Live in Panama

Frequently asked questions about Panama

A few days ago one of our team members had a pleasant conversation on a flight with a person who was evaluating the possibility of moving to Panama. Between stories about motivations and all that Panama can offer, the conversation ended with a list of concerns that were later answered by email. The following article is based on the questions that arose from this entertaining talk.

Immigrating is always accompanied by a series of questions about the destination to which we finally decide to call home.

Beyond the due diligence process, there are always questions that are only answered when you chat with someone who is actually there. We decided to publish the questions from the conversation that our members had, to summarize a lot of the concerns that people who frequently contact us have.

Let’s begin.

What type of Visas does Panama offer?

Panama has multiple visa categories. Each of these permits has a specific definition, benefits, and requirements. The most popular are:

Residence through Friendly Nations (Specific countries)
Residence Permit through the Panama-Italy Agreement
Residence through Self-Economic Solvency
Residence as a Qualified Investor
Residence as Pensioner or Retiree

All visa procedures must be done through a Panamanian lawyer who consolidates all the information and presents it to the Migration Authority, the entity in charge of the matter.

Currently, the Residence Permit as a Qualified Investor is the only one that can be applied for online through a local lawyer and does not require being in the country until the approval of the process (30 days).

Is it true that I need a bank account to get a visa?

Yes, this is correct. Most of the time it is your lawyer who takes care of all these procedures to give you peace of mind during the process. A good piece of advice will always be to contact people who really have experience in this type of procedure. Avoid unnecessary waste of time. The legislation is very clear in the form of the presentation, the steps to follow, and the processing times.

Are there retirement visa residences in Panama?

Yes. Furthermore, considering that the country has one of the best benefits programs in the world (Residence Permit as Retiree and Pensioner), the elderly will always have special attention.

Where can you find low-rise buildings or two-story houses in Panama City?

Architecture has changed a lot in recent years. The Skyline has become one of the city’s icons. Just look to the right before landing at Tocumen airport to appreciate it.

The low-rise buildings -which by the way are architectural jewels- were relegated to traditional neighborhoods such as El Cangrejo, Bellavista, Marbella, and Coco del Mar. Today there are even organized tours to appreciate the beauty of these constructions.

What are the benefits for retirees?

This is probably the answer that we most like. Panama has led (sometimes first, sometimes second) in the ranking of countries to retire in the world. The fundamental reason is the Residence Permit as a Retiree and Pensioner or the Pensioner Visa as it is commonly known.

And the benefits are valid for every Panamanian woman (55 years old) or man (60 years old) or legal resident in the country. The retiree can enjoy a series of discounts on entertainment, tourism, gastronomy, public services, medical expenses, etc. Here are some of these benefits:

50% discount on entertainment such as cinemas, theaters, sports, and other public shows. In recent years, world-class shows such as Cirque du Soleil have been presented in Panama.
30% discount on bus, metro, ferry, and train fares. The country is the only Central American country with a metro system in the city. It currently operates with two lines and several more are planned to open in the coming years.
25% discount on air tickets (with national origin). This discount applies to airline sales offices any time of the year. Coming to and from Panama has never been easier.
30% to 50% discount on hotel stays
15% to 25% discount in restaurants
Discount of 15% on the total bill for services of hospitals and private clinics.
Discount of 20% on the price of drugs in pharmacies.
Discounts on medical services, such as consultations, dentistry, and optometry, will depend on which of the services described above is used.
20% discount on the price of all prostheses, as well as all assistive devices and accessories.
1% discount on the interest rate on home mortgage loans for your own use.
Property tax freeze.
Exemption from payment of the valuation fee.
25% discount on monthly electricity consumption.
Discount of 50% on airport tax or fee.
Discount of 25% on fixed charge for telephone service.
25% discount on the rate for water consumption, public or private.

In addition, foreign pensioners are entitled to two great benefits:

A one-time tax exemption on the importation of household goods (up to $ 10,000)
A tax breaks every two years when importing or (even better) buying a car locally.

What is the status of COVID and vaccination in the country?

Visitors from any country can visit Panama. However, unvaccinated travelers with only one dose of the vaccine will need to present a negative COVID-19 test to enter the country.

Where can I go shopping in Panama?

Panama is one of the most important shopping centers in the region. Here you can find the corporate offices of many global brands that are distributed in Latin America.

Panama City has a series of large shopping centers with a wide range of brands. The most recognized are Multiplaza, Soho Mall, Town Center and Albrook Mall.

A good option for this type of shopping is Felix, one of the most recognized department stores in the country for its variety of products and attention.

Panamá (multiplaza.com)

Shop now online | Felix Panamá

What are the requirements to work as a foreigner in Panama?

This is a question that will depend on the type of visa to which you apply. The important thing is that this procedure must be done at the Ministry of Labor and requires the prior approval of your immigration permit.

One of the post-pandemic novelties is the creation of the Digital Nomad Visa that will allow foreigners to stay for at least nine months in the country working for their businesses abroad.

This category is open to all foreigners who meet the following conditions:

Has a contract as an employee of a foreign transnational company or is a self-employed worker, in the telework modality.
Performs functions that are effective abroad.
Receives income from a foreign source and with a yearly amount of no less than $36,000 or its equivalent in foreign currency.

Are there nurses or people who assist older adults at home?

Yes, and there are many ex-pat groups on social media that are generally a good reference point for tips and advice.

What are the differences between Costa Rica and Panama in terms of property costs?

It will depend on the amount willing to invest and the place where the property is located. Both markets have advantages that are measurable when making a final decision.

What are property taxes like in Panama?

Property taxes are collected by the DGI (Dirección General de Ingresos) and these are made according to a combined progressive rate that is established in the Tax Code and is defined as follows: the entity will determine which real estate should be considered as assets subject to retention, as well as the value to be retained.