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Working in Panama

What a foreigner needs to work in Panama: residency that allows it, a work permit, reserved professions, taxes and social security.

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In short

Working in Panama as a foreigner requires two things: a residency that allows it and a work permit from the Ministry of Labor. In addition, some professions are reserved for Panamanians and others require a license (idoneidad) from the relevant professional board. Here are the essentials for working legally.

Frequently asked questions

Can I look for work in Panama as a tourist?

You can look, but not work: before you start you need a residency that allows it and the work permit.

Which professions are reserved for Panamanians?

The Constitution and the law reserve several professions for Panamanians, and others require a certificate of fitness (idoneidad) from the relevant professional board, after having your degree recognized.

Do I pay tax in Panama on my salary?

Yes: a salary for work done in Panama is Panamanian-source income. Your employer withholds income tax and Social Security Fund contributions (see territorial taxation).

Do I need to speak Spanish to work in Panama?

For most jobs, yes: it is the official language and the language of all procedures. In international companies and in the capital, English is also often used at work.

What you need to know, by topic

Immigration and citizenship

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Taxes

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Real estate

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Living in Panama

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