Meet 6 categories of work permits for foreigners in Panama

If you are a foreigner and want to start a working life in Panama, you must consult an attorney to know the different options for obtaining a work permit. Each of them has different features in terms of length: some are for an indefinite time, while others require renewal. A clear knowledge of the alternatives you may have will help you on taking the best decision to be able to work within a legal framework.

In this article, we’ll share the 6 categories for hiring foreign workers associated only with the content outlined in the Panama Labor Code. If you want to know about the specific requirements demanded in each one of the work permits provided for in this legal instrument, you should check Executive Decree No. 17, of May 11, 1999, and its updates.

The categories of work permits set out in the Panama Labor Code are the following:

Foreign worker married to a Panamanian

Any foreigner married to a Panamanian may apply for a work permit. If you want to know about the requirements demanded, you should check Executive Decree No. 17, of May 11, 1999, and its updates.

Foreign worker with 10 or more years of residency in Panama

Any foreigner with 10 or more years of residency in the country, may apply for a work permit. If you want to know about the requirements demanded, you should check Executive Decree No. 17, of May 11, 1999, and its updates.

Foreign worker within 10% of regular staff

Every employer shall keep Panamanian workers, or foreigners married to a Panamanian, or with 10 years of residency in the country, in a proportion not less than 90% of regular workers. To learn about the requirements demanded, you should check Executive Decree No. 17, of May 11, 1999, and its updates.

Expert or technical foreign worker within 15% of the specialized personnel

Every employer may have specialized or technical foreign personnel as long as it doesn’t exceed 15% of the total number of workers, a percentage that could be expanded upon recommendation of the corresponding ministry and approval of the Ministry of Labor and Workforce Development. The authorization will be issued for one year and could be extended for a maximum of five years. If you want to know the requirements, you should check Executive Decree No. 17, of May 11, 1999, and its updates.

Foreign trusted worker hired by companies that only offer services abroad

Trusted workers of multinational companies dedicated exclusively to maintaining offices in Panama and only offer services abroad are excepted from the category of foreign worker within the 10% of regular staff. To know the requirements demanded, you must review Executive Decree No. 17, of May 11, 1999, and its updates, and Law No. 41 of August 24, 2007, in which was created the Special Regime for the Establishment and Operation of Multinational Companies Headquarters (SEM, for its acronym in Spanish).

Marrakech Agreement

Companies with less than 10 workers will be allowed to hire at least 1 foreigner, under the conditions established in the current legal provisions. To know in detail the requirements demanded, you should review Executive Decree No. 17, of May 11, 1999, and its updates, and Law No. 23 of July 15, 1997, by which the Marrakech Agreement is approved.

To understand other categories of work permits, we recommend that you consult the pertinent legislation according to each case, such as the Panama-Italy Agreement, Friendly Nations Agreement, City of Knowledge (Ciudad del Saber) workers, humanitarian/refugee reasons, among others.

Panamanian legislation offers different alternatives for foreigners, the important thing is to find the option that best suits your situation and offers you a smooth professional development in your new destination country.

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