Background and Legal Considerations
A residence permit as a "retiree" may be requested by foreigners who are retired from their own business or personal activities and live on their own income, as long as they set up a term deposit with the Banco Nacional de Panama (National Bank of Panama), for a minimum period of five years. It is required that such a term deposit must generate a monthly interest of not less than US$ 750. With current interest rates this requires an investment of approximately US$ 230,000.
The Retiree Residence Permit will be cancelled if the Immigration Department should find that the term deposit placed with the Banco Nacional de Panama has been withdrawn, transferred to another person or has been pledged or charged otherwise, before the expiration of the five-year period.
This Retiree Residence status gives the right to permanent residence in Panama, and most interestingly, the right to obtain a limited Panamanian Passport good for travel. However, this non-citizens passport does not confer the Panamanian nationality or any other Panamanian citizenship rights.
The Panamanian non-citizen passport serves the purpose of a travelling document only; it does not serve the purpose of confering the Panamanian nationality to its holder. The passport itself indicates the holders nationality and thus the holder would need to obtain the visas required by his o her nationality. In the past the authorities of most countries treated the holders of these passports as Panamanians for visa purposes; but this is no longer the case due to the tightened immigration and visa requirements worldwide.
Gracious living in colonial villas in Panama
Furthermore, a Retiree Residence Permit holder has the right to import personal effects, a car, etc. free of import duties, the right to invest and carry out business in Panama, as long as the residence permit holder complies with the Panamanian laws and regulations.
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Retiree Residence Permit holder even acquires the right to work
in Panama under the following conditions: |
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It is however very important to note that those who obtain the Retiree Residence Status will never be entitled to apply for Panamanian citizenship since this is a privilege reserved to the holders of Immigrant Status (for example Investor Immigrants).
Further Information
Through its office in Panama City, Henley & Partners provide a complete range of services, including advice and assistance regarding the different residence programmes and the acquisition of real estate. Please contact us for more information.
