Retire in Panama: What You Need to Know in 2026

First implemented in 1987, the Panama Pensionado Program is designed to attract retirees from abroad. Approved applicants can permanently reside and retire in Panama while enjoying a number of special benefits. After 5 years of permanent residency, they may apply for Panamanian citizenship.

Panama Retirement Visa requirements?

To be able to move to Panama under the retirement visa Program, the main applicant must:

1. Be at least 18 years old
2. Have no criminal record, as verified by a Criminal Record Check
3. Demonstrate good health and be free from contagious diseases, as confirmed by a Panamanian Health Certificate
4. Demonstrate a lifetime income or pension of at least USD $1,000 per month from a government program, international organization, or private company. Accepted income includes Social Security or other government retirement funds (e.g., military, state, or police pensions), as well as retirement benefits from a private corporation.

Purchasing property in panama

Exception: If you purchase personal property in Panama worth at least US$100,000, the lifetime income requirement reduces to USD $750 per month. The property in Panama must be residential; commercial or agricultural properties do not qualify.

Can my family join me under the retirement visa in Panama?

Yes, dependents such as spouses and minor children (children under 18) can be included in the application. Please note that the income requirement increases by USD $250 per month for each dependent.

For example, if you have a spouse and two minor children, you need a lifetime income or pension of USD $1,750 per month. A notable benefit of the program is that you can combine the pensions of both spouses to meet the minimum income requirement.

What are the benefits when you retire in Panama?

Besides the stunning nature and tropical climate, those who opt for the retirement visa in panama can enjoy many benefits through the program, including the following:

Tax Advantages in Panama

1. A one-time import tax exemption for household goods (up to USD $10,000)
2. An import tax exemption on a new car every two years (Note: While import tax is exempt, other taxes may still apply).

What kind of discount you can get with the retirement visa in Panama?

1. 25% discount on utility bills.
2. 25% discount on airline tickets and 30% discount on other transportation.
3. 15% discount on loans taken in your name.
4. 1% reduction on home mortgages for residences used personally.
5. 20% discount on doctor’s bills and 15% discount on hospital services if no insurance applies.
6. 15% discount on dental and eye exams.
7. 10% discount on medicines.
8. 20% discount on professional and technical services.
9. 50% discount on entrance to movie theaters, cultural, and sporting events.
10. 50% discount at hotels from Monday to Thursday, and 30% discount on weekends.

Panama Residency Benefits

1. Low physical presence requirement: The general guideline is that you should visit Panama at least once every two years to maintain your residency status.
2. Right to a Panamanian Personal Identity Card.
3. Ability to apply for Panamanian citizenship after 5 years of permanent residency.

What is the cost of living and rent in Panama?

When considering housing costs, utilities, travel, and everyday expenses, Panama offers a high standard of living at a lower cost.

According to Numbeo, a site that analyzes global pricing data, the average cost of living (including rent) in Panama is 69.4% lower than in the United States; 41.2% less compared to the United Kingdom; and 34.9% lower than in Australia. Rent prices in Panama are also notably more affordable, being 112.6% less than in the United States, 52.2% less than in the United Kingdom, and 37.6% lower than in Australia.

Panama retirement visa process

Please note that the application process must be handled and submitted by a Panamanian lawyer. HLG will be happy to provide this legal assistance.

The process generally involves the following steps:

1. Check Eligibility: Ensure you meet the program requirements.
2. Gather and Legalize Necessary Documents: Collect and authenticate necessary documents.
3. Travel to Panama: You must physically travel to Panama to obtain the registration form and register your passport at the Immigration Office in Panama. You will also need to complete a medical examination and HIV test with a Panamanian doctor.
4. Submit Application: Pay the relevant fees and submit your application through a Panamanian lawyer.
5. Await Visa Issuance: Upon submission, you will receive a “Provisional Processing Card” and multiple entry visa while awaiting the decision.
6. Receive Permanent Resident Card: Visit the Immigration Office to get your permanent resident card once approved.