How to Get Celebrity Status in Panama, Courtesy of the Pensionado Program
Retire in Style
Panama comes in third position overall in our 2009 Global Retirement Index. In the Special Benefits for Retirees category however, it comes in top position. That’s because, without question, Panama has one of the best retiree programs in the world.
One International Living reader can attest to that—83-year-old Albert Fine. He’s lived in Panama City for seven years and takes full advantage of Panama’s pensionado (retiree) program.
Albert never has to wait in line at a restaurant, hospital, or bank. His condo fees for an area he describes as “the Beverly Hills of Panama City” run $160 a month. He pays just $185 airfare from Panama City to Miami…round-trip.
He eats out regularly at some of Panama’s most popular restaurants. “A couple of bucks for breakfast, $2.25 for lunch, less than $5 for dinner.”
Albert has figured out how to live like a king on a pensioner’s income. You can, too. It’s easy to qualify for Panama’s pensionado program, and when you do, here are just some of the benefits you will be entitled to:
* 50% off entertainment—movies, theaters, concerts, and sporting events
* 30% off bus, boat, and train fares and 25% off airline tickets
* 50% off hotel stays from Monday through Thursday (30%-off from Friday through Sunday)
* 25% off at restaurants
* 15% off hospital bills (if no insurance applies); 10% off prescription medicines; 20% off medical consultations; and 15% off dental and eye exams
* 50% off closing costs for home loans
You are also entitled to a one-time exemption from duties on the importation of household goods (up to $10,000) and an exemption every two years from duties for the importation or local purchase of a car.
To qualify, you must draw a pension of at least $1,000 per month. You can, however, apply with a minimum pension of just $750 if you invest at least $100,000 in property in Panama. Another plus: you may now pool your pension with your spouse’s pension to meet the minimum pension requirement.
The U.S. presence has been such a strong factor in Panamanian life that it can be difficult to remember you are in Central America. In Panama City, high-rise condos overlook the Bay of Panama. Modern shopping centers offer all the latest brands and gadgets anyone could possibly need.
Outside the city you will find the true treasures of Panama. There are beautiful beaches everywhere, with the Atlantic Ocean on one side and the Pacific on the other. In the countryside, you’ll also find rolling green tropical mountains, fertile farmlands, lush rainforests, and small towns where foreign visitors are made to feel like family. There truly is something for everyone in Panama—so we don’t advise going purely for the retiree benefits…though it really is an attractive offer.
Once you qualify as a pensionado in Panama, learn these words: “Descuento de jubilado, por favor,” which roughly translates to “Retired person’s discount, please.” Then sit back and enjoy your celebrity status.
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Hi Laura,
Great job!
You detailed what Panama has to offer. Anyone looking to retire overseas should take a long look at Panama.
I have live here on the Pensionado Visa for over three years now! NO airfare here for anything close to what you have stated! Food can be cheap when you eat out! But not at those prices! Panama is not cheap any more! Even if you live with the Panamanians like I do! Movie tickets are cheap! Medical costs are about one quarter of the USA! Auto Insurance about half of the USA! Car are more expensive! Corruption is still a way of life here! Lawyers, businesses, craftsmen that take your money and never deliver the services paid for! Panama is still a great place! But crime is on the rise and the infrastructure needs to be completely rebuilt! Other wise Panama is a Paradise!!
I have been operating a business in Panama for 5 years and you cannot imagine the degree of stealing and the incompetence of a lot of the lawyers and the volume of paperwork and bureaucracy involved.
The labor law is 100% for the workers and the employer has no say in anything.
You have to pay them a salary, 4 weeks vacation, decimo which is about 1 week salary every 4 months and their social security.
$8 per day does not seem much but it adds up with decimo, overtime, vacation and social security so be careful before hiring anybody, speak with a lawyer who understands the labor laws, even then, the labpor office will make up the rules to suite the worker.
It seems that the different offices make up the rules on the spot and most of them have no idea what their job entails.
Firing a worker will land you in front of a labor officer who will tell you how much you have to pay the worker even if you caught him/her stealing you blind or if he walks off the job without giving notice, he is still entitled to a pay off.
I find taxes and fees higher than here in the states and there is no set amount for different permits, it is made up as you go along.
The office workers and permit offices seems to make up the prices as they go along.
Of course, you need a permit for everything and you will never know how much it is going to cost you and when you will get it. Nothing is standard and the prices vary on the person at the desk and if you are a gringo or a Panamanian. There is a GRINGO price and a Panamanian price.
The prices are not much different than in the states and I wonder how the Panamanians survive.
I could go on forever.
Robert C Wright.
I am constantly surprised by the lack of updated information on residency requirements for all the countries. Panama’s new laws take effect March 1st , 2010. Your above article addresses that to a point. There is still no clarification on whether a spouse can come in with the $1000 a month pension. Some sites say the spouse needs an additional $250 a month to qualify, yours says no. Anybody know what the real story is here? It does make a difference for those of us on a tight budget. I think that the realestate companies keep showing the old requirements on their websites to entice people to come to these countries. If people are going to have websites giving out infomation they should keep them updated.