Panama’s immigration policy has been strategically designed to attract foreign investment, foster economic growth and encourage the influx of highly qualified workers and foreign nationals under strategic residency programmes who can contribute to the country’s development. The Ministry of Public Security, through its National Immigration Authority, oversees the administration, supervision and execution of these policies.

In addition to the Ministry of Public Security, other government bodies including the Ministry of Labour, the Ministry of Commerce, the Ministry of Foreign Affairs and the Ministry of the Presidency play key roles in shaping and recommending immigration policies related to commerce, trade, investment and employment.

The policy framework provides for a range of residency options that align with the executive branch’s diplomatic, investment and economic objectives, thereby facilitating the entry and residency of the foreign investors and skilled workers needed to support national progress.

These co-ordinated efforts reflect Panama’s broader strategy to position itself as a regional hub for business and innovation. They are grounded in a robust legal framework, including the National Constitution, immigration laws and executive decrees and resolutions, which provide the basis for implementing specialised visa and residency programmes. 

Alongside these immigration policies, Panama’s corporate immigration structure is also supported by labour immigration policies, as set forth in the Constitution, the Panamanian Labour Code and executive decrees.

Since the inauguration of President José Raúl Mulino in July 2024, the administration has signalled a proactive approach to immigration and labour reform. One of the first measures taken by the new administration was the implementation of a regularisation programme for foreigners who have lived in the country for over one year without an active immigration process. This initiative reflects the government’s broader intent to promote social inclusion, reduce informality in the labour market and strengthen regulatory oversight.

Additionally, from 1 August 2024 31 July 2025, the government is offering a 50% reduction on fines for individuals seeking to regularise their immigration status, encouraging compliance and legal residency.

Panama has also introduced stricter penalties for unauthorised entries, with fines ranging from USD1,000 to USD5,000 depending on the severity of the violation. Individuals unable to pay these fines may face deportation.

While specific future reforms have not been officially announced, the current administration’s focus on immigration and labour immigration regulations suggests that additional changes may be forthcoming. These may include further adjustments to visa requirements, work permit categories and enforcement mechanisms.

Beyond immigration, the government has also expressed its intention to advance key structural reforms, including the implementation of the newly enacted social security law and potential changes the tax system – developments that are likely to shape the operating landscape for companies and the expatriate workforce in Panama.

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 head count quota limits;
• 15% trusted personnel residence permit and work permit, applicable to trusted foreign personnel that provide direction, supervision or representation services to the employer – this type of permit is subject to salary and head count quota limits;
• 15% technicians and specialised personnel residence permit and work permit, applicable to foreign employees in specialised or technical roles such as technicians or experts – this permit is also subject to salary and head count quota limits;
• friendly nations residence permit and work permit based on employment, applicable to 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 (sede de empresas multinacionales – headquarters of multinational companies); these visas do not count towards quota limits and do not require a separate work permit.

In addition to general visa categories, Panama offers sector-specific, sponsor-based work visas for foreign nationals employed by companies operating within designated special economic zones. These zones include Panama Pacifico, the City of Knowledge, export processing zones, the Colon Free Zone, the Panama Canal Authority, the film and audiovisual industry, the aviation industry and commercial call centres.

In Panama, individuals with sponsor-based work visas may become eligible to apply for permanent residency after maintaining legal residence for a period ranging from two to six years, depending on the specific visa category. Core requirements typically include an approved provisional residency permit, demonstrating that there are no prior criminal convictions, proof of stable income, evidence of good health and compliance with any specific conditions established under the relevant regime. Sponsor-based work visas that may lead to permanent residence include the residence permit for foreign personnel hired under the 10% quota for ordinary Personnel or the 15% quota for trusted personnel. Other qualifying categories include residence permits granted to permanent personnel employed by the Panama Canal Authority or by aviation companies.

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 count towards the local labour quota for companies.
• The humanitarian security protection permit, established in 2025 as a new regularisation programme applicable to foreign nationals who (i) have irregular status within the national territory and (ii) have stayed in the country for no less than one year, provides provisional immigration status for a duration of two years in conjunction with a work permit that is valid for the same period. Work permit applications under this programme are exempt from quota limits. After two years, the permit may be renewed for up to an additional six years, after which time the applicant becomes eligible to apply for permanent residency.

