Panama’s immigration policy 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 through the Immigration Authority, 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.

Recent presidential elections are likely to shape policy changes, impacting immigration and labour regulations. Despite this, Panama’s pasts administrations have consistently enforced the 2008 immigration law decree (the “Immigration Law”) and its regulation, which have been updated to introduce new categories of residence permits in alignment with the immigration policy of the executive branch.

Within the last few years, categories such as the Qualified Investor residence permit, the Short-Stay Visa for Citizens of the United States of America 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 Short-Stay Visa for Citizens of the United States of America, allows US citizens to apply for a visa based mainly on their nationality, and 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 recently enacted Executive Decree No 6 of April 2023 (the “Labour Immigration Decree”). This Decree, effective as of May 2023, has implemented noteworthy changes regarding work permits, which are handled as a separate process by the Ministry of Labour. These changes encompass:

• the applicability of payroll quotas in the main work permit categories. 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 an 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 as follows.

• Family Ties residence and work permits for foreigners include categories for spouses or children who are Panamanian citizens. Upon marriage to a Panamanian, foreign nationals can begin the process by applying for provisional approval, which allows residency and work privileges for two years. Afterwards, they can seek permanent residency. Similarly, foreign nationals with children born in Panama, aged at least five, can apply for permanent residency after holding provisional residency for two years. These programmes are counted towards the local labour quota for companies.
• The Temporary Protection permit, established in 2023 as a new regularisation programme applicable to foreign nationals who have maintained an irregular status for a year or longer, provides a provisional immigration status for a duration of two years, accompanied by a work permit that is valid for the same period. Work permit applications under this programme are exempt from quota limits.

The main investment visas in Panama are the following.

• The Panama-Italy Agreement enables Italian citizens to obtain immediate permanent residency in Panama by means of the Mutual Friendship, Commerce, and Navigation Treaty between the two countries. Additionally, it provides an indefinite work permit and qualifies individuals as part of the local labour. 
• 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).
• 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 its regulations impose certain limitations on the activities visitors or tourists can engage in while in Panama, including recreation, shopping, business, medical tourism, visiting, or similar purposes.

Additionally, tourists must (i) enter the country on a temporary basis, without the intent of establishing residency or abandoning their country of residence; and (ii) comply with the obligation of departing the country upon the expiration of their authorised stay period.

Visitors should also be aware that to enter Panama, they must meet various requirements, including holding a valid passport, not being subject to an entry ban or having a criminal background, having sufficient financial resources to support themselves during their stay, and possessing a round-trip flight ticket.

Certain restrictions apply to visitors from different nationalities (without a visa exemption agreement) who must obtain an entry visa before travelling, such as those from Venezuela, Cuba, China, India, and many other Asian and African nations. However, there are exceptions to this requirement for individuals holding a tourist visa or residency from specific countries, including the United States, Canada, United Kingdom, Singapore, South Korea, Australia, the Schengen territory and Japan. These exceptions are subject to the following visa criteria: (i) it must have been previously used to enter the issuing country; (ii) it must be valid for at least six months; and (iii) it must be 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.

In 2021, Panama introduced a Short-Stay Visa for Remote Workers. This visa allows a nine-month stay in Panama, extendable for an equal term. Holders are authorised to work in Panama without requiring a separate work permit or additional procedures. It enables individuals to engage in remote work activities while in Panama, offering flexibility and convenience for those capable of working remotely.

To be eligible 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;
• perform job duties remotely;
• receive a salary from a foreign source of at least USD36,000 per year; and
• hold 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. However, in certain cases where a face-to-face interview is necessary, such as in the “Married to a Panamanian” category, 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 mandatory requirement for all visa applications as outlined by Panama’s Immigration Law. These certificates must be issued by a qualified Panamanian doctor, within three months prior to submitting the application. Nevertheless, no proof of vaccinations is necessary when applying for a visa. A yellow fever vaccination is required to enter Panama when arriving from countries where this disease is endemic, including tropical countries from Latin America and Africa.

Sponsor-based employment visas in Panama require specific minimum thresholds to be met, including the following.

