Panama Pensionado Visa

Panama's Pensionado permit (Residente Permanente en calidad de Jubilado o Pensionado) is permanent residence for foreigners who receive a lifetime pension from a foreign government, an international organization or a private company. The Servicio Nacional de Migracion (SNM) grants it under Executive Decree 320 of 2008, as amended in 2009.

The pension must be at least $1,000 a month, or $750 for applicants who own qualifying Panama property. The permit is indefinite and never needs an extension.

• Pension: at least $1,000 a month for life, from a foreign government, an international organization or a private company.
• Property owners: applicants who personally bought Panama real estate for more than $100,000 need a pension of at least $750.
• Couples: spouses may combine their pensions to reach the minimum.
• Dependents: an extra $250 a month for each dependent, shown with an additional pension or a local bank reference.

The SNM sheet sets no minimum age: the test is a lifetime pension, not age. Dependent children hold a temporary permit until 25 while studying full time and do not gain permanent residence themselves, except children with a proven severe disability.

The SNM checklist asks for:

• a notarized power of attorney and application, naming the applicant's parents and their nationalities
• three photographs
• a certified copy of the passport
• a criminal record certificate and a health certificate
• the sworn personal background form
• a certificate from the paying body confirming a lifetime pension of at least $1,000 a month
• proof of $250 a month more for each dependent
• a Public Registry certificate for the property, when using the lower pension minimum

A private-company pension also needs a letter from the foreign pension, trust, fund, insurance or banking firm that manages the money, proof that the paying company exists and a payment receipt or bank statement.

The SNM requirements sheet lists no government fee for the Pensionado permit, so the current amounts should be confirmed with the SNM or the filing lawyer. Legal fees, notarization, apostilles and translations are extra and vary by provider.

The main financial test is income, not a fee: a pension of at least $1,000 a month.

In Panama, at the Servicio Nacional de Migracion, through a notarized power of attorney (a Panamanian lawyer files it).

1. Obtain the pension certificate and the other documents, with apostilles and Spanish translations for anything issued abroad.
2. Sign a notarized power of attorney for a Panamanian lawyer.
3. The lawyer files the application with the SNM in Panama.
4. On approval, the SNM issues permanent residence.

The SNM publishes no processing time for this permit.

Length: Permanent residence of indefinite length; no renewal needed.

It is permanent residence from approval. Dependent children hold a temporary permit until age 25 while studying and do not gain permanence or pensioner status themselves, except children with a proven severe disability.

Panama's income tax is territorial. Article 694 of the Fiscal Code taxes income produced within Panama's territory, wherever it is received. The DGI (tax authority) treats a person as tax resident after more than 183 days in the country in a fiscal year or the year before.

The Pensionado permit itself sets no tax rule. Retirees should confirm with the DGI how a pension paid from abroad and any Panama income are treated under the territorial rule, and check their home country's rules on pensions paid to people living abroad.