Work Permit Process in Panama

Is your company searching for international growth opportunities? If so, you may choose to expand to Panama for a variety of reasons. This country is a popular destination for expatriates from around the world. Still, your business will face a unique set of challenges as you expand operations to Panama. You’ll most likely want to transfer a strong team of employees to ensure that the transition goes well. Before they can start working, however, you’ll need to make sure they have the necessary work visas and permits.

About the Panama Work Permit

Any foreigner who plans to work in Panama requires an immigration visa that enables him to apply to a work permit.

The process to establish residence and the process to obtain a work permit are different and independent. However, the residence process must be completed first, because it is one of the requirements to request a work permit.

The National Immigration Service responds to all residence applications in Panama. However, the Ministry of Work and Labor is responsible to process all work permit applications.

Basic Requirements

The requirements to obtain a work permit vary based on the foreigner’s residence program, but there are general requirements that apply to most cases, such as:

• Application and Power of Attorney, original and copy
• Authenticated copy of the resolution from the National Immigration Service, confirming the applicant was granted Panamanian permanent residence
• Certificate from the National Immigration Service, confirming the applicant’s immigration status
• Notarized copy of the applicant’s Residence ID issued by the National Immigration Service
• Four passport-sized pictures, with the applicant’s name written on the back

Costs and Duration

The cost to obtain a work permit ranges from $100 to $600 in government fees, plus legal fees.

Once the Ministry of Work and Labor receives an application, it can take 1 to 3 months to decide whether to approve or deny the request.

If the application is approved, the applicant will receive an ID that authorizes him to work in Panama. The foreigner may need to show this ID to a hiring employer or to inspectors from the Ministry of Work and Labor when required.

Additional Information

If a local company hires a foreigner who holds a valid work permit, the company must meet the rule of 10 Panamanian employees for each hired foreigner. This rule does not apply to Multinational Companies, which follow other rules.

The application of a foreigner under the Friendly Nations program also needs to include a labor contract, proof of social security registration, and payroll information from the hiring company.

In general, foreigners can invest in and supervise their own business. However, the opinion of the Ministry of Work and Labor is that said foreigner cannot manage or work without a work permit.

Options to Apply for a Work Permit

There are many options to obtain a work permit, depending on the applicant’s residence path. Some of these include:

• Foreigner married to a Panamanian
• Foreigner with Panamanian Children
• Foreigner with residence under the Friendly Nations program
• Foreigner with residence under the Panama – Italy treaty
• Foreigner with residence under the Professional Foreigner program
• Foreigner with residence living in Panama for 10 years or more
• Foreigner hired by a local company within the 10% of allowed foreign labor
• Foreigner hired by a local company with a minimum $1,000/m salary, following the rules of the Marrakech Agreement – only one foreigner is allowed in the company’s payroll
• Foreigner hired by a local company within the 15% of expert technical labor
• Foreigner hired as a business executive by a company in the Colon Free Zone
• Foreigner hired by a local company that only offers services abroad
• Foreigner granted residence as a Refugee

Types of Work Visas in Panama

Like any other country, Panama has a specific set of regulations in place for foreign nationals who plan to travel within its borders. Foreigners who intend to stay in Panama for up to 90 days can obtain a tourist visa, but this visa does not allow the holder to work.

To live and work in Panama, foreign employees will need to get an immigration visa and establish residence before applying for a work permit.

Requirements to Obtain Panama Work Visas

The required documents to get a visa to travel to Panama can vary. Applicants should reach out to the Panamanian embassy or consulate in their country of residence for a comprehensive list of requirements. Typical requirements for foreign individuals who plan to move to Panama for work include:

• A passport that’s valid for at least six months beyond the intended stay in Panama*
• A copy of the information page of the passport
• A completed visa application form
• Four passport photos
• An employment contract with a company based in Panama
• Proof of accommodations in Panama
• A medical certificate stating that the applicant is in good health
• A police background check from the applicant’s country of residence

*As of September 2022, the Panamanian Ministry of Labor will allow foreigners with an expired passport to apply for work permits, provided they have already applied for a passport renewal or extension. This exception is in effect until June 30th, 2024.

