Panama retirement visa (pensionado) 2026: the income requirement, single or married, and how a life annuity qualifies
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: Panama’s retirement visa, the pensionado permit, requires a certified lifetime pension of at least $1,000 a month for a single applicant in 2026 and $1,250 a month for a couple ($250 more per dependent), and spouses may add their two pensions together to reach it (Decreto Ejecutivo 320 of 2008, art. 201, as amended in 2009). The regulation expressly covers private pensions administered by a foreign insurer, so a life-only SPIA bought while you still live in the US is a direct way to qualify: at 62, about $152,000 to $172,000 of premium buys $1,000 a month for life (illustrative, September 2026 rates). Law firms report that owning Panamanian real estate worth more than $100,000 lowers the bar to $750, and the permit is permanent, with no renewal.
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Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
The Panama pension visa requirement in 2026
If you want to retire in Panama, the pensionado visa (often searched as the Panama retirement visa or Panama pension visa) is the standard route. Panama’s retiree permit (residente permanente en calidad de jubilado o pensionado) is set by Decreto Ejecutivo 320 of 2008, as rewritten by Decreto Ejecutivo 26 of 2009 (Gaceta Oficial 26238). The core line is short: you need a certification that you receive a pensión vitalicia, a lifetime pension, of no less than B/.1,000 a month. The balboa trades one to one with the US dollar, so there is no currency math and no index that creeps up each year.
| Item | Requirement | Source |
|---|---|---|
| Main applicant | $1,000 a month, lifetime | DE 320 art. 201(1), as amended |
| Each dependent | $250 a month more, by extra pension or a local bank reference | DE 320 art. 201(2) |
| Owner of Panama property over $100,000 | $750 a month | Law firms and Panamanian press; confirm with your lawyer |
| Married couple | May add both spouses’ pensions together to reach the amount | DE 320 art. 201, parágrafo |
| Private pension (insurer, trust, fund) | Administrator’s letter, proof the company exists and is in good standing, payment receipt or bank statement | DE 320 art. 201(4) |
| Permit length | Indefinite, no renewal | DE 320 art. 203, as amended |
There is no retirement age in the rule. You do not have to be retired from a job; you have to be receiving lifetime income. Law firms generally cite 18 as the practical minimum age.
Single or married: how much income you need for the Panama pensionado visa
The balboa equals the US dollar, so the local and dollar figures are the same. These come from article 201 of Decreto Ejecutivo 320, as amended in 2009, except the property line.
| Household | Monthly lifetime income (B/. = USD) | Who must receive it |
|---|---|---|
| Single applicant | $1,000 | The applicant, as a lifetime pension |
| Married couple | $1,250 ($1,000 plus $250 for the spouse) | The applicant, or both spouses added together: the regulation lets spouses meet the amounts with the sum of both pensions |
| Each additional dependent | +$250 | Shown with an extra pension or a local bank reference |
| Owner of Panama property over $100,000 | $750 (single) | Reported by law firms, not in article 201; confirm with your lawyer |
That combining rule is what makes Panama friendly to couples. Two smaller pensions, say Social Security for one spouse and a modest annuity for the other, can be added together. The $250 for a dependent spouse can also be shown with a local bank reference instead of more pension income.
When only one spouse has the pension
The spouse with the lifetime income files as the pensionado (main applicant) and the other files as the dependent, which adds $250 a month: $1,250 in total. If the pensioned spouse is short, Panama’s combining rule lets the other spouse’s pension count too. If neither of you has enough, the fix is a lifetime annuity in the name of the spouse who will apply as pensionado, as owner and annuitant, priced on that spouse’s age and sex and bought while you both still live in the US. A woman’s payout per dollar is lower, so the same income on her life costs a little more (see the example below).
US gift note (general information, confirm with a tax adviser): if the premium comes from the other spouse’s money, moving it into an annuity owned by the applicant spouse is a gift between spouses. Between two US-citizen spouses, gifts are unlimited under the marital deduction. If the receiving spouse is not a US citizen, the 2026 annual exclusion is $194,000 (Rev. Proc. 2025-32); above that you file Form 709, and tax is generally not due because the excess uses part of the lifetime exemption.
Why a US life annuity fits Panama so well
Many Americans with real savings still fail this test on paper. A 401(k), a brokerage account or a seven-figure CD ladder is not a pension. Social Security may be years away if you retire at 58 or 60, or if you plan to delay it to 70. Panama does not count the balance; it counts a monthly amount that lasts for life.
