Effective immediately, Panama has introduced significant changes to the ‘cancellation with extension’ option for Temporary Residence Visa holders under the Multinational Companies (SEM) program. This provision allows companies to extend a foreign national’s visa for six months beyond their employment termination to facilitate personal matters such as housing and school arrangements or to secure a new job and visa in Panama. Under the regular cancellation policy, foreign nationals can remain in Panama for only seven days once cancellation requirements are complete. Employers who choose to submit a cancellation-with-extension petition instead of a regular cancellation must now do so within five business days from the employee’s termination date, a reduction from the previous 20 business days. Additionally, foreign nationals must return their original Panamanian Identity Cards when filing the petition and will receive a new Identity Card valid for six months or for the remaining period of their original card, whichever is shorter. They can no longer retain their original Identity Cards after cancellation, a measure implemented to prevent misuse beyond the six-month extension period. The cost of the new Identity Card is USD 100 per person. Upon the expiration of the six-month extension, foreign nationals must either exit Panama or apply for a new visa within five calendar days to avoid overstay fines. These updates aim to enhance regulatory control over post-employment residency extensions for SEM Visa holders in Panama.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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