Panama's Pensionado visa: $1,000 a month from a lifetime pension, and permanent residency on approval.

The main applicant needs $1,000/month in lifetime pension income. Each dependent adds $250/month to the requirement. If you own Panamanian real estate valued at $100,000 or more, the threshold drops to $750/month. US Social Security is the usual qualifying income.

Government fees are modest, and the largest line is usually the attorney. Once approved, you hold permanent residency. There is no 2-year or 5-year renewal cycle to track.

Fees and processing times aren't statutorily fixed. Confirm current figures with your attorney. We haven't published a full document checklist here because the sources behind this page don't give one we can stand behind. Your attorney will give you the current list, and the apostille guide covers the US-side paperwork most countries share.

Pensionado status comes with statutory discounts and access to part of Panama's public health system. Neither replaces insurance, and the part you can't use is the part that matters most for serious illness.

Most expat retirees plan around private hospitals in Panama City or international insurance from the start. The discount applies at those private hospitals, but a 15% cut on a large bill is still a large bill. Discounts are set by statute and can change: a bill to expand them was vetoed in September 2026, with a replacement under negotiation. Don't budget for benefits that aren't law yet.

Panama taxes only Panama-source income. US Social Security, US pensions, traditional IRA and 401(k) withdrawals, Roth distributions, and US dividends are foreign-source, so Panama doesn't tax them. It isn't a special pensioner regime you apply for; it applies to every resident.

Example: $2,000/month in Social Security ($24,000/year) for a single filer with no other income is below the $25,000 base amount, so none of it is federally taxable. Panama taxes none of it either, and because Panama uses the US dollar there's no currency conversion. You keep the full $2,000. Withdrawals from traditional accounts are still ordinary income to the IRS, and RMDs still apply. Your last US state of residence may still tax you.

Original Medicare covers nothing in Panama. There is no bilateral healthcare agreement between the US and Panama that changes that. Medicare Advantage is incompatible with a full relocation under the universal 6-month-abroad rule. Some Panama City private hospitals, Hospital Punta Pacífica among them, have historically offered direct billing for Medicare Advantage emergency coverage, but that doesn't change the rule that Medicare doesn't pay for routine care abroad.

Local plans also only cover treatment inside Panama, which doesn't help if you plan to return to the US for major procedures. Whether to keep Part B while you're abroad is a separate decision with a permanent penalty attached.