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David to Boquete Highway progress report

February 7, 2013 by 8 Comments

As predicted the construction restarted in January. Label me a cynic but I think the forces layoff of hundreds of employees was to avoid paying salaries for  the holidays of November and December. Now they are back at work.

Union Fenosa is removing power posts near Los Algarrobos now and both CabelOnda and Cable and Wireless are moving cables closer to Boquete.  The road is once again a daily reassignment of lanes and changes abound basde upon construction needs of the moment. This makes the drive more dangerous and down right hazardous at night.

Progress is being made and once again my unanswered question is why are they spending over one hundred million dollars on a new well constructed four lane highway from David to Boquete?

The current government does nothing unless there is an economic gain for members of the government, call that Panamanian politics. It is rumored that the massive new five star hotel and housing project in Jaramillo Abajo being constructed by TransCaribe, David Ochy, has a partner who is the current President of the Republic of Panama. If that is the truth, it could explain the use of massive amounts of borrowed government money to make Boquete more accessible. We will all need to wait and see if that rabbit pops out of the hat or if there are other more populist reasons for the expenditure. The benefit of bearer shares of corporations in Panama allows for great secrecy for everyone, you may never know who really owns anything here.

Regardless, when completed David and Boquete will be about twenty minutes apart. The construction of what appears to be a new government hospital in Clamito along the new highway, will make emergency medical assistance far closer to Boquete than before. It will take  about fifteen minutes to drive there in an emergency  instead of the current forty minutes to Regional or hospital Chiriqui.

Basically Boquete is becoming less of a sky island. Boquete will become more attractive to tourists flying into the expanded David airport. We are entering a time where tourism will become even more important to the local economy and I suspect we will see an increase in the numbers of what are called residential tourists, those who move here, like me.

Terminal renovation at David Airport

Terminal renovation at David Airport

The new “friends of Panama Visa” makes it easier than ever to obtain permanent residency with a $5,000 bank deposit and and either a job or opening a business. Under this visa you can open your own business and work in it, no need to hire employees unless you want them. This coupled with the enhanced access is going increase the growth both in Boquete and all of the “interior” of Panama as people worldwide smell opportunity.


Filed Under: Featured, Government, Immigration

The cedula arrived

November 13, 2012 by 10 Comments

The date I was given to pick up my Cedula in Boquete was 12 November. Being a realist and having lived in Panama for more than six years, I tried to resist my compulsive personality and hold off going to pick it up; I knew it would not be there. My self-control failed. I entered the Tribunal Electoral office in Boquete, near the library on the side street, at 10am.

I presented my receipt from Panama City and fully expected them to say come back at some indefinite time in the future, they didn’t they had the Cedula. The final act was them taking a finger print and the computer confirming I was the same person who gave finger prints in Panama City.

Is this the new Panama, efficient?

 

Cedula E less ID number

Next David to change auto registration and drivers license.


Filed Under: Featured, Government, Immigration, Legal

Open letter to new immigrants, you are welcome here but …

November 10, 2012 by 11 Comments

I want to be the first to say to the huddled masses who want to leave the United States after the Obama victory that you are welcome to join us in Boquete Panama. It might be helpful to understand some differences between the United States and Panama. Since I have no interest in selling you anything, you might find my perspective a contrast to the many people hustling Panama online. This post is intentionally negative, but it is also intentionally a contrast.

Panama is not part of the United States. I feel compelled to say that because I have read so many comments and questions on various Yahoo groups from people who are looking to immigrate here with families and find work in Panama. You will need a passport to enter Panama. Although English is widely spoken among educated Panamanians, the official language here is Spanish and you will need to speak Spanish to get a job or function efficiently almost anyplace outside of immigrant enclaves like Boquete.

As an American passport holder you can enter Panama as a tourist for six months and recycle that entry in one day by visiting Costa Rica. That policy can be changed and has been as little as 30 days in the past for tourists. Tourists cannot legally work in Panama. If you work as a tourist and are caught you will be fined and possibly deported. Tourists and retirees cannot work here without a work permit from the government and tourists and people with retirement visas cannot legally get work permits.

