Moving to Panama: the complete, date-checked guide
The Pensionado is the best retiree deal on paper — permanent residency, day one, plus discounts on almost everything.
An ordinary Tuesday: morning coffee as the city wakes under the skyline, a market run where the dollars in your pocket are the actual currency, lunch with the Law 6 pensionado discount quietly applied, and an evening stroll through Casco Viejo's plazas while the bay goes gold. In Boquete, swap skyline for volcano views and 22-degree 'eternal spring'.
Rent from ~$700/moYour money goes ~46% further than in the USEntry line: US$1,000/mo lifetime pension (US$750 if you own $100k+ of Panamanian property)Emergency: 911
1-bed from ~$700/mo in Panama City; less in Boquete/David (indicative, checked Nov 2026) · Cost anchors are indicative — the residency figures below are the verified ones.
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Panama's Pensionado is the only programme on this list that hands a retiree PERMANENT residency on arrival terms: a US$1,000/mo lifetime pension, no temporary years, plus a national discount card worth 15–50% off everything from restaurants to hospital bills. The country underneath is just as practical — dollarised, territorial-tax (foreign income simply isn't taxed), with US-grade private hospitals in the capital. The homework is real but small: every application runs through a local attorney, banking is old-school and in-person, and the Pensionado's one hard edge is that it never comes with a work permit.
The residency routes
Pensionado (permanent, from day one)
The best retiree visa in the world on paper: a lifetime pension of US$1,000/mo buys PERMANENT residency immediately — no temporary years first. Own Panamanian property worth over US$100,000 in your own name and the pension line drops to US$750/mo. Add US$250/mo per dependant. No minimum age.
The line: US$1,000/mo lifetime pension (US$750 if you own $100k+ of Panamanian property)
Working: Pensionado residents CANNOT obtain a work permit — full stop. You may own a business, invest, and take dividends, but salaried or fee-for-service local work is off the table.
How long: Permanent residency from approval.
Leads to: You're already permanent. Note: secondary sources say Pensionado status may not lead to naturalisation — Panama routes most citizenship through other categories (5 years of ordinary permanent residency). Confirm with your attorney if citizenship is the goal.
Source: SNM Pensionado programme (Law 6 discounts) · checked Nov 2026 · secondary · ⟳ Figures set in law in US$ (Panama is dollarised) — they change by decree, not by exchange rate.
Friendly Nations visa
Citizens of 51 'friendly' countries (Canada, US, UK, Germany, Australia and South Africa are in; Albania and the Philippines are NOT) qualify with ONE of: US$200,000 of Panamanian real estate, a US$200,000 3-year fixed-term deposit in a Panamanian bank, or a genuine Panamanian employment contract. Note: the old 'open an account with $5,000' route was abolished in 2021.
The line: US$200,000 in Panamanian property or a 3-yr bank deposit (or a real job contract)
Working: Residency alone doesn't include a work permit — but on the employment-contract variant the work permit is the point. Other residents apply to MITRADEL separately, within Panama's foreign-worker quotas (max 10% of a firm's ordinary staff, 15% for specialists).
How long: 2-year provisional residency, then permanent.
Leads to: Permanent residency after the provisional 2 years; citizenship generally after 5 years of permanent residency.
Source: Executive Decrees 197 & 226/2021 — SNM · checked Nov 2026 · secondary · ⟳ Set by executive decree in US$ — has already been rewritten once (2021), so re-verify at filing time.
Self-Solvency / Qualified Investor
Self-Solvency: US$300,000 in real estate, a 3-year fixed deposit, or a mix (2-year provisional → permanent). Qualified Investor: direct permanent residency for US$300,000 in real estate, US$500,000 in Panama securities, or US$750,000 in a fixed deposit, held 5 years.
The line: US$300,000 invested (property, deposit or securities routes vary)
Working: Business ownership and investment activity yes; local employment still needs a MITRADEL work permit unless you're permanent under Qualified Investor with your own company structures.
How long: Provisional 2 years → permanent (Self-Solvency), or immediate permanent (Qualified Investor).
Leads to: Permanent residency, then citizenship after 5 years of PR.
Source: SNM investor programmes · checked Nov 2026 · secondary · ⟳ Set by decree in US$ — re-verify at filing.
Remote Worker short-stay visa
A dedicated 9-month visa (extendable once) for people earning US$3,000+/mo from a foreign employer — health insurance valid in Panama required. No path to permanent residency, but fully legal remote work.
The line: US$3,000/mo foreign employment income
Working: Remote work for your foreign employer is expressly authorised. No Panamanian employment, and no conversion to residency from this visa.
How long: 9 months + one 9-month extension (18 months max).
Leads to: Nothing directly — switch to Friendly Nations/Pensionado if you fall for the place.
Source: Executive Decree 198/2021 — SNM · checked Nov 2026 · secondary · ⟳ Set by decree in US$.
