--- titulo: "Retire in Panama: The Complete Guide for Foreign Pensioners" titulo_seo: "Retire in Panama: Pensioner Visa and Discounts" meta: "A B/.1,000 lifetime pension opens permanent residency in Panama, or B/.750 if you buy property over B/.100,000. The discounts, the taxes, the healthcare." autor: "Diego Ospina Serna" fecha: 2026-07-07 actualizado: 2026-07-07 materia: "Immigration Law" idioma: "en" par: "jubilarse-en-panama-guia-pensionados" resumen: "A practical guide to retiring in Panama: the Pensioner (Jubilado Pensionado) permanent residency permit and its minimum income, the Law 6 of 1987 discounts for pensioners, Panama's territorial tax system and how it treats foreign pensions, private healthcare, the cost of living in US dollars, and a dedicated section for U.S. retirees." tags: ["Immigration", "Retirees Panama", "Expats Panama"] orden: 20260707 faq: - q: "How much pension do I need to retire in Panama?" a: "A minimum of US$1,000 per month for life (US$750 if you buy real estate worth more than US$100,000), plus US$250 per dependent." - q: "Does the pensioner permit expire?" a: "No. It is indefinite and requires no renewal." - q: "Will I pay Panamanian tax on my pension?" a: "No: a foreign-source pension is not taxed in Panama under the territoriality principle. Your obligation in your home country is a separate matter." - q: "Do the Law 6 discounts apply to foreigners?" a: "Yes, to **resident** foreigners with retiree or pensioner status, proven with the corresponding card." fuentes: - nombre: "Executive Decree 320 of 2008 (arts. 200–203)" url: "https://iurispa.com/legislacion/decreto-ejecutivo-320-de-2008/" - nombre: "Law 6 of June 16, 1987" url: "https://iurispa.com/legislacion/ley-6-de-1987/" - nombre: "article 694 of the Fiscal Code" - nombre: "National Immigration Service" url: "https://iurispa.com/instituciones/servicio-nacional-de-migracion/" --- For decades Panama has been one of the world's top destinations to retire, and the reasons are hard to match: an **indefinite residency permit** for pensioners, a **discount law** that lowers the cost of daily life, a **territorial tax system** that does not tax foreign pensions, the **US dollar** as legal tender, and world-class hospitals. This guide explains the legal framework with the exact laws, so you know what to expect before you move. > This guide is informational and is not personalized legal or tax advice. Every case (especially the tax treatment in your home country) must be reviewed individually. ## The Pensioner (Jubilado Pensionado) permit Panama's permanent-resident permit for **pensioners (PRP-JP)** is governed by **Executive Decree No. 320 of August 8, 2008, articles 200 to 203** (developing Decree Law 3 of 2008), as amended by Executive Decree No. 26 of 2009. It is designed for the foreigner who receives a pension or retirement income and enters the country to settle. **Core financial requirement:** - The monthly pension **may not be lower than one thousand balboas (B/.1,000.00)** and must be granted **for life**. Because the balboa is at par with the US dollar, this equals **US$1,000 per month**. - Add **B/.250.00 per month for each dependent** included. - **Property exception:** if you buy real estate in your own name worth more than **B/.100,000.00**, the minimum required income drops to **B/.750.00** per month. - **Spouses** may **combine both pensions** to reach the minimum. The pension may come from a foreign government, an international organization, or a private company (the latter requires additional documentation from the fund or plan administrator). **The key advantage:** the Pensioner permit is **indefinite and requires no renewal**. Unlike other immigration categories, there is no periodic renewal. ## The Law 6 of 1987 discounts For many retirees this is the real day-to-day draw. [**Law 6 of June 16, 1987**](/legislacion/ley-6-de-1987/) grants a discount regime that applies expressly to **Panamanians or foreign residents** who are **retirees or pensioners** (with no minimum age once that status is proven). A foreign retiree with a pensioner permit qualifies from day one by presenting the pensioner card. | Benefit | Discount | |---|---| | Cinema, theater, sports and public shows | **50%** | | Intercity transport (buses, trains, boats) | **30%** | | **Air fares** (domestic and foreign airlines) | **25%** | | Hotels, motels and inns (Monday–Thursday) | **50%** | | Hotels (Friday, Saturday, Sunday) | **30%** | | Restaurant meals | **25%** | | Franchise fast food | **15%** | | Private hospital and clinic bills (if uninsured) | **15%** | | Prescription medicines | **10%** | | **General and specialist medical consultations** | **20%** | | Dental and optometry services | **15%** | | Technical and professional services | **20%** | | Closing costs on personal and commercial loans | **50%** | | Mortgage on a primary residence | **−1%** interest | On top of this: exemption from the FECI loan surcharge, a **freeze on the property tax** of the single home in your name, **50% off the passport fee**, and 25% discounts on electricity, telephone and water (subject to billing caps and provided the account is in the beneficiary's name). The law fines any business that refuses the discount. ## Taxes: Panama's territoriality Panama applies a **territorial tax system**, enshrined in **article 694 of the Fiscal Code** and article 9 of Executive Decree 170 of 1993: only income produced **within** Panamanian territory is taxed. For a retiree this means your **foreign pension, Social Security, and distributions from your retirement funds or investments held outside Panama are not subject to Panamanian income tax**. Panama also has **no wealth, inheritance or gift taxes**. > **Important warning:** the fact that Panama does not tax your pension **does not mean** it is exempt in your home country. Many countries still tax their nationals or tax residents on worldwide income. See the section for U.S. retirees below. ## Healthcare: international standard at low cost Panama has high-level private hospitals. **Hospital Punta Pacífica**, in the capital, is the only hospital in Latin America **affiliated with and managed by Johns Hopkins Medicine International** (a strong argument for the North American retiree used to that standard). A private consultation can cost around US$50, and even less with the Law 6 discount. ## Cost of living and the dollar Panama **uses the US dollar** as legal tender (the balboa circulates only as coins, at par). For a retiree from the United States or other dollarized countries, this removes currency risk and the need to convert money. The cost of living generally lets a couple live comfortably on a budget noticeably lower than North America or Western Europe, and the Law 6 discounts lower it further. ## For U.S. retirees The U.S. market deserves precision, because misunderstandings are common: - **There is no treaty to avoid double taxation between the U.S. and Panama.** What exists is a **Tax Information Exchange Agreement (TIEA)**, signed on November 30, 2010 and in force since April 18, 2011. It is information exchange, **not** a treaty that prevents double taxation. - The United States taxes its citizens on **worldwide income**, wherever they live. A U.S. retiree in Panama **still files with the IRS** for Social Security, 401(k), IRA, etc. The Foreign Earned Income Exclusion applies only to **earned** income, not to pensions. - **Medicare does not cover care outside the United States** (with very limited exceptions), and dropping Part B abroad carries a permanent penalty on re-enrollment. That is why Panama's **high-quality, low-cost private healthcare** (with Punta Pacífica's Johns Hopkins standard) matters so much for this profile. ## Other residency routes (if you are not a pensioner yet) If you don't yet receive a life pension, other paths to residency exist: - **Qualified Investor** (Executive Decree 722 of 2020, amended in 2024): **permanent** residency through real estate, securities or a bank deposit, with a notably fast process. - **Friendly Nations Visa** (Executive Decree 197 of 2021): temporary residency for nationals of a list of countries, via an employment contract or real estate investment. - **Digital nomad / remote worker visa** (Executive Decree 198 of 2021): a stay of up to 18 months for those working remotely for foreign clients, with a demonstrable minimum foreign income. Each has its own requirements and thresholds; at iurispa we can help you choose the one that fits your profile.