Thread: Permanent residency as a retiree

Ok, I'll bite. What are the requirements to obtain permanent residency as a retiree? I discovered Panama about a year ago and stay several weeks each year. So far, it looks like a great place to retire.

It's quite easy. You need to prove that you get a pension of $500 per month ($600 for a couple) from a governmental or private corporation. You also need a certificate of good health (obtainable in Panama), a police report from your place of residence, a marriage certificate if applicable, a passport copy, and a couple of photos. Your birth certificate is not required. The retiree residency is granted indefitinely but you need to show evidence each year that you continue to receive $500 a month. This type of residency doesn't lead to citizenship.

Is it the same requirements if the retiree will be living there due to petitions? Or the capability not to be a burden would depend on the petitioners? Thanks for any information you could give.

Pensionado residence status requires that applicants have an income on pension amounting to only US$500.

As soon as the visa petition is filed, a provisional residence permit for a year's period will be granted to the applicant. A petition for permanent residence must be filed at the end of the one year period. Once the permanent residence permit is approved, the applicant will be granted a Panamanian ID and will be given the right to apply for Panamanian Nationality after 5 years.

Panamanian law also grants retirees a very good tax exemption package including:

* Tax exemption to import a car every 2 years
* Import tax exemption for households up to US$10,000
* Multiple tax exemptions and discounts on services in Panama

Thanks for providing with this information. I find the benefits for retirees very inviting. I hope that this would remain the same or even better by the time I would plan to retire.

Great info, thanks so much for sharing!

Thanks for the tips too although I am not yet at the age of being a retiree but I think I could share this informations to those who wants to live in Panama for the better.

You only need $500 a month to retire in Panama? That's not much. Can you really live off of that in Panama? You couldn't live on that much here in the United States.

For $500 a month you can definitely live in Panama--provided that you own your residence outright (trying to locate and negotiate a mortgage will convince you that you should own your home in total.) The only items that I found to be comparable to price to items found in the U.S. were automobiles, fuel, clothing/shoes, home electronics--your basic expensive stuff to begin with...
Food, utilites and entertainment are practically free to someone coming from the U.S.--$4 for a kg of prime, beautiful veal shank? Try $35 down the street from me! All of your food is unbeliveably cheaper--mostly because it doesn't travel as far to get to your table. Stop to consider that your beef probably comes from the Mid-West if you live on the coasts, that your fruit/veges come from FL or CA, and your dairy comes from a northern state. There are all local exceptions to this (try your local farmer's market,) but in the U.S., real estate is at such a premium in the cities that it is not cost effective to use any land for farming/ranching closer than several hours--that's slightly sad. Most Europeans are freaked out when they learn that about our agricultural processes.

Beer? If you are charged more than $1 for a pint of the local, leave and find another place. I've had dinner, drinks and live band for a grand total of $30--and we partied hard, too. A tab like that in D.C. would have cost me $150 before tip--and then Americans expect a 15-18% tip. Oy! Cable or DirectTV packages are around $25-35 a month (Of course, expect to pay for English channels, sports pkgs, movies, etc.,) Internet may be included (incluye) in an apartment building, or attached to your cable or phone. Electricity is also much cheaper than the U.S.--and you can expect to use your air con year-round too! Plan on $50/month at the most. Rents in P.C. are attempting to act like Manhattan. Don't fall for it! Negotiate a long-term rental contract while you are looking for a place to buy, or waiting for your apt to be finished.

Cheers.

What about someone who cannot afford to buy a home outright? What is the cost of living for someone who has to rent an apartment?

Average apartments (by Panamanian standards) cost from $500+ a month, good apartments from $800 upwards. If you are a foreigner, most apartment owners will try to charge more. But you can get by with less if you really have to, considering that many locals earn only $300 to $500 a month.

That is what I came up with when I was looking for a long-term rental while looking for an apartment. I just wouldn't want to rent for longer than a year; its just tossing $$ away on someone else's equity. It's always up to you to do your own research. Check it out and let us know what you've found.

