PENSIONED TOURIST VISA AND RETIREE VISA

Through Law No. 9 of June 24, 1987, developed through Executive Decree No. 62 of August 4 th, 1987 a special immigration system is established for retirees or pensioners and persons retired from the active Visa (however, it is important to mention that the person who applies does not have to prove that he/she is indeed retired), creating a special status for foreigners who fall within the category of Retirees of Private Means.

Persons who obtain Visas under this group shall have the right to the following benefits:

• Total Customs duty exemption for the import of articles of domestic and/or personal use, one time only, for the amount of up to ten thousand dollars (US$10,000.00).
• Total Customs duty exemption every two years for the import or purchase of a motor vehicle for personal or family use.

Persons awarded visa as Retirees of Private Means may invest money in the national territory, as long as they comply with what is established in the Panamanian legislation. However, they may not work within the national territory, except in the following cases:

• When they render specialized services not offered by Panamanians, to the National Government or its decentralized entities.
• When they have invested in a private company amounts representing capital thereof, prior authorization of the Ministry of Labor.
• When they are members of the Board of Directors of the companies in which they have invested.

• Power and request through attorney.
• Good health certificate, issued within three (3) months prior to the request.
• Photocopy of the whole passport, authenticated before Notary Public.
• Four (4) wallet-size photographs
• Original passport, with a six (6) month minimum validity
• In case there are dependents: marriage certificate, and birth certificates duly legalized before the Consulate or by Apostille. Also, police record of each dependent issued in the country of origin, duly legalized through the Consulate or Apostille.
• Document certifying the following: status of retiree or pensioner by a foreign government, international body or private company that the interested party receives a monthly rent or pension no lower than B/. 500.00 or its foreign currency equivalent. Should he/she have dependents, the rent or pension must be for an additional B/.100.00 for each dependent.
• In the case of retirees or pensioners of private companies, he/she must present the documents which certify through the corresponding authorities abroad, that said corporation is operating and attach the corresponding payment slip or receipt for the pension payment.
• One (1) set of additional photocopies of all documents presented, including the passport.

Retiree Visa in Panama:
The foreigner who is able to place a time deposit at the Banco Nacional de Panamá (Panama National Bank) which generates a monthly interest of seven hundred and fifty dollars (US$750.00) may obtain this type of Visa. The interested party, his wife and dependents under eighteen (18) years of age shall have the right to a special Panamanian passport. (At no time shall possession of this special passport be considered as proof of the Panamanian nationality). The Visa and the special Panamanian passport are granted for a period of five (5) years. Upon expiration of the five (5) years, extensions may be requested which shall be for five year periods.

* This Visa and its benefits may not be applied for by foreigners who have previously obtained a visa in the capacity of immigrant for residing in Panama.

Additionally, we inform you that Visa as Retiree does not empower the interested party nor his dependents to opt for the Panamanian nationality through naturalization, that is to say, the time spent in a status of any of these Visas is not considered valid to opt for Panamanian nationality through naturalization.

The special Panamanian passport granted as benefit of the persons requesting this visa, allows the holder to use it to travel to any country in the world, including Europe and Latin America among others. There are some countries for which Panamanian nationals and thus, holders of the special Panamanian passport granted as benefit of his condition of Retiree of Private Means, do need a visa, reason why this passport has a minimum of forty (40) inside pages for stamping the corresponding visas. In the event that the holder of this passport needs to travel to a country requesting a visa for holders of Panamanian passports, he would only need to make the request before the Consulate or Embassy of the country where he plans to travel to, and present the passport.Together with the above, we can mention some of the countries for which holders of Panamanian passports do not need a visa, to wit: Spain, France, Germany, Italy, The Netherlands, Brazil, Chile, Uruguay, Paraguay, Argentina, Costa Rica, among others. To the contrary, visas are needed for Mexico and the United States, among others.

Regarding tax matters, we can inform you that holders of this special passport do not incur economic obligations vis-à-vis the Government for the simple fact of holding such passport; they are however, authorized to invest money in the country and in this case they must comply with the provisions established regarding this matter by the National Constitution and the laws of the Republic of Panama.

Lastly, the law and the executive decree which create and develop the Visa for Retirees do not establish a time limit per year during which the holder of the special passport must remain within the national territory of the Republic of Panama; however, article 68 of Decree Law 16 of June 30 th, 1960 stipulates that foreigners who stay abroad uninterrupted for more than two (2) years lose their status of residents in the Republic of Panama. Due to the above, our recommendation would be that the retiree who is a Retiree of Private Means and holds a special Panamanian passport, makes at least one (1) trip per year to the Republic of Panama, and thus avoids future inconveniences.

