What is the Panama pensionado visa in 2026
A lifetime pension of USD 1,000 a month buys permanent residence in Panama on the day the permit is approved. You make no investment, never renew the card and, under Law 9 of 1987, pay no immigration deposit. Costa Rica asks for the same USD 1,000 and gives only a temporary permit; Spain's non-lucrative visa wants €2,400 a month.
The government's procedures portal calls it Permiso de Residente Permanente como Jubilado y Pensionado (permanent residence permit as a retiree and pensioner). The SNM (Servicio Nacional de Migración, Panama's national immigration service) grants it under Article 200 of Executive Decree 320 of 2008. The SNM's requirements sheet says the permit is indefinite and "no requerirá de prórroga", meaning it never needs renewing.
Three laws add value:
- Law 9 of 1987 waives "any deposit, charge or immigration fee" tied to the permit and grants customs relief.
- Law 6 of 1987 gives pensioners who are foreign residents a statutory discount schedule, from 20% off medicines to 50% off cinema tickets.
- Article 694 of the Fiscal Code makes income tax territorial, so a pension paid from abroad is not taxed in Panama.
The catch: Article 6 of Law 9 bars pensioners from working, except in narrow cases such as board seats.
How much pension do you need for the Panama retirement visa in 2026
The floor is B/.1,000 a month. B/. is the balboa, Panama's currency, pegged one-to-one to the US dollar, which also circulates as legal tender. The pension must be vitalicia (paid for life) by a foreign government, an international organisation or a private company. The SNM sheet sets three variations:
- Each dependant adds USD 250 a month. A second pension or a reference letter from a Panamanian bank can cover it.
- USD 750 is enough if you have bought Panamanian property for more than USD 100,000. The purchase must be a título personal, in your own name, which rules out a flat held through a company.
- Spouses may pool two pensions to reach USD 1,000.
Dividends, rent and portfolio drawdowns do not count. A private-company pension needs a letter from the foreign firm administering the fund, proof the paying company exists, and a payment slip or bank statement.
Panama pensionado visa requirements: the document list
The SNM checklist, coded PRP-JP (permanent residence, retiree-pensioner), asks for:
- A notarised power of attorney naming your parents and their nationality, plus the application.
- Three photographs and a certified copy of your passport.
- A criminal record certificate.
- A health certificate; law firm Esquivel & Asociados says medical exams at authorised clinics in Panama are part of the process.
- A sworn statement of personal background (Declaración Jurada de Antecedentes Personales).
- The pension certificate, plus a Public Registry certificate if you use the USD 750 property route.
Panamá Digital, the government's procedures portal, says foreign documents need an apostille (a Hague Convention authentication certificate) or consular legalisation, and anything not in Spanish needs an authorised public translator.
How to apply for the Panama pensionado visa step by step
- At home: gather, apostille and translate the documents.
- In Panama: a Panamanian lawyer files the application. Panamá Digital lists "solicitud mediante apoderado legal" (filing through a legal representative) as a basic requirement, and Panama City law firm NDM says you must be in Panama to sign.
- Provisional card: according to NDM, the SNM issues one on filing day, valid for six months and enough to open a bank account.
- Approval: the SNM publishes no official timeline. NDM and Esquivel & Asociados both quote two to four months.
- Permanent card and cédula: after the approving resolution you receive the permanent resident card. You can then ask the Tribunal Electoral, which runs Panama's civil registry, for a cédula E, the national ID card for foreign residents (E for extranjero, foreigner).
How much does the Panama pensionado visa cost
Other SNM residence checklists demand two certified cheques: B/.250 to the National Treasury and B/.800 to the SNM, which NDM calls a repatriation deposit. That is USD 1,050 per person. Article 2(3) of Law 9 waives both for the pensioner. For dependants the law is silent, and the SNM's general dependant checklist lists both cheques.
The main cost is legal fees. International Relocation Firm, a Panama City practice, lists a flat fee of USD 1,284 for the main applicant and USD 1,070 per dependant, including 7% ITBMS (Impuesto de Transferencia de Bienes Muebles y Servicios, Panama's sales tax). It budgets government and processing costs from USD 500 per person on top.
According to the National Customs Authority, a pensioner can import household and personal goods worth up to B/.25,000 once without duty, and a car every two years paying only 5% selective consumption tax and 7% ITBMS.
Worked example. A retired couple has one lifetime pension of USD 1,400 a month. They need USD 1,000 for the pensioner plus USD 250 for the spouse, so they qualify with USD 150 to spare. Legal fees at the rates above come to USD 2,354, or about USD 3,350 with the firm's minimum government budget. Had the pensioner first bought a USD 150,000 apartment in their own name, the requirement would drop to USD 1,000 in total.
What discounts do retirees get in Panama under Law 6
The consolidated text of Law 6 covers Panamanians and foreign residents who are pensioners of any age, as well as women from 55 and men from 60. The main discounts:
- Leisure: 50% on cinema, theatre, sport and shows. Hotels are 50% off Monday to Thursday and 30% Friday to Sunday; all-inclusive hotels, 20% and 12%, according to ACODECO (Autoridad de Protección al Consumidor y Defensa de la Competencia, the consumer protection authority).
- Travel: 25% on air tickets and 30% on intercity buses, trains and boats.
- Food: 25% on your own restaurant bill and 15% at fast-food franchises.
- Health: 15% on private hospital and clinic bills, 20% on medicines and doctors' fees, and 15% on dental care and optometry.
