Panama offers a special regulation that provides incentives for retirees, pensioners, and rentiers—both local and foreign. Under Law 9 of June 24, 1987, they can access customs exemptions and tax benefits when importing goods, such as vehicles, as long as the established requirements are met.
In this article, we explain what the exemption of incentives is, what the requirements are, and which taxes apply.
What does the Law 9 of 1987 exemption include?
This law allows retirees, pensioners, and rentiers residing abroad to import certain goods with tax benefits, as long as they complete the necessary procedures before the National Directorate of Migration and Naturalization and the National Customs Authority.
The process must be handled through a licensed attorney with power of attorney and requires both personal documents and proof of retirement, pension, income, or foreign residency.
Requirements for retirees’ tax exemptions
The procedure is carried out with the support of an attorney and requires submitting documents to the National Directorate of Migration and the National Customs Authority. The main requirements include:
- Application Letter issued by the National Directorate of Migration.
- Customs Pre-Declaration Settlement approved by the Valuation Department.
- Shipping documents and original invoice.
- Vehicle registration or title of ownership, translated into Spanish.
- Retirement or pension certification showing monthly amount, apostilled at the Consulate of origin, translated and authenticated by Panama’s Ministry of Foreign Affairs.
- Copy of retiree card from Migration and passport, notarized.
- For Panamanians: certified copy of national ID issued by the Electoral Tribunal.
- For rentiers: bank certification showing monthly income details.
- Proof of residence abroad for more than two years (e.g., utility bills).
- National Tax Clearance Certificate with confirmation page.
- Certification of vehicle entry into the Customs facility, in case of vehicle relocation.
Payments required under Law 9 of 1987
Although the law grants important benefits, certain mandatory payments are not exempt:
- 5% Selective Consumption Tax (ISC)
- 7% ITBMS (Value Added Tax)
- Administrative fee
- Customs system usage fee
In the case of a vehicle sale or transfer, applicable taxes must be paid at the time of the transaction.
Key benefits of the exemption of incentives for retirees
- Significant tax savings when importing new or used vehicles.
- Legal support under Law 9 of 1987.
How does Grupo Aduanero KAM help in this process of incentives for retirees?
At Grupo Aduanero KAM, we provide full support for retirees and pensioners relocating to Panama who want to process vehicle tax exemptions. We ensure that every document and procedure is handled correctly and on time.
Our services include:
- Advisory on the preparation and review of requirements.
- Customs and logistics management for goods or vehicle imports.
- Personalized attention with customs brokers specialized in Panamanian regulations.
Your trusted partner in customs services
The exemption under Law 9 of 1987 is an excellent opportunity to reduce costs on imports, but the process can be complex if all requirements are not met.
Trust Grupo Aduanero KAM, your ally in customs and logistics services, to make your exemption procedures faster, safer, and simpler.Contact us today to get started!
