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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.
- 5 procedure guides
- 7 guides
- Backed by Panamanian lawyers
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.
The essentials
- The usual route is a residency that allows you to work, such as the Friendly Nations Visa with an employment contract, followed by the work permit.
- The remote worker visa lets you live in Panama while working for employers abroad, but not for Panamanian companies.
- Each company may only have a limited proportion of foreign staff, except under special regimes such as the SEM regime, the Colón Free Zone or Panamá Pacífico.
- As an employee you pay into the Social Security Fund (CSS), which gives you health coverage (see health insurance and CSS), and you have the rights set out in the Labor Code.
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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Do You Need a Visa to Enter Panama? Requirements by Nationality
Which nationalities can enter Panama without a visa, which need a stamped or authorized visa, how long you can stay as a tourist and what the visa requires.
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Naturalization in Panama: How to Apply for Panamanian Citizenship
How to apply for Panamanian citizenship by naturalization: years of residence for your case, renunciation, solvency, the Electoral Tribunal exam and oath.
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Panama Visa Options: Which Residency Visa Fits You?
Every main Panama residency visa side by side: who it is for, the minimum income or investment, whether it is permanent and whether it lets you work.
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Panama Police Record (Récord Policivo) for Foreigners
What Panama's police record is, why a foreign resident may need it, which documents the DIJ requires, how to apply and how long it is valid.
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Panama Work Permit for Foreigners
Which work permit a foreigner needs to work in Panama based on their residency, which documents MITRADEL requires, how to apply and how long the card lasts.
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Taxes
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Residential Lease Agreements in Panama: Registration and Deposit
How a lease is registered with the MIVIOT Leasing Directorate, how the security deposit is lodged and recovered, and where to go if there is a dispute.
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Renting a Home in Panama as a Foreigner
What landlords ask foreigners for, what a lease should include, how the security deposit works and how to avoid scams when renting a home in Panama.
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Living in Panama
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Glossary of Panamanian Legal Terms and Procedures
What the Spanish terms in Panama's procedures mean: cédula E, paz y salvo, RUC, NIT, apostille, registered agent, possessory rights and more.
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Health Insurance and the Social Security Fund (CSS) for Foreigners in Panama
Who is covered by Panama's Social Security Fund, what options a foreigner who does not pay contributions has and what to check before buying health insurance.
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Relocating to Panama: A Step-by-Step Checklist
A step-by-step checklist to relocate to Panama legally: choose your residency, prepare documents, file with a lawyer, then banking, housing and health.
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