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Mikkel Thorup
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February 17, 2023
People are increasingly choosing to spend their retirement overseas. However, there is a lot to consider before opting to relocate abroad. It is critical to research the level of security and healthcare available in your preferred location. Taxes are also essential since certain countries may have fines for undeclared overseas holdings. Other key factors for retirees to consider are the weather, closeness of the selected region to their home nation, and cost of living.
Panama is a popular international retirement resort that routinely appears on the list of the best places to retire in the world. Panama is a famous expat location with everything. Expats from all over the world will feel right at home in this Central American nation, which has an abundance of sunlight, beautiful beaches, friendly residents, and contemporary conveniences. Its thriving, expanding economy and business-friendly atmosphere further add to its allure.
Panama is well-known as a retirement location for a variety of reasons. It is one of the safest nations in the region for foreigners, and it is free of natural catastrophes like earthquakes and hurricanes, which may strike other parts of the region. It is simple for retirees from the United States living in Panama to visit family and friends since Panama is just a three to five-hour flight away from the United States. The high-quality, low-cost healthcare accessible in Panama is especially appealing to retirees.
With all the positive things claimed about Panama, it also has one of the best retirement programs worldwide for international retirees. The Panama Pensionado program provides excellent benefits to retirees. Foreigners who want to participate in Panama's retirement program must apply for a retirement visa first.
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Panama is one of the safest nations in the region for foreigners
The Panama Retirement Visa, also known as a Panama Pensionado Visa or a Panama Pensioners' Visa, is intended for retirees or those receiving lifelong pensions.
The Panama Pensionado program allows foreigners with a guaranteed monthly income for the rest of their lives to apply for permanent residence in Panama. To apply, you must be at least 18 years old, according to the Panama Immigration Department. After that, all you have to do is satisfy the criteria and submit the necessary papers.
Retirees need to present a valid passport, specific documents, and meet financial criteria, ensuring they can comfortably settle into their new residence. The ease of the application process reflects Panama's commitment to welcoming foreigners into its vibrant community.
One of the crown jewels for retirees in Panama is the wealth of benefits the country offers. Panama City, the cosmopolitan hub, beckons with a plethora of services, catering to the diverse needs of retirees.
As previously stated, any foreign person who is at least 18 years old and meets the monthly income criteria may apply for the Retirement Residency Visa in Panama. No country limits exist on who may apply for the Panama Retirement Visa. All foreigners are invited to retire in Panama.
If you are applying for a Panama Retirement Visa, you must demonstrate that you will receive a monthly pension income of at least $1,000 USD for the remainder of your life. If your monthly pension is less than $1,000 USD but not less than $750 USD, you may qualify for the Panama Retirement Visa by purchasing real estate in Panama worth at least $100,000 USD.
If you apply with your spouse, you may combine your pension totals to guarantee you have $1,000 USD. When you have a dependant, your monthly income needs to rise to $250 USD.
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If you match the qualifying requirements, you may apply for a Panama retirement visa at the Panama City Immigration Office. The following is a step-by-step breakdown of the application process:
You must pick up your visa in person after it has been granted.
While Panama offers a pathway to citizenship through specific investment options, retirees often opt for the Pensionado Visa program. This visa caters specifically to retirees, offering numerous benefits, including discounts on entertainment, transportation, and medical services. If you are seeking a Panama retirement visa from outside the country, you must go via an immigration lawyer in Panama; you cannot apply at the Panamanian consulates.
If you cannot apply directly, the Panamanian immigration office requires that it be filed and validated by an immigration lawyer. This implies you must provide all documentation to your lawyer so that they may apply on your behalf. However, if your application is granted, you usually need to pick up your visa in person.
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The Immigration Office will provide you with a registration form for the retirement visa
Now that you understand the fundamentals of the Panama Retirement Visa and how to apply, we can get to the important stuff. On the other hand, the necessary documents are required to complete your visa application procedure. As a result, please collect the following papers before beginning your Panama Retirement Visa application:
If you apply for a Panama Retirement Visa with your spouse or another dependant, they must also provide a list of documentation. I realize this seems like a lot of paperwork, but we're nearly done with the application process. So, here is a list of the papers you must submit:
If you're considering applying for the Pensionado Visa, you must meet the following criteria:
Important: To fulfill the Panama Pension Visa criteria, you may utilize an Annuity issued by a bank, an insurance company, or even a private firm.