Work permit via an employer (MITRADEL)
Sequence matters in Panama: residency first (any category), then your employer applies to MITRADEL for your work permit — inside strict quotas (foreigners ≤10% of ordinary staff, 15% specialists) and a long list of professions reserved for Panamanians only (law, medicine, dentistry, accounting, engineering and more).
The line: Residency + a Panamanian employer inside the quotas
Working: Full local work rights for the permitted role once MITRADEL approves.
How long: Permit tied to employment, renewable.
Leads to: Pairs with Friendly Nations/Pensionado timelines toward permanent residency.
Source: Labour Code Art. 17 quotas — MITRADEL · checked Nov 2026 · secondary · ⟳ Rules-based; the restricted-professions list changes rarely.
→ Test these routes against YOUR income in the planner
Who can just show up?
There is no tidy visitor-extension system — overstays accrue a small monthly fine (≈B/.50, secondary sources), but the real answer is to file for residency, which Panama makes unusually easy. All residency applications are filed in-country and must go through a licensed Panamanian immigration attorney.
Health
Must-have insurance: No mandatory insurance for Pensionado or residency generally (a local doctor's health certificate is a filing document, not cover). The Remote Worker visa DOES require insurance valid in Panama.
Public system: Two public doors: MINSA hospitals/clinics charge nominal fees (≈US$2 GP, ≈US$5 specialist, per secondary sources) and are open to residents; the CSS social-security system covers employees (payroll ≈9.75%) — non-working Pensionados are NOT CSS-covered, so most expats self-insure privately and use MINSA as backstop.
Private costs: Local private plans ≈US$100–200/mo at typical retiree ages; Panama City's private hospitals (Pacifica Salud/Johns Hopkins-affiliated, Hospital Nacional) are regional-class (estimates, checked Nov 2026).
Services that can help
- Compare expat health insurance (partner link coming soon)
Safety — can you walk the streets at night?
Panama City is two cities: the expat/business districts (Punta Pacifica, El Cangrejo, Casco Viejo, Clayton) where evening walking is normal, and districts locals name without hesitation — El Chorrillo, Curundú, San Miguelito's rough zones, and Colón city — where you don't walk at all. Boquete and the interior towns are small-town calm. The rule is neighbourhood, not country.
Official advisory (Government of Canada, checked Nov 2026): Take normal security precautions (with regional advisories — avoid the Darién region and parts of Colón province) — check the live advisory.
Homicide rate: 11.7 per 100,000 (2023, UNODC via World Bank).
Money & tax
Panama City prices like a US city that stopped inflating: modern supermarkets and malls at near-US prices, local markets and fondas far cheaper. Interior towns (Boquete, David, Pedasí) run much lower. Your dollar is THE dollar — no exchange risk at all.
Tax: Tax residency at >183 days, but Panama is territorial: only Panama-source income is taxed. Foreign pensions and foreign remote income are simply not taxed here — the legal foundation of the whole expat model.
Banking: A serious international banking centre with a catch: opening an account is in-person, interview-based and document-heavy (passport, bank references, source of funds). Start it on your filing trip with your attorney's introduction — accounts are a functional prerequisite for several residency routes.
Services that can help
- Send money internationally for less (partner link coming soon)
- Land connected: travel eSIMs (partner link coming soon)
First steps
- Choose your category and hire a licensed Panamanian immigration attorney — every residency application in Panama is filed through one, by law. ⏱ 1–2 weeks of quotes · Attorney fees typically low-thousands USD all-in (estimate)
- Order your apostilled police record and (for Pensionado) your lifetime-pension letter. ⏱ 2–8 weeks · ≈US$20–60 (estimate)
- Line up the money leg: property purchase, fixed-term deposit, or pension proof, per your category. ⏱ Varies by route · The pathway investment itself
Questions, answered
Is the Pensionado really permanent immediately?
Yes — it's direct permanent residency, no probationary years. That's unique among the big retiree programmes. The trade: Pensionado residents can never hold a Panamanian work permit.
I heard Friendly Nations only needed a $5,000 bank account. True?
It was — until 2021. Decree 226 raised the bar to a real tie: US$200,000 in property, a US$200,000 3-year deposit, or a genuine employment contract. Any site still quoting $5,000 is out of date.
Can Albanians or Filipinos use Friendly Nations?
No — neither country is on the 51-nation list. The Pensionado (if you have the pension) and the investor routes remain open to all nationalities.
Do I need health insurance?
Not for residency — except the Remote Worker visa, which does require it. Most pensionados buy a local private plan (≈US$100–200/mo) and use MINSA clinics as backstop.
Is my pension taxed in Panama?
No. Panama taxes only Panama-source income; foreign pensions and remote income are untaxed even as a tax resident.
Sources
Figures checked Nov 2026. MovePath is guidance, not immigration legal advice — confirm with the consulate before committing money.