Permanent residency from a USD 1,000 monthly pension, plus the strongest retiree discounts in the world. What the Panama Pensionado visa really offers in 2026, and where the catches are.
If you ask me which country in the world is friendliest to retirees, Panama almost always comes first. The reason is a single programme that has barely changed since the 1980s and is uniquely generous: the Pensionado visa . It combines three things that rarely come together elsewhere: permanent residency from day one, discounts on almost everything guaranteed by law, and a country that uses the US dollar as its official currency. Let's look at it properly, strengths and catches alike. Year after year, Panama ranks among the world's most recommended retirement destinations, and that is no accident: it is the result of a programme the state deliberately keeps attractive to bring retirees and their spending power into the country.
The core requirement: a lifetime pension The core is refreshingly simple. If you can show a lifetime guaranteed pension of at least USD 1,000 a month , you qualify, plus USD 250 for each dependant you bring along. There is a second tier: if you own a property in Panama worth at least USD 100,000 in your own name, a monthly pension of USD 750 is enough. The decisive word is lifetime : the pension must be guaranteed for life, whether from a state pension scheme, an international organisation or a regulated private pension plan. Fixed-term payments or income from capital, foundations or investments are not accepted, and that is the most common reason for refusal. There is no statutory minimum age; what matters in practice is that you draw a pension. That opens the programme to early retirees with a lifetime private pension too, not just to the classic retiree over sixty.
And if you have no conventional pension at all? For the self-employed and business owners there is a proper way to meet exactly this requirement: the pension plan LLC , your own US company that pays a lifetime company pension documented by attorneys. Panama expressly accepts a pension from a properly registered private company, which is exactly why Panama is our documented reference country for this structure.
Permanent residency from day one This is the point that sets Panama apart from almost everyone else. Unlike programmes with temporary preliminary stages, the Pensionado visa leads directly to permanent residency (Residencia Permanente ), administered by the Servicio Nacional de Migración . You receive your cédula, the Panamanian identity card for foreigners, and with it the key to daily life, from bank accounts and rental contracts to the discounts. To keep the residency, a short visit at least once every two years is enough; there is no requirement to be present permanently. That makes the Pensionado interesting as a low-presence Plan B building block too. The procedure runs through a Panamanian lawyer and usually takes three to six months.
The legendary discounts Now for the part that earned Panama its reputation. Through Law No. 6 of 1987, Panama grants retirees massive, enforceable discounts by law: not voluntary promotions but statutory entitlements, monitored by the consumer protection authority ACODECO. Among others, they include 25% off electricity bills, 25% off airline tickets, 30 to 50% off hotels and 15 to 25% in restaurants , plus discounts on medicines, doctors' visits and entertainment. For a retiree on a fixed income, this adds up to a noticeable cut in living costs. On top of that, you may import your household goods once free of duty, and a vehicle on favourable terms every two years.
Tax and currency Panama is a territorial tax country : foreign income, and that includes your foreign pension, is not taxed in Panama, as the PwC tax summary confirms. Only income earned in Panama falls under local tax. For the internationally mobile retiree, that is ideal. Panama also uses the US dollar as its official currency (the balboa is pegged 1:1), so a dollar pension carries no exchange rate risk, and the currency itself is a stable base. One important caveat: Panama leaving your foreign pension alone does not mean your home country does. Whether your state or private pension stays taxable where it is paid from, and whether a tax treaty helps, depends on where you come from, and it needs checking properly before you rely on Panama's tax exemption alone:
Your home country and Panama
Your pension and health cover from home
Moving to Panama does not by itself end your obligations at home. Pick your country below: each answer is checked against the law and the tax or pension authority of that country.
