Article 1 of Law No. 6 of June 16, 1987 – Benefits for Retirees, Pensioners, and Senior Citizens in Panama
Law No. 6 of June 16, 1987, published in Official Gazette No. 20,827 on June 22, 1987, establishes a series of benefits for Panamanians and foreign residents who meet certain age requirements, as well as retirees and pensioners. According to this law, individuals who are 55 years of age or older if female, or 60 years of age or older if male, as well as all retirees and pensioners, regardless of gender, are entitled to a variety of financial benefits, aimed at improving their quality of life. These benefits are as follows:
- Discounts on Recreational and Entertainment Activities
- 50% discount on entry fees for activities such as cinemas, theaters, sports events, and other public shows.
- Exclusion: Charity events where proceeds benefit children, disaster victims, or other authorized programs are not eligible for this discount.
- Discounts on Public Transportation
- Intercity buses: 30%
- Trains: 30%
- Boats and ferries: 30%
- Airline tickets (both domestic and international, public or private companies): 25%
- Hotel and Lodging Discounts
- 50% off from Monday to Thursday.
- 30% off on Fridays, Saturdays, and Sundays.
- Discounts on Food Consumption
- 25% discount on individual food consumption at restaurants, excluding informal eateries that do not require a commercial license.
- Discounts at Fast-Food Establishments
- 15% discount at both national and international fast-food franchise establishments.
- Discounts on Health Services
- 15% discount on services at hospitals and private clinics.
- 10% discount on prescribed medications at pharmacies.
- Medical Service Discounts
- 20% discount on general medical consultations and specialized medical and surgical services.
- 15% discount on dental services.
- 15% discount on optometry services.
- Discounts on Insurance Premiums
- Insurance companies providing medical coverage must adjust their premiums to ensure that the discounts are applied to individuals aged 55 or older (female) or 60 or older (male), as well as retirees and pensioners.
- Discounts on Professional and Technical Services
- 20% discount on professional and technical service fees.
- Discounts on Prostheses, Aids, and Accessories
- 20% discount on the cost of prostheses, aids, and accessories.
- Loan Closing Fee Discounts
- 50% discount on closing fees for personal and commercial loans processed through banks, financial institutions, or credit institutions.
- No fees may be charged by public or private entities related to the discount services.
- Exemption from Special Surcharges or Taxes
- Exemption from the special surcharge or tax under the Special Fund for Interest Compensation (FECI) on personal and commercial loans.
- Discounts on Interest Rates for Loans
- 15% discount on the maximum legal interest rate for personal and commercial loans charged by banks, financial institutions, and credit institutions.
- Mortgage Loan Interest Rate Discount
- 1% discount on the interest rate for mortgage loans used for personal housing, available to individuals aged 55 or older (if female) or 60 or older (if male), or retirees and pensioners.
- Freezing of Property Tax
- Property tax will be frozen for residences owned by the individual, provided the property is their only property. The tax will decrease if the property’s value decreases.
- Exemption from Property Value Assessment Tax
- Exemption from the property value assessment tax if the property is the individual’s only property and serves as their primary residence.
- Discount on Passport Fees
- 50% discount on passport fees.
- Electricity Bill Discounts
- 25% discount on the monthly electricity bill (up to 600 kWh) from public or private energy companies.
- Regular rates apply to any consumption exceeding this amount.
- Discounts for Associations of Retirees and Pensioners
- Properties of associations, federations, or confederations of retirees and pensioners formed in accordance with the law will benefit from discounts on electricity, water, telephone, postal services, property taxes, and other benefits available to non-profit associations.
- Telephone Service Discounts
- 25% discount on the fixed charge for telephone service when the account is in the individual’s name, the account is residential, and the charge is for a single telephone line.
- Water Consumption Discount
- 25% discount on water consumption fees from public or private entities, subject to the following conditions:
- Monthly consumption does not exceed US$30.00.
- The account is in the individual’s name.
- The account is residential and constitutes the individual’s home.
- Regular rates apply to any consumption exceeding this amount.
- 25% discount on water consumption fees from public or private entities, subject to the following conditions:
These benefits are designed to improve the living conditions of senior citizens and retirees, ensuring that they have access to a wide array of services at reduced costs. The law ensures that these discounts are applied to various sectors, such as health, transportation, utilities, and more, which can significantly ease the financial burden on this demographic.
For more information, please contact:
Law Office of Edgardo Espinosa, Esq.
The Century Tower, Suite 401, Ricardo J. Alfaro Avenue,
Panama City, Republic of Panama
+507 6290-3468
info@lawyerinpanama.com