Mexico or Panama? Two Countries Side by Side
"I thought the answer would jump out," Percival said.
Picture a couple named Percival and Annelise, 67 and 65. They have narrowed a long list to two countries. Percival has a folder for each one. Annelise has a yellow pad with two columns and a line down the middle.
"I thought the answer would jump out," Percival said.
"It might still," Annelise said. "Let's fill in what the offices say."
She added a rule for the pad. A row counts only when both columns have something in it, measured the same way. A blank means the question is still open, and it does not mean the answer is bad. Rows with a blank are marked "not in our notes."
Here is what the written record says.
| Topic | Mexico | Panama |
|---|---|---|
| Income test, per month, for a retiree | Temporary visa: US$4,049 of pension or job income for 6 months (San Diego consulate, 2026). Permanent visa for retirees (62 or older, or officially retired): 139,400 pesos net for 6 months (Washington consulate, 2026), about US$7,700 at US$1 = 18.09 pesos | Pensionado: a lifetime-type pension of US$1,000 a month, plus US$250 for each dependant, so US$1,250 for a couple (reported on the embassy page, undated) |
| Savings test | Temporary visa: average savings of US$68,241 over 12 months (San Diego, 2026). Permanent visa: 5,576,000 pesos, about US$308,000 (Washington, 2026) | Not in our notes |
| Where it is filed | Consulate abroad; the San Diego page lists a US$56 fee and 1 to 10 business days | Inside Panama, through a Panamanian lawyer (reported) |
| Years to citizenship | 5; Spanish and history required | 5 of continuous residence; Spanish required, and other citizenship given up (reported, 2004 text) |
| US tax treaty | Yes: private pensions taxed only where you live; US Social Security taxed only by the US | No treaty on the Internal Revenue Service list, October 2026 |
| Public health system | Voluntary family cover open to anyone, with a yearly fee by age group; ask the office for amounts | Not in our notes: ask the office for rules and premiums |
| Life expectancy, 2024 | 75.3 years | 79.8 years |
| Price level against the US, 2025 (US = 1.00) | 0.54 (our calculation from World Bank data) | 0.45 (same method); Panama uses the US dollar |
| Estimated monthly spending for a couple (same item list, Numbeo, October 2026) | US$2,286 | US$2,703 (health cover is a placeholder, not checked) |
| Homicides per 100,000, 2023 | 24.86; US advisory Level 2, May 2026 | 11.71; US advisory Level 2, August 2026 |
| Land for foreigners | A bank trust, up to 50 years, within 50 km of a coast or 100 km of a border | Allowed generally, none within 10 km of the border; title delays reported |
Annelise went down the rows. Four are filled on both sides and measured the same way: years to citizenship, life expectancy, homicides and the US tax treaty. Two more are close: the price level, and the monthly spending for a couple. The money tests have the same name on both sides, but they are measured differently, so she put them in a second table.
| Money test for the visa, same unit | Mexico | Panama |
|---|---|---|
| Monthly income | US$4,049 (temporary); about US$7,700 (permanent) | US$1,000 plus US$250 per dependant (US$1,250 for two) |
| Savings | US$68,241 (temporary); about US$308,000 (permanent) | Not in our notes |
"Our pensions come monthly, but we also have savings," Annelise said. "Mexico lets either one count. On income alone, Panama asks far less. But I do not know whether Mexico's test is for each of us or for both together."
"And Panama wants the pension," Percival said. "A lifetime one."
"Then that is a question for the Panama embassy. What counts as lifetime?"
She noticed the price level. Mexico is 0.54 and Panama is 0.45. That would suggest Panama costs less. But the line is a national average for everything people buy in each country, not the cost of one retiree's way of living. The line with a couple's estimated monthly spending, built from the same list of items, points the other way: US$2,286 in Mexico and US$2,703 in Panama. The difference between the two lines is a reason to check the town and the way of living, as the calculator does.
Two small notes
The Mexican consulates quote their income tests in different currencies, dollars at one and pesos at another. The figures move with the minimum wage and the exchange rate, so the two lists do not line up. The Panama page also lists pensioner discounts, such as 25% off utilities and 20% on doctors. It is undated, so the embassy could say whether they stand today.
You could…
- Ask the Mexican consulate for your region for its current income and savings test in writing, and whether it counts both of you together.
- Ask the Panama embassy what proof of a lifetime pension it expects, and how long filing takes.
- Ask an accountant or lawyer who works with Americans abroad how the missing Panama treaty could affect your pension.
Questions that could break the tie
- Does your income arrive as a pension, as savings, or both?
- Would you rather file from home or through a lawyer inside the country?
- Would you give up your other citizenship after five years, if you wanted Panama's?
- Do you want a home near a coast?
- What would a private health policy cost each of you, at your age?
If you chose between these two, or any two countries, what was the question that settled it? Write to us below, and tell us what you wish you had asked first.
Figures are estimates for planning, based on public data. Rules change, so each figure shows the year it applies to; ask the official office before you act.
Sources: Mexican consulates in San Diego and Washington (retiree visa pages, 2026); Mexico's Migration, Nationality, Federal Fiscal, Social Security and Foreign Investment laws; Embassy of Panama retirement page; Panama's Constitution (Constitute Project copy); Internal Revenue Service treaty list and US-Mexico treaty; World Bank (homicide, life expectancy, price level); State Department travel advisories and 2025 investment climate reports; Numbeo country pages (October 2026); European Central Bank reference rates, 7 October 2026.
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