Home country Tax treaty Social security State pension abroad Health cover United States None None Paid to citizens in all 12 countries Medicare usually does not cover care abroad Canada None None CPP paid abroad; OAS needs 20 years' residence Provincial cover ends after the allowed absence United Kingdom In force since 2013 None Paid, but frozen at the first rate in all 12 NHS entitlement ends; S1 not available Ireland In force since 2012 None Contributory pension paid abroad Medical card tied to living in Ireland Australia None None Age Pension portable, pro rata below 35 years Medicare ends when you stop residing New Zealand None None NZ Super pro rata; apply 6 weeks before leaving Citizens keep public health eligibility Sweden None None Income pension paid; guarantee pension stops Swedish insurance generally ends Norway None None Paid; guarantee pension needs 20 years' residence Folketrygden membership ends after 12 months Denmark None None Basic amount only, after 30 years' residence Yellow card cover ends Finland None None Earnings pension paid; Kela pension stops Kela cover ends on a permanent move Netherlands In force since 2011 In force since 2005 AOW paid; rate depends on the treaty Zvw insurance ends with residence
United StatesPaid to citizens in all 12 countries None › Tax treaty with Panama: None. Social security agreement: None.
Private and occupational pensions
US pensions and annuities paid to a US citizen abroad remain taxable in the US, and a citizen or resident cannot opt out of federal withholding on payments delivered outside the United States (section 3405(e)(13)); for lump sums delivered abroad the rate cannot be set below 10 percent. Nonresident aliens owe 30 percent on US-source annuities under section 871(a), withheld on the gross amount, unless a treaty reduces it; Publication 515 notes most treaties exempt non-government pensions but not always lump sums. A covered expatriate is treated as receiving IRAs in full the day before expatriation and suffers 30 percent withholding on eligible deferred compensation.
CanadaCPP paid abroad; OAS needs 20 years' residence None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
CPP is payable abroad after at least one valid contribution and rises each January with the Consumer Price Index. OAS is payable abroad only after 20 years of residence in Canada after age 18 (or 20 years combined with a social security agreement country); otherwise it can stop after six months abroad, and GIS and the Allowances stop after six months. OAS rises each January, April, July and October. Both are subject to 25% non-resident tax unless a treaty reduces it: Service Canada lists 15% for Argentina, Colombia, Ecuador (first CAD 12,000 of Canadian pensions exempt with Form NR5), Mexico and Peru, 25% or 0% for Brazil (0% only for Brazilian nationals resident there), and 25% for all countries not listed, which includes Chile, Uruguay, Paraguay, Costa Rica, Panama and El Salvador. Non-resident OAS recipients must file the OAS Return of Income for the recovery tax unless a treaty limits it.
Sources: CRA, Non-residents of Canada · Income Tax Act, section 212 (Justice Laws) · Service Canada, Taxes: Foreign and Canadian pensions and benefits (non-resident tax rates by country) · CRA, Pensions and similar payments (Part XIII special payments) · CRA, Electing under section 217 · CRA, IC76-12 Applicable rate of Part XIII tax on amounts paid or credited to persons in countries with which Canada has a tax convention
Private and occupational pensions
Pension benefits, RRSP and RRIF payments and retiring allowances paid to a non-resident bear 25% Part XIII withholding under subsection 212(1) of the Income Tax Act, which is usually the final Canadian tax, unless a treaty reduces the rate. A treaty reduction or exemption is claimed on Form NR5 (filed every five years) and applies only after written CRA authorization; alternatively a section 217 election lets the non-resident file a return and pay tax at resident rates. RRSPs, RRIFs, TFSAs and pension rights are not subject to the departure deemed disposition, and a TFSA can be kept but not contributed to while non-resident.
Public health cover
Public health insurance is provincial: each province decides who is an eligible resident and how many days a year must be spent there, and most provincial plans give little or no cover for care outside Canada. In Ontario, for example, cancelling the health card on a move out of the province keeps OHIP for the allowable period, generally 90 days, and the extended two-year absence rules apply only to temporary absences. On a later return, re-registration can involve a wait of up to three months. Keeping provincial health cover also counts as a secondary residential tie for tax residence.
