Country Article / Postcards

Looking for the Best Retiree Deal in the World? Think Panama

Date: 12/01/2005

Dear International Living Reader,

Panama offers you First-World infrastructure, stable laws, democracy, a free-market environment (Panama boasts the second-largest free trade zone in the world after Hong Kong), vibrant culture, great weather, and friendly people.

Plus, Panama has the most appealing program of special benefits for foreign residents and retirees you'll find anywhere in the world today.

Now, you may be thinking: “Pensioner? Retiree? That leaves me out.”

Think again. Because the rules for becoming a “pensioner” and qualifying for this visa program in Panama are probably not what you expect.

In fact, anyone who has a pension (as long as they are over the legal age--18) may apply and can qualify as a pensionado in Panama. All you need is a guaranteed pension income of only $500 per month ($600 per month for a couple). It must be a pension from a government agency (e.g. social security, disability, armed forces) or from a company.

As a qualified pensionado/retiree, you are 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 (only sales tax and luxury tax would still apply).

In addition, you’ll receive tons of everyday benefits, such as:

Travel and Entertainment Benefits

* 50% off the price of admission to movies, theaters, sporting events, and other public events

* 30% off fares for buses, trains, small boats, and ships

* 25% off the fares of national airlines

* 50% off hotels and motels from Monday to Thursday, and 30% off from Friday through Sunday

* 25% off restaurant food and 15% off fast food chain restaurants

Health Care Benefits

* 15% off hospital and private clinic services, if you have no hospital insurance

* 10% off prescription medications

* 20% off medical consultations

* 15% off dental and optometry services

Professional Fee Discounts

* 20% off technical and professional service fees

* 50% off closing costs and commissions for loans

* 15% discount on loans

* 1% reduction of mortgage interest rates

Utility Expense Discounts

* 25% discount on power bills of less than $50

* 25% off fixed cost of telephone service

* 25% off water charges below $10

There are even some real estate tax breaks that are available to a pensionado. For example, if a pensioner owns a home in his own name, and it is his only property, the government cannot raise the tax on it even if the property is reassessed. In other words, any increase in Panamanian property tax is frozen.

The visa process is relatively simple. It's a one-time application. There are no renewals of the visa and the only additional cost is a renewal of a multiple entry permit every two years for a small fee.

Other residency programs require you to file a renewal each year. This involves time, hassle, and mandatory additional fees. In Panama, you can apply today for no more than a few thousand dollars (the total cost of legal fees and application costs should not run you much more than $2,000 per couple…be extremely cautious of lawyers who quote you a cost that is significantly higher--or lower--than that) and have residency for life. Your visa only takes about two months to process. It's fast. It's affordable. It's easy.

Panama truly is the best residency deal in the world today.

Rainelda Mata-Kelly
For International Living

P.S. If you wish to conduct business in Panama (visits to the Immigration Department, appointments to open bank accounts, etc.), you should wear conservative clothing. Shorts, sandals, tank tops, and other such items of casual clothing are generally frowned upon. Moreover, government offices will bar entrance to anyone dressed in such attire.

Editor’s note: Rainelda Mata-Kelly (of the law offices of Rainelda Mata-Kelly, LL.M.) is writing from the Bahia Mar Resort in Florida, at Day Three of IL’sLive Overseas Conference. Rainelda will detail for attendees the important legal information they need to know to live, invest, and do business in Panama, including how to take full advantage of the impressive pensionado program.

Don’t despair--if you can’t join us in Florida, we’ve found a way to bring the Live Overseas Conference to you. Your Passport to a Luxury Retirement...on $19 a Day contains CD recordings of all the top speakers from this event--including Rainelda Mata-Kelly--telling you how you can retire overseas on a pensioner's budget...reduce your tax burden...own world-class property for pennies on the dollar... Plus, you can explore all these opportunities from the comfort of your living room.

But the Live Overseas Conference CD recordings are just one part of this new “passport” we’ve prepared especially for you. With access to this information, six short months from now, you could be living your dream life overseas. For full details, visit http://www.ilbookstore.com/product1.asp?SID=1&Product_ID=40