Requirements for the Visa as a Retiree in Panama:

• Immigration registration
• Power and request through attorney.
• Good health certificate issued in the Republic of Panama within three (3) months prior to the date of presentation.
• Police Record issued in the country of origin duly legalized through Consulate or by Apostille.
• Two (2) sets of photocopies of the whole passport, each authenticated before a Panamanian Notary Public.
• Two (2) wallet-size photographs.
• Original passport with a minimum validity of six (6) months.
• Certificate issued by Banco Nacional de Panama, certifying that the interested party earns a minimum rent of seven hundred and fifty dollars (US$750.00), stemming exclusively from interests produced by time deposits free of any taxes or guarantees of any nature. The time deposit in question shall be for a minimum term of five (5) years.
• Two (2) sets of additional photocopies of all documents presented, except the passport.

Requirements for obtaining a Retiree Visa in the capacity of a Dependent in Panama :

• Power and request through attorney
• Certificate of Good Health issued in the Republic of Panama.
• Police Record issued in the country of origin, duly legalized.
• Two (2) sets of photocopies of the whole passport, each authenticated before a Panamanian Public Notary.
• Two (2) wallet-size photographs
• Original passport, with a minimum validity of six (6) months
• Letter of economical responsibility.
• Marriage certificate (wife) and birth certificates (children) duly legalized before Consulate or by Apostille.
• Two (2) sets of additional photocopies of all documents presented except the passport.

Panamanian Immigration laws establish that the status of dependent shall only apply between spouses and from parents to children. The responsibility from parents to children is allowed by immigration laws when the children are under aged; or, up to 25 years, as long as they are students and do not work within the territory of the Republic of Panama.

Requirements for Time Deposits at Banco Nacional de Panama, for the Visa as Retiree:

• It must be a sum of around US$209,000.00, given current interest rates for time deposits of 5.2 %, in order to be able to generate a minimum monthly rent of US$750.00.
• Three (3) personal reference letters, authenticated by Apostille or the Panamanian Consulate.
• Three (3) banking reference letters, authenticated by Apostille or the Panamanian Consulate.
• Justification of the source of the monies. The document must be authenticated by Apostille or the Panamanian Consulate.
• Photocopy of the complete passport, authenticated by Apostille or the Panamanian Consulate.

After all documents are presented, the bank checks them, and proceeds to open the Time Deposit account. If there is need for a wire transfer, after reviewing the documents they give us the wire instructions and the account number to make the transfer. One or two days before the transfer, a note must be sent to notify that the transfer to establish the Time Deposit will be sent. This process may be done through a lawyer, using a Power of attorney.

Later, the Bank will issue an authenticated letter certifying the existence of a time deposit, the amount of money, the term in years, and the person it belongs to. As soon as the aforementioned document is obtained, and the rest of the documents have been obtained, these are presented before the Immigration and Naturalization Directorate for its corresponding revision and approximately two (2) months later, the Immigration and Naturalization Directorate shall issue a resolution and the corresponding identity card and passport, valid for five (5) years.

Lastly, the interested parties must find themselves within the Republic of Panama at the moment of presenting the visa, given that it is necessary to attach each person's passport. At the moment of issuing the Resolution granting the Visa, they must proceed to the Immigration and Naturalization Directorate for the corresponding photograph of the identity card, signing of the mentioned Resolution and signing the passports. The immigration card is considered the identity card of the foreigner in our country and has the same function of a personal identity card which guarantees the foreigner the free transit within the national territory.

Benefits for Retiree and Pensioners in Panama

Likewise, they shall have the right to all benefits established by Law No. 6 of June 16 th, 1997 for Retirees or Pensioners. The Republic of Panama offers a variety of benefits within its laws for retired and pensioned citizens of the Third and Fourth Ages and by which is created and regulates the stamp tax named Peace and Social Security. It states that Panamanian or foreign residing in Panamanian territory fifty-seven (57) years old or older, if they are female; or sixty-two (62) years old or older, if they are male; and all retired and pensioned by any gender, will receive benefits such as:

• 50% discount over recreational fees and entertainment fees such as: movie theaters, theater, events, sports events and any public event.
• 25% discount on airfare tickets
• 25% discount on the value of any individual meal at any restaurant
• 15% discount on fase food stablishments (Nacional or Internacional )
• Discount on regular hotels, motels and pensions.
• 15% discount on medical services
• 10% discount on prescrited medications.
• 20% discount on medical appointments
• 25% discount on electric consumption
• 25% discount on telephone consumption.
• 20% discount on prosthesis as well as al assistance equipment and accessories.
• Personal loans y commercial loans will be fee of taxes stipulated be the Especial Interest Compensation Fund (FECI, in Spanish)
• Discount on percent points over interest rates on mortgage loans for primary residencies.
• Freezing of property taxes, as long as the residence is under the elder name and is its primary residence.
• The exemption in the payment of the appraisal rate of the property, as long as it is the only one and constitutes the primary residence.
• Discount on Airport taxes.
• Among others...

• Both spouses (legally married)
• Under age children
• Legal age children not exceeding 25 years old, who are single, attend regular courses at high schools or colleges, and are parent-dependants.

