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 inclusion of the main work permit categories in a company’s payroll quotas. This is a departure from the previous rule, which excluded certain main categories, such as the Friendly Nations work permit, General Regularisation Immigration Programme (Crisol de Razas), and Professional Foreigner work permit, from the quota system; 

• the division of the Friendly Nations category into three subsets: (i) those who will be considered as local labour for payroll calculation purposes, such is the case of the Friendly Nations work permit granted for an indefinite term; (ii) those not included for payroll calculation purposes, such as those with Friendly Nations work permits on the basis of an investment; and (iii) those included in the payroll for quota purposes on the basis of their employment; 

• investors have the option to apply for new work permit categories especially created for them, which do not count towards quotas, as there is no reference to quotas under these categories; and
• dependants now have the opportunity to apply for work permits, whereas the previous decree only allowed dependants to work after obtaining permanent residency.

The main sponsor-based employment options in Panama are:

• 10% Ordinary Personnel residence permit and work permit, applicable to foreign employees who participate in the regular activities of the employers’ business at the administrative or operative level, and that are not in trust, specialised or technical roles; this type of permit is subject to salary and headcount quota limits;
• 15% Trusted Personnel residence permit and work permit, applicable to trusted foreign personnel that carry out direction, supervision or representation services to the employer; this type of permit is subject to salary and headcount quota limits;

• 15% Technicians and Specialised Personnel residence permit and work permit, applicable to those foreign employees in specialised or technical roles, such as technicians or experts; this permit is also subject to salary and headcount quota limits;
• Friendly Nations residence permit and work permit based on employment, applicable to those foreign employees from a list of countries that Panama has established friendly, economic, investment and professional ties with; this type of permit is counted in the payroll for quota purposes, based on employment; and
• SEM visas, specifically for foreign employees working in permanent positions within a SEM company (Multinationals Headquarters Regime); these visas do not count towards quota limits and do not require a separate work permit.

The main unsponsored work visas in Panama are:

• The General Regularisation Immigration Programme (Crisol de Razas) residence permit and work permit, applicable to foreigners who previously had an irregular status and have applied for a special regularisation programme; originally exempt from quota limits, new work permit applications under this programme are now included in the quota count due to the introduction of the Labour Immigration Decree; and
• Foreign Professionals residence permit and work permit, applicable to foreigners who obtain their residence permit based on their degree, Master’s or Doctorate; originally exempt from quota limits, new work permit applications under this programme are now included in the quota count due to the introduction of the Labour Immigration Decree.

The main unsponsored investment visas in Panama are:

• Friendly Nations residence permit and work permit based on an investment, applicable to foreigners from countries with which Panama has friendly, economic, investment and professional ties; to be eligible, the foreigner must hold a Friendly Nations residence permit based on an investment (this type of permit does not count in the payroll for quota purposes);
• Qualified Investor residence permit and work permit, applicable to foreigners who invest an amount of USD300,000 in real estate, USD500,000 in stocks, or USD750,000 in fixed-term deposits for which the government of Panama grants fast-track permanent residency (this type of permit does not count in the payroll for quota purpose); and
• Self-Economic Solvency residence permit and work permit, applicable to foreigners that invest USD300,000 in (i) real estate; (ii) fixed-term deposits; or (iii) mixed investments(this type of permit does not count in the payroll for quota purpose).

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:

• one month: nationals of countries without a visa exemption agreement with Panama;
• three months: nationals of countries that do not require an entry visa or have a visa exemption agreement; and
• six months: nationals of the United States of America and Canada.

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:

• have an employment contract with a foreign multinational company as a remote worker or be self-employed as a remote worker;
• job duties must be carried out remotely;
• receive a salary from a foreign source that must be at least USD36,000 per year; and
• have a medical insurance policy that covers them in Panama and remains valid throughout their stay.

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:

• Salary: The general rule is that the salary of the foreign worker must not be less than USD850 per month. However, there are specific immigration categories that require a minimum salary of USD1,000 per month, such as (i) Marrakech Agreement or Micro and Small Employer, and (ii) executives of international corporations whose operations take effect abroad.

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.

• Qualifications: Foreign workers hired for specialist or technical position must provide proof of their expertise, as follows:
1. For expert positions, foreigners must provide a reference letter from a foreign company certifying (i) the specialty and expertise of the worker; and (ii) job position, duration of employment and duties in the company, which must be related to the job position to be performed in Panama.
2. For technical positions, foreigners must provide a professional certification or diploma of previous studies, which must be related to the position to be performed in Panama.
• Quota limitations: Companies in Panama are subject to both salary and headcount quota limitations.  90 percent of ordinary employees must be Panamanian citizens or foreign workers considered as local labour. However, the quota is higher for trust, specialised or technical staff, who can comprise up to 15% of a company’s total salaries or headcount. 