The laws are different here,  the government can create or change laws in days and they are in force as soon as recorded. Recent events have shown, when a law is very unpopular the people attempt to shut the country down until the law is repealed, they have succeeded several times recently.

Immigrants often learn the legal system is of no value to them, there are many corrupt lawyers and forget a malpractice suit, a lawyer will not sue another lawyer. Even if you can find one to file a lawsuit, he with the most wealth or best political connections will likely prevail in the lawsuit.

Many people buy property here. Too often people buy Right of Possession (ROP) property, only to discover others have claims on the land. The buyers might discover they own nothing but a document after a legal battle. You need a lawyer to make an intelligent purchase and need to hope the lawyer is honest. Just because the lawyer speaks English does not make them honest. You can buy titled property safely, most of the time but need to check on liens, tax liabilities etc before buying. There are no escrow services here and although I have heard of people selling title insurance I have never actually seen anyone benefit from Panama title insurance.

We have many English-speaking carpetbaggers here. Some of these people fled their criminal past in other countries and came to Panama because the laws on White Collar crimes like fraud are weak at best. You can buy a house from the honest Gringo and find out he never owned it. You will have little recourse and may have lost your investment.

If you are from the USA you will find your money is good here. The currency of Panama is the Balboa, but the Balboa only exists as coins, the paper currency here is the US dollar. That is convenient,  but if you believe the dollar is doomed, so is the Balboa. Unless the government decides to really upset the economy and change the currency; which they could do.

Domestic and farm labor is available and appears to be very inexpensive. However the labor laws in Panama are 99% skewed to the worker. An employee has Social Security of which you must pay a percentage. Employees are legally entitled to a month vacation each year and you need to pay decimo, a 13th month of wages each year. In essence an employee works eleven months and is paid for thirteen. You also need to pay severance after ninety days of employment, terminating an employee can be expensive . If you hire someone for $2 an hour, the real cost is closer to $2.80 without factoring in severance.

If you are fleeing socialism, it is here already. In Panama the government owns the canal, a couple of banks, half of Cable & Wireless, a telephone company, a part of the electric utility, the Colon Free Trade Zone, part of the coast to coast oil pipeline and probably a lot more. Social Security provides not only a meager retirement income but medical care also. Your medicare, medicaid and with some exceptions your health insurance will not work here. If you have Tricare you can get reimbursed, but most US health insurance does not work here in Panama.

Despite any rumors to the contrary we have taxes in Panama. There is a 7% VAT on most purchases other than food, medicine and agricultural goods. There are import duties on almost everything and transporting goods from overseas is expensive. There are property taxes and although there are some exonerations, you need to be sure you actually have them or your tax bills will grow with penalties and interest. The liability might first be discovered when you try to sell your property. If you do work, there are also income taxes and Social Security taxes.

You can start a business and as long as you do not work in your own business unless you get a work permit. You can profit from your enterprise as a shareholder but if government inspectors find you working expect a hefty fine.

With all of the negative said, if you are careful and do not check your brains at the airport Panama is wonderful. Panama is a great place to live. I have been here more than six years and love it but it does require a reset of expectations and not everyone is willing to make the necessary changes. Too many people come and leave within two years, some with less than they had when they arrived, that is my reason for the splash of ice water.  This was a counterbalance to the sales pitches that are on most internet sites about Panama. Consider the changes you need to make to adjust to a new country, visit, rent and see if it for you before you sell your assets and buy your family a one way ticket.

 


Filed Under: Contrasts, Featured, General Interest, Government, Immigration, Legal, Opinion, Taxes

Cedula E a step by step summary

November 9, 2012 by 1 Comment

This is how I did the process of getting a cedula E, one step at a time. You do not need an attorney, you do need to make two trips to the capital and you need some Spanish. With an attorney you only need one trip to the Capital, so, having an attorney might not be a bad deal. This post is only relevant to people who have Pensionado visas and carnets.

Trip one you need:

2 copies of your Pensionado carnet

1 copy of your Pensionado  resolution, I had mine notarized in Boquete, not sure if that is necessary

2 passport photos

Go to immigration in the Capital, dress appropriately. Try to get there as early as possible. Explain you need a new resolution for a Cedula E. If nothing has changed they will give you ticket beginning with a Y. If they do go in and look at the windows near number 20. If you see a window with a line of flappers and another with no one waiting, and a lady entering data go to the lady entering data and explain what you need. If I am right she will ask for your papers, keep a copy of your carnet and return the other to you with a stamp and a date. She will tell you to return on that date. Worst case sit down and wait until you are called.

