Guide · Living in Panama
Receiving Your Foreign Pension While Living in Panama
How to keep receiving your home-country pension in Panama: where to receive it, proof of life, social security agreements, taxes and the Pensionado Visa.
- Updated
In short
Moving to Panama does not in itself make you lose your home-country pension, but the conditions for receiving it abroad are set by the country that pays it: where it can be paid, how often you must prove you are alive and whether there is a social security agreement with Panama. In Panama, a pension paid from abroad is usually not taxed, and it is the basis of the Pensionado Visa.
What do you need to check with your country?
- Whether your pension can be paid abroad and into what kind of account: in your country or at a Panamanian bank.
- How and how often to prove you are alive (proof of life or life certificate): at your country's consulate in Panama, before a notary or online, depending on the country.
- Whether there is a social security agreement with Panama, which may let you combine contribution periods in both countries or make procedures easier.
- Whether your country still considers you a tax resident and how it taxes your pension when you live abroad.
- Whether your home-country health coverage continues abroad; it normally does not cover care in Panama (see health insurance).
Where should you receive it?
You can keep it in your home country and transfer what you need, or receive it into an account at a Panamanian bank if your country allows it. Factor in fees and the exchange rate if your pension is not in dollars (see Panama's currency).
Is your pension taxed in Panama?
As a general rule, no: Panama applies a territorial system, and a pension paid from abroad is not Panamanian-source income. What usually decides the tax is your home country and, if there is one, the double tax treaty between the two countries.
Frequently asked questions
Can I lose my pension by living in Panama?
It depends on your country and the type of pension. Contributory pensions can usually be paid abroad; some non-contributory or welfare pensions require residence in the country. Check before you move.
Where do I do my proof of life?
Usually at your country's consulate in Panama or before a notary, and increasingly online. Your pension agency will tell you how and how often.
What if I keep working in Panama?
If you work as an employee in Panama, you pay into the Social Security Fund. A social security agreement, if one exists with your country, may allow you to combine those periods.
Do I have to declare my pension in Panama?
If it is foreign-source, it is generally not taxed in Panama. Review your tax residency and what your country requires.