{"id":33641,"date":"2020-03-15T08:28:34","date_gmt":"2020-03-15T12:28:34","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=33641"},"modified":"2021-03-01T16:26:19","modified_gmt":"2021-03-01T21:26:19","slug":"the-panama-pensionado-visa","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/the-panama-pensionado-visa\/","title":{"rendered":"The Panama Pensionado Visa"},"content":{"rendered":"

The Panama Pensionado Visa<\/strong><\/h2>\n

Economic wisdom indicates that the spending patterns for retired individuals are characterized by high consumption to savings ratios (research says <\/span>it\u2019s about 112%<\/span>). It\u2019s a pretty commonsensical notion\u2014of course if you\u2019ve worked all your life and saved up for retirement, there\u2019s nothing left but to reap the rewards of your hard work. The problem with being a retiree in the United States, though, is that you find yourself in a crisis the likes of which we\u2019ve never seen before\u2014the United States policies on helping <\/span>secure financially stable retirements have failed<\/span><\/a>. While that\u2019s not necessarily a problem for the wealthy individuals in the community like yourself\u2014the tax structure in the country doesn\u2019t allow people to enjoy much of their wealth any way.<\/span><\/p>\n

Considering the fact that you\u2019re part of an income group with more cash outflows than inflows, you need to minimize your outflows if you hope to make the most of your nest egg. One of the best ways to do that is to move out of the United States into more affordable countries and those which charge the lowest taxes. There are few places in the world that offer you a low cost of living with convenient tax rates<\/a>\u2014with special privileges for retirees\u2014one of which is Panama.<\/span><\/p>\n

The Panamanian Pensionado Visa<\/a> is a type of resident visa offered by the Panamanian government specifically to retirees. You can\u2019t apply for it unless you can prove your retirement\u2014it\u2019s really cheap and has very lax regulations surrounding it. As a retired American citizen, moving to Panama can really help you get more value out of your income and provides you with opportunities that you otherwise won\u2019t find in the US.<\/span><\/p>\n

Are you interested in everything Panama? Want to know how to get a second residency? Listen to this podcast<\/a>, this will change your life.<\/p>\n

Why Move to Panama?<\/b><\/h2>\n

There are two facets to this question\u2014the first are the problems associated with retiring in the United States and the second are the pros of moving to Panama itself.\u00a0<\/span><\/p>\n

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The Problems with Retiring in the US<\/b><\/h3>\n

First and foremost, taxes are a huge problem in the United States. Imagine\u2014you spend an entire lifetime paying income taxes and after retirement, the government can tax as much as <\/span>85% of your social security<\/span><\/a>. While this may not be a concern for people who\u2019ve saved a certain amount of money, it just highlights how little protection the state extends to retired individuals. For reference, a quick glance at the tax brackets in the United States can have you <\/span>paying over 37% on your income<\/span><\/a> if you make $518,400 a year if you\u2019re filing individually. These tax rates are downright extortionist and really take a chunk out of your retirement incomes.<\/span><\/p>\n

Secondly, while the US was stuck in the middle of a trade war with the Chinese, we now also have another problem\u2014the economic uncertainty from the coronavirus. Just a few days ago, the numbers rolled in from the global stock exchanges to show <\/span>a massive $1.7 trillion loss<\/span><\/a> around the globe. The numbers for the United States were equally as dismal, with the market <\/span>sliding down by over 3%<\/span><\/a> which doesn\u2019t bode well for the country\u2019s economic recovery. So even if you had money invested in the market, unless we get a hold on the coronavirus really fast and manage to contain the epidemic, it\u2019s unlikely that the market will improve.\u00a0<\/span><\/p>\n

The fact of the matter is, there\u2019s no way for you to make more money in the United States after retirement and the state keeps charging really high taxes on the wealthy. In such a financial environment, it\u2019s best if you just take your money and move out as soon as possible.<\/span><\/p>\n

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Why Should You Move to Panama?<\/b><\/h3>\n

Panama\u2019s actually a very popular retirement destination for people from around the world. At this moment, currently 190,000 expats live in the country\u2014<\/span>30% of whom are American nationals<\/span><\/a>.\u00a0 A vast majority of that 30% are retirees who recognized the advantages of moving to the country\u2014especially with the Pensionado visa<\/a>. The country has a significantly low cost of living, a great healthcare system and some of the lowest tax rates in the world.\u00a0<\/span><\/p>\n

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What is the Panama Pensionado Visa?<\/b><\/h2>\n

The Panama Pensionado Visa is one of the most convenient ways of getting residency in the country. The idea is simple\u2014if you make $1000 per month from your pension(s), the Panamanian government gives you a residency visa that <\/span>offers the following benefits<\/span>:<\/span><\/p>\n