Do you lose U.S. benefits while living in Panama?

No, you don't automatically lose your Social Security benefits when you move to Panama. In fact, many U.S. citizens residing in Panama continue to receive their monthly payments without interruption.

El U.S. Social Security can be sent directly to your bank account in Panama, or you can choose to receive it in a U.S. account and transfer the funds when you need them. The important thing is to meet certain basic requirements established by the Social Security Administration (SSA).

Requirements to continue receiving Social Security payments from Panama:

If you plan living in Panama as an expat or a U.S. citizen, these are the key points you should keep in mind:

• U.S. Citizenship: If you're still a U.S. citizen, you can receive your Social Security payments in most countries around the world, including Panama.
• Report your address: It is necessary to notify the SSA that you live outside the United States, including your new address in Panama.
• Life tests (life certification): The SSA may require you to complete an annual form to verify that you are still alive and are eligible—this is common in many foreign countries.
• Types of benefits: In some cases (for example, if you're not a U.S. citizen and you receive benefits as a dependent), geographic restrictions apply. It's important to review your benefit category.

The SSA publishes a tool called Payments Abroad Screening Tool, which allows you to verify if you can continue to receive your benefit depending on your country of residence and type of benefit.

Do payments lose value if you live abroad?

Payment amounts are not reduced because you live in Panama. However, there are external factors that can affect the practical value of the benefit:

For example, Exchange rates between the dollar and the local currency (although the U.S. dollar is used in Panama), bank fees or transfer fees can change what you actually receive for your daily expenses.

What if I have a Green Card or dual citizenship?

If you have permanent residence (Green Card) If you move to Panama for more than 12 months, you could lose it if you don't take steps to maintain your status. While this doesn't directly affect Social Security, it can affect your immigration relationship with the U.S., which we'll discuss in detail in another section of this guide.

In short: you can continue to receive your Retirement in Panama if you are a U.S. citizen and you comply with the basic notifications required by the SSA. Mudarte It doesn't mean losing Social Security benefits, but it is important to manage administrative aspects well.

This is one of the most common questions among those who think of moving to Panama when you retire: If I have Medicare, will I be able to use it outside the U.S.? The answer: You can't use Medicare for regular health care in Panama or another foreign country.

medicare is a federal health program that generally only provides coverage within the United States and its territories (Puerto Rico, Guam, Virgin Islands, American Samoa). If you live in Panama, your insurance won't cover tests, hospitalizations, or daily medical treatments.

Does that mean you're losing Medicare?

Not exactly. You can continue to pay for parts of Medicare and keep your eligibility, but benefits will not be automatically applied abroad, nor are they transferred.

What options do you have if you move to Panama:

• Keep Medicare Part A: It's free for most people. You can keep it in case you return to the U.S. and need medical attention at future visits.
• Analyze whether to keep Part B: This covers medical services, but it has a monthly cost. If you don't plan to use it, you can cancel it, although that can result in penalties if you decide to resume it later.
• Supplement with international insurance: Many expatriates in Panama opt for local or international private health insurance designed to cover medical care outside the U.S.

Real case: American retiree in Panama

Take John as an example, a retired American citizen who decided live in Panama. John is still paying for his Part A, but he canceled Part B because he has private insurance in Panama. However, when you visit your children in Florida each summer, you return to using Medicare for your annual checkups. This approach allows you to balance costs and coverage based on your lifestyle.

What happens if you decide to return to the U.S.?

Keep in mind that if you interrupt Part B and then return to the U.S. , you could face penalties or specific re-enrollment dates. For this reason, many people prefer to continue paying, even if they don't use it in Panama.

In conclusion, although You can't use Medicare for health coverage in Panama, you can maintain your link with the system if it makes sense for your situation. Evaluating your age, health and whether you plan to make long visits to the United States is key when making this decision.

One of the most common questions when Obtain residency in Panama is how this affects your immigration status in the United States. The good news is that Becoming a resident or citizen of Panama does not directly imply losing your legal rights in the U.S.. But it's important to know the implications, especially if you have one Green Card Or are you American citizen.

Do I lose my U.S. citizenship if I obtain residency in Panama?

No. Get the Panamanian Residence No Delete Your U.S. Citizenship. The United States allows its citizens to legally reside abroad without losing their citizenship or constitutional rights. You can live permanently in Panama and continue to function legally as a U.S. citizen.

For example, you'll still have the right to:

• Receive your Social Security Or pension from abroad
• Voting in federal elections (by voting from outside)
• Entering and leaving the U.S. with your U.S. Passport

What if I am a permanent resident (Green Card)?

If you have a Green Card And you decide Move to Panama, the situation changes a little. Lawful permanent residents can live outside the U.S., but only for limited periods. Exceeding 6 months per trip or staying out for more than 12 consecutive months can put your immigration status at risk.