The regulation is unusually specific about private income. Article 201(4) lists what to add when the pension comes from a private company: a letter from a foreign “pension administration, trust, mutual fund, insurance or banking” company certifying that it administers the funds for the applicant, a certificate that the company exists and is in good standing, and a payment receipt or bank statement. A US insurer paying a life-only single premium immediate annuity (SPIA) checks every box: it is an insurance company, it administers the contract, it can certify the amount, and it pays every month for the lifetime of the annuitant.
Which annuity counts
That last part is where applications fail. Panama immigration lawyers report that the letter must say the income is for life. What fits: a life-only SPIA, a life with cash refund SPIA, a joint and survivor SPIA, or an existing deferred annuity or MYGA that you convert to lifetime payments. What does not: a 10-year or 20-year period-certain annuity, an income rider (GLWB) where an account value can still be cashed out, or a deferred annuity still accumulating. Those read as savings, not a pensión vitalicia.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Panama are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
What it costs: sizing the SPIA
The premium is the monthly amount you need divided by what each dollar of premium pays. These figures use the ImmediateAnnuities.com survey of September 9, 2026, life-only, rounded to the nearest $1,000. Illustrative, not a quote. Rates change weekly and depend on your state and health.
| Target | Age 60 man, best | Age 60 man, avg | Age 65 man, best | Age 65 woman, best | Age 65 woman, avg |
|---|---|---|---|---|---|
| $750 (with $100k+ Panama property) | $116,000 | $129,000 | $109,000 | $114,000 | $123,000 |
| $1,000 (single) | $155,000 | $172,000 | $145,000 | $152,000 | $163,000 |
| $1,100 (single, 10% headroom) | $171,000 | $189,000 | $160,000 | $167,000 | $180,000 |
| $1,250 (applicant plus spouse) | $194,000 | $214,000 | $181,000 | $189,000 | $204,000 |
Worked example at 60 (illustrative, not a quote)
A married couple, both 60, sells a business, plans to delay Social Security to 70 and has no pension today. They need $1,250 a month and target $1,375 (10% headroom). At the best survey rate for a 60-year-old man ($645 per $100,000), that is about $213,000 of premium, $236,000 at the average: roughly 15% of $1.4 million of savings, with the rest left invested.
Two other ways to structure it: the spouse’s $250 can instead be shown with a local bank reference, and spouses may add two smaller pensions together. If heirs are a concern, a cash refund version still pays for life and at 65 costs a little more ($1,000 a month for a man is about $152,000 at the best cash refund rate, versus $145,000 life-only). Have your Panamanian lawyer confirm the insurer’s letter wording before you apostille it.
Example: a 62-year-old American moving to Panama
Premium = monthly target / payout per $100,000 x $100,000. At 62 the ImmediateAnnuities.com survey of September 9, 2026 (life-only, per $100,000 a month) averages $603 for a man and $582 for a woman; the best quotes were $660 and $637. Rounded to the nearest $1,000. Illustrative, not a quote.
| Household, age 62 | Monthly target | Premium, average rate | Premium, best rate |
|---|---|---|---|
| Single man | $1,000 | $166,000 | $152,000 |
| Single woman | $1,000 | $172,000 | $157,000 |
| Couple, annuity on his life | $1,250 | $207,000 | $189,000 |
| Couple, annuity on her life | $1,250 | $215,000 | $196,000 |
Social Security changes the math. It can start at 62, and Panama’s rule counts pensions from foreign governments, so a retiree whose own benefit is $1,000 or more may not need an annuity at all. The annuity is for people who retire before claiming, who delay Social Security toward 70 for the bigger check, or whose benefit falls short: a $700 benefit leaves a $300 gap, about $50,000 of premium for a 62-year-old man at the average rate. Ask your lawyer how to present two certificates together.
For a couple, a joint and survivor annuity keeps paying the surviving spouse, but it pays less per dollar than single life, so the premium runs above the table; get a quote for both.
How to set it up
- Buy while you still have a US address. US insurers generally will not issue a new contract to someone already living abroad.
- Choose life-only (or life with cash refund) wording, no commutation or cash-out rider. The letter should say the payment continues for the lifetime of the annuitant.
- Keep a US bank account for the deposits. It keeps transfers simple. It does not change withholding: since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding on annuity payments, even if they go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment of your US tax, not an extra tax.