Sources: Health Canada, How publicly funded health care coverage works · Global Affairs Canada (travel.gc.ca), Retiring outside Canada · Government of Ontario, Replace, cancel or change information on your health card · Government of Ontario, OHIP coverage while outside Canada · CRA Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status
Quebec
A Quebec Pension Plan (QPP) retirement pension already in payment continues wherever you live, can be paid by direct deposit in several countries, and is taxable and indexed each January to the cost of living. You cannot ask for Quebec provincial tax to be withheld from it: the tax rate that applies is determined by the Canada Revenue Agency. A person who contributed to both the QPP and the CPP and lives outside Canada applies to the plan of the last province of residence, that is Retraite Québec if it was Quebec. Canada's federal social security agreements cover only OAS and CPP; Quebec has its own agreements with 39 countries covering QPP retirement, disability and death benefits, and among the 12 destinations only Brazil (in force 1 October 2016), Chile (1 November 1999) and Uruguay (1 January 2002) have one. Under section 5 of the RAMQ eligibility regulation (chapter A-29, r. 1), a person who settles outside Canada ceases to be a Quebec resident for health insurance from the day of departure, or from the day of settling abroad if that happens during a stay outside Quebec; RAMQ health insurance and the public prescription drug plan end on that day. Even without a move, a resident absent from Quebec 183 days or more in a calendar year (ignoring stays of 21 consecutive days or less) loses that status for the year (s. 6), with exceptions such as studies or work outside Quebec for a Quebec-based employer if RAMQ is notified (s. 7). Quebec's reciprocal agreements with a health component cover only eleven European countries, none of the 12 Latin American destinations.
Sources: Revenu Québec, Vous avez quitté le Québec (live page) · Revenu Québec, Leaving Québec (live page) · LégisQuébec, Loi sur les impôts (chapitre I-3), à jour au 12 août 2026 (Internet Archive snapshot 2026-10-21 of the official text; live LégisQuébec returned HTTP 502/403) · LégisQuébec, Règlement sur l'admissibilité et l'inscription des personnes auprès de la Régie de l'assurance maladie du Québec (chapitre A-29, r. 1), à jour au 1er décembre 2025 (Internet Archive snapshot 2026-04-11 of the official text; live LégisQuébec returned HTTP 502/403) · RAMQ, Déménagement hors Québec (live page) · RAMQ, Moving outside Québec (live page)
United KingdomPaid, but frozen at the first rate in all 12 In force since 2013 › Tax treaty with Panama: In force since 2013. Social security agreement: None.
State pension paid abroad
The UK State Pension is paid worldwide, including to residents of all 12 destinations, into a local or UK bank account. It is uprated each year only in the EEA, Switzerland, Gibraltar and listed social security agreement countries; none of the 12 destinations is on that list (the UK-Chile convention covers contributions only), so the pension stays at the rate first paid abroad and rises to the current rate only if the pensioner returns to live in the UK. It is taxable but paid without tax deducted, and HMRC says non-residents do not usually pay UK tax on it; a treaty exempts it from UK tax only if its pensions or other income article covers it.
Sources: DWP, Countries where we pay an annual increase in the State Pension · GOV.UK, State Pension if you retire abroad (printable guide) · GOV.UK, Tax on your UK income if you live abroad (printable guide) · HMRC, Form DT-Individual and notes (PDF) · HMRC, Double Taxation: Treaty Relief (Form DT-Individual) · GOV.UK, Tax codes (printable guide)
Private and occupational pensions
UK occupational and personal pensions paid to a non-resident are taxable in the UK under PAYE unless treaty relief applies; most UK treaties let them be paid without UK tax to a resident of the other country, claimed on form DT-Individual (relief at source, then an NT 'no tax' code, or a repayment). UK government service pensions are usually taxed only in the UK. Without an in-force treaty (Paraguay, Costa Rica, El Salvador, and Brazil until its 2022 treaty enters into force) UK tax stays, with the Personal Allowance available to British citizens on a yearly R43 claim. Pension lump sums received during temporary non-residence of 5 years or less can be taxed on return.
Public health cover
The NHS is residence-based, so a permanent move abroad ends automatic entitlement to NHS treatment under normal rules, and the leaver should ask the GP practice to remove them from the register. The S1 scheme that funds healthcare abroad for UK State Pension recipients applies only in the EU, Iceland, Liechtenstein, Norway and Switzerland, so it does not cover the 12 Latin American destinations.
Sources: NHS website, Planning your healthcare when living abroad
IrelandContributory pension paid abroad In force since 2012 › Tax treaty with Panama: In force since 2012. Social security agreement: None.
