How to become a Legal Resident of Panama

Tired of the hectic pace or the cold weather? Discover the newest retirement destination: the Republic of Panama!

Law 9 of June 1987 and Executive decree 62 of August 1987 provide a whole slew of benefits, rights, tax, and customs exemptions for retired foreigners provided they take up residence in Panama and prove they have enough income. In order to obtain said benefits the applicant has to apply for a Retired Tourist Visa at either the National Department of Migration or at a Panamanian Consulate.

Additional Methods of Obtaining Panamanian Residency

Once in Panama there are several types of visas you can apply for depending on the purpose of your stay.

(1) Retiree Visa - This program is for the foreigner who has retires from his own private activities and is able to make a deposit in the National Bank. People in this category do not meet the monthly pension requirement for a Retired Tourist Visa, so a certificate of deposit is required that generates a minimum income of $750 per month. Said amount may vary depending on the interest rate being offered by the National Bank of Panama. At present, you will need to buy a certificate of around $100,000 to generate $750 monthly. Although this amount is higher than the $500 required for the standard pensionado visa, no additional monies need to be paid for your spouse and children under eighteen years of age. If you decide to leave the country permanently, this deposit will be returned in full.

(2) Investment Visa - You may obtain this type of visa by investing in a corporation or creating one. This is less expensive than the prior method of obtaining residency. What you have to do is set up a business with a minimum of $10,000. Then you will have to establish a Panamanian Corporation for your business. A cash deposit of $10,000 will then have to be made to your company’s bank account. The whole process should not take long under this visa category.