If you are not married, or were married in Panama, go have a beer, you are done for the day. If you are married but not in Panama you want to register your marriage or your spouse will not officially be your spouse; just think of the possibilities.

You will need: A copy of your marriage license, apostilled by the Secretary of State of the State that issued the license.

A legal translation done by a licensed translator who stamps and signs each page.

One copy of each of your passports

A letter to the Director of the Tribunal Electoral in Spanish asking that the marriage be registered.

Take that pile of paper to the Tribunal Electoral in Panama City. You can do this in David also but it will take months to be recorded, not days.

Go to the second floor of the building to a window for extranjero affairs and ask to have it registered. They will review the documents and have you sign some authorizations. There is no charge. You can delegate this to another person with a signed, notarized power of attorney

You have completed day one.

When the date on the paperwork from immigration has come plan your next trip to the capital. Go to the Tribunal Electoral as early as possible, dressed appropriately, no shorts, shirt with a collar etc. Go to the first floor office of Extranjero affairs and ask if they have your papers from immigration for a Cedula E. If they do not have the documents you need to go to immigration and find the problem. If the papers are ready, they will ask you to wait a few minutes and then send you down the ground floor to pay for your Cedula. Be sure to tell them where you want them to send your cedula or it will mean another trip to Panama City.

You need $65 and two copies of your Pensionado carnet

Pay the money, take the post it note receipt back to the same office and wait again. Once they are ready they will give you another paper and send you back to the ground floor for finger prints and photos. They will tell you when to pick up your new Cedula.

When I have mine I will deal with car registration and drivers license changes.


Filed Under: Government, Immigration Tagged With: , , ,

The Cedula E, round two in the Capital

November 7, 2012 by 8 Comments

On Monday, Colon Day holiday I joined Will Wolff and Mari Ruiz on a drive from Boquete to Panama City. Mari had an appointment at the US Embassy to interview for a Visa and I wanted to do the next step on my path to getting a Cedula E for Extranjero.

Driving to Panama City at the end of a holiday weekend is not recommended. The traffic was awful it took us nine hours to get to the hotel.

At 8AM after a relaxed evening, I grabbed a taxi and went directly to the Tribunal Electoral. I did not return to Immigration even though they told me to go there first for a piece of paper, as I discovered it is not necessary.

I went up to the first floor which is actually the second floor, one above the Mezzanine to the same office of extranjero affairs that did not have my paperwork on my last trip. As often surprises me in Panama they remembered me and found the paperwork from Immigration, that saved me having to return to immigration.

While they were pulling paperwork out of various places I went to go check on the procedure to register a marriage. To do that you go up one more flight of stairs and there is a window for Extranjero affairs. To register your non Panamanian marriage you need a certified copy of your marriage license which has been apostilled, a copy of the same document translated by a licensed translator who has stamped and signed each page and a letter to the director, Magister Zoraida Sitton, in Spanish asking for the registration. There is no cost for the registration. Once you have registered your marriage in Panama you can only file for a divorce in Panama if you want Panama to honor the divorce.  If you need a local licensed translator I recommend Mitzi Claire Nash, she is great, if you email me I can provide her telephone number.

After learning all of the above, I returned to the Office of Extranjero Affairs on the first floor. They had all the papers ready but I needed two more copies of my Pensionado carnet and had to return to the ground floor to pay the $65 fee. I discovered a mobile copy center in the parking lot, they have a thriving business model.

Copy Center on Wheels

Twenty cents later I was able to go back into the office and pay the $65 fee at the cashier and take my receipt and copies back up the the first floor, that is really the second floor, the floor above the mezzanine, and turn them in.

I was then told to wait outside for about one hour, instead I went to the neighborhood McDonalds and ate a leisurely breakfast. When I did return about thirty minutes later the waiting area was full.

