Contributed By Morgan & Morgan
Panama’s immigration policy, as established by the executive branch, is designed to attract foreign investment, promote economic growth and encourage the influx of skilled workers who can contribute to the country’s development. The Ministry of Public Security, specifically the Immigration Authority (Servicio Nacional de Migración or SNM), is responsible for administering, supervising, controlling and executing these policies. In addition to the Ministry of Public Security, other government entities such as the Ministry of Labour, Ministry of Commerce, Ministry of Foreign Affairs and the Ministry of the Presidency also contribute to and recommend immigration policies related to commerce, trade, investment and employment.
The immigration policy is designed to create special categories that align with the diplomatic, investment and economic goals of the executive branch, thereby facilitating the entrance and residency of foreign investors and individuals possessing specific skills needed in the country.
Panama’s immigration law dates back to 2008, however, new categories of residence permits have been added in accordance with the immigration policy of the executive branch. In recent years, categories such as the Qualified Investor residence permit, and the Remote Worker visa, have been introduced.
The Qualified Investor residence permit offers a fast track to permanent residency in Panama for foreigners that invest USD300,000 in real estate, USD500,000 in stocks, or USD750,000 in fixed-term deposits. In October 2024, the investment required under the real estate option will increase to USD500,000, with the aim of attracting high net worth individuals seeking fast-track permanent residency. The Remote Worker visa allows foreigners to reside in Panama while working remotely.
Panama’s labour immigration rules are based on the Labour Code and the new Executive Decree No 6 of April 2023 (the “Labour Immigration Decree”). This decree, which came into effect in May 2023, has introduced significant changes in relation to work permits, including:
The main sponsor-based employment options in Panama are:
The main unsponsored work visas in Panama are:
The main unsponsored investment visas in Panama are:
The Immigration Law and Resolution 22068 of 2021 from the SNM establishes certain limitations on what visitors or tourists can do in Panama, including engaging in activities such as recreation, shopping, business, medical tourism, visiting, or similar purposes.
Additionally, tourists must (i) enter the country on an occasional basis, without the intention of establishing residency, or abandoning their country of residence; (ii) have the financial means to support themselves during their stay in the country; and (iii) comply with the requirement to leave the country upon the expiration of their authorised stay period.
There are certain restrictions for visitors from some nationalities (without a visa exemption agreement) that require an entry visa before travelling, such as Venezuela, Cuba, China, India, and many other Asian and African nations. There are exceptions to this requirement for individuals who possess a tourist visa or residency from certain countries, including the United States, Canada, United Kingdom, Singapore, South Korea, Australia, the Schengen territory and Japan. These exceptions require that the visa (i) has been previously used to enter the issuing country; (ii) is valid for at least six months; and (iii) is issued for multiple entries and exits.
Once in the country, foreigners can stay as tourists depending on their nationality:
Panama has recently established a Short-Stay Visa for Remote Workers by means of the Executive Decree No 198 dated 7 May 2021. This visa allows a stay in Panama for nine months, renewable for an equal term. Recipients are authorised to work in Panama without the need for a separate work permit or additional processes. This visa permits individuals to carry out remote work activities while in Panama, providing flexibility and convenience for those who can work remotely.
To qualify for this type of visa, applicants must meet the following requirements:
Visa holders are prohibited from providing services or representing their foreign company for activities within Panama.
In Panama, there are no specific language requirements for obtaining a visa. Nevertheless, in certain cases where a face-to-face interview is required, such as the category of Married to a Panamanian, applicants who are not fluent in Spanish must have an authorised public interpreter present during the interview.
When submitting documents for a visa application, the Immigration Law stipulates that if the documents are issued in a language other than Spanish, they must be translated by an authorised public translator in Panama.
Medical certificates are a requirement for all visa applications as provided by Panama’s Immigration Law. This certificate must be issued by a qualified Panamanian doctor, within three months prior to filing the application. Nevertheless, no proof of vaccinations must be provided when applying for a visa.
Sponsor-based employment visas in Panama require the following minimum thresholds to be met, including:
In addition to what is established by the Immigration Law, it is important to take into consideration the legal minimum salary, which is reviewed by the executive branch every two years, in accordance with the activity and region.
The following are considered as local labour:
Nonetheless, exemptions to the 10% or 15% quotas apply to certain categories including: (i) micro or small employers; (ii) executives hired by international corporations whose duties take effect abroad; (iii) executives from the Colon Free Zone; (iv) SEM and EMMA visas; (iv) City of Knowledge Foundation; and (v) temporary technicians.
For an employment-based visa, the foreign worker must have a work contract with a Panamanian company. As a result, the visa and work permit will be tied to a specific employer. If the foreign worker ceases to work for that company, the latter must communicate it to the SNM and the Ministry of Labour, to request the cancellation of the residence and work permit.
