulated professions) unless you switch to a visa that allows such work.

What is usually allowed

• Owning a business: You may own shares in a Panamanian corporation or LLC and receive dividends, provided you are not formally employed in a salaried position.
• Remote work for foreign employers/clients: Many Pensionados legally perform remote work where:
  • The employer or clients are outside Panama.
  • Income is paid into foreign or Panamanian accounts as foreign-source income.
  While Panama's current rules focus on local employment, remote work is a gray area and is generally tolerated when your clients and market are abroad.
• Passive income: Interest, dividends, rental income from properties, and other investment returns are allowed; Panama often treats foreign-source income as tax-exempt.

If you plan to work in any form, you should review your structure with an immigration and tax lawyer in Panama. The safest approach is to keep all active work clearly outside the local Panamanian market and ensure your visa category remains compatible with your activities.

How do you apply for a Panama Pensionado visa step by step?

You must hire a Panamanian lawyer to file your Pensionado application with the Servicio Nacional de Migración, starting with collecting apostilled documents in your home country, then submitting your file in Panama, obtaining a provisional card, and finally collecting your permanent residence card. The whole process usually takes about 3-6 months from first filing, often requiring at least two trips to Panama.

Step-by-step process

1. Consult an immigration lawyer in Panama
   • Confirm that your pension qualifies and that your documents will meet the pension and criminal check requirements.
   • Agree legal fees and government costs in writing.
2. Gather documents in your home country
   • Obtain your national police clearance.
   • Request an official pension letter showing lifetime status and monthly amount.
   • Collect marriage and birth certificates for dependents.
   • Have all required documents apostilled or legalized.
3. Travel to Panama for filing
   • Meet your lawyer to sign powers of attorney and forms.
   • Undergo a basic medical exam and obtain a Panamanian health certificate.
   • Open a local bank account if your lawyer recommends it for easier transactions.
4. Submit the Pensionado application to SNM
   • Your lawyer submits the full package at the Servicio Nacional de Migración in Panama City.
   • You pay government filing fees and any required repatriation deposit (if applicable).
   • You receive a provisional residence card (often valid for several months) and, if needed, a multiple-entry visa stamp in your passport.
5. Await approval
   • SNM reviews your file, which can take roughly 2-6 months depending on workload.
   • Your lawyer monitors the file and responds to any requests for additional documentation.
6. Collect your permanent residence card
   • Once approved, you return to SNM to provide fingerprints and collect your permanent residence card.
   • Afterward, you may apply for a resident ID card (cédula E) at the Electoral Tribunal.

Typical government and professional costs

These figures are approximate in 2024 and can vary by firm and dependents, but they give a useful budget range.

All official amounts are paid in Panamanian Balboas (PAB), which is pegged 1:1 to the US dollar and uses US dollar notes in practice. Always ask your lawyer for a written cost estimate that separates government fees from their professional fees.

How do you import household goods and a car tax-free as a Pensionado?

As a Pensionado, you can import a defined value of household goods tax-free one time and benefit from periodic tax breaks on importing or buying a personal vehicle in Panama. To use these benefits, you must coordinate carefully with your lawyer and a customs broker and have your Pensionado status recognized by the customs authority before the shipment clears.

Duty-free import of household goods

• Legal basis: Law 6 of 1987 grants Pensionados a one-time exemption from import duties on household goods for personal use up to a legal value limit (commonly cited around USD 10,000; check current regulation at the time of shipping).
• What you can include: Used furniture, kitchen equipment, appliances, clothing, electronics, and other personal household items.
• What you cannot include: Commercial quantities, brand-new goods in large numbers, or items clearly intended for resale.

Practical steps to import household goods

1. Get your Pensionado resolution first
   • Wait until SNM has issued the resolution confirming your Pensionado status or your permanent residence card.
   • Your customs exemption will rely on this legal status.
2. Hire a Panamanian customs broker
   • The Autoridad Nacional de Aduanas (National Customs Authority) handles exemptions; brokers deal with them daily.
   • Share your inventory and documents with the broker in advance.
3. Prepare a detailed inventory
   • List each item, approximate age, and estimated used value.
   • Group similar items together (e.g., "kitchen utensils set, used, USD 100").
4. Ship to a Panamanian port
   • Most shipments enter through ports like Colón or Panama City.
   • Use a carrier experienced in Panama-bound household moves.
5. Apply the exemption at customs
   • Your broker submits your Pensionado documents and inventory to customs.
   • Duties and some taxes are waived up to the allowed value; you still pay freight, port fees, handling, and broker fees.
6. Clear and deliver
   • Once cleared, your goods move to your residence.
   • Keep copies of all customs resolutions and receipts for future reference.