Hurry up and wait here

Once again I was surprised,  the clerk saw me through the glass door, came out and told me they would be ready for me in a few minutes; they were. In less than a hour,  I was downstairs being photographed, finger printed and smiling for the camera, the clerk there smiled for me too.

Smile and put your fingers on the imaging machine

Next step, my Cedula will be delivered to the Tribunal Electoral Office in Boquete on November 12.

Total time from entering the taxi to leaving the Tribunal Electoral, two hours; remarkable. I later found out it took Mari three hours to complete two interviews at the US Embassy to get her Visa.

I walked the two kilometers back to the hotel enjoying the tropical weather and rather self satisfied that I had navigated the bureaucracy on my own.  Once I have the Cedula I will start researching the process of getting nationalized for a passport.


Filed Under: Featured, Government, Immigration, Legal

TCM: Cedula for extranjeros, take two

October 23, 2012 by 5 Comments

Take one of this adventure was when I started the process of getting a E Cedual myself. That experience is documented here in this POST. What I learned was that a person with a Jubilado proclamation can do the entire process of getting a E (extranjero) cedula themselves if they have extraordinary patience and a working knowledge of Spanish. It is more complicated than it appears to be. What I did not completely understand were the benefits of getting the Cedula.

Today at the BCP attorney Enrique Arrocha did an excellent job explaining why many people with a Jubilado Carnet would want an E Cedula. He also made it clear that for most people it is worth hiring someone to do it for you.

The benefits are simple. Despite the fact when we applied for Pensionado Visas we were told we were not on a path to citizenship the law has changed, for now. If you are a Pensionado and jump through the hoops to get a E Cedula and desire Panamanian citizenship you can apply for it five years after the date of the resolution granting you Pensioado status in Panama. For many people, including me, that means now.

This is a big change.  If you want a Panamanian Passport and the right to vote in Panama you can now have them. There are too many steps and a boatload of expenses, but the end game is you can be a dual citizen of Panama and the US or Canada, maybe more countries.

Step one is to get the Extranjero Cedula.  That requires going to Panama City and submitting two copies of your carnet and two passport sized photos to immigration. They take twenty five days to send your paperwork to the Tribunal Electoral. If everything works properly you then return to the Tribunal Electoral in Panama City pay your $65, get your photograph taken and have a cedula sent to your local Tribunal Electoral Office.

Once you receive the cedula you need to visit the ATTT office in David in the Municipo and change your car title to have your new cedula number and then your need to get a new drivers license with the new number. The benefit you will never have to do it again.  See this post for the reasons and steps. POST

All of that done your cedula will allow you to open a bank account and do other things without the normal pile of papers. No more needing a passport to sneeze in a bank. In addition you are then setup for citizenship and a passport if you want them.

The process of requesting citizenship is tedious. Once you have the E cedula you need to wait five years from the date of your resolution for Pensionado status. I have those years, so  I am going to do the steps and report back on the my various levels of frustration at each step.

Enrique enumerated the steps and the costs which add up to over $1,000 in government fees as well as time. You will need to have at least rudimentary Spanish as you will be interviewed in Spanish and  given a multiple choice examination covering Panamas history and geography in Spanish. A good excuse to study now.

When it is all done, if ever, you can then request a Passport, you must be a citizen to get the passport. The E cedula alone is not sufficient for a passport.

If you want more information contact Enrique Arrocha, he has an office in Los Establos Plaza, earrocha@cableonda.net,  telephone 6672-3055. He is offering to do the cedula auto registration change and drivers license change for $500 a person including all government fees.


Filed Under: Featured, Government, Immigration, Legal

Hunting for a Cedula for Extranjeros

October 10, 2012 by 10 Comments

About a month ago I was contacted by a Boquete attorney who explained that people in Panama on a Pensionado Visa were now eligible for a Cedula. A Cedula, is the National Identification card carried by all Panamanians.  I listened, made a note of what he said and went back to my business of the day. Later I wrote to Rainelda Mata-Kelly, another lawyer I know and respect and asked her opinion, she said she was recommending that her clients obtain the cedula. I still saw no reason, since it is apparently voluntary and my carnet seems to work just fine.

Last week I tried to open an account in a cooperative in David, they gave me the first justification to get the new cedula. Simply said, if I have a Cedula they can open an account, but they cannot open one with my existing carnet. So began the cedula hunt.

