Do foreign retirees get Panama’s pensionado discounts? Yes. Under Law 6 of 1987, the discount program applies to retirees, pensioners, and seniors residing in the national territory, including foreign residents. On August 27, 2026, the National Assembly approved Bill 226, which amends that law to raise several discounts and add new categories.
The bill passed third debate by a vote of 47 to 1. It now awaits presidential sanction and is not yet in force.
Who Qualifies?
Law 6 of 1987 sets the thresholds at 55 years for women and 60 years for men. Retirees and pensioners qualify regardless of age, as do disability pensioners.
Residency is the operative condition rather than nationality, which is why the program has long been one of the more concrete financial arguments for retiring in Panama.
What Discounts Does the Bill Set?
The schedule approved in third debate, as reported by Panamanian outlets covering the session, is below.
| Category | Discount |
|---|---|
| Cinema, theater, and sporting events | 50% |
| Hotels, Monday through Thursday | 50% |
| Hotels, Friday through Sunday | 30% |
| Medications | 30% |
| Notary services | 30% |
| Water service, on bills up to B/.30 per month | 30% |
| Residential internet and cable, on plans up to B/.50 per month | 30% |
| Domestic and international airfare | 25% |
| Mobility aids such as wheelchairs, crutches, canes, and walkers | 25% |
| Adult diapers | 20% |
| Private healthcare | 15% |
| Loan interest rates | 15% |
| Credit card annual fees | 15% |
| Insurance premiums | 15% |
| Residential mortgage interest | 2% |
These figures come from reporting on the approved text. The controlling percentages will be those published in the Gaceta Oficial once the bill is sanctioned.
What Is New?
Several categories did not exist in the original law. The bill adds residential internet and cable, adult diapers, and mobility aids including wheelchairs, crutches, canes, and walkers.
Coverage of financial products is also broadened, including loan interest, credit card annual fees, insurance premiums, and residential mortgage interest.
What Happens if a Business Refuses the Discount?
Enforcement falls to ACODECO, the consumer protection authority. Under the approved text, businesses that fail to apply the discounts face fines of $500 to $10,000, doubled for repeat violations.
Who Absorbs the Cost?
The amendment to Article 6 provides that the discounts are 100 percent deductible as a tax credit against income tax, allowing businesses to offset them in the corresponding fiscal period.
When Does It Take Effect?
The bill requires sanction by President Jose Raul Mulino and publication in the Gaceta Oficial before it applies. Until then, the discounts in force remain those of the existing law.
Retirees and pensioners in Boquete, Coronado, and Pedasi can continue claiming the current benefits with a cedula or pensionado card in the meantime.
Why Does Panama Keep Expanding This Law?
Panama has amended Law 6 of 1987 repeatedly across nearly four decades, and the additions in this round track how the cost of living has shifted. Internet service and mobility equipment were not ordinary household expenses in 1987.
The program is frequently cited in rankings of retirement destinations. Bill 226 does not change its structure. It extends the same principle to a longer list of goods and services.
Laws and individual circumstances can vary, and this bill is not yet in force. This article is intended as general information and should not replace advice from a qualified Panamanian attorney or tax professional.
Article written: August 28, 2026
