Benefits of the Pensionado Retirement Visa:
There have been some recent changes to the Pensionado Program. We are in the process of reviewing those changes and amending the information provided on this page. I can tell you that I expect even more changes to come with the election of a new President. Though many of the benefits provided under Law #6 are still intact and available, there have been significant modifications to the income qualifications and the types of Visas that are available. I hope to have a complete report posted on this page in the very near future. If you have any questions please email me and we will make every attempt to answer your questions.
Thanks for visiting PanamaRick.Com
Discounts provided under Law No. 6 from June 16, 1987.
Law No. 6 provides for discounts on prescription drugs and health care services, for example; 20% on general, specialist and surgical doctor fees, 15% in hospital and private clinic bills, 15% dental services, 15% optometry services and 10% in prescription drugs. There are also additional discounts available to retirees with the Pensionado status, such as discounts on airfare 25%, restaurants 25%, fast food chains 15%, movies and theatres 50%, public transport (air, ground, sea) 30%, lodging 30% to 50%, technical and professional services 20%, closing costs for personal loans 50%, interest rate for personal loans 15%, mortgage interest rate 1%, utility bills 25% (some restrictions may apply).
No income tax is charged on incomes earned outside Panama. In addition there is an Import tax exemption on household goods and/or cars, although other taxes may apply. For landowners and homeowners there is no property taxes for 5 to 25 years depending on the type of exemption and the use of the property.
Retiring in panama is relatively easy. A retired tourist visa (Pensionado Status) is granted to foreigners that have retired or have been pensioned by other foreign governments, international organizations or private corporations, who wish to establish a permanent residence in the Republic of Panama. A retirees family members and dependents may also be granted authorization for permanent residency under the retirees Pensionado visa.
The applicant for the Pensionado visa must prove that he/she earns a retirement income of not less than five hundred dollars (US$ 500.00) monthly or its equivalent in foreign currency, plus one hundred dollars (US$ 100.00) monthly, for each dependant.
Once the Pensionado visa is granted, the beneficiary must, on an annual basis, inform the Immigration Department that his/her income has been maintained or has increased beyond the amount originally declared. If a reduction of the income is evident, it is possible that a cancellation of the respective visa may result.
In addition of permitting the beneficiaries to reside indefinitely in the Republic of Panama, this visa offers significant benefits, such as:
Total exemption of import duties of personal or domestic articles only once, for the amount of ten thousand dollars (US$ 10,000.00). Exemption of import duties of one (1) car every two (2) years, if destined for personal or family use.
Total exemption of any tax, deposit or immigration duties in connection with obtaining the retiree visa.
A retired pensionado wishing to work in the Republic of Panama may only do so, in the following cases:
When rendering specialized services not offered by Panamanians to the national government or its autonomous institutions.
When considerable investments have been made in Panamanians corporations, previous authorization by the Ministry of Labor, in accordance with the Labor Code regulations.
When becoming members of the Board of Directors of the corporations in which their investments have been made.
The following are the necessary requirements to obtain the Pensionado visa:
- Power of Attorney in favor of the attorney presenting the petition.
- Proper documentation evidencing your condition as a retired person stating the monthly income derived, which must not be less than five hundred dollars (US$ 500.00) or its equivalent in foreign currency, plus the amount of one hundred dollars (US$ 100.00) for each dependant.
- In case of foreigners retired from private corporations, a document certifying that the corporation operates outside the Republic of Panama, duly countersigned by the proper authorities. Payment receipts of the pension must also be provided.
- Good health certificate of the applicant and each dependant, including a laboratory test for H.I.V., which must indicate the method used for the test, issued by a Panamanian physician and laboratory.
- Police record of the applicant and if applicable each dependant over eighteen (18) years old, issued by the authorities of the place of residence for the last two (2) years.
- Police record of the applicant and if applicable each dependant over eighteen (18) years old, issued by the Police Department of the Republic of Panama.
- If applicable the Marriage certificate of the applicant and birth certificate of each dependant, or an acceptable equivalent document.
- If applicable a letter whereby the applicant assumes responsibility of his dependents.
- Original and two (2) copies of the applicant's passport, duly authenticated by a notary public.
- Affidavit of personal data.
- Four (4) photographs, passport size (Gentlemen are required to wear tie).
- An additional copy of all documentation, including the passport.
Fees and expenses in connection with obtaining this type of visa can vary between US$ 1,200 to $2,000. The reason this visa is a more expensive than some of the others is because it is granted indefinitely. After this visa is granted, it is recommend that the applicant obtains a multiple exit and entry permit that will allow you to travel in and out of the country freely, without requesting any authorization to the Panamanian Government. This special permit is granted for a period of one (1) year, renewable for equal periods of time, indefinitely. Expenses and fees in connection with this permit are US$ 200.00. This permit has to be renewed every year.
It is important to understand that all foreign documents must be authenticated by the Panamanian Consulate or with the Apostille Seal. You can find the contact information for the Panamanian Consulate on our home page under the US Department of State link. For professional legal advise about the Pensionado Visa or other legal matters pertaining to laws governing foreigners living and working in Panama, I suggest that you contact Attorney Enrique Cajigas. You can find the link to his web site from my home page under the button titled "Our Friends Web Sites".
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