Other limitations apply depending on the situation:
Visa processing times vary depending on the specific immigration category being applied for.
Some of these processing times for visas and residence permits are as follows:
Exceptions to these processing times include (i) the Qualified Investor residence permit, which takes up to 30 working days to be processed; and (ii) visas for labour reasons, which can take up to nine months, depending on the approval of the work permit.
Work Permits
As for work permits, the processing time is generally around four months. Nevertheless, it is important to note that work permits for labour reasons, which require a quota analysis, can take up to five months to be processed.
These estimated processing times can vary depending on individual circumstances, the workload of the immigration authorities, the visa/permit category, and any additional requirements or factors specific to each case.
As a general rule, visa applications in Panama are filed after foreigners arrive in the country. Once the application is submitted, the SNM grants foreigners a temporary identification card that is valid for six months. This card (i) includes an authorisation to travel in an out of the country multiple times during that period; and (ii) proves the application is in process while they process the application.
Nevertheless, for certain special immigration categories, the application process can be initiated prior to the arrival of foreigner’s arrival in Panama. In such cases, individuals may only travel to Panama once they have obtained proof of filing their application.
It is important to note that entry travel restrictions apply to nationals from countries that are not visa exempt, which need to obtain a Stamped Tourist Visa, that can be requested either: (i) directly by the foreigner before the Panamanian Consulate, in their country of origin or residence; or (ii) in Panama, through a legal proxy.
In general, immigration categories in Panama follow standard processing times and cannot be expedited or fast tracked. However, there is an exception for the Qualified Investor category, where applications are processed within a maximum of 30 working days. This fast-track processing time comes with higher fees.
In general, Panama visa applications are filed once foreigners enter the country. This means they first enter as tourists and later change their immigration status. The process of changing their immigration status commences with the submission of an application.
In most case, these applications must be submitted by an attorney on behalf of the foreigner, as the requirements vary depending on the immigration category, the individual’s nationality, and purpose of their visit.
Visa processing generally involves the following steps:
The typical cost of a sponsored employment visa in Panama varies depending on the type of visa. Even so, all these visas have common fees such as:
The fees associated with sponsored employment visas typically range from USD500 to USD2,000.
Legal fees for handling the visa application process are typically established by each attorney based on a minimum tariff set by law for legal services.
The costs associated with obtaining an sponsored employment visa in Panama are typically the responsibility of the employer. As an exception, when applying for non-sponsored visas, individuals cover these costs. However, the answer often depends on other matters, including the specific immigration process, the visa type, and the specific expense.
In Panama, immigration and labour immigration authorities may take enforcement actions against an individual and/or a sponsor under various circumstances. The causes for enforcement actions are exhaustively listed in Panama’s regulations and can vary based on the nature of the violation.
The most common circumstances are as follows:
It is also important to take into consideration that if an individual enters Panama without a valid visa or other authorised means of entry, they may be subject to deportation. In addition, an individual who has been deported or otherwise penalised for violating immigration laws may be (i) banned from entering Panama; and (ii) become ineligible for subsequent visas or immigration benefits.
In Panama, some obligations an employer might have when sponsoring an employment-based visa include:
Regarding penalties for non-compliance, authorities in Panama may impose fines, revoke visas, or take other enforcement actions against employers who fail to meet their obligations or violate immigration laws, including the possibility of cancelling their commercial licenses.
Panama does not have a specific Right to Work check process, as in other jurisdictions. Nonetheless, employers do have to verify some elements prior to hiring a foreigner. This review includes eligibility of foreigners to legally work in the country and to hold a valid work permit (for unsponsored categories) or to obtain a work permit (for sponsored-based categories). Concurrently, employers must verify specific conditions to be met, such as: nationalities and entry visas; position and salary; restricted professions; and quotas.
Panama offers a variety of visas, including dependant visas, which allow family members of visa or residence permits holders to accompany or join them in the country.
Family relationships recognised for the purposes of a dependant visa may vary depending on the visa category and the regulations in place. Generally, dependant visas may be available for the following family members:
It is important to note that each visa category has specific requirements, such as financial criteria or proof of relationship, and there may be additional eligibility criteria for dependant visas. The application process for a residence permit for dependants in Panama is similar to the application process for main applicants.
In Panama, Dependant visas do not grant visa holders the right to work. For this reason, a separate work permit must be requested based on their residency status:
The introduction of the Family Reunification work permit for dependants is a significant change introduced by the Labour Immigration Decree, as previously dependants were only allowed to apply for a work permit after obtaining permanent residency or when renouncing their Dependant status and applying afresh.
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