The main investment visas in Panama are as follows.

• 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 force. 
• The 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 (for quota purposes, this type of permit does not count towards the payroll).
• The qualified investor residence permit and work permit, applicable to foreigners who invest 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 (for quota purposes, this type of permit does not count towards the payroll).
• The self-economic solvency residence permit and work permit, applicable to foreigners who invest USD300,000 in (i) real estate, (ii) fixed-term deposits, or (iii) mixed investments (for quota purposes, this type of permit does not count towards the payroll).

Most visitors to Panama can stay in the country visa-free for business purposes for up to 90 days, provided they are not engaging in paid work or operating a business in Panama. Business visitors can attend meetings and conferences but cannot receive compensation from Panamanian entities.

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 activities.

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 to depart 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), such as those from Venezuela, Cuba, China India, and many other Asian and African nations, who must obtain an entry visa before travelling. However, there are exceptions to this requirement for individuals holding a valid tourist visa or residency from specific countries, including the United States, Canada, the United Kingdom, Singapore, South Korea, Australia, the Schengen territory and Japan.

Once in the country, foreigners can stay as tourists for (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; or
• six months – nationals of the United States and Canada.

Panama does not require visitors to apply for pre-travel authorisation, such as an electronic travel authorisation (ETA) similar to the US Electronic System for Travel Authorization (ESTA) scheme. Recently, travellers have also been exempted from completing the electronic customs traveller declaration form before entering the country.

In 2021, Panama introduced a short-stay visa for remote workers, which remains in effect today. 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. However, 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 in 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) micro and small employer (formerly known as the “Marrakech Agreement”), 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) the job position, duration of employment and duties in the company; and
2. for technical positions, foreigners must provide a professional certification or diploma, which must be related to the role to be performed in Panama.
• Quota limitations – companies in Panama are subject to both salary and head count quota limitations, where 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 salaried employees and head count.
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 whether the position they are hiring for falls within these restrictions. 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 and 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 requires the foreign worker 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.

As a general rule, all temporary and permanent residence permits in Panama require a criminal record certificate. This certificate must be issued by either the country of origin or the country of residence.

The law provides for causes of denial of entry or transit, or revocation of visas or permits, in the following cases:

• the existence of an order of the competent authority prohibiting the individual’s entry;
• submission to the competent authority of national or foreign documents that are materially or ideologically fraudulent or altered, with the purpose of obtaining a visa for entry into the national territory;
• attempting to enter the national territory with a document that does not meet the requirements established under the current legislation;
• having a criminal record in the country of origin or country of provenance;
• constituting a risk or threat to national security or to the international community;
• suffering from a disease classified by the Ministry of Health as a public health risk or coming from a country or region declared by the World Health Organization (WHO) or the Panamerican Health Organization (PAHO) as a high-epidemiological-risk area;
• having been deported or expelled from the country, with the removal order still being in effect; and
• violating the Immigration Law or its regulations.

Additionally, the law provides a list of grounds for permit cancellation, granting the competent authority the power to cancel permanent or temporary residency, as well as the permits of those with non-resident status, under certain circumstances including conviction for an intentional crime or for tax fraud. Individuals whose permits are cancelled will be deported unless otherwise provided.

Therefore, if a foreigner has a criminal record, including charges, convictions or other offences that are minor or not recent, the Immigration Authority has the discretion to deny the petition or their entry into the country, as the law does not establish specific thresholds or criteria in this respect; the mere existence of a criminal record may justify the revocation of residency or non-admission into the country. 

Foreigners entering Panama are required to demonstrate economic solvency to cover their expenses while in the country (not less than USD500.00), except for passengers in transit who remain in the immigration facilities.

Applicants for residence permits for employment purposes are generally not required to show proof of solvency, except when applying with dependents. In such cases, proof of solvency may include a work contract accompanied by a social security pay stub and a work permit, a bank reference letter showing an average balance of no less than four figures or a local income tax return with a tax clearance certificate demonstrating a monthly income of at least USD1,000.

