Panama has rewritten its retiree discounts. Ley 562 of 2 November 2026 amends Law 6 of 1987, the law behind the well-known discounts for jubilados, pensionados and senior citizens. It was published in Gaceta Oficial Digital No. 30647 of 2 November 2026, the official gazette of the republic. The National Assembly passed the bill, number 746, in its third reading on 30 October 2026.
If you are retiring in Panama, or planning the move, three points matter most. First, the law names foreign permanent residents expressly as beneficiaries, with their own age thresholds: 57 for women and 62 for men. Second, it sets out the discounts, from 25% in restaurants and 50% in hotels on weekdays to reductions on cancer treatment and mobility aids. Third, it is not in force yet: Ley 562 takes effect six months after its promulgation.
Who qualifies for the discounts under Ley 562
The new Article 1 of Law 6 of 1987 lists the beneficiaries in a single sentence. The discounts go to:
For foreigners, the wording therefore combines two conditions: permanent residence and age. The sentence does not make a pension a condition for foreigners. If you live in Panama permanently on a residence route other than the retiree visa and hold permanent residence, you also fall under the law from 57 or 62.
The reverse also holds: the wording does not name younger foreign Pensionado holders separately. A woman who moves to Panama on the Pensionado visa at 52, or a man at 58, does not appear in the new Article 1 until reaching the age threshold. How the authorities and businesses handle this once the law takes effect remains to be seen in practice. If you are retiring early and are counting on the discounts, have that checked before you apply. How the retiree visa itself works, which pension you need to prove and what it costs is covered in the guide to Panama's Pensionado visa.
How you prove your entitlement
The rewritten Article 4 of Law 6 governs proof for Panamanian seniors and for foreign permanent residents, whether or not they draw a pension. There are three ways:
1. the cédula, the Panamanian identity card,
2. the jubilado or pensionado card,
3. the permanent resident card issued by the Electoral Tribunal (Tribunal Electoral).
In practice this means: without permanent residence and the right document, there is no discount. A visitor of retirement age has no entitlement, not even with a pension statement from home in their pocket. Which residence permits lead to permanent residence in Panama is compared in the article on the Panama residence permit.
The discounts at a glance
The law lists thirty benefits. These are the ones that matter most in a retiree's daily life in Panama:
| Area | Discount under Ley 562 |
|---|---|
| Cinema, theatre, sport and other public events | 50% off admission |
| Intercity buses, trains, boats and ferries | 30% |
| Air tickets on national and foreign airlines | 25% |
| Hotels, motels and guesthouses | 50% Monday to Thursday, 30% Friday to Sunday |
| Restaurants, including national and international chains | 25% on your own consumption |
| Medicines | 20% (prescription in your name; over-the-counter items without one) |
| General practitioner and specialist visits | 25% off the fee |
| Dentist | 15% |
| Optometrist and ophthalmologist | 15% |
| Laboratory tests | 20% |
| X-ray and radiology | 30% |
| Cancer treatment, cancer drugs and supportive medication | 30% |
| Technical and professional services | 20% off the fee |
| Electricity | 25% up to 600 kWh a month |
| Water | 25% if the bill does not exceed 30 balboas |
| Internet and cable TV | 20%, contract up to 50 balboas |
| Landline and mobile | 20%, mobile contract up to 30 balboas |
| Passport | 50% |
| Airport tax | 50% |
The law states amounts in balboas, Panama's currency unit, which is pegged one to one to the US dollar.
Restaurants, hotels and travel
In a restaurant you get 25% off your own consumption, expressly including branches of national and international chains. The only exception is fondas, the simple local eateries. In a hotel, the minimum discount is 50% from Monday to Thursday and 30% from Friday to Sunday, calculated on the regular price. If you travel around the country during the week, you save the most.
On flights, the 25% discount applies to national and foreign airlines, public and private alike. Intercity buses, trains, boats and ferries cost 30% less, and the airport tax is halved. Cinema, theatre, sports events and other public shows are half price, with one exception: charity events for children, disaster victims and authorised programmes.
Health: medicines, doctors and cancer care
For many retirees in Panama, the health discounts count most. Medicines are 20% cheaper if the prescription is in your name; over-the-counter products are discounted without a prescription. At the doctor, you get 25% off the fee, in general practice as well as with specialists and surgeons. Dentists, optometrists and ophthalmologists cost 15% less, laboratory tests 20%, X-rays 30%.
