Planning for a Panama Retirement

One of the reasons Panama has become such a popular retirement location is because of their generous benefits for those on a pension. Panama’s “Pensionado program” is considered to be among the best in the world.

To qualify, you don’t even need to be retired.  Actually, anyone over the age of eighteen may apply; all that is required is a guaranteed pension (from a government agency or a private company) of only $500 per person, $600 for a couple, a clean police record from the country where the applicant resides and a health certificate from a Panamanian doctor.

Some of the key benefits are:

• Import tax exemption for household goods
• Tax exemption to import a new car every two years
• 25% discounts on utility bills
• 25% discount on airline tickets
• 30% discount on bus, boat and train fares
• 1% reduction on home mortgages for homes used for personal residence
• 20% discount on doctor’s bills and 15% on hospital services if no insurance applies
• 15% off on dental and eye exams
• 10% discount on medicines
• 20% discount on bills for technical and professional services
• 25% off restaurant meals
• 15% off at fast food restaurants
• 50% discount on entrance to movie theatres, concerts, cultural and sporting events
• 50% discount at hotels from Monday to Thursday, 30% on weekends

These benefits are certainly not the only reason to retire in Panama and alone are not enough to convince me to retire there, but they certainly go in the column of the pros of living in Panama.