The reason is that permanent residence implies an intention to live in the U.S. If the authorities consider that your move to Panama as an expat Indicates otherwise, they could initiate procedures to revoke the Green Card. To avoid this, there are steps you can take:

Tips if you move with a Green Card

• Request a Reentry Permit Before you leave, which extends your absence to up to two years
• Maintain ties with the U.S.: bank accounts, tax returns, mailing address, regular visits
• Explore options to get the U.S. Citizenship If you are eligible, as it will give you more freedom to live outside

In short, Live in Panama with a U.S. passport or as a citizen it does not jeopardize your legal rights. But if you have a Green Card, you should plan your absence well to avoid problems.

The decision to move to Panama brings many opportunities, but also responsibilities. Making sure you protect your immigration status in the U.S. is a key part of a successful move.

One of the great advantages of being U.S. Citizen Abroad Is that, in many cases, you can continue to receive your Social Security retirement, military pension or other benefits without interruption, even if you live permanently in Panama.

Can I receive retirement in Panama?

Yes. If you're retired and have accumulated enough work credits in the U.S., you can continue to receive your monthly payments from Social Security, even if you live outside the U.S. This also applies if you get Panamanian Residence.

The Social Security Administration (SSA) has agreements with numerous countries—including Panama—that allow direct international delivery of benefits. Most citizens don't need to make drastic changes to keep their payments.

How do I get paid if I live abroad?

There are two main ways to receive government funding outside the U.S.:

• International direct deposit: You can receive your payments directly to a bank account in Panama if the bank is part of the SSA international payments program.
• U.S. Account Deposit: You can also maintain a bank account in the U.S. and access funds from Panama through transfers or online transactions.

In both cases, staying informed is key. You'll need to provide SSA with a valid foreign address, and you'll occasionally be asked to confirm that you're still alive and are eligible to receive payments (using a simple form).

What benefits can be received from Panama?

Among the U.S. benefits that you can receive from Panama, are included:

• Social Security for retirement or disability
• Military or public service pension
• Veterans Services (in some cases)
• Some survivor benefits

Not all types of assistance qualify for overseas payments. For example, certain social assistance benefits, such as Supplemental Security Income (SSI), are generally not paid outside the U.S.

Practical recommendations

If you are going to Do you live in Panama with U.S. benefits, consider these tips:

1. Be sure to notify SSA about your change of address and country
2. Keep in touch with authorities through the U.S. consulate or embassy
3. Review your tax and banking situation every year to avoid interruptions

The transition to the life of Expat in Panama it can be fluid if you know your rights well. With proper planning, you can enjoy your government benefits hassle-free.

In the next section, we'll talk about another fundamental aspect: Taxes and Legal Considerations When obtaining the residence in Panama. It's a key issue for avoiding surprises and managing your new life in an orderly and safe manner.

Living in Panama as a U.S. citizen involves adapting not only to a new cultural environment, but also to a new fiscal and legal environment. Although moving abroad does not mean that you cancel your legal relationship with the United States, you should understand how taxes and other legal issues work to avoid future complications, especially if you maintain the Foreign Residence But you still have rights and obligations in the U.S.

Do you have to continue to pay taxes in the U.S.?

Yes. In most cases, U.S. citizens are required to file federal taxes in the U.S. no matter where they reside. This includes income earned in Panama or any other country. The U.S. tax system is based on citizenship, not just residency.

However, several mechanisms can help you reduce your tax burden, such as:

• La Overseas Work Income Exclusion (Foreign Earned Income Exclusion - FEIE), which allows you to exempt up to a certain amount (approximately $120,000 in 2023) from income from work outside the U.S.
• Los Tax Credits for Foreign Taxes, which allow you to deduct taxes paid in Panama from the total you owe to the U.S.

While you can still benefit from these tax breaks, it's essential to plan properly and meet IRS filing dates from abroad.

Do you have to pay taxes in Panama?

One of the great attractions of Living in Panama as an Expat is their territorial tax system. This means that, in general, Panama only taxes income generated within the country. For example, if you have a pension or investments from the U.S., usually Not you'll have to pay taxes on them in Panama.

However, there are certain legal nuances and obligations if you decide to start a business, invest or generate income locally from Panama.

What happens if you keep your Green Card or citizenship?

If You're Still Holder of a Green Card Or do you already have the U.S. Citizenship, your move to Panama doesn't automatically change your tax commitments. Unless you formally relinquish that status—which involves a serious legal process and relevant consequences—you'll still have to file your annual returns with the IRS.

In addition, if you have assets outside the United States that exceed certain amounts, you must file additional reports such as the famous FBAR (Foreign Bank Account Report) or Form 8938, in accordance with FATCA legislation. These forms allow the U.S. government to monitor foreign accounts and assets.

And what should you consider when acquiring a Panamanian residence?

Get the residence in Panama It doesn't directly affect your rights or tax status in the U.S., but it can open up new opportunities or responsibilities at the local level. It's key:

• Consult with a lawyer or accountant specialized in international law
• Keep clear records of your income, investments and assets in both the U.S. and Panama
• Avoid duplication of taxes through existing tax agreements or treaties

Muchos expatriates in Panama choose to structure their finances strategically to protect their assets and comply with both legislations—something totally feasible if they have the right advice.

Finally, if you plan to live in Panama for the long term, it is advisable to understand how these issues can impact on inheritances, inheritances and wills, since some laws differ from common rules in the United States.