Job Discussion Forums

[dan_lawrence]

Iwas planning to retire to Costa Rice in January. I will be 62, will collect Social Security, and will teach English (MA Linguistics) to supplement my pension. In searching Central America on the web I recently came upon some info about Panama's pensioneer visa program. Now I am seriously considering a move to Panama. Please read below and tell me what you think.

Turista Pensionado
This visa is designed for persons whose pension from a government entity or private corporation is $500 or more ($600 or more for a couple per month). You will have to prove this under scrutiny. Usually a pension statement from the government or private pension will suffice but backup bank deposit records could not hurt. The Pensionado Visa is granted indefinitely but it is necessary to prove to the Immigration Department on an annual basis that the income is still flowing from your pension. The benefits include one-time exemption of duties for the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation of a car. There is also a basket of other benefits and discounts available to those holding this Visa. However, please note that under this visa you cannot qualify to acquire Panamanian nationality or a Panama Passport. It is an instant permanent residency program.

Panama's Pensionado Program in Detail
The following are the benefits and privileges for all those classified as Jubilados & Pensionados (irregardless of age) and for all other residents of Panama be they Panamanian or foreign nationals residing in Panama in their 3rd and 4th Ages. It sets the age at 55 for women and 60 for men. Law No. 6 of 16 of June 1987, modified by subsequent changes in the law by Law 18 of 1989, Law 15 of 1992, Law 37 of 2001 and Law 14 of 2003.

Pensionado Benefits
Article I
To receive these benefits, it sets the age at 55 for women and 60 for men for all residents of Panama be they Panamanians or of different nationalities irregardless of age. And it states that all Jubilados and Pensionados (irregardless of age) are also entitled to these benefits:

Discount of 50% of price charged for entrance to recreation and entertainment activities, such as movies, theaters, sports and other public productions. This discount is not applicable for those events marked as benefits for the youth, homeless or those specifically authorized by the competent authorities.
Discounts for the following means of public transportation:
Inter-Urban buses, 30%
Trains, 30%
Launches and boats, 30%
25% discount in air fares in public and private national and foreign Airlines.
A minimum discount of the regular prices of hotels, motels and pensions:
50% from Monday to Thursday
30% on Friday, Saturday and Sunday
25% discount of food consumed by the individual in all restaurants except for the Fondas which do not require license to operate.
15% discount in those rapid food establishments.
15% discount in the total cost for services of hospitals and private clinics.
10% discount in pharmacies for those medications obtained with a medical prescription.
Discounts in the following medical services:
20% in consultation fees of general medicine doctors and medical and surgical specialists.
15% for dental services.
15% for optometry
Insurance companies that include in their policies health benefits for illness shall adjust their fees to include the necessary adjustment so that the benefits of these discounts are transferred in the payment of the premiums when the insured is 55 years old if female, and 60 years old if male and to the Pensionados & Jubilados.
20% discount for technical and professional services.
20% discount for all prosthetic devices as well as those items and accessories of personal assistance.
(12, 13,14, 15, 16, 17 pertain to commercial transactions, loans, etc. and require a better translation than I can give.)
50% discount in cost of passports.
25% discount in monthly electrical consumption of private or public entity up to 600KW's and the normal tariffs will be applied to anything above that amount.
Discus's discounts to properties owned by associations of jubilados and pensionados and the different discounts they are entitled.
25% discount to the basic phone service charges when:
the phone service is in the name of the individual
is for a residential phone
is for one and only one phone. The normal tariffs will apply for anything more.
25% discount in the water bill as long as:
the consumption does not exceed $30.00
by bill is in the individuals name
the bill is residential and is the prime residence. The normal tariffs will apply to all other residences.
General Requirements and Documents
All visa applications must be made through a Panamanian lawyer.
There is no age limit required for applying for any of these visas, save for the minimum legal age of 18 years. Youngsters under 18 will qualify for a visa as dependents of their parents.
All overseas documents to be presented to the authorities in Panama must be authenticated by a Notary and by the Panamanian consulate nearest you, or by a notary and the Apostille. The Apostille (The Hague Convention of 1961) is a faster way of authenticating documents and is normally obtained through the Secretary of State in your home state (in the United States) or through the Foreign Office (in Britain). For Canada, please check with the Panamanian Embassy or consulate nearest to your home city.
All documents must be fresh (within two months of visa application) and passports must have at least one year to run.
Dependents: Bring a marriage certificate. If your children under 18 are to be covered by your visa, you'll need to bring fresh birth certificates.
All visa applications require that you obtain a health certificate and HIV test in Panama.