To get a work permit, applicants will need to provide additional documents, including:

• A work permit application, which should be completed by an attorney
• A letter of responsibility from the employer
• A copy of the resolution of the National Immigration Service demonstrating that the applicant has established permanent residence
• A copy of the applicant’s Residence ID
• Four passport photos

Application Process

In Panama, it’s the employer’s responsibility to obtain a work permit on behalf of any foreign employees. However, the employee cannot get a work permit until the National Immigration Service grants them permanent residence status.

To apply for an immigration visa and permanent residence, foreign nationals should visit the embassy or diplomatic mission of Panama in their country of residence and submit any relevant documents. After the employee receives the visa, the employer in Panama can apply for a work permit.

The government in Panama has strict guidelines in place to ensure that Panamanian nationals have priority over foreigners when it comes to employment. The employer will need to demonstrate the need for a foreign employee before applying for a work permit. Further, no more than 10% of the company’s workforce can be foreign.

The employer must submit the work permit application through the Ministry of Labor. Once the Ministry approves the permit, the employee can begin working in Panama.

Other Important Considerations

Panama is unique in that certain professions are reserved for Panamanian nationals. Restricted industries include engineering, law, accounting, and psychology. A foreign national cannot work in one of these occupations, regardless of whether they have a work permit.

Occupations Reserved for Panamanians

Panamanian law forbids foreigners, even with a work permit, to labor in a number of occupations reserved for Panamanians nationals and naturalized – such as accounting, engineering, law, or psychology.

• Accounting  Law 57 of 1978    
• Agricultural  Botany  Law 22 of 1961    
• Agricultural  Chemistry  Law 22 of 1961    
• Agricultural  Economy  Law 22 of 1961    
• Agricultural  Engineering  Executive Decree  257 of 1965    
• Agricultural  Sciences  Law 22 of 1961    
• Agricultural  Sology  Law 22 of 1961    
• Agricultural  Zoology  Law 22 of 1961    
• Agronomy  Law 22 of 1961    
• Agrostology  Law 22 of 1961    
• Architectural  Engineering  Executive Decree  257 of 1966    
• Architecture  Engineering  Executive Decree  257 of 1967    
• Barbering  and Cosmetology  Law 4 of 1956    
• Chemical  Engineering  Executive Decree  257 of 1973    
• Chemistry  Law 45 of 2001    
• Chiropractors  Decree 8 of 1967    
• Civil  Engineering  Executive Decree  257 of 1968    
• Dasonomy  Law 22 of 1961
• Dental  Assistant  Law 21 of 199
• Economy  Law 7 of 1981    
• Electrical  Engineering  Executive Decree  257 of 1970    
• Geological  Engineering  Executive Decree  257 of 1971    
• Horticulture/Gardening  Law 22 of 1961    
• Insurance  Broker  Law 59 of 1996    
• Laboratorist  Law 74 of 1978    
• Law  Law 9 of 1984    
• Master  Builder  Law 53 of 1963    
• Mechanical  Engineering  Executive Decree  257 of 1972    
• Medical  Assistant  Decree 32 of 1975    
• Medical  Radiology  Law 42 of 1980    
• Medical  Visitor  Law 24 of 1963    
• Medicine  Executive Decree  196 of 1970    
• Mining  Engineering  Executive Decree  257 of 1969    
• Nursing  Law 1 of 1954    
• Nutrition  Decree 362 of 1962    
• Odontology/Dentistry  Law 22 of 1956    
• Pharmacy  Law 24 of 1963    
• Phonoaudiology  therapists and similar  Law 34 of 1980    
• Physiotherapy  Law 47 of 1984    
• Phytogenetics  Law 22 of 1961    
• Phytopathology  Law 22 of 1961    
• Pilots  Law 89 of 2010    
• Psychology  Law 56 of 1975    
• Public  Relations  Law 11 of 2005    
• Security  Agent  Law 56 of 2011    
• Social  Work  Law 17 of 1981    
• Sociology  Law 1 of 1996    
• Soil  Science/Edaphology  Law 22 of 1961    
• Surveyor  Law 53 of 1963    
• Veterinarian  Medicine  Law 3 of 1983    
• Vocational  Agricultural Education  Law 22 of 1961    
• Zootechnics  Law 22 of 1961