Highlights of the Panama Pension Program
- Minimum income: $1,000 per month in lifetime pension, or $750 if you buy a property worth $100,000 or more
- Per dependent: an additional $250 per month
- Residency type: permanent from approval, with no temporary stage
- Processing time: roughly 4 to 6 months
- Presence to keep it: do not stay outside Panama for more than 2 consecutive years
- Path to citizenship: eligible after 5 years of residencyCurrency: US dollar, with no exchange rate risk
- Dependents: spouse and children under 25 who are studying
- Legal basis: Decree Law 3 of 2008 (the visa) and Law 6 of 1987 (the discounts)
What the Pensionado Visa Is
The Pensionado Visa is Panama’s permanent residency program for foreign retirees who receive a guaranteed lifetime pension. It is administered by the National Immigration Service (Servicio Nacional de Migración, SNM), and the discounts are granted by Law 6 of 1987, enforced by Panama’s consumer protection authority, ACODECO.
Its main advantage over other programs: Panama sets no minimum age for this program. Residency is permanent from the day of approval. There is no temporary status, no annual renewals, and no conversion process. Panama created the program in the 1980s to attract quality retirees, and today it is one of the most accessible and generous in the hemisphere.
Why Panama for US and Canadian Retirees
- A dollar economy. Your Social Security or pension is deposited and spent in the same currency, with no conversion and no devaluation risk.
- A lower cost of living. A couple lives comfortably on $2,000 to $3,000 per month depending on the city.
- A tropical climate year round and two coastlines.
- Quality healthcare at a fraction of the US cost.Established expat communities in Boquete, Coronado, Panama City, and El Valle.
- Minimal presence. You can travel freely without losing your residency.
The Step by Step Process to Get Permanent Residency
- Contact an immigration lawyer in Panama to review your situation and confirm which documents you will actually need.
- Gather and apostille your documents in your country.
- Ship your documents by courier to speed up the immigration process.
- Travel to Panama and file your application with the National Immigration Service alongside your lawyer.
- Have your photo taken that same day and receive your provisional residency card and a multiple-entry visa.
- The National Immigration Service reviews your file, which takes around 4 to 6 months.
- Once approved, your lawyer will notify you in advance so you can collect your permanent residency together.
- Schedule your cédula E appointment at the Electoral Tribunal with your legal team.
Be wary of promises of “residency in 3 days”. The real process takes several months and includes at least one trip.
What is fast, around one week, is your temporary residency together with your multiple-entry visa, which lets you enter and leave the country as a resident while the National Immigration Service processes your application.
Qualifying Pension Sources by Country
- United States: Social Security, military or VA pension, state or federal pensions, and lifetime private plans
- Canada: CPP and OAS, and government pensions
- United Kingdom: State Pension
- Australia: Age Pension
- Any country: a lifetime pension from a qualifying source
Income from investments, rentals, or self-employment does not qualify. For those cases, the route is the Friendly Nations Visa.
Panama pensionado requirements
The Retiree Visa Program in Panama is designed for retirees who wish to settle in the country. To qualify, retirees must meet the following general requirements:
- Submit a letter certifying the amount and duration of your retirement (minimum $1000 per month).
- Submit a medical certificate demonstrating good health. Submit a criminal record certificate.
- Canadians: Authenticated police and RCMP certificates at the Panamanian embassy.
- Americans:FBI background checks apostilled and authenticated in theEmbassy of Panama.
- Demonstrate additional financial resources, such as investments or other sources of income. Use property ownership in Panama as proof of financial means, if applicable.
- Please submit a copy of your valid passport and the required personal documents (birth/marriage certificates).
Family inclusion under the Pensionado visa
The Pensioner Visa allows primary applicants to include their families. Spouses and children under 18 can be added to the application, ensuring a smooth relocation for loved ones. Dependents over 18 may qualify if they are enrolled in full-time education.
Want your family to be with you? The Pensioner Visa supports dependents, allowing your spouse and minor children to move in with you. Submit proof of relationship and additional documents for a hassle-free application process that includes the whole family.
If you retire in Panama With your Partner, you can’t miss this
If you plan to retire with your partner and/or children, you should not lose sight of these documents to present them in your application.In the cases of dependent children, their permission will be temporary until they turn twenty-five (25) years old as long as they prove that they complete their studies, however, they will not have the right to permanence or pensioner status.
To emigrate with your partner, you must present your marriage certificate duly authenticated or apostilled by the Panamanian embassy in the country where you are and pay the fee requested by the authorities.
Retirees who meet these general requirements may be eligible to apply for the Retired Pensionado Visa Program in Panama.
