Foreign Nationals with Pending Permit Applications No Longer Work Authorized

The Ministry of Labor has begun to apply a stricter interpretation of when foreign nationals can begin working in Panama. Effective immediately, most of those with work permit applications in process are eligible for employment only once the permits are approved. These foreign nationals therefore are advised to limit their activities to those permissible under business visitor status. Previously, foreign nationals could begin working immediately after filing work permit applications, pursuant to the previous Ministry of Labor policy that permitted this employment.

The following groups of foreign workers, however, will be eligible to work immediately after filing work permit applications: General Managers of local companies; Italian nationals filing for indefinite work permits based on a treaty between the two countries; and nationals of the 47 countries currently eligible for the nationality-based permanent residence program.

The two-part immigration process in Panama involves an initial application for temporary or permanent residence that allows the foreign national to reside in the country. This permit, however, does not confer work authorization, and the foreign national must apply for a separate work permit from the Ministry of Labor. Work permits are currently processed in three to four months. As with all foreign nationals in Panama, work permit holders are not permitted to practice certain professional occupations, such as public accountants, architects, doctors, attorneys, dentists and engineers.

Fragomen worked closely with Lambraño, Bultrón & de la Guardia (Panama) to prepare this alert. It is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global Immigration Services or send an email to [email protected].