Vehicle-related tax benefits

Law 6 also provides Pensionados with significant tax relief on vehicles:

• Duty-free vehicle benefit: Pensionados may import a car or buy one locally with substantial tax reductions (often every 2 years, subject to current rules). The benefit is generally limited to one vehicle per eligible period and for personal use.
• Conditions:
  • The vehicle must be registered in your name.
  • You may be restricted from selling the vehicle within a certain number of years without paying back some taxes.
• Process: Similar to household goods, your customs broker applies the Pensionado exemption when the vehicle enters or at the moment of purchase from a dealer, coordinating with customs and tax authorities.

Because customs practice can change faster than legislation, always get written guidance from your broker and lawyer on exactly which exemptions apply, the current value limits, and the timing that best fits your move.

What other residence options exist in Panama if you do not qualify for Pensionado?

If you do not have a lifetime pension of USD 1,000 per month, you may still qualify for other Panamanian residence programs such as the Friendly Nations visa, Qualified Investor visa, or temporary digital nomad schemes. These alternatives usually require higher capital investment, stronger ties to Panama, or proof of foreign income.

Common alternatives to the Pensionado visa

• Friendly Nations visa
  • Available to citizens of designated "friendly" countries (such as the US, Canada, many European and Latin American states).
  • Requires either investment (commonly real estate or bank deposits) or a professional or economic tie in Panama.
  • Leads to permanent residency, but with investment thresholds that are typically higher than Pensionado income requirements.
• Qualified Investor visa
  • Designed for high-net-worth individuals willing to invest significant capital (real estate, securities, or bank deposits) in Panama.
  • Fast-track processing, sometimes within 30 days.
• Temporary remote worker / digital nomad visas
  • Allow you to live in Panama while working remotely for a foreign employer or clients.
  • Generally do not provide the permanent residency and Law 6 retiree discounts that the Pensionado visa offers.

If you are planning long-term retirement and want the Law 6 discount framework, the Pensionado visa is normally the most cost-effective path, provided you can meet the pension requirement. Otherwise, investment-based visas become the main alternatives.

When should you hire a Panamanian lawyer or relocation expert?

You should hire a Panamanian immigration lawyer before you start collecting documents for your Pensionado visa, because they can confirm exactly what is required, how it must be legalized, and how current SNM criteria are being applied. A relocation expert or customs broker is worth engaging once you know you will ship household goods or use the tax benefits on vehicles and imports.

Situations where a lawyer is essential

• Unusual pension sources or mixed income: If your income comes from multiple pensions, annuities, or private plans, proper structuring and documentation are crucial.
• Criminal record complexities: Even minor or old offenses can need legal handling or explanation to immigration.
• Dependents with special circumstances: Adult children, disabled dependents, or blended families require precise evidence and filings.
• Property-linked income reduction: If you plan to rely on real estate ownership to qualify with a lower pension, this should be tightly coordinated with an immigration and real estate lawyer.

How a relocation expert or broker helps

• Household goods: A relocation consultant can coordinate movers, inventory preparation, customs broker selection, and port logistics.
• Customs exemptions: An experienced customs broker knows how the Autoridad Nacional de Aduanas applies Law 6 in practice, reducing your chance of unexpected duties.
• Everyday integration: Specialists can help you set up utilities, bank accounts, health insurance, and show you how to claim Law 6 discounts in real life.

Panamanian law requires that a licensed lawyer file immigration applications, so "DIY" filing is not a real option. The key decision is not whether to use a lawyer, but which lawyer, and whether you add relocation and customs support around them.

What are the next steps if you plan to retire in Panama?

Your next steps are to confirm that your pension meets the USD 1,000 lifetime threshold, schedule a consultation with a Panamanian immigration lawyer, and plan the timing of your visa application relative to any planned move or shipment. Then you can prepare your documents, budget for legal and government costs, and design a relocation plan that uses all the legal discounts and customs benefits available to you.

Action plan

1. Check your pension status
   • Confirm your monthly amount and whether it is guaranteed for life.
   • Ask your pension provider for a formal letter in the format your lawyer suggests.
2. Select your Panamanian lawyer
   • Shortlist firms with strong Pensionado experience and clear English communication.
   • Request a written scope of work, timeline, and fee breakdown.
3. Gather and legalize documents
   • Obtain police records, pension letters, marriage/birth certificates.
   • Arrange apostilles or consular legalizations before they get older than 6 months.
4. Decide on shipping and imports
   • List what you truly want to bring and estimate its value.
   • Discuss duty-free options with your lawyer and a customs broker and align timing with your visa approval.
5. Plan your first Panama trip for filing
   • Schedule enough days in Panama City to see your lawyer, do the medical exam, and sign all documents.
   • Scout potential neighborhoods and healthcare providers while you are there.
6. Prepare for life with Law 6 benefits
   • Make a list of regular expenses where you can apply discounts (utilities, medicines, restaurants, entertainment).
   • Keep your Pensionado card and ID with you and always ask for your retiree discount before paying.

With the right preparation, Panama's Pensionado visa can give you permanent residence, strong legal discounts under Law 6, and a stable, affordable base for your retirement years.