The law allows the sponsor to provide a letter of responsibility with respect to the financial support or salary payments of the applicants. This, together with the employment contract, serves as sufficient proof of financial means for the purpose of filing most of the residence permits based on employment in Panama.

In Panama, all visa and work permit applications must generally be submitted in hard copy to the relevant authorities, accompanied by original supporting documents.

Nonetheless, the Ministry of Labor has initiated preliminary steps towards digitalisation. Currently, only one specific work permit category – the Temporary Protection Work Permit – may be filed electronically. All other work permit applications still require in-person submission with physical documentation. Through this initiative, the Ministry has signalled its intention to gradually expand electronic submission options to additional categories as part of a broader effort to modernise and streamline the application process.

Similarly, while the Immigration Authority has expressed interest in digitalising certain immigration procedures, it has not yet implemented electronic filing for visa or residence permit applications. As a result, all immigration filings continue to require physical submission of original documents.

Under Panamanian immigration regulations, all residence permit and short-stay visa applications must be submitted from within Panama. This requires applicants to enter the country legally and be physically present at the time of filing before the Immigration Authority.

The sole exception to this requirement is tourist visa applications, which may be submitted at a Panamanian consulate located in the applicant’s country of origin or legal residence. These consulates are authorised to receive applications and conduct preliminary assessments; however, the final review and approval are carried out by the Immigration Authority in Panama. Once approved, the visa is returned to the relevant consulate for issuance, allowing the eligible foreign national to enter Panama.

Currently, Panamanian immigration law does not establish specific exceptions or alternative procedures for applicants residing in conflict-affected jurisdictions. As such, individuals from these regions must still adhere to the standard entry requirements and submit their applications in-country.

Visa processing times vary depending on the immigration category. The processing times for some of the visas and residence permits follow:

• 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 process; and
• residence permits – generally, residence permit applications take around five months to process.

Exceptions to these processing times include (i) the qualified investor residence permit, which takes up to 30 working days to process; ii) the transit visa, which takes up to 1.5 months to process; (iii) the remote worker visa, which is approved in approximately ten days; and (iv) visas required for labour reasons, which can take up to nine months to process depending on the approval of the work permit.

Work Permits

The processing time for work permits is generally around two months, with some exceptions such as the temporary technician (transit visa) work permit, 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 the foreign national has entered the country. However, nationals from countries that are not visa-exempt must obtain a stamped tourist visa prior to entry. This visa can be requested in one of two ways: (i) directly by the applicant before a Panamanian consulate in their country of origin or legal residence, or (ii) in Panama through a legal proxy acting on behalf of the applicant.

Once the visa application is submitted, the Immigration Authority issues a temporary identification card that is valid for six months. This card (i) permits multiple entries and exits during its period of validity, and (ii) serves as official proof of an ongoing immigration process.

Certain special immigration categories, such as the qualified investor programme, allow applicants to initiate the process prior to entering Panama. In such cases, applicants may travel to Panama only after receiving confirmation of filing. Upon arrival, they must obtain the corresponding residence identification card.

When a residence permit application is filed on behalf of a minor, additional requirements must be met for the minor’s subsequent departure from Panama. In addition to carrying the minor’s temporary or residence identification card, travellers must present (i) the minor’s birth certificate – either the original copy or a notarised copy – and (ii) a letter of authorisation from the absent parent(s), if one or both are not accompanying the child. 

In general, visas in Panama are subject to standard processing times, with no option for expedited or fast-track procedures. An exception exists for the qualified investor category, which benefits from an accelerated processing timeline of up to 30 working days. This expedited treatment is accompanied by higher government 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 the purpose of their visit.

Visa processing generally involves the following steps:

• registering before the Immigration Authority and submission of the residence application;
• obtaining a temporary residence identification card (valid for six months);
• registering before the Ministry of Labour and submitting the work permit application, if 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:

• payment for the 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.

In Panama, the cost of visa and residence permit applications has remained stable over time. However, there has been a slight increase in the fees for work permits in recent years. This adjustment has been relatively minor, but it reflects an effort to align the fees with the administrative costs involved in processing these applications.

