PANAMA LAWYERS

Panama's Pensionado Program

VISAS FOR RETIRED OR PENSIONED PERSONS in Panama
Panama’s immigraiton laws have created two types of visas, easily available to pensioned or retired foreigners, to enjoy life in this country, after retirement.

Both visas grant the status of Resident and some tax exemption benefits. One is called Pensioned Tourist’s Visa, and the other is called Retired Pensioner’s Visa.

PANAMA PENSIONED TOURIST'S VISA
Grants the right to reside in Panama, indefinitely, as long as evidence is filed that applicant receives a pension, sufficient to pay for his expenses in the country, for a monthly minimum amount of USD 500.00 or its equivalent in any foreign currency, plus USD 100.00 for each dependant.

These amounts may be increased after revision, according to cost of living indexes, by resolution of the Executive Body. This increase would not affect the rights of those persons who already have been granted the visa.

PANAMA RETIRED PENSIONER'S VISA
Grants residence in Panama for a 5-year period, which may be prorogued, as long as applicant can prove that he has enough to pay for his expenses in the country, for a minimum monthly amount of USD 750.00 plus USD 100.00 for each dependant, exclusively as product of a fixed term deposit in the National Bank of Panama (Banco Nacional de Panama), in the concept of interests.

The fixed term deposit shall be kept free from encumbrances or warranties and should be maintained for the 5-year period and so on, as long as the person may want to keep the visa. (At the moment, a fixed term deposit for the amount of USD 203,000.00 is enough, but this amount varies all the time, depending on the interest rates).
The Retired Pensioner’s Visa also offers the benefit of a special passport of the Republic of Panama but without granting the Panamanian nationality.

Both visas give the following benefits:

1-	No income tax is paid in Panama for the pension received nor the interest gained from the fixed term deposit
2-	Tax free importation of new or used household goods for up to USD 10,000.00
3-	Tax free importation of a car, for personal or family use, every two years
4-	All benefits given to Panamanian retired persons by Law No. 6 of 1987 (discounts in restaurants, hotels, and some tax benefits)
5-	No obligation to pay warranty deposits, as required for other types of visas. After filing the application, the whole procedure may take two months

OTHER NECESSARY VISA IN PANAMA: THE SIMPLE OR MULTIPLE RETURN VISA

Apart from the two visas mentioned above, to travel outside Panama and return under equal conditions, all foreigners having resident status in Panama must obtain a Return Visa.
Therefore, after the main visa is granted, a Multiple Return Visa should be obtained when traveling abroad. This only takes two days and no major requirements.
The Simple one will serve for one return entrance only, while the multiple one lasts two years.
For information on the required documentation or further information on other types of visas, please contact us at.

In Panama, qualified pensionados or retirees are entitled to:
· 50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events)
· 30% off bus, boat, and train fares
· 25% off airline tickets
· 50% off hotel stays from Monday through Thursday
· 30% off hotels stays from Friday through Sunday
· 25% off at restaurants
· 15% off at fast-food restaurants
· 15% off hospital bills (if no insurance applies)
· 10% off prescription medicines
· 20% off medical consultations
· 15% off dental and eye exams
· 20% off professional and technical services
· 50% closing costs for home loans, and more…

In addition, you are entitled to a one-time exemption of duties on the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation or local purchase of a car.

Plus, Panama's pensionado law stipulates that anyone entering the country as a qualified pensioner today is guaranteed that status as long as he or she chooses to stay in the country. That means that even if the government decides to change the requisites for applying—say, by raising the age to 65 years—you maintain your pensionado status…even if you’re only 52.


