Countries › Panama › Guide › 8. Immigration › Working in Panama as a foreigner: matching a residence permit to the job, the professional residence, international company executives, SEM staff and employer fines

Working in Panama as a foreigner: matching a residence permit to the job, the professional residence, international company executives, SEM staff and employer fines

Last verified: 2026-10-29 · Status: Stable

Foreign employees need both a migration status and, in most cases, a MITRADEL work permit, while employers must respect the 90 percent Panamanian staff rule. Routes include the Friendly Nations employment route, the permanent residence for foreign professionals in non reserved professions, the permit for executives of international companies whose functions take effect abroad (salary of at least B/.1,000 a month from a foreign source), and the special visas for multinational headquarters (SEM) staff. Migrants who work without authorization are fined B/.1,000 then B/.5,000, and employers who keep foreign workers' passports or breach labor and health duties face fines of B/.1,000 to B/.5,000 per foreigner.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

International company executive: minimum foreign source salary	1000 PAB per monthDecreto Ejecutivo 320 de 2008 art. 146 (Decreto Ejecutivo 26 de 2009), as of 2026-10-29 · in force
Professional residence: consecutive social security contributions for permanence	9 monthsDecreto Ejecutivo 804 de 2012 art. 4, as of 2026-10-29 · in force
Fine for working without authorization, repeat offense	5000 PABDecreto Ejecutivo 320 de 2008 art. 313 num. 2, as of 2026-10-29 · in force
Employer fine per foreigner for retaining documents or breaching labor duties, first offense	1000 PABDecreto Ejecutivo 320 de 2008 art. 313 num. 9, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. The permanent residence for foreign professionals is open to professionals whose profession is not limited by the Constitution or law to Panamanians by birth or naturalization. Besides the common requirements of Decreto Ley 3 art. 28, the applicant files a copy of the university degree (bachelor, master or doctorate), apostilled or authenticated.Decreto Ejecutivo 804 de 9 de octubre de 2012, arts. 1, 2 and 3, 2012-10-09 official text · verified 2026-10-29

2. After the two year provisional permit the professional may request permanent residence with the same documents plus a national tax clearance and a Caja de Seguro Social certificate showing nine consecutive monthly contributions, even if the employer changed.Decreto Ejecutivo 804 de 2012, art. 4, 2012-10-09 official text · verified 2026-10-29

3. Executives of international companies whose functions take effect abroad may obtain a permit when they enter temporarily as executive or representative at directive and operational level of foreign companies with international scope and affiliated offices or representation in Panama, with a parent abroad.Decreto Ejecutivo 320 de 2008 art. 144 as worded by Decreto Ejecutivo 26 de 2 de marzo de 2009 art. 45, art. 144, 2009-03-02 official text · verified 2026-10-29

4. The executive files, besides the common requirements of Decreto Ley 3 art. 28 except its fee and deposit numeral: proof of the company's existence in its home country or a Panamanian Public Registry certificate of the parent or subsidiary; a bank reference for the parent; and a parent company letter stating the position and a salary of at least B/.1,000 a month that does not come from a Panamanian source.
Example: Salary of at least B/.1,000 a month paid from abroad. / US$1,000 a month.Decreto Ejecutivo 320 de 2008 art. 146 as worded by Decreto Ejecutivo 26 de 2009 art. 46, art. 146, 2009-03-02 official text · verified 2026-10-29

5. Staff of multinational headquarters (SEM) apply with a certification from the Technical Secretariat of the SEM Licensing Commission, proof of medical insurance, proof the company is under the special regime of Ley 41 de 2007, and a work letter showing a salary from a foreign source; SEM staff who stay in Panama without actually working at the SEM are fined up to B/.5,000 and their permits cancelled.Decreto Ejecutivo 320 de 2008 art. 149 as worded by Decreto Ejecutivo 26 de 2009 art. 47, art. 149, 2009-03-02 official text · verified 2026-10-29

6. Migration fines: a migrant who works or carries on gainful activities without authorization pays B/.1,000 the first time and B/.5,000 on repeat, with cancellation of the permit the third time. An employer who retains foreign workers' identity or travel documents or breaches labor, health and social security duties pays B/.1,000, then B/.3,000, then B/.5,000 per foreigner.
Example: An employer holding the passports of 3 foreign staff, first offense: 3 x B/.1,000 = B/.3,000. / US$3,000.Decreto Ejecutivo 320 de 2008 art. 313 as worded by Decreto Ejecutivo 26 de 2009 art. 63, art. 313 numerals 2 and 9, 2009-03-02 official text · verified 2026-10-29

Route	Who	Key test	Norm
Friendly Nations, employment	Nationals of listed countries	Job offer from a Panamanian employer; MITRADEL permit	Decreto Ejecutivo 416 de 2012 (226 de 2021)
Foreign professional	Degree holders in non reserved professions	Apostilled degree; 9 CSS contributions for permanence	Decreto Ejecutivo 804 de 2012
International company executive	Executives of foreign groups with a Panama presence	Salary of at least B/.1,000 a month from abroad	Decreto Ejecutivo 320 de 2008 arts. 144 and 146
SEM staff	Employees of licensed multinational headquarters	SEM certification; foreign source salary	Decreto Ejecutivo 320 de 2008 art. 149; Ley 41 de 2007
Remote worker	Employees or freelancers of foreign businesses	B/.36,000 a year of foreign income; no local work	Decreto Ejecutivo 198 de 2021

Main work related migration routes

Worked example

A regional CFO of a group with a Panama subsidiary, paid US$12,000 a month by the parent abroad, uses the international executive permit (salary above B/.1,000 from a foreign source).
A Colombian architect hired locally cannot rely on the professional residence if the profession is reserved to Panamanians, and needs a MITRADEL permit within the 15 percent specialist quota.

Step by step

Map each hire to a route: foreign source pay (executive, SEM, remote) versus local payroll (Friendly Nations employment, professional, MITRADEL permit).
Check that the profession is not reserved to Panamanians and that the hire fits the 90 percent and 15 percent staff ratios (labor/foreign-workers-and-quotas).
File the migration application and, where required, the MITRADEL work permit before the start date.
Never hold employees' passports; register them with the Caja de Seguro Social from day one.

Common traps

Several professions (for example many regulated liberal professions) are reserved to Panamanians by law; the professional residence does not open them.
Executives paid by a Panamanian payroll do not fit the international executive permit, which needs a foreign source salary.
Fines apply per foreigner, so they scale quickly in a team.
Migration status and MITRADEL permits run on separate files and timelines; one does not imply the other.

Sources

← Panama's remote worker visa: B/.36,000 of foreign income, nine months renewable once, B/.250 fee and no local workBecoming Panamanian: naturalization after five years of residence (three with a Panamanian spouse or child), the qualified investor path and the 2026 electronic procedure →

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