[dan_lawrence]

bump

[jessn]

The info on retiring in Panama is very appealin, but I'm not seeing about the legality of retirees working, i.e. teaching there. Do you have more info?Thanks.

[dan_lawrence]

As can be seen, there are many financial benefits to be had with this visa. Also this is a permanent visa, unlike other area countries where you have to make border runs every 90 days. Further good news is that while this visa does not allow you to work for someone (school, company, etc), you ARE allowed to follow your profession --- I interpret this to mean you can give private English lessons if you have been a teacher in the past. I am still looking into the pros and cons of Panama. So far the pros outweigh the cons.

[misteradventure]

Please read the posting again carefully. It is for retirees. It does not mention a work permit.

Also note that there is no reference as to the source of the information. Many promotional websites post misleading information. Some are bad translations; others are simply misinformed. SOme are completely fictitious: there is a book written by an academic which quotes a source as saying that there is ABSOLUTELY (emphasis mine) no crime whatsoever in Panama- this is a total lie, obviously.

At any rate, you are retired. Period.

This means that you CANNOT be an employee.

It does NOT mean that you must not WORK.

It is very subtle.

A client for whom I do some work processes visa applications for foreigners. I would be happy to put you in contact with the firm to help you navigate the narrow and convoluted legal pathways, or you can email them yourself at [email protected]

The short answer is that YES, you can still TEACH and there are totally legit ways for you to get paid.

[No Moss]

Well, I'm old enough to draw social security, and I've been teaching English in Asia for seven years. My understanding is that Panama is expensive. I'm sure that's it's cheaper than urban areas in the States, but expensive nevertheless.

It's great to get some discounts and not to have to worry about a visa, but what's it like on my retirement income, which is about US$2000 a month? I teach privates right now (in China) and get about $27 an hour. Can I do that in Panama? Can I rent a nice two-bedroom, 2.5 bath apartment for $300 per month? Can I get a haircut for $3?

You have to weigh the costs against the income. Income is based on the health of the economy, the demand for the service, and the supply of teachers. Costs are, well, what they are.

So, in a nutshell, could you tell me how much a relatively nice 2-bedroom apartment costs in Panama City, and how much you can make there teaching privates?

Thanks.

[misteradventure]

...as for teaching privates, pirateinpanama or another of the long-term teachers here could help you better with that. Much depends on your contacts.

I'm living in a hotel for about $500/month, about 10 mins walk to thebanking district. Across the street my friend rented a clean 2 bedroom, one bath apt. for $300/month. I walk past a barber that advertises $2 haircuts. But then I'm not currently teaching ESL, either.

On $2000 USD per month, you can live quite well.

On the other hand, 'nice' is relative, with some condos going for sale in the millions, with houses a few miles away going for only tens of thousands. The neighborhood has much to do with it. I'm sure you could live here for less. Minimum wage is $1.67/hour, last I heard.

I hear Mogadishu is cheaper, however. Everyone has a better place to live. I'm answering the Panama questions. If you love Asia, why leave?

[No Moss]

Thanks, misteradventure. It's helpful to have someone who is willing to answer questions about a little-known area like Panama. Hope you enjoy your stay there.

[dan_lawrence]

Effective Aug. 27, 2008 Panama has doubled the minimum pension income from US$500 /mo income to $1000 /mo. That leaves me out now.

[misteradventure]

Flash update-

The new immigration law, which went into effect this week, not only raises the minimum income/investment for pensioners and everyone else (while eliminating the small business program), but there are some weird new provisions:

-Foreigners must post bond before approval, so they can pay their own deportation costs if they get booted out.
-Paying a bribe to a cop is a deportable offense (after the hefty fine and jail time, of course.) Salaries for law enforcement have not gone up with inflation, however.
-Work permits must be approved BEFORE arrival, so if you actually got a job, you can't come before Migracion gets their act together and processes the paperwork, which sometimes takes over a year for seemingly simple things, like normalizing your status after marrying a Panamanian.

The icing on the cake: New law enforcement agency with officers who carry badges and guns.....*drum roll, please*

... the IMMIGRATION POLICE!

Yes, ladies, gents and members of the elected professions not worthy of such titles- there are now thousands of new cops whose job (for under $400 a month, mind you) is to catch you breaking the terms of your visa.

(Like paying the bribe they solicited, for example.)

After having been shaken down ("Your Papers Please!") no less than four times in one week, Russia and Communist China are looking mighty friendly!

[MO39]

[dan_lawrence]

What's next? Chip implant?

[MO39]