Applying for a Panama retirement visa from outside the country requires an immigration lawyer
Panama is renowned for its breathtaking natural beauty, from lush rainforests to pristine beaches and picturesque mountain towns. This diverse geography allows retirees to explore and connect with nature, ensuring a fulfilling retirement experience.
The Panama Retirement Visa usually takes around three months to complete. However, it is crucial to remember that you must present your papers in person and collect them personally.
Several variables influence the cost of acquiring a pensionado visa. The overall cost includes government costs, legal expenses, and the fees you will need to pay in your home country to get the documents. For a single application, government costs range from $300 USD to $400 USD. This covers the cost of obtaining a temporary and permanent residency card, registering a passport, obtaining a multiple-entry visa, and applying for a cedula.
The number of applicants will determine legal fees. Some attorneys may charge an additional fee for the cedula application procedure, while others may charge for document verification and translation. Most expats are ready to pay legal fees, even if they are expensive, mainly if they are not proficient in Spanish or familiar with Panamanian places. This is also true for expatriates who want a temporary residency visa, multiple-entry visa, and driver's license in a single visit. Spouses who apply for the pensionado visa together could anticipate spending between $3,000 USD and $4,000 USD.
The number of applicants for The Panama Retirement Visa will determine legal fees
The Panama Pensionado Program, one of the top retirement plans in the world, provides you with exceptional benefits such as:
You can earn discounts on items like energy bills, airline tickets, medical payments, and admission prices to movie theatres and cultural and athletic events, among other things, by doing the following:
If what you’ve read so far is still not enough to convince you that Panama is an exceptional country for retirees, rest assured that this will impress you even more. On top of the appealing tax regime and low cost of living, Panama boasts a well-developed infrastructure.
Panama City, the bustling capital, is a testament to the country's dedication to growth. Its airports, including the award-winning Tocumen International Airport, provide seamless travel options to and from major destinations worldwide. The city's well-maintained highways ensure easy access to various regions within the country, allowing you to explore to your heart's content. The extensive bus network is also a cost-effective and convenient option.
Also, Panama boasts a robust telecommunications system, ensuring reliable internet connectivity and seamless communication with friends and family back home. Whether you're pursuing your hobbies or staying connected with loved ones, Panama's infrastructure has got you covered.
Related content: What Is Life Like In Panama?
Relax with your Panama Pensionado Visa at The San Blas Islands beaches
Panama has a wide range of cities that cater to everyone's needs and preferences. Whether you seek a bustling cosmopolitan atmosphere, a mountainous enclave, or a tranquil beachside retreat, Panama offers a city for everyone.
Panama's commitment to the well-being of retirees extends beyond financial perks. The healthcare system is robust, offering access to quality medical services, and retirees can opt for insurance plans that provide an additional layer of security.
Panama City, the cosmopolitan heart of the nation, caters to those who crave a fast-paced life. It buzzes with excitement, offering a blend of modernity and history. On the other hand, the charming city of Boquete, nestled in the highlands, appeals to nature lovers seeking a cooler climate and lush surroundings. And for beach enthusiasts, the laid-back vibe of Bocas del Toro offers a picturesque escape.
The beauty of Panama is not only in its cities but also in the warmth of its people. You'll find expat communities thriving in various regions, making it easier than ever to find like-minded individuals who share your interests and lifestyle. Whether you're a retiree looking to unwind, an adventurer seeking thrills, or a culture enthusiast eager to embrace new experiences, Panama's cities are ready to welcome you with open arms.
Boquete, known as one of "Panama's Top Expat Havens," with a population of over 23,000, is ideal for expats seeking a peaceful retirement. The attractive climate, vibrant, healthy lifestyle, scenic landscapes, and musical and artistic scenes attract retirees globally to spend their golden years in Boquete.
If your first worry while looking for a new house is safety, then Pedasí is the place for you. Pedasí has Panama's lowest crime rate. The rural area is surrounded by natural flora and lovely beaches, making it ideal for ocean and fishing enthusiasts.
Torio is a little village on Panama's Azuero peninsula with friendly people and a lovely shoreline. The town is well-known for its fishing sites and surfing, but many more activities are available during a visit, such as horseback riding, mountain climbing, etc. If you choose to live in Torio, you will experience nature and people coming together.