The catalogue of Ley 562 has a separate item for cancer patients: 30% off the final price of treatments, procedures and therapies against cancer, of cancer drugs and medication against their side effects, and of supplies and equipment for patient care. The law adds 20% off prostheses, wheelchairs, walking aids, hospital beds and specialised mattresses, 20% off the rental, repair and maintenance of such equipment (with a doctor's certificate) and 15% off basic adaptations of your own home such as ramps, grab bars and non-slip floors, where a doctor confirms the need.
The new Article 1-B draws an important line: the discounts do not apply to services in the public health facilities of the Ministry of Health (MINSA), whether consultations, laboratory tests, medicines or medical supplies there. The discounts therefore target private doctors, clinics, laboratories and pharmacies. The order of treatment in public facilities continues to follow medical criteria and triage, not retiree status.
Housing, electricity and water
For your home in Panama, the discounts come with caps. Electricity is 25% cheaper, but only for the first 600 kilowatt hours a month; anything above that is billed at the normal rate. Water is 25% off if the bill does not exceed 30 balboas, the account is in your name and it is your home. Internet and cable TV cost 20% less on contracts up to 50 balboas, mobile phone 20% on contracts up to 30 balboas. Waste collection is 20% off for a residential contract in your name.
If you own property, you benefit further. Property tax is frozen if the home is in your name and is your only property; the valuation levy for public works is waived under the same condition. Notary and registry fees for homes under the preferential interest regime for retirees are reduced by 20% each on the fixed charge.
Loans and banks
The law also reaches your finances. Closing fees on personal and commercial loans in your name are discounted by 50%, the maximum interest rate the law allows is reduced by 15% for you, and the surcharge for the special interest compensation fund does not apply. On mortgages for a home you live in yourself, the interest rate is one percentage point lower, except for loans already running at preferential rates set by law.
When Ley 562 applies
Article 10 of the law is clear: Ley 562 "comenzará a regir a los seis meses de su promulgación", so it takes effect six months after its promulgation. The law is dated 2 November 2026 and appeared in the gazette the same day. Counting from that date, the new rules apply from early May 2027. Until then, Law 6 of 1987 in its current version remains the reference.
For your planning this means: if you move before spring 2027, you receive the discounts under the current text at first, provided you meet its conditions. Once the law takes effect, the beneficiary list and the percentages of Ley 562 apply.
New duties for businesses and fines for breaches
Ley 562 also strengthens your position at the till. Three rules matter:
A business that refuses the discounts risks a fine from the consumer protection authority (Autoridad de Protección al Consumidor y Defensa de la Competencia, known as ACODECO) of between 50 and 5,000 balboas, doubled for each repeat offence. The authority takes complaints and monitors compliance. Businesses can in turn deduct the discounts they grant from their income tax, as the new Article 6 provides.
Retiring in Panama: the route to the discounts
The discounts are not a visa of their own but the consequence of a status. For retirees from abroad, the best-known route is the Pensionado visa, Panama's retiree visa. Its requirements, above all proof of a lifetime pension, and the path to permanent residence are covered in the Pensionado guide. If you are not coming on a pension, the other residence routes are on the Panama country page.
With Ley 562 in view, three questions are worth settling in advance:
1. Do I reach the age threshold? For foreigners, the thresholds are 57 (women) and 62 (men). If you are younger, check in advance whether and how you qualify once the law takes effect.
2. Do I hold permanent residence? The wording requires residencia permanente. If you only live in Panama on a temporary permit at first, the text of Article 1 does not cover you.
3. Do I have the right document? Proof is the cédula, the pensionado card or the Electoral Tribunal's permanent resident card.
Together with our local partners, licensed attorneys in each country, we handle the retiree visa application; the process and scope are set out on the Panama Pensionado visa page.
What the discounts mean for your budget
An example without exchange rates, using only the percentages in the law: if you eat out twice a week, see a specialist once a quarter, need regular prescription medicines and stay in a hotel midweek twice a year, you pay a quarter to a half less on each of these items, and a fifth less on the medicines. On electricity, the discount runs up to 600 kilowatt hours; if you use a lot of air conditioning, you pay the rest in full. The discounts noticeably lower your cost of living, but they do not replace health insurance: they apply to the price, not to the risk of an expensive treatment.
Tax is a separate question. Moving to Panama does not, on its own, decide what your home country keeps taxing. What happens to your pension at home, and whether a tax treaty helps, depends on where you come from:
If you are still comparing Panama with other countries in the region, the overview of the best Latin American countries for retirees sets them side by side.
Ley 562 in brief
Carpe Diem. Life is short and fleeting. One shot. Make it count.