• Salary – the general requirement 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 crucial to consider the legal minimum salary, which is reviewed by the executive branch every two years, based on activity and region.
• Qualifications – foreign workers hired for specialist or technical positions must provide proof of their expertise, as follows:
1. for expert positions, foreigners must present a reference letter from a foreign company certifying (i) the worker’s specialty and expertise; and (ii) job position, duration of employment and duties in the company, all relevant to the job position in Panama; and
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% of ordinary employees must be Panamanian citizens or foreign workers considered as local labour, hence, 10% of the ordinary workforce can be foreigners. 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.
1. The following are considered as local labour:

1. foreigners who have resided in Panama for ten years or more; 
2. foreigners married to a Panamanian;
3. foreigners who are parents of Panamanian citizens;
4. foreigners under the Panama-Italy Agreement; and
5. foreigners with a Friendly Nations Work Permit granted for an indefinite term.
2. Exceptions 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. Companies must 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. Consequently, both 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 notify the Immigration Authority and the Ministry of Labour, to request the cancellation of the residence and work permit.

Other limitations apply depending on the circumstances.

• If the foreign worker is hired by another company, a new residence and work permit must be applied for. This entails that the foreign worker will need to go through the process of obtaining a new residence and work permit specifically tied to the new employer.
• If the foreign worker holds permanent residency, the residency status can be maintained and they will 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 countries that are not visa exempt must apply for a Stamped Tourist visa to enter the country, which can take approximately four months to be processed.
• Residence permits – generally, residence permit applications take around 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;  ii) the Transit visa, which takes up to 1.5 months to be processed; (iii) the Remote Worker visa, which is approved in approximately ten days; and (iv) visas for labour reasons, which can take up to none months, depending on the approval of the work permit.

Work Permits

The processing time for work permits is generally around six months, with some exceptions such as the Temporary Technician (Transit Visa) work permits, which can take approximately one month. 

These estimated processing times may vary depending on individual circumstances, the workload of the 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. However, 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.

Upon submission of the application, the Immigration Authority grants foreigners a temporary identification card that is valid for six months. This card (i) allows multiple entries and exits during that period; and (ii) serves as proof of the ongoing application process.

Nevertheless, certain special immigration categories, such as the Qualified Investor category, allow for the application process to initiate before the foreigner’s arrival in Panama. In such cases, individuals may only travel to Panama once they have obtained proof of filing their application. Upon entry to Panama, the applicant must obtain the corresponding residence identification card.

It is important to bear in mind that when a residence permit application is submitted for a minor, specific requirements apply for their departure from the country. In addition to the temporary or residence identification card, travelling with a minor requires (i) the minor’s birth certificate – either the original or a copy authenticated by a Public Notary, and (ii) a letter of authorisation from the absent parent, in case one or both parents are not travelling with the minor. These measures ensure compliance with immigration regulations and facilitate smooth travel procedures. 

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 begins with the submission of an application.

In most cases, 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 Immigration Authority and submission of the residence application;
• obtaining a temporary residence identification card (valid for six months);
• registration before the Ministry of Labour and submission of the work permit application, if it is applicable; and
• obtaining an approval identification card (residence and work permit).

The typical cost of a sponsored employment visa in Panama varies depending on the type of visa. However, there are common fees associated with these visas, including:

• authentication of documents before a notary;
• payments to the National Treasury;
• payments to the Immigration Authority;
• 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 a sponsored employment visa in Panama are typically the responsibility of the employer. As an exception, when applying for non-sponsored visas, individuals are responsible for covering these costs. However, this can vary depending on other factors, including the specific immigration process, the type of visa, and other specific expenses.

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 for enforcement actions include the following. 

• 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 lead to the revocation or cancellation of the visa or permit, 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. This includes submitting forged documents or providing false statements, to obtain a visa or other benefits.
• Engaging in criminal activities – serious enforcement steps, including criminal prosecution, incarceration and deportation, may be taken against an individual and/or sponsor if they are engaging in illegal activities. This includes 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. Additionally, individuals who have been deported or otherwise penalised for violating immigration laws may be banned from entering Panama and become ineligible for subsequent visas or immigration benefits.

In Panama, employers sponsoring employment-based visas have certain obligations, including the following.

• Valid employment contract – the employer must provide a valid and enforceable employment contract signed by 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.
• Repatriation obligation – 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.

In case of 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 licences.

Panama does not have a specific Right to Work check process, as in other jurisdictions. Nonetheless, employers do have to verify certain 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 the foreign worker’s nationality and entry visa, the position and salary being offered, any restricted professions, and compliance quotas.

Panama offers a variety of visas, including dependant visas, which allow family members of visa or residence permit 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 a 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; and
• 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 – 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 – may apply for any of the work permit 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.