Panama · Retire or live on savings
Panama Pensionado residence
Income needed: from PAB 750 a month ≈ $750
Residente permanente — Jubilado y Pensionado
Checked against official sources on Record corrected 12 Oct 2026Change log
Key facts
Pensionado residence is a retire or live on savings route for Panama. Applicants need income from PAB 750 a month ≈ $750. Checked 2026-10-12 against the official source.
- Money needed
- from PAB 750 a month ≈ $750
Cost, time and long term
Shown, not spentPAB 100k+ ≈ $100k · +3 more
- PAB 100,000 (≈ $100,000)Property acquired in own name above this value qualifies for the reduced pension minimum.
- PAB 1,000 a month (≈ $1,000)Monthly pension or income, granted for life; spouses may combine both pensions.
- PAB 750 a month (≈ $750)Reduced minimum when the applicant has personally acquired property in Panama for more than B/.100,000.
- PAB 250 a month (≈ $250)Extra means for each dependant, on top of the pension; it can be shown with an additional pension or a local bank reference.
RenewalRenewal rules
The permit is indefinite and needs no extension.
CitizenshipGeneral rule: 5 years of residence
Naturalisation needs 5 consecutive years of residence in Panama, plus Spanish and basic knowledge of Panamanian history, geography and politics.
What you'll need
Who can apply1
- Dependants meet the family-reunification requirements.
What you must show1
- Each dependant needs an extra B/.250 a month of means, shown with an additional pension or a local bank reference.
Documents3
- A passport copy is required.
- Pension proof is required.
- Police and health certificates are required.
Steps1
- The application goes through a legal representative.
When you become tax resident
How Panama decides tax residence and treats foreign-source income, from its tax records.
- Foreign-source income
Territorial
Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income.
- Special regime
Panama territorial income tax · Tax relief
All tax rules for Panama Tax records checked
Full official text
Permanent residence for foreigners who receive a lifetime pension from a foreign government, international organisation or private company and intend to settle in Panama. 1 2
What you must show
- Assets of over PAB 100,000 (≈ $100,000) · Property acquired in own name above this value qualifies for the reduced pension minimum. 1
- Income of at least PAB 1,000 a month (≈ $1,000) · Monthly pension or income, granted for life; spouses may combine both pensions. 1
- Income of at least PAB 750 a month (≈ $750) · Reduced minimum when the applicant has personally acquired property in Panama for more than B/.100,000. 1
- Income of at least PAB 250 a month (≈ $250) · Extra means for each dependant, on top of the pension; it can be shown with an additional pension or a local bank reference. 2
Requirements
- Dependants meet the family-reunification requirements. 1
- Each dependant needs an extra B/.250 a month of means, shown with an additional pension or a local bank reference. 2
- A passport copy is required. 1
- Pension proof is required. 1
- Police and health certificates are required. 1
- The application goes through a legal representative. 1
Stay
- The permit is indefinite and needs no extension.
Family
Dependants can be included under the family-reunification requirements, with an extra B/.250 a month of means for each. Dependent children get a temporary permit until age 25 while they study full time, with no right to permanence or to pensioner status, except children with a proven profound disability.
Official sources
- Solicitud de Permiso de Residente Permanente como Jubilado y Pensionado · Servicio Nacional de Migración / Panamá Digital · checked 2026-10-10
- Requisitos para jubilado pensionado (PRP-JP) · Servicio Nacional de Migración · checked 2026-10-12
- Constitución Política de la República de Panamá, art. 10 · Asamblea Nacional de Panamá · checked 2026-10-11
Pensionado residence and its alternatives
| Route | Money needed | Stay | Work |
|---|---|---|---|
| Pensionado residence | Needs income from PAB 750 a month ≈ $750 | – | – |
| Retired rentista | Needs income of PAB 850+ a month ≈ $850 | 5 yr, renewable | – |
| Retiree permanent residence Mexico | Needs income of MXN 134k+ a month ≈ $7,310 | – | Yes |
| Pensioner visa M Colombia | Needs income of COP 5.3M+ a month ≈ $1,640 | 3 yr | Yes |
| Pensionado residence Costa Rica | Needs income of $1,000+ a month | 2 yr, renewable | Limited |
Questions people ask
How much money do I need for the Pensionado residence?