The government office issuing the Cedula is the same as for all Panamanians, the Tribunal Electoral. According to their webpage these are the requirements, I was pleasantly surprised that it does not say you need a lawyer.

Documents required to obtain a cedula for extranjero

” B/.65.00 , two photocopies of your Pensionado Carnet and a copy of the resolution from immigration that gave you your carnet.”

Tribunal Electoral

Knowing the reality of documents in Panama I had a copy of my immigration resolution notarized as a legal copy and then took it and the two copies of my carnet to the office of the Tribunal Electoral in David.  I asked at information about getting a Cedula for an extranjero and was put into a long line of people waiting for cedulas. Within a minute I was extracted from the line. I was  taken to a office where an employee looked at my documents and said they were correct but that they could not issue the cedula. In true Panama fashion I would need to take the same papers to the Capital and the Tribunal Electoral there.

Yesterday 9 Oct 2012 I took a morning flight to Panama City for a visit to Hospital Punta Pacifica and to do the Cedula. The airport in David is looking spiffy but is not yet complete.

Airport Terminal David Panama

Airport Terminal David Panama

This was the first time I have flown into Panama City for some time, among others I met at the airport in David was the Governor of Chiriqui.  After some casual conversation with her, I expressed it was a pity that people had to fly to Panama CIty to do routine government business, she listened politely and sped toward the plane with no comment; oh well, no surprise there.

Upon arriving at Albrook I experienced the taxi drivers, the first driver wanted $12 to go from Albrook to Punta Pacifica, I laughed and called him loco. The second $8, so I walked to the road and flagged down a normal cab and did the ride for $5. After my visit in Punta Pacifica I went through a similar series of negotiations to get the the Tribunal Electoral. There I was directed up from the ground floor to the office of extranjero affairs on the first floor ,which was really the third floor, if you counted floors and ignored signs.

There were two very polite ladies in that office , one had no idea what a cedula for extranjeros was, the other fortunately did. They had me rest in the lobby for five minutes and called me in. It appears that they had no record of my immigration, 2007 was just too far in the past for their system and I would need to go to Immigration and get a new original of my immigration resolution with photos. They wished me luck, not a good omen.

With some level of frustration and a desire to see it through I negotiated another taxi ride with a true man about town. My driver slowed and gawked at every beautiful woman we passed and terrified me driving down Tumba Muerto weaving between buses and other taxis. We made it,  and I was greeted by what could have been described as an efficient, take you number system that reminded me of the DMV in Arizona, the pleasure of illusions.

Immigration Panama City

Immigration Panama City

After several hours time I noticed that the Y number I was given was for people processed in the old Immigration office and that only one woman was servicing the queue. I watched her window and noticed that legal couriers had her overwhelmed and she barely advanced in the numbers. I joined the couriers and she asked if she could help me. After waiting hours the correct way, I had attention in five minutes, the Panamanian way. She pointed at another woman and said she would help me and she did.

I needed the papers that the Tribunal did not take and two Cedula photos, Arrocha can take them for you. She took my papers, rubber stamped a copy of my carnet and said come back in 25 days. In theory I will then have the papers I need for the Tribunal Electoral. I will return to Panama in about a month or more, considering November is missing a bunch of work days and see where I am in the process.

You can do this yourself, if you have patience and Spanish. My Spanish is not great but I could not have done anything in English. The next steps will take more time and another trip to the Capital, that alone might justify paying someone else to do it for you, or as long as it is voluntary not doing this at all. I suspect that if your Visa was processed at the new facility in Tumba Muerto you will not need to go to immigration, but that is a guess to be proven by someone else.


Filed Under: Featured, Government, Immigration

TCM: Immigration, Banking and Property by Rainelda Mata- Kelly

September 6, 2011 by 4 Comments

As always Rainelda did a sterling job on explaining a great deal about the law in Panama as it relates to areas near and dear to people immigrating here. All the basics from her powerpoint are covered on her website. Mata-Kelly.com so I am not going to do Panama Law  101 here.

I want to simply repeat a few questions and answers from the the discussion.