Cheers!

The rent doesn't seem to be any less than here in the United States. I've seen apartments in the United States for less than $500. I think perhaps it is better to try and get a mortgage.

I'd love to know where you're finding rents under $500 a month on anything in a major metropolitan area! Are you talking a studio? Or something with an actual bedroom and private bath?
The best thing about looking overseas at rents and housing prices in the large, cosmo cities is that you get a good idea of the quality of life; cultural opportunites (museums, theatre,) entertainment, and location to the central area.
I'm quite sure that I could find a cheap apartment somewhere 30 minutes outside of D.C.--but why? For me, the entire point of living near a city is to be living in a city--close to the business districts, shops and stores either in or next to your building, etc. Living in Manhattan was the coolest thing ever for me, I got a bodega @ street level and a gym in the basement. I'm not sure I would've wanted to live there if I had had to live in Queens or the Bronx--even though I sought those places out for the excellent ethnic food. I'd say the same thing for Panama City; you are going to pay if you want to live in a fashionable neighborhood that is fairly safe.
In looking for a mortgage, if you have exceptional credit in the U.S, you may be able to swing one with a downpayment of around 30%. Any of the large real estate firms, like 21st century CENTURY21 I CENTRO AMERICA will have bilingual sites to help you out with the info. Try a little google--it goes a long way.

Cheers.

Originally Posted by Lalaguayaba

I'd love to know where you're finding rents under $500 a month on anything in a major metropolitan area! Are you talking a studio? Or something with an actual bedroom and private bath?

Go to craigslist. Select any city in the United States. Do an apartment search with $500 set as the maximum. I guarantee you'll find apartments in every city. In Oklahoma city I often see 2 bedroom apartments go for around $300 per month.

Anyway, I agree that prices tend to be cheaper in Panama than in the United States.

I believe I mentioned a 'major metropolitan area'--i.e. a city with more than 2 million people, which unfortunately does not include Oklahoma City--and I am not suggesting a studio apartment, one far from the center of town, far from restaurants, theatres and nightlife, out in the suburbs etc. I am talking about a 2-3 bedroom, 2 ba, w/balcony in a city with more than 2 million people. That would qualify for 'major metro area.' The entire state of Oklahoma's population is about 3.5 million people; The Miami metro area is around 6 million--that's major. See what I'm saying? Of course, by this criteria, Panama City is a mere hamlet, but at least you can live downtown near clubs, bar, restaurants, etc. and have an international populace.

Cheers!

What type of document do you need for proof of income? Will a bank statement or a statement from an investment firm?

Wayno

Originally Posted by waynoga

What type of document do you need for proof of income? Will a bank statement or a statement from an investment firm?

Wayno

Tax returns; certified, authorized, happy-with-rubber stamps, tax returns.
Bank statements would be good for back-up, but not for 'actual proof of income.' Most statements/investment statements can show what you have saved, and evidence of past income--but you don't submit them to the gov't do you?

Cheers.

Hi All,
We will arrive, with furniture, around the 1st of December 2007.
That said, does anyone know if you have to leave Panama every 30 days when you are there on a under a tourist visa? I have heard both 30 and 90 day limits.
When residency is applied for do you get a pass on having to leave.

Thanks for any input,
Wendell

Originally Posted by Wendell

Hi All,
We will arrive, with furniture, around the 1st of December 2007.
That said, does anyone know if you have to leave Panama every 30 days when you are there on a under a tourist visa? I have heard both 30 and 90 day limits.
When residency is applied for do you get a pass on having to leave?

Thanks for any input,
Wendell

Congratulations on your decision to move! As far as leaving every 30 days, I will tentatively say 'yes.' Depending upon who you speak to in the gov't it may be up to 90 days; poke around the site for some good advice on that.

When residency is applied for, you will be able to stay in Panama--that's not a problem at all. Your lawyer will make sure that you get all the appropriate paperwork to enable your stay while your case is being reviewed. Good luck!

