Retiring in Panama: The Jubilado Pensionado Permit, Required Pension, Tax Treaty with France and Access to Care

A tourist stay of under 90 days, visa-free for a French passport, suits a scouting trip; the entry stamp in the passport is essential (France Diplomatie, the French foreign ministry). To settle, the SNM publishes requirements sheets (requisitos) for each permit. Three routes typically concern a retiree.

• Jubilado pensionado: indefinite permit based on a lifetime pension of at least B/.1,000 a month.
• Rentista retirado: five-year, renewable permit based on B/.850 a month of interest from a term deposit.
• Residence for specific countries (“Friendly Nations”): provisional two-year permit, then permanent residence, with a property or deposit of B/.200,000; the list of countries is set by decree.

The guide to living in Panama describes the arrival formalities, and the page on retirement insurance abroad gathers the social protection benchmarks.

The permit is open to a foreigner who receives a retirement or pension from a foreign government, an international body or a private company, enters the country to settle there and has sufficient means for their living costs and those of their dependants. The monthly income cannot be less than B/.1,000 and must be granted for life; it can be B/.750 if the applicant has personally acquired a property worth more than B/.100,000. Spouses can add their amounts together to reach the minimum.

• Documents: notarised power of attorney stating the name and nationality of the applicant’s parents, three photographs, authenticated copy of the passport, criminal record certificate, health certificate, sworn statement of personal history and certification of the lifetime pension of at least B/.1,000 a month or its foreign-currency equivalent.
• Pension from a private company: add a letter from the foreign pension fund, trust or bank that administers the funds, a certificate of existence of the company paying the pension and a copy of the bank statement.
• Dependants: B/.250 a month of additional proof of funds per person, justified by an additional pension or a local bank reference; dependent children receive a temporary permit up to age 25 if they study full time, with no right to permanence, except in the case of profound disability.

The permit is indefinite and requires no extension. It rests on Law No. 9 of 24 June 1987 and Decree-Law No. 3 of 22 February 2008. See also the page on the Panamanian healthcare system.

The rentista retirado proves a monthly income of B/.850 coming exclusively from the interest on a term deposit at the Banco Nacional de Panamá or the Caja de Ahorros, free of any pledge for at least five years. The permit lasts five years and is extended for the same period; withdrawing the deposit after the first five years, or failing to comply with Law No. 9 of 1987, entails the loss of the incentives and rights under that law.

Residence for specific countries (Executive Decree No. 226 of 20 July 2021, which amends Decree No. 416 of 2012) is obtained in two stages: a provisional two-year permit, then permanence. It is based on a job, a property of at least B/.200,000 or a term deposit of B/.200,000 free of pledge for three years, and, for dependants, proof of solvency of at least B/.1,000 a month plus B/.100 per dependant; certified cheques of B/.250 and B/.800 accompany the application. The list of eligible countries is set by decree: whether France is on this list could not be checked against a digitised official text for this page, and should be confirmed with the SNM. A separate route of own economic solvency requires a term deposit of B/.300,000 for three years, with a two-year permit before permanent residence.

• Payment: Assurance retraite (the French state pension fund) pays the pension in more than 180 countries, by transfer to an account in France or abroad, with possible bank fees. The guide to receiving your pension abroad details the options.
• Proof of life: an annual certificate to be completed by a competent authority and returned on time, failing which payment may be suspended.
• Address and bank: any change is notified by letter to the regional fund before departure.
• Suspended benefits: the solidarity allowance for older people (Aspa) and the supplementary disability allowance are not paid abroad.

For anyone with their tax home outside France, the CSG, CRDS and Casa (French social levies) are not deducted, whereas a health contribution of 3.20% may be if the retiree remains covered by French health insurance or has at least 15 years of contributions in France. The guide to retiring abroad completes these benchmarks.

The treaty signed in Panama on 30 June 2011 entered into force on 1 February 2012; for taxes withheld at source, it applies to amounts taxable from 1 January 2013 (BOFiP). It divides the right to tax between the two countries.

