Panama for retirees
Many overseas retirees choose Panama because of its warm tropical climate, beautiful nature with beautiful exotic beaches, and the reliable security of residence.
The main reasons for choosing Panama as a place of residence for retirement are the low cost of living with its high quality, as well as inexpensive and high-quality medical care options.
Pension advantages in Panama
In addition to all of the above, Panama offers the following benefits to retirees:
One-time exemption from paying state duties when moving to Panama for household goods for a total amount of up to 10,000 USD.
Exemption from payment of import tax every two years, in case of buying a car.
50% discount on entertainment in any province of Panama (when visiting cinemas, concerts, or sports events).
50% discount on payment for accommodation in hotels of the country on weekdays (except Friday, Saturday and Sunday, when there is a 30% discount).
30% discount on the purchase of railway, sea, and road transport tickets.
25% discount on flights, utilities, and restaurant services.
20% discount on prosthetics services, as well as medical consultations with a doctor. Discounts also apply to professional and technical services.
15% discount for serving in fast-food restaurants, when paying for medical hospital bills (in the absence of insurance), for examinations by a dentist or ophthalmologist, and bank loans (issued in their name).
10% discount is available on prescription drugs in pharmacies.
1% discount applies to mortgage payments when the property is a personal residence.
Panama Pensionado Program
This pension plan does not restrict foreign applicants either by age or nationality. To take advantage of the Pensionado program, a foreign applicant (or an applicant with a spouse) must provide evidence that he or she is eligible for fixed life support.
Such security can be a guaranteed payment from a public or private Pension Fund, the amount of which is equivalent to USD 1,000 per month. State and private companies can act as guarantors of the applicant’s life support.
If dependents are included in the Pensionado program, the rules oblige the main applicant to receive an additional fixed pension income guarantee of an additional payment of USD 250 per month for each declared dependent.
If the main applicant under the Pensionado program buys immovable property in Panama with a value of at least USD 100,000, then the minimum life security requirement is reduced to USD 750 per month.
As proof of financial solvency, the applicant must provide a letter of guarantee on the letterhead of a specific organization that will pay the pension benefits.
Medical care in Panama
High-quality medical care in this country is guaranteed to all foreigners who have chosen the country for permanent residence. At the same time, health insurance is much cheaper than in other countries and covers more services.
Anyone can get medical care in Panama, for this, it is not necessary to have international or local health insurance. Of course, Panamanian health care has its pros and cons and no one idealizes it.
The hospital may not always have hot water or a hand towel, each country has different problems and some flaws can be found everywhere. However, medical services in Panama are quite affordable and meet international standards.
Basic documentation for Pensionado program
The main applicant for the Pensionado program must provide:
- The original document confirming the payment of a lifetime pension issued by the State Organization or the Social Security Authority,
- the amount of which is at least 1,000 USD per month (if there are dependents, an additional guarantee of the payment of 250 USD is provided for each declared person).
- If a private company acts as a guarantor of lifelong pension benefits, then additional information about the private company is provided.
- Passport and second document (ID-card, driver’s license) issued by the state authorities of the applicant’s country of citizenship.
- The process of legalization of these documents is carried out in Panama.
- Five (5) passport-size photographs.