Panama is consistently ranked as one of the top places in the world to retire. There are many reasons people are choosing this Central American paradise to live out their golden years: the mild climate, modern infrastructure and stunning, natural beauty just to name a few. However there are also real economic incentives to move to Panama, put in place by the Panamanian government in the form of one of the world’s most generous retirement discount programs. Whether you’re in the process of planning your retirement or have already made the move, understanding the extensive discounts available through Panama’s famed Pensionado program can save you thousands of dollars annually. With discounts ranging from 15% to an incredible 50% off everyday expenses, Panama has rightfully earned its reputation as a retirement haven. Here is your Panama Pensionado Benefits Guide 2025.
HISTORY OF THE PENSIONADO VISA
In an effort to attract foreign retirees, promote tourism and residential living, Panama began its pensionado visa program in 1987. To be eligible for the pensionado visa, there are some requirements to meet: proof of “a lifelong monthly income” of $1,000 for individuals and $1,250 for couples and a criminal background check. You should work with an attorney to navigate the visa process. Attorney’s fees to complete the process usually range from $1000-$2000. The timeline for the approval of your visa is typically between three to six months. Once your pensionado visa is approved, if you are a woman over the age of 57 or a man over the age of 62, you are eligible to receive the myriad of discounts available.
NOTE: You are also eligible for the discount if you have another type of permanent visa, such as the “Friendly Nations Visa,” “Reforestation Investor,” or “Business Investor” and you meet the age requirement.
HEALTHCARE DISCOUNTS FOR RETIREES
- 20% discount on medical consultations with private doctors
- 15% reduction on hospital services when not covered by insurance
- 10% discount on prescription medications at pharmacies nationwide
- 15% off dental and eye exams
- 20% off prosthetics and personal assistance devices
UTILITY AND SERVICE DISCOUNTS
Coming from the U.S., utilities were a considerable chunk of my monthly expenses. I have been relieved to find that Panamanian utilities are considerably more affordable and that’s without a jubilado discount. When I do qualify for the jubilado discount, I will enjoy even more savings on top of what I am already pocketing.
- 25% discount on residential electricity, water and gas
- 25% discount on residential internet and cable TV services
- 15% off home insurance premiums
- 20% less for notary and document processing fees
- Discounted rates for home maintenance services
- Special considerations for property tax
- Additional municipal discounts depending on location
ENTERTAINMENT AND LEISURE DISCOUNTS
Now for the fun part! Panama adds more value to your retirement dollar with deep discounts on entertainment and leisure activities. From cheap movie tickets to budget dinners, the savings for jubilados on having fun are next level! You can expect to save:
- 50% off movie tickets, theater performances, and cultural events
- 30% discount on bus, boat, and train fares within Panama
- 25% off at restaurants (excluding alcoholic beverages)
- 50% discount at hotels depending Monday-Thursday, 30% on weekends. PROTIP, contact the hotel directly.
- Discounted entry to national parks and protected areas
- Reduced rates for various tourist attractions throughout the country
- Special discounts for local tours and guided experiences
TRAVEL BENEFITS FOR “JUBILADOS“
Panama knows retirement is all about making the most of your time: for many retirees, that involves travel. Panama offers really generous savings on all modes of transportation making it easier to see the country and the world.
- 30% discount on public transportation including buses and trains
- 25% off airline tickets on Copa Airlines
- 30% discount on ferry and boat services
- Exemption from Panama’s tourist tax
- Luggage importing benefits when first moving to Panama
- Discount packages with travel agencies for international trips
SHOPPING AND RETAIL DISCOUNTS
Everyone is a consumer. The fact that jubilados are offered discounts across the board for items that they would purchase anyway is phenomenal. As much as I don’t love the idea of getting old, I am looking forward to taking advantage of savings on everyday purchases.
- 15% discount at retail stores on regular shopping days
- 10% off at supermarkets (excluding alcohol and tobacco products)
- 15% reduction at hardware stores and home improvement centers
VEHICLE AND IMPORT BENEFITS
To round out your Panama experience, having your own vehicle and belongings from home can make the transition to living abroad that much easier.
- One-time tax exemption for importing household goods (up to $10,000)
- Tax exemption every two years for importing or purchasing a new vehicle
- Reduced vehicle registration fees
- Discounted insurance premiums for vehicles
KNOW YOUR RIGHTS
These discounts are protected by law under ACODECO, or Authority for Consumer Protection and Defense of Competition. This agency ensures that businesses honor these discounts to those who are eligible.
WHAT ARE YOU WAITING FOR?
Living as a retiree in Panama offers financial advantages that can significantly enhance your retirement experience! With discounts ranging from 10% to 50% on everything from healthcare to entertainment, the Pensionado program provides substantial savings that help make your retirement dollars stretch further. Whether you’re drawn to Panama for its perfect climate, affordable cost of living, or proximity to the United States, the extensive discount program adds another compelling reason to consider this Central American gem for your retirement years. Take the time to understand the application process and requirements, and you’ll be well on your way to enjoying these exceptional benefits in your new Panamanian home. ¡Bienvenidos a Panamá!