Cheers.

I think you can also apply for an extension without leaving the country. I know you used to be able to do that, at least.

You can stay for 30 days and get it extended for another 60 before you have to leave and come back, no problem. Talk with an attorney, the first consultation is always free and they are always happy to talk with you.

I arrived here in January and my tourist visa was good for 90 days, then my lawyer got an extension for 30 days at low cost, but a p.i.t.a. because whenever you need to go to the public registry it's a whole day shot. If you come in with your furniture you need to quickly begin the process of applying for permanent residency visa so you can avoid having to leave every 90 days. Eventually they catch up with that and will prevent your return. Haeing your application in process is enough to satisfy them.

Did we need to pay for the taxes?
How much it cost overall?
Thank you.

Originally Posted by nuaeman

[Do] we need to pay [any] taxes?
How much [will] it cost overall?
Thank you.

What type of taxes are you referring to? Income taxes? Property taxes?

The final cost will depend upon which type of visa you decide to get, how much your lawyer charges, and incidental fees associated with travel and moving one's possesions; there are fee schedules listed in other parts of the site, and here:
Live and Retire in Panama - Visas, Residency and Citizenship

Cheers.

Panama is great!

Yes, Panama is great but it seems that they want to make it harder to get established there for good , I have just read the new changes they have approved on immigration laws ,which will be effective beginning with August this year. Here is the link where you may read it yourself :

http://www.panamalaw.org/panama_immi...ges_May08.html

My attorney mentioned this to me last week. It is unfortunate that Panama would make it harder for people to get visa's. I guess I am going to have to marry a local, lol.

It's quite easy.

Well, that's really not true, in my experience. I know someone who applied for his pensionado visa last December, and is still waiting.

One important point that is ignored or glossed over in many of these posts: To get the pensionado visa, you have to be able to prove that you have a permanent, lifetime pension of more than $500/month (currently -- there is a proposed change to increase that).

Bank statements are meaningless. And, pensions from private companies are more difficult; you have to have a statement from the company, you need proof of good standing for the company, and all documents need to be notarized and apostilled.

The only easy route for a pensionado visa is proof that you are receiving Social Security checks, or some equivalent lifetime pension from a government agency. That is what the bureaucrats are used to, and that's what they understand.

In other words, you could show them bank/brokerage statements proving you have $50 million on deposit, but it doesn't count one whit toward your pensionado visa -- unless you get an officer of the bank/brokerage to write a letter guaranteeing that they are going to issue you a check for more than $500/month for the rest of your life.

(If you had $50 million, you'd be better off to apply for the Self-Solvency visa.)

Panama is more strict on this than many countries, despite what the marketing people here want you to believe. In Mexico, for example, you simply have to show them three recent months of bank statements showing deposits of more than $500/month. Those deposits might have come from another of your accounts -- they don't check. Nothing has to be notarized or apositlled, and approval takes less than two weeks.

I'm not promoting Mexico -- I'm just promoting research. As I said, there's an amazing amount of bad information here (and everywhere online), and you would be unwise to make your retirement or moving plans based on the advice from a bunch of strangers on a web board, let alone a bunch of strangers who are trying to sell you real estate.

As far as the cost of living: A very silly question. How do you want to live? Rice and beans? Dinners out? A casita or a castle? Do you want to travel every year? Do you want medical insurance? Do you need a car? Etc. etc. etc. Yes, I know people who live on $500/month, but they have roomates and family, and they don't live like I want to live. Most ex-pat retirees spend three to four times that, if they are really honest about including all their expenses.

To update Woohoo's post #22: Panama changed the law back to what it was pre-2007 re: tourist cards for gringos: If you're from the US or Canada, you can stay 90 days without extension.

Visa requirements vary by home country; some don't even require the tourist card (the UK, for example), and others require formal, stamped visa from a Panamian consulate (Cambodia, for example). The Panama Immigration website, where you can look up your requirements, is here: http://www.migracion.gob.pa/eng/serv...?cont=paisvisa