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Pensioner Visa (Pensionado)

If you wish to retire in Panama, you may apply for a Pensionado visa. This visa grants permanent residency in Panama to foreigners, who are willing to immigrate to Panama and have a lifetime income of at least US$1,000 per month. Although it often referred to as a retirement program, this visa is available to anyone over the age of 18.

To qualify for this visa, you must have:
- A monthly income of at least US$1,000 for the rest of your life. This payment must come from a guaranteed source, such as a pension or annuity by a foreign government, company or insurance. For each dependent, it is required an additional monthly amount of US$250.
- A monthly income of US$750 and a minimum investment of US$100,000 in Panamanian real estate.

This visa allows your stay in Panama indefinitely, provided that you visit the country at least one day, once a year. To avoid the revocation of your permanent residence, you should not leave the country for periods of time greater than 24 months.

This visa does not lead you to citizenship. Pensionado visa holders are not eligible for naturalization.

With a Pensionado visa you may benefit from:
- 50% Discount for expenses or closing fees on financial transactions for commercial or personal loans.
- Exemption from payment of SFIC transactions in personal and commercial loans
- 15% Discount on personal and commercial loans on their names, of a maximum interest rate
- permitted by law
- 1% Discount on the interest rate of mortgages for housing for their personal use
- 50% Discount on the price of passports
- 25% Discount on domestic and international airplane tickets
- 50% Discount on Hotel rooms from Monday through Thursday and 30% Discount on weekends
- 20% Discount on prescript drugs
- 15% Discount on dental and optometry exams
- 30% Discount on the rate of intercity buses, boats, ships and trains
- 25% on the cost of their food in restaurants
- 15% Discount in fast food restaurant, if those are national or international franchises
- 15% Discount of the total bill for services in Hospitals and private clinics
- 20% Discount on physicians and surgeon fees
- 20% Discount on fees for technical and professional services
- 20% Discount on all prosthesis, and all devised and help accessories as well
- 25% Discount on electricity, telephone and water bills
- 50% Discount on recreation and leisure activities such as movies, concerts, theaters, sporting events and other public events every day
- 50% Discount on airport tax
- 20% Discount on the purchase of coffins and urns
- Exoneration from import tax (only once) in all goods, belongings and appliances for personal use up to the value of US$10,000.
- Exoneration of the import tax of one car every two years.


- Document that confirms your condition as retiree or pensioner by foreign governments or private companies and you receive a regular monthly income. If it is a foreign currency Banco Nacional de Panama must certify the equivalent amount in U.S. Dollars.
- If pension is from a private company, documents evidencing that the company is operating (Certificate of Existence issued by the pertinent authority), with the last five vouchers or receipts of payment of the pension and a letter from the company certifying that you are is receiving permanent pension and total amount.

Restricted Nationalities

No nationality is officially restricted

dual citizenship

Panamanian nationality law requires an oath of renunciation of former citizenships as a condition of naturalization, de facto, Panama permits dual citizenship, as the renunciation may have not effect if is not done through the relevant authorities of the current nationality country.

Documents Required

  • Original and photocopy of passport
  • Eight passport-size photos
  • Documents certifying pensioner status
  • Proof of pension
  • Original Police Clearance Certificate
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Medical Certificate
  • Affidavit of support for Dependents
  • Affidavit regarding criminal records
  • dual citizenship No
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required Yes
  • Language skills required No
  • Interview required No
  • Investment Single -
  • Investment Family 4 -
  • Minimum annual income $12,000
  • Time to citizenship
  • Time to permanent residency
  • Visa-free countries 127
  • Financing available No


government fees main applicant $800
processing fees main applicant $250
total fees main applicant $1,050

Country details

Panama City
North America
The Republic of Panama is a country located in the southeast of Central America, in the isthmus of Panama, that unites South America with Central America. It limits the North with the Caribbean Sea, the South with the Pacific Ocean, to the East with Colombia and to the West with Costa Rica. Its mountainous territory is only interrupted by the Panama Canal. It has a population of over 4 million inhabitants, which half live in the metropolitan area of its capital, Panama City. Its official language is Spanish. Its legal tender currencies are the US Dollar (USD) and the Balboa (PAB), which is pegged to the Dollar at a 1:1 ratio.

Visa Free Travel

With your new passport from Panama you'll be able to access 127 countries visa free


Panama tax system is based on the principle of territoriality. Residents and non-residents are subject to personal income tax on their income derived from Panama. Income derived from a foreign-source may not be subject to taxation, whether it is remitted or not. Usually, an individual is tax resident in Panama if he or she spends more than 183 days in a year within the territory.

Panama taxes its residents’ income earned within the territory at a 15% on annual income between US$11,000 and US$50,000 and 25% on the excess. Interest on Panamanian government securities, interest on savings accounts and time deposits maintained with Panamanian banks are tax-exempt. Non-residents are subject to a withholding tax on source of 12.5% on their Panamanian income.

Capital Gains are taxed separately. Gains derived from the transfer of immovable properties and the sale of securities and negotiable instruments are subject to a 10% tax. If the transfer of immovable properties constitutes the main economic activity of the taxpayer, capital gains may be subject to corporate income tax.

There is a property tax between 0% and 2.10%, depending on the value of the property. The ITBMS is the Panamanian Value-added tax, and it is currently 7%.

There are no transfer, net wealth and inheritance taxes in Panama.

Regarding corporate taxation, companies in Panama are also taxed on a territorial basis. This means that income earned outside the country, remitted or not, may not be subject to taxation.

Income earned within Panama is subject to a flat tax rate of 25% on the net profits or 1.75% on gross taxable amount. Dividends are not subject to taxation. Capital Gains are taxed at 10%. Payments to non-residents on dividends, interests and royalties are subject to a withholding tax of 10%,12.5% and 12.5% respectively. Companies whose business activities are exclusively outside Panama may be exempted from withholding taxes.

Other commonly-used legal entity in Panama is the Private Interest Foundation, which is fully tax-exempt and is used as a holding entity, for asset protection (tangible or intangible), for confidentiality and privacy, estate planning, tax planning or philanthropic reasons. Learn more about Panama’s corporate taxation, legal entities, legal framework and tax treaties at

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax No
  • Inheritance tax No
  • Net worth tax No
  • CFC law No
  • Tax residency days 183
  • Personal income tax rate 25%
  • Capital Gains tax rate 10%
  • Investment income tax rate 25%
  • Territorial taxation Yes


Flag Theory | Passports.IO and our qualified attorney in Panama, will guide you through each step of the process to ensure that it is as fast, efficient, pain free as possible.

We will send you the application forms and provide assistance to complete the questionnaires, translate and authenticate documents.
You will have to visit Panama, do the medical examination, and register with the National Immigration Service, take photos, submit all required documents and undergo the fingerprints procedures. Your dedicated account manager and your Panama lawyer will guide you through this process.

After approximately 3 months, you will be notified if the application has been approved. You must visit the country when the process ends to receive personally all documents.

For further information on Panama’s Pensionado visa and detailed procedures, contact us for a free private consultation.

Any time there is a change or new citizenship or residency by investment program, we'll send you an update via email. Your email will not be shared.