The following are considered as local labour:

• foreigners who have resided in Panama for ten years or more; 
• foreigners married to a Panamanian;
• foreigners who are parents of Panamanian citizens;
• foreigners under the Panama-Italy Agreement; and
• foreigners with a Friendly Nations Work Permit granted for an indefinite term.

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.

• Restricted professions: By law, there are certain professions that are protected and reserved only for Panamanians.  It is essential for companies to verify if the position they are hiring falls within these restrictions. Some of the restricted professions include: (i) accounting; (ii) law; (iii) architecture; (iv) engineering; (v) medicine; (vi) dentistry; (vii) nursing; and (viii) veterinary.

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:

• If the foreign worker is hired by another company, a new residence and work permit must be requested afresh. This means that the foreign worker will need to go to through the process of obtaining a new residence and work permit specifically tied to the new employer. 
• If the foreign worker holds permanent residency, they can maintain their residency status and only need to request a new work permit from the Ministry of Labour when changing employers. This allows for a smoother transition in terms of immigration status, as the permanent residency remains valid, and only the work permit needs to be updated to reflect the new employment.

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:

• Stamped Tourist visas: Nationals from a list of countries that are not visa exempt must apply for a Stamped Tourist visa to enter the country, which can take up to 90 days to be processed.
• Residence permits: In general, residence permit applications take approximately five months to be processed.

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:

• registration before the SNM and the Ministry of Labour;
• obtaining a temporary ID card (valid for six months); and
• obtaining an approval ID card (residence and work permit).

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:

• authentication of documents before the notary;
• payments to the National Treasury;
• payments to the immigration authorities;
• payments to the labour authorities; and
• payment for the issuance of identification cards.

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: 

• Violation of the visa terms: If an individual and/or a sponsor breaches the terms of the visa, such as overstaying beyond the authorised period, working without an approved and valid work permit, or breaking other limitations, the authorities may initiate enforcement action. This can result in the visa or permit being revoked or cancelled, fines, deportation or expulsion.
• Fraudulent information: Authorities may take enforcement actions, such as revoking a visa or permit, deportation, and/or potential legal repercussions, if it is discovered that the individual and/or sponsor provided false or misleading information during the immigration process, such as submitting forged documents or providing false statements, to obtain a visa or other benefit.
• Engaging in criminal activities: Authorities have the power to take serious enforcement steps, which may include criminal prosecution, incarceration and deportation, against an individual and/or sponsor if they are engaging in illegal activities, including felonies and immigration-related crimes like human trafficking or smuggling.

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:

• Valid employment contract: The employer must provide a valid and enforceable employment contract signed with the foreigner.
• Valid visa status and work permit status: The employer should ensure that the sponsored foreign worker maintains a valid visa and work permit status throughout their employment. This may involve assisting with the visa and work permit applications, renewals, or any necessary documentation during the employment period.
• Reporting: The employer is required to report any changes or updates regarding the foreigner’s employment to the authorities. This could include changes in job position, salary, or termination of employment.
• Obligation for repatriation: The employer must cover the costs for repatriating the foreign sponsored worker; they are responsible for providing the worker with transportation back to their home country.

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:

• Spouses: The legal husband or wife of the visa holder can be included as a dependant in accordance with Panamanian law. As an exception, holders of SEM visas may include different sex partners in legal union.
• Children: Children of the main applicant can be included as dependants. This benefit extends to minors, under 18 years of age, or over 18 years of age up to 25 years of age, when unmarried and currently studying.
• Parents of the main applicant: They must economically be dependant on the main applicant.
• Members of the family with a proven disability: All family members of the main applicant may request a dependant visa if they have a valid medical certification attesting that they have a disability.

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:

• Dependants with a temporary or provisional residency: They may apply for a new Family Reunification work permit introduced specifically for dependants of a resident by the Labour Immigration Decree. To qualify for this work permit, dependants must meet one of the following conditions: (i) be self-employed; or (ii) employed by others, subject to quota limits established in the Labour Code and the Labour Immigration Decree.

• Dependants with permanent residency: They can apply for any of the work permits options established in the Labour Immigration Decree, including the Family Reunification permit as well as those work permits that are not within the quota limits.

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.