The general rules:
· All visa applications must be made through a Panamanian lawyer

· Children under 18 will qualify for a visa as dependents of their parents

· All overseas documents to be presented to the authorities in Panama must be authenticated by a notary and by the Panamanian consulate nearest you, or by a notary and Apostille. The Apostille (as per The Hague Convention of 1961) is a faster way of authenticating documents and in the U.S. can be obtained through the secretary of state in your home state; in the U.K., this can be done through the Foreign Office. In Canada, please check with the Panamanian embassy/consulate nearest you

· All documents must be valid (within two months of visa application) and passports must be valid for at least another year from time of application

· Dependents: Bring a marriage certificate. However, original marriage certificates are not acceptable for the visa application if over two months old, so you'll probably need to request a copy. If you have children under 18 that you’ll be including on your application as dependents, you'll need to bring valid birth certificate copies (not originals)

· None of the visa programs mentioned here includes work permits

· All visa applications require that you obtain a health certificate in Panama

· All visas require a clean police record from your last place of residence

· All visas require 6–9 passport-size photos (gentlemen in suit and tie; ladies in blouses or dresses with sleeves).

In the past, the government of Panama has allowed any adult who could show proof of a monthly pension of any kind (from the age of 18 upward) to qualify for a pensionado (retiree) visa. As in the past, if you are receiving a pension from a government entity or a well-known international company, age is not an issue. You must simply provide proof of adequate income ($500 per month per person or $600 per month per couple). However, if you are on a private pension, the pensionado visa is available to you if you are of retirement age (50 or older). The age of your spouse (if applying as dependent) will not be considered on the age limitation.


Person of Means Visa ( Solvencia Económica Propia)

Designed for those who wish to live in Panama off their own means, without the need to work or start a business. Applicants must either: 1) open a two-year fixed-term deposit account with a local bank for at least $200,000, or 2) purchase real estate in the amount of $200,000, or 3) purchase real estate worth a minimum of $80,000 and open a two-year fixed-term deposit account for at least $120,000. The accounts and the real estate must be in your personal name, fully funded (or titled), and free of mortgages or encumbrances.

The visa is granted in two steps: First, a one-year provisional visa is granted, and then the process is repeated and the visa is approved permanently, with the right to a cedula (national identity card). Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality.


Investor Visa ( Inversionista)

Designed for those who wish to establish a business in Panama (excepting certain retail businesses and professions reserved to Panamanians). There must be a minimum investment of $150,000, and a minimum of three permanent Panamanian employees hired. The investor visa is granted provisionally for one year, after which renewal is granted permanently with the right to be issued a national identification, or cedula. Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality. Learn more about making investments in Panama.


Forestry Investor Visa ( Inversionista Forestal)

The forestry investor visa encourages the production and preservation of teak. Basically, the program consists of two options, dubbed the small forestry investor and the large forestry investor visas. The small forestry investor visa requires a minimum investment of $40,000, whereas the large forestry investor visa requires a minimum investment of $80,000. Small forestry investors can apply for permanent residency on their fifth year (prior to this, these investors may stay in Panama via one-year renewable immigrant visas). A large forestry investor, however, must apply for permanent residency immediately after his or her first immigrant visa card expires. Both small and large investors are eligible to apply for citizenship just five years after their initial application.


Important New Information About the Forestry Investor Visa

You can now use your IRA funds to invest in forestry projects in Panama and qualify for the forestry investor visas. (You can also use IRA funds to invest in other types of Panama real estate, but this will not qualify you for a resident visa, as when you buy with an IRA the property must be owned by a corporation or foundation owned by the IRA and not in your personal name.)

If you have a different type of investment in mind, note that Panama offers many different visa alternatives; those listed above represent just a few of the more popular options.


Small Business Investor Visa ( Inversionista de Pequeña Empresa)

This visa is designed for those who wish to establish a small business in Panama (note that retail businesses and some professions are reserved to Panamanians). There must be a minimum investment of $40,000 and a minimum of three permanent Panamanian employees hired. The visa is granted provisionally for one year, and needs to be renewed three more times before it is granted permanently with the right to a national identification card, or cedula. Five years after obtaining the permanent visa, holders will be eligible to obtain Panamanian nationality.

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