Introduction
There are many reasons to start a business in Panama such as a stable economy, strategic location as a global logistics and financial hub, and a government incentive and last but not least the tax territorial system.
Why Start a Business in Panama?
- Strategic Location: Located in the middle of the Americas, Panama offers Panama’s geographical strategic position that links North and South America. Thanks to its famous canal, connecting the Pacific and Atlantic oceans, Panama offers easy access to global trade routes.
- Economic Stability: Panama has one of the fastest-growing economies in Latin America, with a US-dollar-based economy that provides stability and ease of business.
- Favorable Tax Regime: The Territorial Tax System also applies to corporations, making it a significant advantage for multinational corporations that have income earned outside the country. The Colon Free Zone is the largest free-trade zone in the Americas.
- Business-Friendly Environment: The government helps and promotes foreign investment, also thanks to a series of laws that protect and benefit investors and entrepreneurs.
For insights on business opportunities, check out our article on Investing in How to Start a Business in Panama
Residency in Panama
The government of Panama, over the years, has introduced several types of visa programs to make residency applications easier and to encourage investment in the country. There are many options for retirees and international residents who want to apply for Panamanian citizenship, temporary or permanent residency, or special passports; each of these programs offers exclusive privileges.
Get all information about Residency in Panama in our dedicated article here: Residency in Panama.
Panama Friendly Nations Visa
Designed for citizens of specific countries with which Panama conducts, professional, economical, investor-like relationships and considers “friendly”. Executive Decree No. 226 dated July 20, 2021, modifies Executive Decree 197 dated May 7, 2021.
Below is the list of Friendly Countries, whose citizens may apply for this Residence Permit:
AndorraCosta RicaLatviaNorwayPortugalGermanyCroatiaLiechtensteinNew ZealandCzech RepublicArgentinaChileLithuaniaNetherlandsSan MarinoAustraliaCyprusLuxembourgParaguaySerbiaAustriaSouth KoreaMaltaPeruSwitzerlandBrazilDenmarkMexicoPolandSwedenBelgiumIrelandMonacoSingaporeUruguayCanadaIsraelMontenegroSpain
(Italy is not included, the Panama-Italy Treaty applies to Italian citizens).
There are 3 ways to apply for this visa: employment in Panama, investment in Panamanian real estate, and fixed-term deposit.
- Employment in Panama: For employers that are willing to work for a company in Panama. The required documentation is:
- Letter of employment on company letterhead that is signed by the employer’s legal representative.
- The employer company’s certificate from the public registry.
- Certificate of the Public Registry of the employer company.
- Notice of Operation of the employer company.
- Real Estate Investment: With an investment of at least $200.000 you could obtain this kind of Visa. The Certificate of Public Registry of Panama to prove the ownership of the real estate, in the personal title of the applicant or in the name of a juridical person, in which the applicant is the final beneficiary, is required.
- Fixed Term Deposit of $200.000: The deposit must be placed for 3 years in a bank with a general license that conducts business within the country. The applicant may choose to make this investment directly or through a company in which he is the ultimate beneficiary or stakeholder.
Government Fees:
- Payment of the fee per certified check issued to the National Immigration Service $800.
- Payment of the fee of $250 per certified check issued to the National Treasury $250.
Procedure
This procedure is divided into two parts, in the first phase, you obtain two years of provisional residency, and then in the second part, you get permanent residency.
- After the two-year period of the provisional visa has passed, the applicant may apply for permanent residency, with all original requirements except for the Police Record and any government-mandated fees.
- After five years of permanent residency, applicants may choose to apply for Panamanian citizenship through the naturalization procedure. Once granted citizenship, they can then, if they so want, apply for a Panamanian passport.
Principal Advantage
- Panamanian Personal Identity Card (Cedula).
- Lower investment required
- Children under 25 and a spouse may be considered dependents.
- Possibility to get Permanent residency after two years with a provisional resident visa.
- Possibility to get Panamanian citizenship after five years of permanent residency.
How to find a job in Panama City
The coastal capital’s location and economy provide many occupations for locals and foreigners.
Before starting your research in the Isthmian Nation, you should understand how the local market works.
The country’s economy is heavily influenced by the service sector. It accounts for over 65% of GDP. The finance/banking sectors and the Canal drive it. They impact logistics, maritime, and transportation. Additionally, there’s a growing demand for professionals in the IT, tourism, and healthcare sectors.