Assets of over PAB 100,000 (≈ $100,000). Property acquired in own name above this value qualifies for the reduced pension minimum. Income of at least PAB 1,000 a month (≈ $1,000). Monthly pension or income, granted for life; spouses may combine both pensions. Income of at least PAB 750 a month (≈ $750). Reduced minimum when the applicant has personally acquired property in Panama for more than B/.100,000. Income of at least PAB 250 a month (≈ $250). Extra means for each dependant, on top of the pension; it can be shown with an additional pension or a local bank reference.
How long can I stay on the Pensionado residence?
The permit is indefinite and needs no extension.
Can I bring my family on the Pensionado residence?
Dependants can be included under the family-reunification requirements, with an extra B/.250 a month of means for each.
Is there a tax break for Pensionado residence holders in Panama?
Panama territorial income tax (foreign-source income outside the tax base): Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income. It's separate from the visa and has its own conditions.
Tax
Special regime
Panama territorial income tax (foreign-source income outside the tax base)
Tax relief
Details
- Who: Applies to every taxpayer, natural or legal, national or foreign
Panama taxes income produced inside Panama only; the taxable base of a taxpayer is gross income less foreign-source income, exempt income and deductible costs, and the DGI personal return has a separate line for foreign-source income.
Taxed on
Taxable income = gross income minus foreign-source income, exempt/non-taxable income and deductible costs and expenses (Código Fiscal art. 695 as amended by Ley 8 of 2010); art. 694 par. 2 lists activities whose income is not treated as produced in Panama (invoicing from a Panama office for goods moving only abroad, directing from Panama transactions that are completed abroad, distributing dividends out of income not produced in Panama).
Who it applies to
- Applies to every taxpayer, natural or legal, national or foreign (art. 694 definition of contribuyente); no application, visa status or registration is needed to have foreign-source income left out of the base.
- Foreign-source income is reported on line 18 of the DGI natural-person return, citing par. 2 of art. 694 of the Código Fiscal and special laws.
Exclusions
- Income from work or services performed in Panama, Panama-located assets and Panama business activity is Panama-source and taxable.
- Persons domiciled abroad who receive payments for services that benefit persons in Panama and affect Panama-source income are subject to withholding on 50% of the amount remitted under art. 694 lit. e as amended by Ley 8 of 2010, unless they register as taxpayers.
- Costs and expenses attributable to foreign-source income are not deductible against taxable income.
Tax residence
no residency test is recorded.
Visas
The territorial base applies regardless of visa or residence permit type; it is a feature of the income tax, not of an immigration route.
Other taxes
Social security (CSS) and educational insurance are charged on salary by separate tariffs set out in the DGI instructivo (educational insurance tariff 2.75% of the base for employees per the instructivo).
Checked against official sources on , some details partly verifiedChange log
More in Panama
Retirement and live-on-savings visas elsewhere
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
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How this was checked
Checked on 2026-10-12 against 3 official sources. Status: verified against the official sources.
Every figure on this page comes from the official source it links to. The record was researched against these sources, then reviewed separately, with special attention to effective dates and amendments. Where a source does not state something, the page leaves it out.
- Solicitud de Permiso de Residente Permanente como Jubilado y Pensionado · Servicio Nacional de Migración / Panamá Digital · checked 2026-10-10
- Requisitos para jubilado pensionado (PRP-JP) · Servicio Nacional de Migración · checked 2026-10-12
- Constitución Política de la República de Panamá, art. 10 · Asamblea Nacional de Panamá · checked 2026-10-11
Tracked since 2026-10-10. Rule changes and corrections are listed on the changes page, and the methodology page explains how facts are checked. Found something out of date? Email contact@stayglobe.app with a link to the official source.