In case any additional member of the family would be immigrating later on, he or she shall do it upon approval of the Visa for the foreigner or family group applicant. In such case, he or she shall apply for the Visa as a dependant of the resident family member. Parents of the family, 60 years old or more, qualify as dependants.

Requirements:

• A power of attorney granted to, and the relevant application shall be filed by, a qualified lawyer. The power of attorney must be personally filed, or may be filed before a Notary Public. Such instrument shall include general data of the foreigner(s) applying for the Visa (correct address, telephone number, fax number, etc.), as well as the full name of its parents and country of citizenship.
• Eight (8) wallet-size photographs.
• A certified or cashier check in the amount of one hundred Dollars (US$100.00) made in favour of “Tesoro Nacional” (National Treasure ).
• A certified or cashier check in the amount of five hundred Dollars (US$500.00) made in favour of “Ministerio de Gobierno y Justicia” (Ministry of Government and Justice ), as repatriation bond.
• A health certificate issued within three (3) months before filing date of the relevant application (it shall contain the date, signature, and seal printing the name, code and permit number of the physician).
• Criminal record issued in the applicant's country of residence (required only if the interested party has less than two (2) years residing continuously in Panama) duly legalized before the Consulate or by Apostille.
• Original passport, valid for at least six (6) months, and a photocopy of page of passport where general data of holder, and entry and exit seals, are shown.

Affidavit describing personal history (which is filed in the Immigration Service Office).

In case there are dependents: marriage certificate (spouse); birth certificates (children) duly legalized before the Consulate or by Apostille; police record of each dependent (except children under 18) issued in the country of origin or residence, duly legalized through the Consulate or Apostille; eight (8) wallet-size photographs for each dependent; health certificate; original passport, valid for at least six (6) months, and a photocopy of page of passport where general data of holder, and entry and exit seals, are shown.

For obtaining a Visa, the foreign applicant shall comply with the requirements of one (1) of the three (3) following options:
- The applicant shall hold a two (2) years term deposit account, bearing he or her name, with a Panamanian bank, in the minimum amount of two hundred thousand Dollars (US$200,000.00);
- The applicant has purchased, in its own name, real property in the national territory with a minimum investment of two hundred thousand Dollars (US$200,000.00), and it shall provide evidence regarding the source and amount of funds for covering its general expenses; or
- The applicant has purchased, in its own name, real property in the national territory with a minimum investment of eighty thousand Dollars (US$80,000.00), and, in addition, it shall open a two (2) years term deposit account, bearing he or her name, with a Panamanian bank, in the minimum amount of one hundred twenty thousand Dollars (US$120,000.00), and it shall provide information regarding the source and amount of funds with which it shall cover its general expenses.

In case of option number 1, the foreign applicant shall submit a letter issued by a local bank certifying that the applicant holds a two (2) year term deposit account, bearing its name, in the minimum amount of two hundred thousand Dollars (US$200,000.00), which shall also specify such account number, together with a bank certified copy of the term deposit account certificate or contract.

For option number 2, the applicant shall make available a Public Registry Certificate evidencing the existence and ownership of such real property in name (individual) of the Visa applicant, as well as a copy of the sale contract whereby the applicant acquired such real property. Additionally, the applicant shall state the source and amount of funds for covering its general expenses.

In the event of choosing option number 3, the foreign applicant shall provide a Public Registry Certificate evidencing the existence and ownership of such real property in name (individual) of the Visa applicant, as well as a copy of the sale contract whereby the applicant acquired such real property. Furthermore, the applicant shall furnish a letter issued by a local bank certifying that the applicant holds a two (2) years term deposit account with such bank, in a minimum amount of one hundred twenty thousand Dollars (US$120,000.00), and such letter shall identify the number of such account, together with a bank certified copy of the term deposit account certificate or contract. Additionally, the applicant shall state and produce proofs of source and amount of funds with which it shall cover its general expenses.

Remarks
Any foreigner shall be previously registered with the Immigration Service Office, and for such purposes it shall satisfy the following requirements:
- If the application for the visa includes dependants, the requirements for a resident-supported individual's immigrant visa shall be complied with, and, furthermore, an additional income of seventy five Dollars (US$75.00) per dependant shall be proved.
- Any foreign documents shall be authenticated by Apostille, or by the Panamanian embassy or consulate in the issuing country, as well as by the Ministry of Foreign Relations of Panama.
- Any non-Spanish language foreign documents shall be translated by a Certified Public Translator duly admitted by the Ministry of Government and Justice.

Term for processing and obtaining the relevant resolution: 2 to 4 months.

There are other law in the Republic Panama that also offer great benefits that will make it easier when taking a decisión to invest in “PANAMA”.

For any other information on counseling or legal services within real estate interests, visas and other do not hesitate to contact us today at info@panamahotrealestate.com and one of our experienced lawyers of the Republic of Panama will get to you shortly.