Panama: An Attractive Destination for International Retirees

Discover how Panamanian law makes it easy to retire in a tropical paradise

Panama has become one of the most attractive destinations for international retirees looking for a safe, affordable, and amenity-filled place to enjoy their retirement. With its stunning natural beauty, year-round warm weather, and relatively low cost of living, it’s no wonder that this Central American country is becoming increasingly popular among retirees. But what really makes Panama so special for retirees? The answer lies in its legal framework, specifically in the law that regulates the immigration status of foreign retirees, known as the Permanent Resident Permit for Retirees and Pensioners (PRP-JP).

Requirements and Benefits of the Law for Retirees in Panama

Article 200 of Panamanian regulations allows foreigners who receive a retirement or life pension of more than one thousand balboas (B/.1,000.00) per month to apply for permanent residence in the country. This permit is designed for people who wish to settle in Panama and have sufficient financial means to cover their living expenses, as well as those of their dependents.

Key Requirements:

1. Personal DocumentationApplicants must provide a notarized power of attorney that includes information about parents, three photographs, a certified copy of the passport, a criminal record certificate and a health certificate.
2. Declaration and Certification: It is necessary to complete a Personal Background Affidavit form and present an official certification that accredits your status as a retiree or pensioner, with a lifetime pension of at least B/.1,000.00 per month.
3. Financial solvency: For those with dependents, additional financial solvency of B/.250.00 per month for each dependent is required, either through an additional pension or a local bank reference.
4. Properties in Panama: If the applicant has acquired a property in Panama with a value greater than B/.100,000.00, the minimum amount of the required pension is reduced to B/.750.00 per month, which further facilitates the process for those interested in investing in real estate within the country.

Important Exceptions:

• Spouses can add their pensions to reach the required minimum of B/.1,000.00.
• Dependent children can obtain a temporary permit until they are 25 years old, provided they are studying, although they will not be entitled to permanent residence or pensioner status unless they suffer from a proven profound disability.

Additionally, Law No. 6 of June 16, 1987, grants a wide range of discounts and tax exemptions, designed to improve the quality of life of the elderly and those in retirement.

Discounts and Special Rates: Beneficiaries of this law enjoy significant discounts on a variety of services and products, such as:

• 50% discount on tickets to recreation and entertainment activities, such as cinemas and theatres.
• Discount on public transport fares, including a 30% on intercity buses and trains, and a 25% on airfare.
• Discounts on hotels and restaurants, with a 50% in accommodations from Monday to Thursday and a 25% in restaurants.
• Reductions in medical services, such as a 20% in general and specialized consultations, and a 15% in dental and optometry services.

Additional benefitsThe law also establishes important tax exemptions and discounts, such as:

• Exemption from payment of property taxes, provided that the home is the beneficiary's sole property.
• Discount on utility rates such as electricity and water, as long as the accounts are in the beneficiary's name and do not exceed certain limits.

In conclusion, Panama not only offers an enviable climate and natural environment, but also provides a welcoming and beneficial legal framework for foreign retirees. With clear requirements and attractive tax incentives, Panama presents itself as an unbeatable option for those looking for a peaceful and secure retirement.

Explore the Opportunities Panama Has to Offer!

Now is the perfect time to explore the opportunities this beautiful country has to offer. As a real estate broker with experience in helping retirees find their ideal home in Panama, I am here to guide you every step of the way. Contact me today to find out how you can benefit from all the privileges Panama has to offer. 

Your perfect retreat awaits you!