Panama Visa and Residency Information

Visas and Residency in Panama

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Panama's Pensionado Program

Panama has put together the most appealing program of special benefits for foreign residents and retirees you'll find anywhere in the world today, starting with the pensionado, or pensioner visa, program.

In Panama, qualified pensionados or retirees are entitled to:

• 50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events)
• 30% off bus, boat, and train fares
• 25% off airline tickets
• 50% off hotel stays from Monday through Thursday
• 30% off hotels stays from Friday through Sunday
• 25% off at restaurants
• 15% off at fast-food restaurants
• 15% off hospital bills (if no insurance applies)
• 10% off prescription medicines
• 20% off medical consultations
• 15% off dental and eye exams
• 20% off professional and technical services
• 50% closing costs for home loans, and more…

In addition, you are entitled to a one-time exemption of duties on the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation or local purchase of a car.

Plus, Panama's pensionado law stipulates that anyone entering the country as a qualified pensioner today is guaranteed that status as long as he or she chooses to stay in the country. That means that even if the government decides to change the requisites for applying—say, by raising the age to 65 years—you maintain your pensionado status…even if you’re only 52.

The general rules:

• All visa applications must be made through a Panamanian lawyer
• Children under 18 will qualify for a visa as dependents of their parents
• All overseas documents to be presented to the authorities in Panama must be authenticated by a notary and by the Panamanian consulate nearest you, or by a notary and Apostille. The Apostille (as per The Hague Convention of 1961) is a faster way of authenticating documents and in the U.S. can be obtained through the secretary of state in your home state; in the U.K., this can be done through the Foreign Office. In Canada, please check with the Panamanian embassy/consulate nearest you
• All documents must be valid (within two months of visa application) and passports must be valid for at least another year from time of application
• Dependents: Bring a marriage certificate. However, original marriage certificates are not acceptable for the visa application if over two months old, so you'll probably need to request a copy. If you have children under 18 that you’ll be including on your application as dependents, you'll need to bring valid birth certificate copies (not originals)
• None of the visa programs mentioned here includes work permits
• All visa applications require that you obtain a health certificate in Panama
• All visas require a clean police record from your last place of residence
• All visas require 6–9 passport-size photos (gentlemen in suit and tie; ladies in blouses or dresses with sleeves).

In the past, the government of Panama has allowed any adult who could show proof of a monthly pension of any kind (from the age of 18 upward) to qualify for a pensionado (retiree) visa. As in the past, if you are receiving a pension from a government entity or a well-known international company, age is not an issue. You must simply provide proof of adequate income ($500 per month per person or $600 per month per couple). However, if you are on a private pension, the pensionado visa is available to you if you are of retirement age (50 or older). The age of your spouse (if applying as dependent) will not be considered on the age limitation.

Person of Means Visa (Solvencia Económica Propia)

Designed for those who wish to live in Panama off their own means, without the need to work or start a business. Applicants must either: 1) open a two-year fixed-term deposit account with a local bank for at least $200,000, or 2) purchase real estate in the amount of $200,000, or 3) purchase real estate worth a minimum of $80,000 and open a two-year fixed-term deposit account for at least $120,000. The accounts and the real estate must be in your personal name, fully funded (or titled), and free of mortgages or encumbrances.

The visa is granted in two steps: First, a one-year provisional visa is granted, and then the process is repeated and the visa is approved permanently, with the right to a cedula (national identity card). Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality.

Investor Visa (Inversionista)

Designed for those who wish to establish a business in Panama (excepting certain retail businesses and professions reserved to Panamanians). There must be a minimum investment of $150,000, and a minimum of three permanent Panamanian employees hired. The investor visa is granted provisionally for one year, after which renewal is granted permanently with the right to be issued a national identification, or cedula. Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality. Learn more about making investments in Panama.

Forestry Investor Visa (Inversionista Forestal)

The forestry investor visa encourages the production and preservation of teak. Basically, the program consists of two options, dubbed the small forestry investor and the large forestry investor visas. The small forestry investor visa requires a minimum investment of $40,000, whereas the large forestry investor visa requires a minimum investment of $80,000. Small forestry investors can apply for permanent residency on their fifth year (prior to this, these investors may stay in Panama via one-year renewable immigrant visas). A large forestry investor, however, must apply for permanent residency immediately after his or her first immigrant visa card expires. Both small and large investors are eligible to apply for citizenship just five years after their initial application.

Important New Information About the Forestry Investor Visa

You can now use your IRA funds to invest in forestry projects in Panama and qualify for the forestry investor visas. (You can also use IRA funds to invest in other types of Panama real estate, but this will not qualify you for a resident visa, as when you buy with an IRA the property must be owned by a corporation or foundation owned by the IRA and not in your personal name.)

If you have a different type of investment in mind, note that Panama offers many different visa alternatives; those listed above represent just a few of the more popular options.

For more information about the forestry investor visa, contact Robert Kroesen of United Nature.

For information about using your IRA to invest in a forestry project or in Panama real estate, contact Rich Luchsinger of Sovereign International Asset Management.

Small Business Investor Visa (Inversionista de Pequeña Empresa)

This visa is designed for those who wish to establish a small business in Panama (note that retail businesses and some professions are reserved to Panamanians). There must be a minimum investment of $40,000 and a minimum of three permanent Panamanian employees hired. The visa is granted provisionally for one year, and needs to be renewed three more times before it is granted permanently with the right to a national identification card, or cedula. Five years after obtaining the permanent visa, holders will be eligible to obtain Panamanian nationality.

Read related IL Postcards:

- How to Beat Panama’s New Visa Laws

- You CAN Get a 90-day Tourist Visa for Panama