Expert: Lorena Mlns - 11/22/2007

Question
QUESTION: I have read that as  Pensionado a person only needs to prove an income of $500 per month for a single individual. I read elsewhere that 1,000 - $2,000 is needed to live in Panama. How come there is such a vast dfference?
Ihave visited Panama (3 times in total in the past 10 months) prices of everything are considerably less than the UK. I will be receiving around $600 - $800 per month in addition to bringing around $120,000 with me. I plan to have a small 3 bedroom home built and possibly build another for selling or renting. If I decided just to build one house instead, am I likely to be able to live on the income from the UK not taking into account the money I will have behind me?
Many thanks,
-=ray

ANSWER: Ray,
In order to obtain a PENSIONER TOURIST VISA you:
"May opt for an indefinite residence permite, whoever is pensioned by a foreign government or private company with a sum of no less than 500.00 USD per month as a life pension. If you bring in your dependents an additional sum of 100.00 USD is required per month for every dependent."
There are other types of visa as the Immigrant / Investor or Self Support that have other requirements which are indeed of higher sums.
This according to law and per article written by a local lawyer in the Tribaldos Real State magazine 2007.(lesleymartin@cableonda.net)
Now, in regards to of you can live off your pensionado income, it is possible, but very basic living standards.
Please let me know if I can be of further assistance.
Lorena

---------- FOLLOW-UP ----------

QUESTION: Thank you Lorena.
What would you consider to be "basic"? I will have around $120,000 with me - $50,000 will be invested in a house so wouldn't have rent or mortgage worries.
What is the average wage?
Many thanks,
-=ray

Answer
Hi Ray,
If I understand correctly, after you finish building your home, you will be left with: 70k plus your retirement check.
I also understand that you will come to Panama by yourself, be living off your retirement check and leaving the 70k for other use/backup, whatever you choose.
With your retirement check of approximately 600.00 usd per month, I mentioned you can have basic living standards, considering below approximates:
1. Electricity (no air conditioner): 60.00 usd
2. Water and Trash:  20.00 usd
3. Phone: 30.00 usd
4. Food: 150.00 usd
5. Transportation (will you own a car?):  ?
6. Cable: 60.00 usd
7. Help around the house (maid 2 times a week): 120.00 usd
8. Insurances (health, fire-home,etc.): ?
9. Alarm System: 40.00 usd
Leaving out the transportation and insurance: It should add up to 480.00 usd.
Of course the above depend on where you plan to reside.
I hope this helps, if you need anything else, just ask :)
Lorena