Private and occupational pensions
A private-sector occupational pension paid to a non-resident is taxed only in the country of residence when that country has a double taxation agreement with Ireland, and a PAYE Exclusion Order can stop Irish deduction; in a country without a DTA it stays taxed in Ireland. Of the 12 destinations, the treaties with Mexico and Panama give the residence country sole taxing rights over private pensions, while the Chile treaty lets the source state tax pensions at up to 10% of the gross amount. Public-sector pensions are generally taxed in Ireland, and withdrawals from ARFs and vested PRSAs, and a fund balance taken as a taxable lump sum, are taxed at source regardless of residence with no PAYE Exclusion Order.
Public health cover
Eligibility for an Irish medical card is tied to living in Ireland: the HSE says anyone who lives in the Republic of Ireland and plans to live there for at least one year can apply. The HSE pages consulted do not set out what happens to an existing medical card or to public hospital entitlement after emigration.
Sources: HSE: What the medical card covers
AustraliaAge Pension portable, pro rata below 35 years None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
The Age Pension requires pension age and, in general, 10 years of qualifying Australian residence, and the Social Security Act 1991 gives it an unlimited portability period, so it can continue to be paid to a resident of any of the 12 countries. After more than 26 weeks of continuous absence the rate is the domestic rate multiplied by a residence factor: 1 (full rate) with 35 years (420 months) or more of Australian working life residence between age 16 and pension age, and proportionally less below that. A pension granted within 2 years of returning to Australia is not payable abroad if the person leaves again within those 2 years. Where a social security agreement applies it overrides these portability rules; the only one in force with a portfolio country is Chile (in force 1 October 2009), which counts Chilean insurance periods toward Australian minimum qualifying periods, while the agreement with Uruguay is signed but not yet in force. How Australia taxes an Age Pension paid to a non-resident, and the treaty rules for such pensions, could not be verified at a primary source.
Sources: Social Security Act 1991, Compilation No. 234 (20 September 2026), Volume 1, s 43 · Social Security Act 1991, Compilation No. 234 (20 September 2026), Volume 4, Part 4.2 (ss 1211 to 1221) · Social Security (International Agreements) Act 1999, Compilation No. 56 (9 September 2026), Volume 1 (ss 1 to 25, Schedules 2 to 15) · Superannuation Industry (Supervision) Regulations 1994, Compilation No. 159 (1 July 2026), Volume 2, Schedule 1 · Superannuation Industry (Supervision) Regulations 1994, Compilation No. 159 (1 July 2026), Volume 1 · Income Tax Assessment Act 1997, Compilation No. 268 (1 October 2026), Volume 6, ss 301-170, 301-175
Private and occupational pensions
Superannuation of Australian citizens and permanent residents stays preserved after departure until a condition of release is met, for example retirement after preservation age (60 for anyone born after 30 June 1964) or reaching age 65; leaving Australia is not itself a condition of release for them. The departing Australia superannuation payment (DASP) applies only to former temporary visa holders who have left Australia and whose visa has ceased, and the release rules expressly exclude Australian citizens, New Zealand citizens and permanent residents. DASP is taxed at nil on the tax-free component, 35% on the taxed element and 45% on the untaxed element (65% on amounts from contributions made as a working holiday maker). For other investment income paid to non-residents, domestic withholding tax is 30% on unfranked dividends (franked dividends are exempt), 10% on interest and 30% on royalties, before any treaty reduction. The withholding or tax treatment of superannuation income streams and lump sums paid to non-resident citizens, and the reduced treaty rates, could not be verified at a primary source.
Public health cover
Medicare eligibility under the Health Insurance Act 1973 depends on being an 'Australian resident', defined as a person who resides in Australia and is a citizen, a permanent visa holder or in another listed category. Medicare benefits are paid for professional services rendered in Australia. A person who stops residing in Australia therefore falls outside the statutory definition and has no Medicare cover abroad; Services Australia's procedural guidance on leaving could not be retrieved.
Sources: Health Insurance Act 1973, Compilation No. 136 (19 September 2026), Volume 1, ss 3 and 10
New ZealandNZ Super pro rata; apply 6 weeks before leaving None › Tax treaty with Panama: None. Social security agreement: None.