How long can I stay on a tourist Visa?  The tourist Visa is 90 days. The current government is not fining people if they stay up to 180 days but the law remains 90 days. This complicates the drivers license issue. A non Panama drivers license is only good for 90 days, Police are doing their job correctly if they confiscate your car for driving illegally after 90 days. You cannot get a Panama drivers license on a tourist Visa.  The summation, if you are a tourist and you drive you need to reset your passport every ninety days by leaving the country for 72 hours.

Is there anything happening to allow people on Pensionado Visas to have a more permanent ID number so they do not need to change documents each time they change passports and what must they really change?

Rainelda said she knows of no changes currently under consideration on simplifying this. She did say that you should maintain your old passport and although you do not need to change every legal document on file with a new passport, the old and new passport numbers should be referred to in all new documents. You do need to register your new passport with immigration and they do stamp it registered. They will not replace your permanent Carnet but they record the new number. I also know from experience you do need to change you car registration documents or you will have a problem getting a new drivers license.

Some one asked about whether she should have shares to her corporation.  Rainelda responded yes. An attorney should issue the shares and you should designate whether they will have names or not. He who has bearer shares is the owner of the corporation and replacement of lost shares requires a trip to court.

When asked about Panama’s banks and FDIC type insurance she stated that there is no such thing as FDIC in Panama. She was also asked about Credit Unions in Panama and said that she did not recommend putting large sums into credit unions they are not regulated as well as banks.

She commented on people who are still in the process of getting cedulas and citizenship under the pre 2008 immigration law. Immigration is looking to close down that operation and she suspects they will push out documents faster, rather than slower to end the backlog and shut down the office handling pre 2008 files.

She warned people who are immigrating not to close their existing bank accounts before have new accounts opened in Panama. Stating that it is almost impossible to open an account here with out a letter from your existing bank. In addition she thinks that US Citizens will find themselves excluded from many banks in a couple of years when FATCA goes into effect.

One other question was to differentiate the Pensionado and Jublilado status and how they apply to discounts. Pensionado is a Visa that provides a discount to anyone who has the Visa regardless of age.  Jubilados are residents who reach the statutory ages. She emphasized that use of this discount comes directly from the businesses, it is not funded by the government.

Only the primary person who has the Pensionado visa, not a dependent is entitled to a discount at any age as a pensioner. A hypothetical family of six with one pensionado visa holder, permits a discount for the one Visa holder regardless of age. The other dependents are not eligible unless they are over 55 years for a woman, 60 for a man. If they are over those ages, since they are residents they qualify under the jubilado law. In reality a retired husband and wife, not minor dependents with Pensionado dependent carnets will qualify for discounts.

She discussed the tax issues on both property and income. Discussed reappraisal to lower tax rates and the various ways to transfer property.  One comment was about the sale of corporate stock. Rainelda said it is the responsibility of the buyer to withhold 5% of the selling price of the shares from the seller and turn it over to the tax authorities. This complicates what was the fastest easiest way to move real estate.

There was much more but I was the AV monkey pushing powerpoint buttons so perhaps if anyone else who was there can add please do make a comment here or better in the Ning discussion

I am not going out on limb endorsing Rainelda as an attorney for her areas of specialty. You will find people quoting lower prices and too often find yourself paying much more die to their errors or omissions.

Rainelda Mata- Kelly

Telephone:
 (Int. access code+507) 216-9299
Fax:
 (Int. access code+507) 216-9298
Mobile phone:
 (Int. access code+507) 6618-0515
e-mail:
 rmk@mata-kelly.com Website: www.mata-kelly.com
Office Address:
 Suites 406-407, 4th Floor, Tower B, Torres de las Americas, Punta Pacifica, Panama City, Rep. of Panama.
Mailing Address:
 P.O. BOX 0818-00534, Panama City, Republic of Panama

Filed Under: Government, Immigration, Legal, retirement, Survival Kit Items, Taxes

Working in Panama

April 27, 2011 by 11 Comments

This post like so many is a reaction to information and miss information being spread about by both the informed and uninformed. I need to add a disclaimer, my law degree from the University of Arizona carries no weight in Panama. Perhaps a little respect from the uniformed, but no more than that. The laws are different here and understanding that is an important first step.

