Many clients relocating to Panama want to work while they are here. And unless you plan to own your own business here, you’ll need a Panama work permit in order to work here legally.
Panama Work Permit Connected to Residency
There are a number of different ways to qualify for a Panama work permit, but the vast majority of my clients apply for a work permit connected to their residency visa.
There are a few types of visas that automatically allow foreign residents to qualify for a work visa and then work legally in Panama:
- The Friendly Nations Visa.
If you have been approved for this visa then you can apply for and obtain a work permit. We can also apply for both parallel. - Residency by Marriage to a Panamanian.
If you are legally married to a Panamanian citizen, then you can qualify for permanent residency and a work permit. - Residency as a Parent to a Panamanian Child.
If the child a.) was born in Panama and b.) is over 5 years old, then you can qualify for permanent residency and a work permit. - Legal Residency for 10 years
If you are a foreigner who has obtained residency by one of the other visa programs, you can apply for a work permit after maintaining residency for 10 years.
The other option is to secure an employment opportunity first, and then to obtain a work permit on the basis of your employment contract. If this sounds like it applies to you, then we can discuss how best to navigate the process from that angle.
Additional Considerations
Once you have your Panama work permit, you will be able to seek gainful employment with businesses operating here in Panama. However, there are a couple things to be aware of when it comes to working in Panama:
There are certain professions that are reserved for Panamanian citizens. When this applies, a foreigner may decide to seek employment in their respective field of expertise, but without actually practicing.
You should also be aware that for most companies, foreigners must account for less than 10% of their salaried workforce. There are some exceptions here. For example, some local companies can apply for and obtain an exception to this rule from the Labor Ministry. Multinational companies are also able to get around this rule.
In light of the above, many foreign residents who obtain a work permit may still decide to incorporate and create their own service business. This allows them to provide services to companies as clients without joining the companies’ payrolls. It also allows for the potential to scale the work into a larger business with its own employees.
Bottom Line?
Not everyone needs a work permit in Panama. If you are retired, working remotely, a full-time homemaker, planning to start your own business or to live off your investments, then you may not have an immediate need for a work permit.
But circumstances can change, and opportunities present themselves. And to have a job and work in Panama, then you´ll need a work permit. Moreover, the cost is minimal.
Therefore, most of my clients go ahead and obtain the Panama work permit when they go through the residency application process. It’s not a bad thing to have in your tool kit if an opportunity presents itself or if your circumstances change.
Please don´t hesitate to reach out to me with the details of your situation and let´s get to work!