Private and occupational pensions
KiwiSaver members moving permanently to Australia may transfer to an Australian superannuation scheme; members living in any other country can withdraw most of their savings (not government contributions) after 1 year overseas, or ask their provider to transfer to an approved foreign superannuation scheme. Interest, dividends and royalties paid to non-residents bear non-resident withholding tax: without a treaty 15% on interest and royalties and 30% on dividends, with a 2% approved issuer levy available instead of NRWT on certain debt; under the treaties Chile is listed at 10% interest and 15% dividends, Mexico at 10% interest and 0, 5 or 15% dividends. Non-resident investors in portfolio investment entities move to a 28% prescribed investor rate. The New Zealand tax treatment of occupational superannuation pensions and lump sums paid to non-residents was not verified at a primary source.
Public health cover
New Zealand citizens remain eligible for publicly funded health and disability services after moving abroad: Health New Zealand states that time spent overseas does not affect a citizen's eligibility. A citizen who is only in New Zealand temporarily may not be able to enrol with a primary health organisation (general practice). ACC cover for accidents overseas is available only to New Zealand residents and only in limited situations.
Sources: Health New Zealand: Publicly funded healthcare (eligibility)
SwedenIncome pension paid; guarantee pension stops None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
Pensionsmyndigheten pays the income pension, premium pension and supplementary pension wherever you live, including in Latin America, to a Swedish or foreign account, against an annual life certificate. The guarantee pension (garantipension) is residence-based and stops when you move from Sweden for more than a year (Canada is the only exception); the income pension supplement is paid only in the EU/EEA, Switzerland or a social security agreement country, which among the 12 destinations means Chile only. Non-residents with limited tax liability pay SINK, a final withholding tax of 22.5 percent in 2026 and 20 percent from 1 January 2027, with a monthly tax-free amount (SEK 3,799 in 2026) on public pensions; Pensionsmyndigheten withholds 22.5 or 0 percent depending on the treaty. Treaties differ: the Chile treaty lets Sweden tax pensions, the Argentina treaty lets both states tax pensions and social security payments, and the Brazil treaty taxes pensions up to USD 4,000 a year only in the country of residence.
Sources: Pensionsmyndigheten: Du som är bosatt utanför Sverige · Pensionsmyndigheten: Planera att flytta från Sverige · Pensionsmyndigheten (news): Garantipension upphör för utlandsbosatta · Socialförsäkringsbalk (2010:110), as amended up to SFS 2026:1658 (Riksdagen open data) · Pensionsmyndigheten: Utbetalning av din pension till annat land · Lag (1991:586) om särskild inkomstskatt för utomlands bosatta (Sveriges riksdag)
Private and occupational pensions
Occupational pensions (tjänstepension) for work mainly performed in Sweden and pensions from private pension insurance issued by a Swedish insurer are taxable under SINK at the same flat rate (sections 5 and 7 of the SINK Act, Lag 1991:586). Income exempted by a tax treaty is exempt from SINK, and a non-resident can instead ask to be taxed under the Income Tax Act for the year. Treaty pension articles (see statePension) also apply to these pensions.
NorwayPaid; guarantee pension needs 20 years' residence None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
Nav pays Norwegian old-age pension abroad, including to a bank in the country of residence, but never as a lump sum. Outside the EEA and without a social security agreement (all destinations except Chile), the earned income pension is paid abroad, while the guarantee pension (and, for people born before 1963, the full pension) is kept only with at least 20 years of residence in Norway between ages 16 and 67 (folketrygdloven §§ 19-3 and 20-10); with Chile, which has a social security agreement, Nav says the pension can as a rule be taken along without reduction. Pensions in payment are uprated each year with the average of wage and price growth under § 20-18, which sets no residence condition. After tax emigration, Norway withholds 15 percent of gross pension (kildeskatt, skatteloven § 2-3(4)) with no allowance; treaties change this: under the Mexico treaty pensions, including state pensions, are taxable only in the state of residence, the Chile treaty caps Norwegian tax at 15 percent, and Skatteetaten states that for residents of Argentina and Brazil all pensions from Norway remain taxable in Norway.