Santa Fé is an excellent spot to retire, thanks to its inexpensive cost of living and pleasant environment. The genuine town is ideal for peaceful and uncomplicated living. As a retiree, you will appreciate the affordable cost of living, pleasant community, and beautiful tropical setting.
If you want to spend your retirement in luxury and feel like you're in the Caribbean but on a budget, Bocas del Toro should be your final destination. Over 400 foreigners live in Bocas del Toro. The lovely province provides several everyday activities and stunning natural landscapes, allowing you to unwind and live happily.
Related content: Best Things To Do And See In Panama
Your lifestyle and housing location have a significant impact on your living cost
Once you get your Pensionado visa, with all the discounts it comes with, you can enjoy the country’s low cost of living. In other words, you’re stretching your income further. Compared to many developed countries, living expenses in Panama are highly affordable.
You can fill your basket with fresh, organic fruits and vegetables as well as other delights without breaking the bank. Groceries in Panama cost around 50% of the price you’d pay in the US. Housing is equally reasonable, with rental costs being significantly lower than those in North America and Europe. Also, the overall cost of living in Panama is around 33% cheaper than in the US.
Overall, the cost of commuting and transportation in Panama is generally cheaper than in the United States. Public transportation is relatively affordable in Panama, with low bus fares and taxi prices. Gasoline prices are also lower in Panama.
Transportation is another area where your dollars will go a long way. Public transportation is not only efficient but also incredibly cheap. Hop on a bus or a metro, and you'll be amazed at how little you'll spend on commuting. For example, a bus fare typically costs no more than $0.35 USD.
Plus, fuel prices in Panama are surprisingly lower than the global average, with gasoline prices priced at $0.75 USD in the worst-case scenario.
Let’s put it in perspective. Imagine that you’re able to dine out frequently at quality restaurants, with generous meals for less than $10 USD, enjoy leisure activities and still have a huge disposable income to explore the awe-inspiring landscapes of Panama. That's the allure of retiring in Panama. And we still have another point to talk about.
Panama boasts a robust healthcare system with modern hospitals and clinics, often staffed with English-speaking professionals. Obtaining a health certificate for your Panama visa application is a straightforward process, and healthcare here is of high quality.
Panama's public hospitals are funded by the Ministry of Health and the Caja de Seguro Social (Social Security System). As a result, services at public hospitals are not entirely free. However, pensioners are entitled to a discount on healthcare services under Panamanian law (check the benefits above).
Both governmental and private clinics in Panama feature skilled medical professionals, experts, and sophisticated equipment. Expats may get both public and private health insurance.
Related content: Top Notch Health Care In Panama For Pennies On The Dollar
The Ministry of Social Development (MIDES, by its acronyms in Spanish)
manages Caja de Seguro Social. CSS oversees the national insurance scheme for pensions, health care, unemployment, and workplace accidents.
Retirees who have met the requisite age (57 women - 62 males) may apply for Caja de Seguro Social under the "Old Age Pension" and get CSS services. You may always go with private health insurance firms if you desire.
Panama is an amazing place to enjoy your retirement years
Panama is a treasure trove for expats seeking a rewarding retirement. From the exclusive benefits of the Pensionado Program to the budget-friendly cost of living, the country ensures your hard-earned money is well-spent, providing you with a life of comfort and enjoyment.
The country's modern infrastructure, reliable telecommunications, and efficient transportation systems make it a haven for those seeking convenience without compromising on modern amenities. Moreover, the diverse cities cater to a wide range of preferences, ensuring you'll find a place to call home that perfectly aligns with your lifestyle. Panama is one of the best retirement destinations on the planet, offering massive advantages that facilitate your relocation and maximize the enjoyment of your golden years.
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Written by Mikkel Thorup
Mikkel Thorup is the world’s most sought-after expat consultant. He focuses on helping high-net-worth private clients to legally mitigate tax liabilities, obtain a second residency and citizenship, and assemble a portfolio of foreign investments including international real estate, timber plantations, agricultural land and other hard-money tangible assets. Mikkel is the Founder and CEO at Expat Money®, a private consulting firm started in 2017. He hosts the popular weekly podcast, the Expat Money Show, and wrote the definitive #1-Best Selling book Expat Secrets - How To Pay Zero Taxes, Live Overseas And Make Giant Piles Of Money, and his second book: Expats Guide On Moving To Mexico.
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