Foreign nationals in Panama have various visa options available to them. Here are some common visa categories:

1. Tourist Visa: This visa allows foreign nationals to visit Panama for tourism or leisure purposes. It is typically granted for a period of 90 days and can be extended for an additional 90 days.
2. Temporary Resident Visa: This visa is suitable for individuals who wish to reside in Panama for a longer period but do not meet the requirements for other visa categories. It is valid for one year and can be renewed annually.
3. Permanent Resident Visa: This visa is available to individuals who have been legally living in Panama for at least five years under a temporary resident visa. Permanent residents enjoy most of the same rights and privileges as Panamanian citizens.
4. Friendly Nations Visa: As mentioned earlier, this visa is designed for citizens of selected countries that have friendly relationships with Panama. It requires establishing economic or professional ties with Panama, such as through investment or employment.
5. Pensionado Visa: Foreign retirees with a lifetime monthly pension of at least $1,000 can apply for this visa. It offers a range of benefits, including discounts on healthcare, entertainment, and other services.
6. Self Economic Solvency Visa: This visa is suitable for individuals who can demonstrate financial solvency and make a substantial investment in Panama, such as purchasing real estate or making a fixed deposit.
7. Business Investor Visa: Foreign nationals who invest a specific amount in a new or existing business in Panama can obtain this visa. The investment threshold varies depending on the type of business.
8. Work Permit: Foreign nationals who have secured a job offer from a Panamanian employer can apply for a work permit. The employer must sponsor the visa application.

Foreign nationals in Panama are subject to different tax obligations based on their residency status and the type of income they earn in the country.  The most common are:

1. Income Tax: Panama operates on a territorial tax system. Non-resident foreign nationals are generally only taxed on income derived from Panamanian sources. The tax rates for non-residents range from 0% to 25% depending on the type of income.
2. Social Security Contributions: Foreign nationals working in Panama are required to contribute to the social security system, known as the Caja de Seguro Social (CSS). The contribution rates depend on the income earned and are shared between the employer and employee.
3. Value Added Tax (VAT): Foreign nationals living in Panama may be subject to VAT on goods and services they purchase within the country. The standard VAT rate in Panama is 7%.
4. Property Tax: If foreign nationals own real estate in Panama, they are required to pay annual property taxes. The tax rate varies based on the value and location of the property.
5. Capital Gains Tax: Foreign nationals selling property or other assets in Panama may be subject to capital gains tax. The tax rate depends on the type of asset and the length of ownership.

It’s important to note that tax laws and regulations are subject to change, and individual circumstances may vary.

The requirements to acquire a Panamanian visa or residency can vary depending on the type of visa or residency permit the client is seeking. Here are some examples for some common visas.

1. Panama Tourist Visa:

• Valid passport with a minimum of six months’ validity.
• Round-trip ticket or proof of onward travel.
• Proof of financial solvency, such as bank statements or a letter from a financial institution.
• Hotel reservations or an invitation letter from a Panamanian resident.

2. Panama Temporary Residency Visa:

• Valid passport with a minimum of six months’ validity.
• Police record or background check from your home country.
• Medical certificate issued by a Panamanian doctor.
• Proof of financial solvency, such as bank statements or a letter from a financial institution.
• Employment contract or proof of economic activity in Panama (for work-related residency).

3. Panama Permanent Residency

• Visa:Valid passport with a minimum of six months’ validity.
• Police record or background check from your home country.
• Medical certificate issued by a Panamanian doctor.
• Proof of financial solvency, such as bank statements or a letter from a financial institution.
• Additional documentation may be required based on the specific category under which you are applying for permanent residency (e.g., investment, retirement, economic solvency, etc.).

It’s important to note that the specific requirements and procedures may change over time, so it’s advisable to consult with a qualified immigration attorney or contact the Panamanian Embassy or Consulate in your home country for the most up-to-date information. Additionally, working with an experienced law firm that specializes in immigration services can help ensure a smooth and efficient process.

The duration of the immigration process in Panama can vary depending on several factors, including the type of visa or residency you are applying for, the completeness of your documentation and any potential complexities or issues that may arise during the process.

Here are some general estimates for different types of immigration applications:

1. Panama Tourist Visa:

•  The processing time for a tourist visa application is typically relatively short, ranging from a few days to a couple of weeks. It is advisable to apply well in advance of your intended travel date.

2. Panama Temporary Residency Visa:

• The processing time for a temporary residency visa can take several months, typically ranging from three to six months. This includes the time required for document verification, background checks, medical exams, and other necessary administrative procedures.

3. Panama Permanent Residency Visa:

• The processing time for a permanent residency visa can also take several months, usually ranging from four to eight months. The timeframe may vary based on the specific category under which you are applying for permanent residency, as some categories may require additional scrutiny or documentation.

These are just general approximations of the timelines, and we work with our clients to get their papers in order as quickly as it is within our power to do so. 

Yes, however the specific requirements and conditions for working legally in Panama will depend on the type of visa or residency permit you hold.

Here are some common scenarios:

1. Work Permit (Specific Employment):

• If you have a work permit issued by the Panamanian Ministry of Labor or another relevant authority, you are authorized to work in Panama for the specific employer and position stated on the permit.

2. Permanent Residency with Work Authorization:

• Certain categories of permanent residency in Panama include the right to work. This can include categories such as Economic Solvency, Qualified Investor, and Professional Employment.

3. Friendly Nations Visa:

• Citizens of countries listed as «friendly nations» to Panama have the option to apply for this visa, which grants the right to work. The visa is based on economic and professional ties, and applicants must have a professional or economic activity in Panama.

4. Independent Economic Solvency Visa:

• This visa is available to individuals who can demonstrate economic solvency and engage in professional or economic activities in Panama. With this visa, you have the right to work independently or establish your own business.

Here are some of the most common issues that are run into regularly:

1. Document Verification and Compliance:

• The immigration authorities may carefully review and verify all submitted documents to ensure compliance with the requirements. If any documents are missing, incomplete, or not meeting the specific criteria, it can result in delays or a request for additional information.

2. Background Checks and Security Clearance:

• Panama conducts background checks as part of the immigration process, including criminal record checks. If an applicant has a criminal history or legal issues, it could complicate the approval process or potentially lead to denial of the application.

3. Medical Examinations:

• Many visa and residency applications require a medical examination conducted by a Panamanian doctor. If there are any health issues or conditions that raise concerns, it might affect the application process.

4. Administrative Delays:

• Like any bureaucratic process, delays can occur due to a variety of reasons, and this is especially true of a country like Panama. Patience is required as the immigration authorities process applications.