Sources: Lovdata, skatteloven kapittel 2 · Skatteetaten, Kildeskatt på pensjoner og uføreytelser · Skatteetaten, Kildeskatt på pensjon - begrensninger etter skatteavtaler · Lovdata, Norges traktater, Norway-Mexico convention · Lovdata, Norges traktater, Norway-Chile convention · Lovdata, Norges traktater, Norway-Brazil convention 2022
Private and occupational pensions
The 15 percent withholding tax also covers public and private occupational pensions and other private pensions paid by a Norwegian payer when the recipient has pension capital or points in the National Insurance Scheme; private pensions are not subject to it if the recipient has no such pension capital. Treaty relief depends on the destination: Mexico gives the residence state sole taxing rights over pensions and annuities, Chile caps source tax at 15 percent, and the Argentina and Brazil treaties let both states tax, with the residence state relieving double taxation. Nav advises asking each private or occupational pension provider about its own export rules; the treatment of lump sums was not verified.
Public health cover
Compulsory membership of the National Insurance Scheme (folketrygden) ends when a stay abroad is intended to last, or lasts, more than 12 months (folketrygdloven § 2-14), and with it public health cover. A pensioner settling outside the EU/EEA must apply to Nav for voluntary membership to keep any cover; this requires at least 30 years' membership after age 16, including 10 years immediately before applying (§ 2-8). Even with voluntary membership the right to a GP is lost, care abroad is only partly reimbursed by Helfo (claims within 6 months), and care in Norway remains covered. Non-members generally pay no National Insurance contribution.
Sources: Lovdata, folketrygdloven kapittel 2 (§§ 2-1, 2-8, 2-9, 2-14) · helsenorge.no (Helfo), Pensjonister utenfor EU/EØS · Nav, Alderspensjon (updated 20.10.2026) · Nav, Medlemskap i folketrygden · Skatteetaten, Medlemskap i folketrygden og trygdeavgift når du flytter til utlandet
DenmarkBasic amount only, after 30 years' residence None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
Folkepension and other Danish social pensions paid to a non-resident are subject to Danish limited tax liability (kildeskatteloven section 2(1) no. 11) at an average rate; Argentina, Brazil, Chile and Mexico have treaties that may shift the taxing right (exemption is applied for on form 01.016), and for the other 8 destinations Denmark taxes. Under the Social Pension Act section 3, a Danish citizen can receive folkepension abroad after at least 30 years of residence in Denmark between age 15 and pension age, or keep an already awarded pension abroad after at least 10 years (or a quarter of the time from 15) of Danish residence; Udbetaling Danmark can grant a dispensation, which must be sought before leaving. Only the basic amount (grundbeløb) is paid outside the EU/EEA, Switzerland and the UK: the pension supplement (pensionstillæg) is not exported, personal and heating supplements must be applied for separately after the move, and the pension is reduced pro rata if Danish residence was below 9/10 of the period from 15 to pension age. Chile is the only destination with a social security convention: a Chilean national moving to Chile can take the pension after 3 years of residence and 1 year of work in Denmark.
Sources: Retsinformation, Bekendtgørelse af kildeskatteloven, LBK nr. 460 af 3. maj 2024 (Withholding Tax Act, consolidated; status Valid at retrieval) · Skattestyrelsen, Den juridiske vejledning 2026-2, C.F.3.1.11 Sociale ydelser mv. · Skattestyrelsen, Den juridiske vejledning 2026-2, C.F.3.1.10 Pensioner · Skattestyrelsen (skat.dk), Dansk pension, når du flytter til udlandet · Retsinformation, Bekendtgørelse af lov om social pension (pensionsloven), LBK nr. 1123 af 2024 (Social Pension Act, consolidated; status Valid at retrieval) · borger.dk (written by Udbetaling Danmark), Vil du have din folke-, førtids- eller seniorpension med til udlandet?
Private and occupational pensions
Occupational and private pensions paid to a non-resident are taxable in Denmark under kildeskatteloven section 2(1) nos. 9 and 10; where a treaty applies (Argentina, Brazil, Chile, Mexico) the treaty decides, and Skattestyrelsen notes that Denmark may keep the taxing right where it gave the deduction for contributions. With the other 8 destinations there is no treaty, so Denmark taxes the payments, and cashing in a kapitalpension, aldersforsikring, aldersopsparing or supplerende engangssum triggers the Danish duty on the full amount for which deduction was given. The tax on pension-fund returns (PAL tax) stops once the person is no longer fully liable or is resident abroad, on application with form 07.058.