- Start payments 3 to 12 months before you apply. Article 201(4) asks for a payment receipt or bank statement, and a few months of deposits make the file easy to read.
- Collect the insurer documents: a letter certifying the monthly amount, that it is for life, and that the insurer administers the contract for you; plus a certificate of existence or good standing for the insurer. Apostille both and have them translated into Spanish in Panama.
- File through a Panamanian lawyer. Filings made inside Panama must go through a lawyer (DE 320 art. 15, as amended). The 2009 decree (art. 10, as amended) also lists the pensionado permit among those that can be filed through Panamanian consulates abroad; ask your lawyer which route is faster for you.
How the annuity is taxed: Panama and the US
The US side (the same wherever you live)
As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can generally be credited on Form 1116. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC. See the exclusion ratio for Americans abroad and the exclusion ratio calculator.
Is there a US tax treaty with Panama?
No. Panama is not on the IRS list of United States income tax treaties (checked October 2026). So no treaty article decides which country taxes an annuity first, and there is no saving clause or re-sourcing rule: each country applies its own law, and the only relief from double tax is a foreign tax credit. The IRS notes that the credit can only reduce US tax on foreign-source income, and the taxable part of a US insurer’s annuity is generally US-source, so without a treaty a foreign tax on it is hard to credit on the US return. Here that does not bite, because Panama does not tax the payment.
The Panama side
Panama taxes on a territorial basis: citizens and residents are taxed on income from Panamanian sources, at 0% up to $11,000, 15% and 25% (PwC, reviewed August 2026). An annuity paid by a US insurer under a contract bought in the US is foreign-source, so it falls outside Panamanian income tax whether you call it a pension or investment income. Panama’s tax authority has not published anything on purchased US annuities specifically; if you will also have Panamanian income, get a local adviser’s written view.
Net result
US tax is the only tax on the annuity, so Panama is tax-friendly for it: you pay what you would pay living in the US, and nothing on top. Drawing down savings instead would be treated the same way on the Panama side (foreign-source), so the annuity costs nothing extra in tax here, and the exclusion ratio keeps part of each payment untaxed in the US until your premium is recovered.
Does Panama have a wealth tax?
No. According to PwC’s country summary, Panama has no net wealth tax and no inheritance, estate or gift tax. Real estate pays an annual property tax. So there is no Panamanian wealth tax base for a US annuity to sit in, whether it is still accumulating or already paying out, and the payments themselves are foreign-source under the territorial system.
The trade-offs, once
A SPIA is irrevocable: you trade a lump sum for income you cannot cash out. Payments are level unless you add a cost-of-living rider, so their buying power falls over time. Payouts are lower at younger ages, which is why the 60-year-old pays more than the 65-year-old for the same $1,000. The income is backed by the issuing insurer’s claims-paying ability. For most people the answer is to size the annuity to the requirement plus a little headroom and keep the rest of the portfolio working. Panama decides every application on its own merits; a well-documented lifetime income makes the file strong, but no one can promise approval.
Married? Make the income outlive either of you. In Panama spouses may add their incomes together, so two smaller annuities, one on each spouse, can work as well as one larger one. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Experts we point readers to
- Kraemer & Kraemer: Panama immigration law; pensionado visa
We link to these because their guides are among the most useful we found. We receive nothing for listing them and are not affiliated. All experts by country.
Frequently asked questions
Free annuity gap analysis for Panama. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Panama requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Retirement visa income requirements compared
- Costa Rica pensionado income requirement
- Colombia pension visa
- Belize QRP income requirement
- The exclusion ratio for Americans abroad
- Immediate annuity calculator
Sources
- Decreto Ejecutivo 26 of 2 March 2009 (Gaceta Oficial 26238), amending Decreto Ejecutivo 320 of 2008, arts. 201 and 203
- Servicio Nacional de Migración de Panamá (official site)
- Telemetro: permanent residence permit for retirees and pensioners in Panama
- Panama pensionado program requirements (law firm summary)
- Proving lifetime income for Panama's pensionado visa (law firm)
- PwC Worldwide Tax Summaries: Panama, taxes on personal income
- PwC Worldwide Tax Summaries: Panama, other taxes
- IRS Publication 514: foreign tax credit limited to US tax on foreign-source income
- IRS: 2026 inflation adjustments, including the gift exclusion for a non-citizen spouse (Rev. Proc. 2025-32)
- IRS: United States income tax treaties, A to Z
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.