Taking your car to Panama: the pensionado exemption, and why the bpm does not come back

Can you take your car to Panama? Yes, and as a pensionado with an exemption: customs lets a foreign retiree import one car every two years without import duty, against 5 percent selective consumption tax and 7 percent ITBMS. The finding at the source is the document list of that exemption: besides the title and the bill of lading, customs asks for a copy of your pensionado card, a letter on the amount of your pension and a paz y salvo from the tax authority, and you only get the latter once your tax registration is done. The pitfall is in the Netherlands: the bpm refund on export applies only on registration in the EU, Iceland, Liechtenstein or Norway. Anyone exporting to Panama does not see the remaining bpm again.

What does importing cost, and what is exempt?

Element	What the source says
Import duty	exempt for a foreign retiree, one car per two years
Selective consumption tax (ISC)	5 percent, payable
ITBMS	7 percent, payable
Personal effects	once up to B/. 25,000 free, besides the car
Customs broker	compulsory for every definitive import (article 27)
Bpm refund Netherlands	no: the car has to be registered in the EU, Iceland, Liechtenstein or Norway
Municipal number plate	decision within thirty working days of a complete application

Which papers does customs ask for?

The exemption rests on Law 9 of 1987. The list of the Autoridad Nacional de Aduanas is long and precise: the bill of lading in your name as consignee, the original commercial invoice, the release order from the customs depot, the customs declaration, the car's title, a copy of your passport, a copy of your card as jubilado or pensionado, a letter from your pension administrator on the amount, a request for exemption through the immigration service, and the paz y salvo nacional from the ministry of finance stating that you are in order with your income tax.

You apply for that paz y salvo at the DGI with your passports, an original travel record from Migración and your migration card as pensionado, or an apostilled pension statement. No tax registration, no paz y salvo; no paz y salvo, no exemption; the chain is in registration and numbers in Panama.

The order is the pitfall. Anyone who ships the car before their residence and their tax number are in place pays storage in the port while chasing their papers, or pays the full rate to get the car released. Have the customs broker prepare the exemption and ship only when he confirms that the file is complete.

How does the car get its plate?

After clearance come three counters. First the Dirección de Investigación Judicial, which inspects the car with clean chassis, engine and VIN numbers on presentation of the customs declaration, the settlement with proof of payment, the foreign title and the bill of lading, all in triplicate. Then the Autoridad del Tránsito y Transporte Terrestre, which registers the car in the Registro Único Vehicular: the municipality's pre-registration, the DIJ certificate that the car is not reported stolen, the customs pre-declaration, the bill of lading and the title with country of origin. And finally the municipality of your place of residence, which allocates the plate: municipal paz y salvo, the customs settlement, the revisado, the DIJ inspection and the registration document. The municipality decides within thirty working days; then the single plate hangs at the back.

Every motor vehicle goes through an annual inspection by the ATTT or a recognised station, and the municipal plate comes back every year. Count that into your budget.

When are you better off buying there?

The exemption makes importing attractive for a young or special car; for a written-off city car, sea freight, port charges, the customs broker and 12 percent tax weigh more than the difference with a local purchase. Do the sum with a freight quote and a statement from the customs broker, and do not deduct the bpm, because it does not come back. Do request the export notification at the RDW, so that the Dutch registration and road tax stop.

Anyone driving into Panama as a tourist with their car falls under a different scheme: a temporary import permit from customs on presentation of the title, and anyone wanting to keep the car applies for a valuation and a payment authorisation. That is no route for a move. What your driving licence does after your residence is granted is in driving licence in Panama; the household goods themselves in household goods to Panama. The whole journey is in the step-by-step plan for Panama.

In Vertrekklaar this is phase 4 of 5 of the journey: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Panama or look inside the open plan first.