Public health cover
Entitlement to Danish public health care follows a registered address in Denmark. A person who registers a move to a country outside the EU, Switzerland and the EEA (all 12 destinations) is no longer socially insured from Denmark and is not covered by the yellow health card (gule sundhedskort), even when visiting Denmark; borger.dk points to the public scheme or private insurance in the new country. A pensioner who stays outside the EU for under 6 months can as a rule keep a Danish address and the yellow card, depending on the housing situation.
Sources: borger.dk, Guide: Når du flytter til udlandet (Digitaliseringsstyrelsen with KL, ATP/Udbetaling Danmark and Skattestyrelsen; all answers view)
FinlandEarnings pension paid; Kela pension stops None › Tax treaty with Panama: None. Social security agreement: None.
State pension paid abroad
The Finnish earnings-related pension (statutory TyEL, YEL and similar schemes) is paid to any country regardless of nationality; residents of countries without a social security agreement claim it directly from Finland, confirm their details to the payer every year, and the pension is adjusted with the earnings-related pension index, which applies to all pensions in payment. Kela's national pension and guarantee pension are paid abroad only during a temporary stay: on a permanent move to a non-EU/EEA country without an agreement Kela stops payment from the start of the next month, while the Chile agreement keeps Kela old-age and survivors' pensions payable on conditions such as citizenship and length of residence. Pensions are not subject to Finnish tax at source: a non-resident's Finnish pensions are taxed under the Assessment Procedure Act much as if the person lived in Finland, using the national average municipal tax rate for a full non-resident year, and a treaty-based tax card is requested on Form 6207a. Finland keeps the right to tax these pensions under its treaties with Argentina, Brazil and Uruguay, Finnish tax is capped at 20 % under the Mexico treaty, and with the other eight destinations there is no treaty, so Finland taxes under its own law.
Sources: Työeläke.fi (Finnish Centre for Pensions), How will my pension be paid and taxed? · Työeläke.fi (Finnish Centre for Pensions), Earnings-related pension paid abroad from Finland · Kela, Pension from Finland to another country · Finnish Tax Administration, detailed guidance: Taxation of pension income in cross-border circumstances (issued 9/25/2026) · Finnish Tax Administration, detailed guidance: Taxation of income received by nonresidents, natural persons (issued 8/7/2026) · Finlex, Laki rajoitetusti verovelvollisen tulon verottamisesta 627/1978 (Act on the taxation of nonresidents' income, consolidated)
Private and occupational pensions
Pensions from voluntary individual pension insurance, long-term savings (PS) agreements and a Finnish insurer's voluntary contracts are Finnish-source income, as are private-sector pensions for work done mainly in Finland for a Finnish employer. Under section 13 of the Act on the taxation of nonresidents' income (627/1978) these are assessed under the Assessment Procedure Act rather than withheld at a flat source rate; without a pension tax card the payer withholds 40 %. Small earnings-related pensions are paid as a one-off lump sum. Annex 2 of the Tax Administration's pension guidance shows that Finland may tax voluntary pensions paid to residents of Argentina, Brazil and Uruguay, caps Finnish tax at 20 % for Mexico, and may tax all pension categories where there is no treaty.
NetherlandsAOW paid; rate depends on the treaty In force since 2011 › Tax treaty with Panama: In force since 2011. Social security agreement: In force since 2005.
State pension paid abroad
The AOW state pension is paid abroad, but AOW insurance is residence-based, so each calendar year lived abroad before pension age cuts the pension by 2% unless you take voluntary insurance (possible if you left less than a year ago) (articles 6 and 13 of the Old Age Pensions Act). Under the AOW as amended by the Benefits Export Restriction Act, a pensioner living abroad receives only the married-person rate and no partner supplement, unless they live in a country where a treaty or international decision provides for the right (articles 8a and 9a). Of the 12 destinations, social security or benefit export treaties are in force with Argentina, Uruguay, Chile, Paraguay, Panama and Ecuador; agreements with Brazil and Costa Rica will not enter into force, and none exists with Mexico, Colombia, Peru or El Salvador. The amounts are derived from the Dutch net minimum wage, the AOW cannot be taken as a lump sum, and the SVB may ask for life certificates. Whether the Netherlands withholds tax on the AOW depends on the tax treaty; without a treaty the Netherlands may tax it (for Mexico the Belastingdienst summary notes a 17.5% cap on Dutch tax on AOW and similar benefits).