For a detailed information, visit our guide on How to find a job in Panama City.
Eligibility to Work
To be able to work in the nation, foreigners should first obtain a work permit. It usually involves getting a job offer from a Panamanian company. They will help you apply for a work permit and visa.
Ensure you have all needed documents, including your passport, proof of qualifications, and any required health certificates.
Restricted Professions
The Panamanian government has restricted some professions for foreign workers. These include accountants, engineers, and lawyers, for foreign workers. The full list of regulated professions in Panama, restricted for migrant workers, is on the government website.
These professions can be done only by Panamanian-born or naturalized citizens Panamanian professionals. Even if your profession is restricted, you can still apply with a working VISA in specific fields of specialization that are still open.
Popular Sectors and Growing Opportunities in Panama City
The Metropolitan City is growing economically. But, not all sectors are equal. Some offer more opportunities than others. Foreigners who wish to work must identify sectors that would help them fit in.
Top Industries for Employment:
- Finance and Banking:
- The banking facility in this Central American republic is well developed with a large number of regional and international banks functioning in this country. Employees with a background related to investment, banking and finance are ideal for the market, especially in risk management, auditing and financial consultancy.
- Growing Trends: New occupations are also being created by the FinTech and digital banking services that are being developed, requiring skilled IT professionals and financial software engineers.
- Logistics and Shipping:
- Logistics is a very vibrant industry, being the Canal as part of the transportation system. Among these companies, there are large logistics companies involved in managing international supply chains, customs services, and managing ports.
- Opportunities: Project managers, logistics coordinators/analysts and professionals in the maritime industry are needed. Firms in this industry may need employees who are fluent in both English and Spanish to sustain international clients.
- Technology and Digital Transformation:
- The Isthmian Nation is becoming a technology hub in Latin America, with tech startups and multinational tech firms setting up operations. The government’s push for digitalization and the development of a strong digital economy contributes to the employment of software engineers, cybersecurity specialists, data scientists, and other experts in the field.
- Future Prospects: The IT industry is active with segments such as Artificial Intelligence (AI) and cloud computing which IT specialists with experience in these areas can benefit from.
- Tourism and Hospitality:
- The tourism sector of the coastal capital is developing even more, especially after COVID-19, with the main emphasis placed on various types of sustainable tourism, luxury and eco-tourism. There are increased vacancies in hotel management, tour guides, services to customers and planners of functions.
- Specialized Roles: There are new opportunities in luxury tourism such as the management of luxury resorts and kitchen staff, culinary arts and travel consulting.
- Healthcare:
- Healthcare costs are relatively low, and many good hospitals and clinics are available; these factors make the Central American Republic an ideal for medical tourism. Open positions include nurses, general practitioners, specialists, healthcare administrators and other medically related fields.
- Medical Tourism: Jobs related to medical tourism coordination, patient care, and health tourism marketing are increasingly common.
- Real Estate and Construction:
- The skyline of the gateway city is still growing with real estate development activities having constant and ongoing projects, particularly in the commercial and residential buildings. Real estate agents selling luxury apartments and villas, Civil engineers and architects involved in the design, construction and management of such luxurious buildings or projects and project managers.
- Green Building Initiatives: As eco-friendly construction practices rise, there are opportunities for sustainable building design and renewable energy solutions.
- Education:
- Teaching positions are available for foreign professions, especially in international schools, language academies and universities. English teachers particularly those certified internationally are highly demanded in private schools and corporate organizations.
- Remote Learning: It noted an increased adoption of online classes, expanding vacancies for digital educators and e-learning developers.
What to Expect
- Work Hours: Hours are often irregular and may involve evenings, weekends, and holidays when restaurants and malls are at their busiest.
- Bilingual Environment: Bilingualism of Spanish and English in the canal city is a great benefit, given the fact that the city is visited by international tourists and expatriates from all around the world.
- Legal Requirements: Non-residents need to get a work permit to work legally. Employers might facilitate this process, particularly for positions for which there are no adequate local candidates.
- Salaries and Benefits: The pay of compensation hugely depends on the position, experience and the employer. Although minimum wage laws are in place, tips have a large impact on the income of restaurant staff.