The costs related to getting a sponsored employment visa in Panama are usually paid by the employer who is sponsoring the worker. These costs include the legal fees, expenses and other administrative costs related to the application.

However, there are exceptions. When a person applies for a visa without a sponsor (eg, for an investment visa, a humanitarian visa or (certain types of) permanent residency visas), the applicant commonly pays all the related costs, including legal fees and government fees.

It is important to note that this can change depending on different factors, like the type of visa, the employer’s conditions, or special agreements between the employer and worker. Other extra costs may also emerge during the process, such as for document translations or legalisations, or in relation to additional requirements of the Immigration Authority or other authorities.

In Panama, the immigration and labour immigration authorities can take enforcement actions against an individual and/or a sponsor in different situations. The reasons for these actions are listed clearly in Panama’s laws and can change depending 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 by staying longer than allowed or working without permission, the authorities can take action. This can include cancelling the visa, issuing fines or deporting the person or expelling them from the country.
• Fraudulent information: authorities may take enforcement actions such as revoking a visa or permit or ordering deportation if it is discovered that the individual and/or sponsor provided false or misleading information during the immigration process.This includes using false papers or making untrue statements to get a visa or other immigration benefits. There are also potential legal repercussions.
• Engaging in criminal activities: serious legal 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 serious 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. Penalised individuals who want to return to the country must formally request the lifting of the entry ban. However, this decision is completely discretionary and will depend on the nature and seriousness of the violation committed.

In Panama, employers sponsoring employment-based visas for foreign workers have certain responsibilities, including the following.

• Valid employment contract: The employer must formalise an employment contract duly signed by both the employer and the foreign employee.
• Maintenance of valid immigration status: Employers are responsible for ensuring that the sponsored foreign worker maintains valid immigration and work authorisation throughout the period of employment. This includes supporting the worker in obtaining and renewing visas, work permits and any other required documentation.
• Notification of employment changes: Employers are obligated to notify the relevant authorities of any material changes in the foreign worker’s employment status. This includes changes in job title, responsibilities or salary, or termination of employment.
• Repatriation responsibility: In the event of termination or expiration of employment, the employer is responsible for covering the costs associated with repatriating the foreign worker to their country of origin. This includes arranging and funding return transportation.

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.

Although Panama does not have a specific Right to Work check process like other jurisdictions, employers are responsible for ensuring that foreign nationals they intend to hire meet all legal requirements. This review covers the 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). Additionally, employers must consider other factors such as the foreign worker’s nationality and entry visa, the position and salary being offered, any restricted professions and compliance quotas.

Panama has different types of visas, including dependant visas, which allow family members of visa or residence permit holders to live with them in the country.

The family relationships that are accepted for a dependant visa can 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 a partner of the opposite sex if they are in legal union.
• Children of the main applicant can be included as dependants: This benefit extends to minors, those under 18 years of age and those over 18 years of age (up to 25 years old) if they are single and studying.
• Parents of the main applicant, if they depend financially on the 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. For children with disabilities, there is no age limit.

It is important to note that each visa category in Panama has distinct eligibility requirements, which may include financial thresholds, proof of familial relationship or other supporting documentation. Additional criteria may also apply to dependant visa applicants. The application process for obtaining a residence permit for dependants closely mirrors that of principal applicants, following similar procedural steps and documentation standards.

In Panama, dependant visas do not automatically grant the right to work. Therefore, a separate work permit must be requested based on the dependent’s immigration status.

• Dependants with a temporary or provisional residency can apply for a family reunification work permit, which was introduced specifically for dependants of a resident by the Labour Immigration Decree. To qualify for this work permit, dependants must be self-employed or be employed by someone else, subject to the quota limits established in the Labour Code and the Labour Immigration Decree.
• Dependants with permanent residency have the option to apply for any of the work permits established in the Labour Immigration Decree, including the family reunification permit other permits that are not subject to the established quotas.

The introduction in 2023 of the family reunification work permit for dependants is a significant change introduced by the Labour Immigration Decree; previously, dependants could only apply for a work permit after obtaining permanent residency or by renouncing their dependant status and applying for a new work permit.