Sources: Algemene Ouderdomswet, arts. 6 and 13 · NederlandWereldwijd: Krijg ik AOW buiten Nederland? · Wet beperking export uitkeringen · SVB: Buiten Nederland wonen (AOW) · SVB: Uw AOW buiten Nederland · SVB: Betaling van de AOW buiten Nederland
Private and occupational pensions
Dutch occupational pensions and annuities paid to non-residents are Dutch-source income (article 7.2(2) of the Income Tax Act 2001), and the applicable tax treaty decides which country taxes them; without a treaty the Netherlands may tax. On emigration the accrued pension and deducted annuity premiums are covered by a conservatory assessment, and commuting the pension or annuity (a lump-sum buy-out) within the ten-year deferral makes that assessment payable. For a move outside the EU, security may be required where the pension scheme is not placed with a recognised insurer in the EU, Norway, Liechtenstein, Iceland or Switzerland.
Checked at official sources on 25 October 2026. Rules change and your own facts decide: we confirm your home-country position, together with our local partners, licensed attorneys in each country, before anything is filed.
The catch: work and banking There are two real limitations to bear in mind. First , the Pensionado does not entitle you to local employment in Panama. You may own a business, receive dividends and, as a rule, work remotely for clients abroad, but you may not take a local job. If you want to work in Panama, you need a different route. Second , banking is demanding. Panamanian banks check very thoroughly and require clear proof of the source of funds. The good news: Panama was removed from the FATF grey list in October 2023 and from the EU list of high-risk third countries in March 2024, so its reputation is recovering. Accounts can be had; they just take patience and good preparation.
Citizenship: what to know After about five years of residency you can pursue naturalisation. Caution is needed here if you want to keep your current passport: Panama generally requires naturalised citizens to give up their previous nationality . That is a different approach from Uruguay or Argentina and needs thinking through in advance. For most Pensionado holders it is secondary anyway: they come for permanent residency, the discounts and the tax exemption, not necessarily for the passport. If you want the passport, look at Panama's renunciation requirement and your home country's rules on dual citizenship together.
Where in Panama? City or highlands Panama is smaller than many people think, and where you settle shapes your daily life a great deal. Panama City is the vibrant metropolis with first-class medical care, an international airport with direct connections and the Cinta Costera waterfront, ideal if you want urban life and the best infrastructure. Boquete in the western highlands is the exact opposite: cool, green and quiet, with a large, established retiree community and spring-like weather all year round, one of the most peaceful places where I have ever settled clients. Then there are coastal towns and islands if you are drawn to the sea. If medical care is your priority, stay close to the city; if you want peace and a mild climate, head for the highlands.
The most common mistakes I see three stumbling blocks with the Pensionado again and again. First , the wrong proof of income: the migration authority is extremely strict on form when it checks whether the pension is really stated as guaranteed for life , and a loosely worded pension letter is the most common reason for refusal. Second , getting the apostille and translation chain in the wrong order, which costs weeks and invalidates documents once they are older than six months. Third , ignoring the tax side at home and believing that moving automatically puts your pension out of your home country's reach; that needs checking properly. All three are easy to avoid with proper preparation.
Who the Pensionado is made for The Pensionado visa is the best retiree programme in the Western Hemisphere if you bring a lifetime, guaranteed pension. It suits the retiree who values dollar stability, discounts guaranteed by law and permanent residency from day one, and who sees the low presence requirement as freedom. It does not suit someone who lives on capital or investments rather than a guaranteed pension, for whom other programmes are the way in, nor someone who wants to take a local job in Panama. But for the classic retiree, Panama, with its solid passport and warm climate, is hard to beat.
This is exactly the check I do with my clients before the first application goes in: whether your pension income will be recognised and how the tax side at home fits with it. I make sure the pension letter comes in the form the migration authority accepts, that apostilles and translations are ready in the right order and on time, and that the taxation of your pension at home is clarified beforehand. That turns the dream of retiring in Panama into a smooth, predictable process instead of a chain of follow-up questions. If Panama is your retirement destination, let's set it up properly. Book a call with me; the link is right below.
👉 Book a consultation with Harley
Carpe Diem. Life is short and fleeting. One shot. Make it count.