• Private pensions (article 17): pensions and similar remuneration paid to a resident of one State in respect of past employment are taxable only in that State; they are, however, also taxable in the State of source if they are not subject to tax in the other State under its legislation. As the DGI (the Panamanian tax authority) describes a tax on income of Panamanian origin, a French pension of a Panama resident may remain taxable in France; the analysis is done case by case.
• Public pensions (article 18, paragraph 2): pensions paid by a State, a local authority or a legal entity under public law in respect of services rendered to that State are taxable only in that State, except for a person who is resident of the other State and holds its nationality without holding that of the first. A former French civil servant of French nationality remains taxed in France.
• Residence (article 4): in the event of dual residence, the text uses the permanent home, then the centre of vital interests, the habitual abode and nationality; the notion of resident excludes persons taxed in a State only on local-source income.
• Double taxation (article 21): France grants a tax credit on income taxable in Panama; Panama exempts income taxable in France.

On the French side, the administration reminds us that French-source pensions paid to a non-resident bear a withholding tax; the scale applicable in 2026 provides for 0% up to €17,275, 12% up to €50,112 and 20% above (BOFiP, 2 April 2026), and one can remain a French tax resident despite having one’s home abroad. On the Panamanian side, the DGI applies a scale of 0% up to B/.11,000, 15% up to B/.50,000 then 25% on Panamanian-source income. A tax adviser and the non-resident individuals tax office confirm the treatment before settling.

The retiree receives no automatic coverage from France outside Europe. Assurance Maladie (the French national health insurance) reserves this case to twelve states or territories with an agreement (Andorra, Quebec, Saint-Pierre-et-Miquelon, Serbia, Bosnia and Herzegovina, Montenegro, New Caledonia, French Polynesia, Kosovo, Macedonia, Morocco, Tunisia), and form S1 applies only in Europe. Panama is not one of them, and no social security agreement binds it to France.

• CSS (voluntary insurance): group B2, open to foreigners, requires a monthly taxable base of at least B/.500, proof of address and medical examinations, the full cost of which the foreigner pays; it contributes under modality 3 (disability-old age-death and sickness-maternity). The pensionado permit does not impose this affiliation.
• CFE (retirees’ plan): reserved for holders of a pension from the French basic scheme, with no professional activity, no health questionnaire, from €147 a month. Cover is immediate if enrolment takes place before departure or within three months of settling in, otherwise a waiting period of three months before age 45 or six months from age 45 applies; the return to France is made with no waiting period.
• First-euro international insurance: reimbursement of actual costs within ceilings, direct payment possible, evacuation and repatriation; the medical questionnaire and medical history determine the exclusions.
• Temporary stays in France: a retiree living outside an agreement country is reimbursed if they have at least 15 years of contributions to a French scheme, through the National Centre for Retirees of France Abroad (Cnarefe).

See the guide to healthcare reimbursement in Panama, the page on retirees’ health insurance abroad and the guide to the Panamanian healthcare system.

A retiree’s budget depends mainly on the city, the housing and the health cover. The official sources consulted publish neither average rents nor a typical budget by city; the “Economic indicators” block above gives the updated indicators. The income thresholds of the permits, expressed in balboas, give a reference scale.

• Proximity of care and services: Panama City concentrates the French embassy, the international French school and a branch of the Alliance française; David, in the province of Chiriquí, hosts the other branch. A home close to a full healthcare facility matters more than a slightly lower rent.
• Safety: France Diplomatie recommends reinforced vigilance in Panama City and advises against certain areas, including Colón and several outlying municipalities; the page on living in Panama summarises them.
• Health and climate: dengue, chikungunya, Zika and yellow fever circulate all year round, with an increase from April to November; bottled water is recommended outside Panama City, Colón and David.

Benchmarks for healthcare costs are in the guide to budgeting for health abroad.