How Much Does It Cost to Get a Pensionado Visa in Panama?
| Main | With your Couple | Dependent under12 |
| 1350$ | 1750$ | 600$ |
Pensionado Visa Panama Benefits and Discounts
These are not promotions. They are rights guaranteed by law that every business in the country must honor under Law 6 of 1987, enforced by ACODECO, including its latest amendments.
- Hotels: 50% Monday through Thursday and 30% on weekends
- Entertainment, cinema, theater, sports, and concerts: 50%
- Restaurants: 25%, and 15% at fast food
- Domestic and international flights: 25%
- Public transport, buses, trains, and boats: 30%
- Electricity: 25% up to 600 kWh
- Residential landline phone: 25%
- Water: 25% if consumption is under $30 per month
- Private medical consultations: 20%
- Hospital services without insurance: 15%
- Medications: 10%
- Interest rate on personal use mortgages: 1% discount
- Airport tax: 50%
Additional exemptions:
- Import of household goods free of duty, up to $10,000, one time only
- Import of a vehicle free of duty every 2 years
- Property tax frozen if it is your only property and in your name
To claim the discounts, present your cédula E. If you are under 55 for women or 60 for men, present your permanent residency immigration card. These discounts do not apply with the 6 month provisional residency.
Family and Dependents
You can include your spouse and your unmarried children under 25 who study full time. Each dependent adds $250 per month to the required income and needs their birth or marriage certificate apostilled. Dependent children do not obtain permanent residency of their own through this route, and their status ends at 25.
Your children as dependents must include a letter in the application confirming their single civil status, as this is one of the requirements to apply under this category.
How to Keep Your Residency and obtain Citizenship
Residency is permanent and does not renew each year. The only rule that can make you lose it is staying outside Panama for more than 2 consecutive years. A periodic visit resets that count. For most retirees who use Panama as a base, this is never a problem.
After 5 years of permanent residency, you can apply for naturalization. The process requires demonstrating good conduct, ties to the country, basic Spanish, and knowledge of Panamanian history and culture. Panama recognizes dual citizenship, so you do not have to give up your current passport. Approval is discretionary, not automatic.
Pensionado vs Friendly Nations: Which Suits You
- Pensionado: requires a qualifying lifetime pension. It grants immediate permanent residency and the Law 6 discounts, but does not allow you to work as a local salaried employee.
- Friendly Nations: for those who want to work or do business, or who do not have a pension. It requires an economic tie to Panama.
Many use Friendly Nations during their working years and switch to Pensionado at retirement to access the discounts.
Pros and Cons
You can:
- Obtain permanent residency and live legally in Panama
- Access the Law 6 discounts and the cédula E
- Open a bank account and get a Panamanian driver’s license
- Import a vehicle every 2 years and your household goods free of duty
- Do volunteer work and remote work for a foreign employer
- Own a Panamanian company and receive dividends
- Buy property with the same rights as a local
You cannot:
- Work as a salaried employee for a Panamanian company or invoice local clients
- Vote in Panamanian elections
- Obtain citizenship automatically
- Stay outside Panama for more than 2 consecutive years without losing the visa
Permanent Resident Card
NOTE: Above, you’ve placed a model of a permanent card that says “Provisional.” The card for permanent retirees has an inscription below it, in red letters, that says “INDEFINITE.”
Permanent residency means no complicated paperwork to stay in Panama. Live here full-time, enjoy all the perks, and say goodbye to the need for work permits or constant renewals. It’s your chance to relax and fully enjoy your retirement.
Property Ownership in Panama for Pensionado Visa Holders
If you have a Pensionado Visa in Panama, owning property here is a fantastic option. Panama allows foreigners, including Pensionado Visa holders, to buy and own property with the same rights as locals. There are no restrictions, so you can invest in land, a home, or even rental properties.
Many retirees choose to buy homes in Panama because it’s affordable and the country has a lot to offer. Whether you’re into the calm beaches of Coronado, the cool mountains of Boquete, or the vibrant city life in Panama City, there’s a place for everyone. Plus, property taxes are pretty low, and some homes under $120,000 might even be tax-exempt.
Owning property is also a great way to settle into your new life in Panama. Some retirees even rent out their homes to make extra income, especially in popular areas where tourists love to stay. With your Pensionado Visa benefits and the low cost of living, owning property in Panama can be a smart and exciting choice!
Take the First Step
Check in seconds whether you qualify with our eligibility checker, estimate the cost of your case, and book a consultation with our immigration team.
One small fix: in your “You cannot” list, the first bullet had a leftover line from the FAQ (“No as a local employee. Yes you can work remotely…”), which contradicted a Cannot list. I translated it as the correct prohibition: cannot work as a salaried employee or invoice local clients. Adjust if you meant something else.
Get a Free Case evaluation