For some reason, probably the clear opportunities and entrepreneurial spirit many new immigrants here in Boquete want to create business or just work. If you are a cedula carrying Panamanian citizen, you can work for anyone, doing anything legal, at any time and collect a paycheck. If however you are a new immigrant stop, read and think.

Mail Box Etc Boquete Panama

Whether you can work here depends on how you define work. Work for pleasure, work without compensation is perfectly acceptable, although if you are so inclined and take a job away from a citizen, they might decide to call immigration and cause you some grief. Work for a paycheck is forbidden, unless you get a work permit. Getting a work permit is impossible if you are here as a tourist, or pensionado, which is a perpetual tourist visa. The Pensionado visa is NOT a path toward citizenship and under the terms to which you agreed when you applied for one, you cannot work in Panama. Working and getting caught can cost plenty including deportation.

If you have another type of Visa and a Panamanian company wishes to hire you for your special skills and they do the paper route to get you a work permit you can work legally in Panama. If you are legally in Panama for five years on a work visa or other type, other than Pensionado or tourist, you can then apply for citizenship should you want it. If you for some reason want a fast path to a work visa and change of status, get married and have a child. If you are responsible for the support of a child born in Panama, you will be fast tracked to a visa.

Assuming having  child is not in your game plan, there is one other way to earn money legally in Panama; you can start a business. You can employ Panamanian citizens and although you cannot legally work in your own business you can train your staff and profit as the owner of the corporation.

The landmine is that even if you own the business, unless you can somehow get a work permit you cannot work in your own business. If you are caught working, behind the counter, what ever, you can be fined and deported.

Panama has the jubilado, pensionado visa with one goal, getting you to move here, spend money and create employment. They do not expect you to be competing with the local labor force. There are other visas with other options like the business investor visa where after hiring five locals you can work, but that in not with a Pensionado visa.

If you are having trouble digesting any of this please consult with a lawyer licensed in Panama, I am  not. Do it before you find yourself facing legal problems. For those who think this is somehow unfair, please check your home country immigration laws, they will be similar, probably without the Pensionado Visa option.


Filed Under: General Interest, Government, Immigration, Legal, Politics Tagged With: , ,

Jubliado, Retiree Discounts

April 14, 2011 by 8 Comments

I have heard a lot of noise recently about the use Jubilado discounts. These discounts are very liberal and some people have said they apply only to residents who have a cedula. That is not what the law says:

“Official Gazette of June 22, 1987)
By which take measures on behalf of Senior Citizens, Pensioners, Third and Fourth Age and creates and regulates the Pensioners text has been updated as amended by Act 18 of 1989, Act 15 of 1992, Act 37 of 2001, Act 14 of 2003, Act 51 of 2005, Act 30 of 2008.

Article 1.

Chapter I Discounts and Special Rates
Panamanians or foreigners residing in the country with fifty-five [55] years or more, if they are women, or sixty [60] years or more if you are male, and all retirees for any gender shall the following benefits: ”

Full Spanish text is at this ACODECO link.

The phrase “Panamanians or foreigners residing in the country” says it all. Even if your Visa is a jubilado visa that never provides a path to passport you are a resident. It does not apply to visitors without a resident visa.

The issue of when it is appropriate to use this privilege is somewhat discretionary. I use it for travel and Hotels, rarely at reasonably priced restaurants. I have seen people use it in typicos like El Sabroson, I personally find it difficult to ask for a 25% discount on a $2 lunch, I have less of a problem on a $14 meal.

Many people do not know they can ask their doctors and dentists for a discount, you can, section 8 says:

“Rates at the following medical services: a. 20% in consultation fees of general medicine and medical and surgical specialties; b. 15% on dental services, and c. 15% for optometry services. ”

Lawyers and accountants need to give a 20% discount.

Private Hospitals, 15% discount.

acodeco panama

Acodeco Panama Boquete Panama


This is a powerful law with enforcement. The agency for enforcement is ACODECO and it you click on their name you will see their web site.

If you can read Spanish there is a lot more on the site, ACODECO does regular price surveys on the Canasta Basica in Panama City, this number effects everyone because it shows the increasing cost of living for the average person in Panama. Link


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