Panama’s pensionado visa

The visa you choose is extremely important for your long-term strategy. This may be your country of physical residence, tax residence, or one of the flags in your five flags strategy.

Every investor and international businessperson knows that diversification is key, and this applies also to migration. There are numerous visas, some of them specifically focused on retirees. Thus, it is useful to consider them whether for the short or long term. 

Why is this? Retirement years are key. While some like to stay active, others want to enjoy the fruits of their labor throughout their lifetime. So, the environment, the possibilities, the costs of living, and several other factors become vital. This is the reason why Mundo presents the Pensionado Visa as one of its fundamental topics and main services.

So, without further ado, we introduce you to the Pensionado Visa, which is surprising in many aspects, surpassing similar programs around the world.

Advantages Of The Pensionado Program

Easy, non-age-related access

Don't let the name fool you: the pensionado visa is available for individuals of any age. The main requirement is that they have a lifetime pension of at least $1000. A convenient perk is that these $1000 may be combined through 2 pensions (the main applicant’s and the spouse’s). Thus, if one has a pension of 400 and the other one has a pension of 600, (700 and 300, 500 and 500, and so on), the couple is eligible for pensionado. 

If you're thinking that this is an incredible opportunity, then you are right, and this is just the beginning.

Reducing the minimum income through real estate

The minimum pension can come from any source (private or government) and can be reduced to $750 by making a $100,000 investment in real estate.

Thus, foreigners can obtain permanent residency relatively simply by meeting these requirements. Also, they are allowed to add dependents. 

Dependents within the Pensionado Visa framework

The program allows you to add dependents (only your children). They can be added freely if they're younger than 18, but after 18, they must be full-time students at the university. Even with this requirement, they can only apply until the age of 25.

At this point, we want to make an important clarification: all children added to the pensionado application lose their residence statute at the age of 25, regardless of whether they applied before or after 18 years of age.

This is why our experts recommend that children apply through a different visa (“visa for children of permanent residents”). If not, the children can apply through any visa they are eligible to once they turn 25. 

Brief summary of requirements and dependent addition 

• Edibility: having a lifetime pension from a government or private source of at least $1000 a month
• Option 2: the minimum income can be combined between the main applicant and the spouse
• Option 3: the minimum income will be reduced to $750 if the applicant buys a real estate for $100,000
• Children under 18: allowed
• Children from 18 to 25: allowed only if they are full-time students at the university
• Children over 25: not allowed

Important clarification about children: the pensionado status is viable only until they turn 25, after which they will lose Panama residency and will have to apply through another program

Exclusive benefits for retirees

One of the most interesting aspects is that Panama offers retirees many benefits. Some are exclusive to the pensionado visa, and some apply to all retirees in general. Either way, they help keep expenses low and access entertainment and tourism options at very reasonable prices. 

As a pensionado visa holder, you will enjoy discounts on utility bills, hotel stays, transportation fares, and convenient conditions in mortgages and import of personal goods.

A friendly environment

Now delving into Panama itself, we can say that it offers an outstanding lifestyle. It stands out for its coastal destinations and access to the Caribbean and the tropical islands of the Pacific. 

We can mention Coiba, the Las Perlas archipelago, Contadora, and Taboga, San Blas, and Bocas del Toro as some of the most exquisite beach destinations. Here you can enjoy surfing, diving, snorkeling, and several activities.

Furthermore, you can choose from all types of vacation styles, from rustic getaways to five-star accommodation with luxury amenities. 

In Panama City, there are no beaches, but you can find them an hour away from the capital and across both coasts. Naturally, the further you go, the more secluded and pristine paradises you’ll find. This can be said of any location that finds itself away from the city’s noise, pollution, and influence. 

Panama City: a world-class capital

If you decide to stay in Panama City, you won't get bored. You can enjoy breathtaking coastal walks in Cinta Costera, Casco Antiguo, and the Amador Causeway; ample parks like Parque Omar; and cultural activities like theaters and concerts. The musical scene is especially good when it comes to Latin music and jazz since many Panamanian musicians have studied or studied in the United States. Then, they bring this influence to the isthmus and contribute to its rich cultural tapestry.

Let's not forget Panama’s traditional music, which they call “típico”. You can enjoy ensembles playing “típico” in concerts, pubs, restaurants, and casinos. 

Convenient costs

In our view, this is one of Pensionado’s most relevant advantages as a visa that suits more Canadian, US, and European retirees than Latin Americans. 

For starters, Canadians and Americans can easily obtain a retirement income of $1000 a month, and secondly, in Panama, they can stretch it much further than they do back home. 

With a lower cost of living than in the US, Panama becomes an even better retirement destination than Florida (which Americans love). Furthermore, it's not that much further away. 

For a retiree from California, Seattle, Dallas, or even Chicago, traveling to Panama isn’t that much longer than traveling to the Sunshine State, and the same goes for their loved ones who will want to visit them. 

Timeline and steps

Talk to your Mundo expert and analyze your case with them

The first step is to assess your case together with your Mundo expert. They can give you a clearer view of what you can expect according to your case.

Gather the documents and fill out the forms

Once you decide to move forward, you will need to gather the documents. Expect the usual elements as with any migratory permit: passport-size pictures, passport and second ID with photo, clean criminal record, health certificate, and documentation that demonstrates your connection with your dependents. 

For the pensionado visa specifically, you will have to submit a document stating that you receive a lifetime pension (issued by the entity). Furthermore, you will have to present bank statements and proof that this entity exists. 

Travel to Panama and submit your application

Once you have gathered all your documents with your Mundo expert, you will travel to Panama, and your expert will walk you to the migration office. The submission must be made insitu. 

Waiting for approval

Then comes a waiting period of at least three months, which you can spend either in Panama, enjoying the lifestyle that we described above, or back in your home country. In the meantime, you will have a temporary resident card. 

Approval and acquisition of resident status

Once your application is approved, you will travel to Panama again to obtain the approval letter and the permanent resident card. Later, you can proceed with applying for a Panamanian cedula. You will be granted an e-Cedula (“e” as in “extranjero/foreigner”). Anyway, this grants you the same rights as a Panamanian citizen except for suffrage.

Embrace the Pensionado visa now

To sum up, if you have a pension and are looking to relocate, Panama is definitely the best option. The combination of a supreme lifestyle and low cost of living, the benefits, and the location of the country have made it a sought-after destination for retirees around the world. We have seen Panama chosen several times by Forbes magazine and other prestigious publications as one of the best retirement environments. 

So, if this article speaks to you in the first person, don't hesitate. Contact the Mundo team and start the process as soon as possible. 

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