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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 is 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, an additional monthly amount of US$250 is required, or
- A monthly income of US$750 and a minimum investment of US$100,000 in Panamanian real estate.

This visa allows you to remain in Panama indefinitely, provided that you visit the country for 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 prescription 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 food in restaurants
- 15% Discount in fast food restaurants, 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 assistive 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 a retiree or pensioner by foreign governments or private companies, and that 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 the 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 a permanent pension and its 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. However, de facto, Panama permits dual citizenship, as the renunciation may not have an effect if is not also executed through the relevant authorities of the applicant's current country of nationality.

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 60
  • Time to permanent residency
  • Visa-free countries 144
  • Financing available No

Country details

Panama City
North America
Spanish (Panama), English
The Republic of Panama is a country located in the southeast of Central America, on the isthmus of Panama that unites South America with Central America. It borders the north with the Caribbean Sea, the south with the Pacific Ocean, the east with Colombia and to the west lies Costa Rica. Its mountainous territory is only interrupted by the Panama Canal that connects the Pacific Ocean with the Caribbean.

It has a population of over 4 million inhabitants, with half living 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 144 countries visa free


Panama's 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 the 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 currently stands at 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.

Another 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 incorporatios.io/panama.

This should not be construed as tax advice. We have 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

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Residency by Employment (Work Permits)
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Flag Theory is an internationalization and offshore solutions provider, and the creator of residencies.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

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