🇵🇦 Panama
Dollarized economy with the region's most accessible retiree and investor visas
Visa Options
- Friendly Nations Visa (2-year provisional → permanent) — Employment contract, OR $200k+ in real estate, OR $200k+ 3-yr fixed bank deposit
- Pensionado (Retiree) Visa (Permanent) — $1,000/mo lifetime pension ($750/mo if $100k+ Panama real estate owned); +$250/mo per dependent
- Qualified Investor Visa (Permanent (fast-track)) — $300k+ real estate, or $500k+ securities/mixed investment
- Reforestation Investor Visa (5 years → permanent) — $80,000+ in approved reforestation land
Tax Overview
- Income Tax: 0% – 25% (territorial — only Panama-source income taxed)
- Bracket structure: 0% up to $11,000; 15% $11k–$50k; 25% above $50k
- Foreign income: Not taxed — Panama uses a territorial system
- Corporate Tax: 25%
- VAT (ITBMS): 7%
Cost of Living
- Comfortable living (single, typical): $1,500 – $2,200/mo
- 1BR Apartment (Panama City, upscale): $900 – $1,400/mo
- 1BR Apartment (interior towns, e.g. Boquete): $500 – $800/mo
- Groceries: $250 – $400/mo
- Utilities: $100 – $180/mo (AC-heavy)
- Dining out: $8 – $20/meal
- Public transport (Metro/Metrobus): $25 – $40/mo
- Private health insurance: $80 – $200/mo
Relocation Checklist
- Choose a qualifying visa route and retain an immigration attorney (required for most filings)
- Gather apostilled documents (birth cert, police record, bank/pension letters)
- Get a medical exam and Panama police background check
- Open a Panamanian bank account (can be slow — plan ahead)
- Submit application to Migration Service (SNM)
- Obtain temporary/provisional ID card (carnet)
- Apply for Pensionado discount card if eligible (huge retail/travel/medical discounts)
- Register for a Panamanian tax ID (RUC) if earning local income