- Home: 25% off electricity up to 600 kWh (kilowatt-hours) a month, off water bills of up to B/.30 and off the fixed landline charge. Property tax is frozen on your only home.
- Money: one percentage point off the mortgage rate on your own home and 50% off loan closing costs.
A pensioner spending USD 400 a month on restaurant meals saves USD 1,200 a year. A USD 3,000 private-clinic bill costs USD 2,550.
You have to claim the discounts. ACODECO can fine a business B/.50 to B/.5,000 for refusing one. Panamanian daily La Prensa reported 253 alleged breaches logged in the first half of 2026, 52 of them restaurants skipping the 25%. Discounts do not stack: according to ACODECO, you take the best single one.
President José Raúl Mulino vetoed Bill 226 of 2025, which would have raised medicines to 30% among other rates, in full on 20 September 2026, according to La Prensa. The schedule above stays in force.
Do retirees pay tax in Panama
Tax on a foreign pension is zero, because Panama taxes only income produced inside its territory. Local income is taxed at 0% up to B/.11,000, 15% on the slice up to B/.50,000 and 25% above, according to the DGI (Dirección General de Ingresos, the tax authority). See our Panama tax profile and territorial tax explainer.
Retraite au Panama: visa and tax for French retirees
French retirees get the same visa; tax is where they get caught out, because territorial does not mean tax-free. The France–Panama tax treaty, in force since 1 February 2012, splits pensions in two:
- Private-sector pensions (Article 17) are taxable where you live, but the paying state may also tax them if the state of residence does not. Panama does not, so France keeps its right, and the pension fund withholds the tax at source, according to impots.gouv.fr, the French tax administration.
- Public-sector pensions (Article 18) are taxable only in France, unless the retiree is a Panamanian resident and national without French nationality.
Social charges are the win. CLEISS (Centre des liaisons européennes et internationales de sécurité sociale, France's public body for international social security) says a non-resident pensioner stops paying CSG, CRDS and CASA (contribution sociale généralisée, contribution au remboursement de la dette sociale and contribution additionnelle de solidarité pour l'autonomie), the French social levies that take up to 9.1% of a resident's pension. Instead, a health contribution of 3.2% is taken from the basic pension and 4.2% from supplementary pensions. With no France–Panama social security agreement, care in Panama means private insurance or the voluntary CFE (Caisse des Français de l'Étranger, the health fund for French citizens abroad). With at least 15 years of French contributions, CLEISS says care during temporary stays in France is covered. Our analysis of the French case goes further.
Do retirees need health insurance in Panama
The visa requires a health certificate, not insurance. Law 6 obliges health insurers to pass the statutory discounts into pensioners' premiums. Buy cover before you move, and live near the hospital you would want to be taken to. Our Panama guide scores healthcare 7 out of 10.
Panama pensionado vs Costa Rica, Portugal D7, Spain and Mexico
Details: Costa Rica, Portugal D7, Spain, Mexico.
Can a pensionado become a Panamanian citizen
In law, yes. Article 10 of the Constitution allows naturalisation after five consecutive years of residence, or three with a Panamanian spouse or child, for applicants who renounce their nationality and prove Spanish and basic knowledge of Panamanian geography, history and politics. The SNM's naturalisation checklist adds a petition to the President of the Republic, an "express and irrevocable" renunciation, a DGI tax clearance and two proofs of solvency, one of which can be a pension certificate. The grant is discretionary, so treat the Pensionado as permanent residence, not a passport route.
Who the Panama pensionado visa is not for
- Retirees living on portfolios. The Qualified Investor route fits better; under Executive Decree 17 of 2026, in force since 16 September 2026, it takes USD 300,000 in a new first-sale home or USD 500,000 in a resale property. Friendly Nations is another option.
- Anyone who wants a job. Law 9 forbids it.
- Families with children. Children get only a temporary permit, to age 25 and while in full-time study.
- People with Panama-linked companies or investment accounts. Panama is on the EU's list of non-cooperative tax jurisdictions (Annex I, confirmed 17 February 2026) and France's ETNC list (États et territoires non coopératifs, non-cooperative states) under the order of 15 April 2026. Pensions are untouched, but structures and investment income tied to Panama face defensive tax rules.
- Anyone who reads USD 1,000 as a budget. It is an immigration floor; imported goods in Panama City are not cheap.
Frequently asked questions
What is the minimum pension for the Panama pensionado visa in 2026?
USD 1,000 a month, paid for life, plus USD 250 per dependant. If you have bought Panamanian property for more than USD 100,000 in your own name, the floor drops to USD 750.
Is the Panama retirement visa permanent?
Yes. The SNM says it is indefinite and needs no renewal. Law firm NDM says an absence of more than two consecutive years triggers a "rehabilitation" procedure and more than six cancels the permit, so visit at least once every two years.
Can I qualify with investment income instead of a pension?
No. Dividends, rent, trust distributions and portfolio withdrawals do not count, however large. Investors use the Qualified Investor or Friendly Nations routes.
How long does the Panama pensionado visa take?
There is no official timeline. Law firms NDM and Esquivel & Asociados quote two to four months.
Do I need a lawyer to apply for the pensionado visa?
Yes. Panamá Digital lists filing through a legal representative as a basic requirement, so you cannot file on your own.
Does Panama tax a foreign pension?
No. Panama taxes only income produced in Panama. Your home country may still tax the pension under its treaty; France does for most French pensions.
Can my children get residence through the pensionado visa?
Only temporarily. Dependent children get a temporary permit up to age 25 while studying, with no permanent or pensioner status unless they have a proven profound disability.